Key takeaways
- The checklist of kit mortgage paperwork required varies based mostly on the lender, kind of mortgage and sort of kit being bought.
- Paperwork a lender might require embrace marketing strategy, a number of monetary statements, private and enterprise tax statements and different authorized paperwork.
- The principle goal of the paperwork is to present a snapshot of a enterprise’s viability and its capability to make mortgage repayments for the long run.
- Offering correct debt documentation is more and more essential, as “an excessive amount of present debt” is now cited in 41 p.c of financing denials.
Gear financing continues to be one of the vital accessible types of enterprise credit score, with 76 p.c of candidates receiving full or partial approval in line with the 2024 Small Enterprise Credit score Survey revealed in March 2025. This excessive approval price displays the secured nature of kit loans, the place the bought property function built-in collateral for lenders.
The 2025 report signifies that auto and gear loans keep robust approval charges in comparison with different financing choices, with approval charges of 73 p.c of candidates receiving full approval and one other 18 p.c receiving partial approval.
Regardless of favorable approval odds, the documentation necessities for gear financing could be substantial and range considerably by lender kind, mortgage construction, and gear class. Whereas conventional banks sometimes ask for in depth documentation packages, on-line lenders typically streamline necessities to expedite processing.
Understanding what paperwork you’ll want earlier than making use of can considerably enhance your possibilities of approval and assist safe higher phrases. This complete breakdown covers the important paperwork generally required when making use of for gear financing.
Marketing strategy
A marketing strategy speaks volumes about your technique for a way you’ll develop and change into worthwhile. Some lenders require a marketing strategy to study extra in regards to the enterprise, its operations, total market circumstances and monetary projections. Particulars to incorporate in your marketing strategy are:
- Key aims
- Goal market
- Description of services
- Advertising and marketing technique
- Market analysis into rivals and goal prospects
- Mission statements
- Present monetary image
- Monetary projections, together with the break-even level
Monetary statements
Lenders request a number of monetary paperwork to overview your corporation’s total monetary well being. They use these statements to foretell whether or not your corporation has the flexibility to repay the mortgage and to find out the mortgage quantity you qualify for.
Have these monetary paperwork available if you apply:
- Financial institution statements for an image of money move
- Steadiness sheet to indicate property and liabilities
- Revenue and loss assertion
- Income forecasts
- Private and enterprise revenue tax assertion from the previous three years
- Private and enterprise credit score historical past
In some instances, lenders require private monetary statements or credit score reviews, significantly when you’re a startup or don’t have an intensive enterprise credit score historical past. Lenders may additionally require you to have a enterprise checking account.
Buy or franchise settlement
Subsequent, when you purchased your corporation from one other particular person, additionally, you will want the enterprise buy settlement. A enterprise buy settlement may have details about the client, vendor and gear or property bought.
It additionally outlines the tasks that the client and vendor have towards the enterprise after the sale, essential if the earlier proprietor will nonetheless retain some possession or employment.
Likewise, if your corporation is a franchise, you’ll want to supply the franchise settlement granting the rights to function below the franchised model.
Accounts receivable and accounts payable
Together with the opposite monetary statements required for an gear mortgage, lenders additionally want an revenue assertion displaying your corporation’s income and bills. Seeing all accounts receivable and payable helps the lender perceive your present monetary place.
Completely different lenders have totally different necessities for a way a lot income you want so as to be eligible for the mortgage. Many high small enterprise lenders may have low income necessities to maintain their loans accessible to companies nonetheless within the rising phases.
Gear specs and quotes
When making use of for gear financing, you’ll want to supply detailed details about what you propose to buy. This sometimes contains producer specs, mannequin numbers, serial numbers (for used gear), and official quotes from distributors. For substantial purchases, many lenders request quotes from a number of distributors to confirm you’re getting truthful market worth.
For used gear, anticipate to supply extra documentation akin to upkeep data, working historical past, and present situation reviews. These particulars assist lenders assess the gear’s remaining helpful life and potential resale worth — key components in figuring out mortgage phrases.
Appraisal
Relying on the forms of gear or how a lot gear you’re shopping for, the lender might want an appraisal to find out the industrial gear’s true worth. The lender is extra more likely to require this documentation for used gear for the reason that valuation will issue within the gear’s present put on and tear.
Authorized paperwork
Lastly, lenders who provide gear loans might want to see that your corporation is compliant with registration and licensing necessities to run legally. Paperwork chances are you’ll want to supply:
- Enterprise entity paperwork, akin to articles of incorporation
- Enterprise licenses
- Business lease, if relevant
- Contracts with third events
- Employer Identification Quantity (EIN)
To search for your EIN, you may test enterprise monetary paperwork like current revenue tax returns. In any other case, you’ll have to name the IRS on to retrieve the quantity.
SBA mortgage documentation
In case you’re pursuing gear financing by way of an SBA mortgage program just like the 7(a) program, extra documentation shall be required. The SBA affords a number of mortgage sorts with various necessities, however all sometimes require SBA Kind 1919 (Borrower Info Kind) at minimal. SBA loans typically have stricter documentation necessities however provide aggressive phrases and excessive assure percentages — as much as 85 p.c for loans below $150,000 and 75 p.c for bigger quantities by way of the 7(a) Small Mortgage program.
Debt schedule
Lenders are more and more involved about companies’ present debt ranges. The 2025 Federal Reserve Small Enterprise Credit score Survey discovered that companies denied financing have been considerably extra more likely to cite “an excessive amount of debt already” as the explanation for denial (41 p.c in 2024 versus simply 22 p.c in 2021). Offering a complete debt schedule detailing all excellent loans, month-to-month funds, rates of interest, and remaining phrases demonstrates transparency and helps lenders assess your reimbursement capability.
Backside line
Gear mortgage purposes require substantial documentation to show your corporation’s monetary well being, authorized standing, and skill to deal with mortgage funds. Whereas particular necessities range by lender, most will request monetary statements, enterprise documentation, and detailed gear info.
The financing panorama continues to evolve, with the 2025 Federal Reserve report displaying that 59 p.c of small companies sought financing in 2024, with 41 p.c receiving all of the funding they requested. Nonetheless, 24 p.c of candidates obtained not one of the financing they sought, highlighting the significance of thorough preparation.
On-line lenders sometimes have extra streamlined documentation necessities than conventional banks however might cost larger rates of interest. Small banks proceed to supply the very best full approval charges at 54 p.c in comparison with 30 p.c at on-line lenders.
Earlier than making use of, contact potential lenders to verify their precise doc necessities, as being well-prepared can considerably affect each your approval possibilities and the phrases you obtain.
