Get a loan on equipment
With a loan against equipment a business can get working capital. In a loan on equipment or vehicles, the owner keeps the equipment or vehicles and retains ownership when it is paid off. This asset based option is often used as one way to get a large business loan.
Qualifying equipment includes many types of construction and industrial equipment, business and commercial business vehicles. This includes tractor trailers, big rigs, commercial vehicles and semi -trucks. Low credit scores down to 500 and below may qualify.
How to get a loan against equipment
1. Prepare your asset list.
Make a list of the free and clear equipment assets your business owns. Include description, manufacturer, year, and model numbers.
2. Have your asset list ready to provide.
Tip: Available programs lend up to a maximum of 60% on qualifying assets and must be free and clear. Eligible equipment is very restricted.
Search for Lenders that specialize in loans against equipment. Most lenders only lend against 2 or 3 equipment types. These include construction equipment, dump trucks, and tractor trailers. Maximum age limits are common.
3. Contact the lenders that provide loans on the free and clear equipment you have
Ask about the approval and closing requirements. Find out what assets are accepted and what percent of the value can be loaned against. Also ask about credit scores, documentation required, and time to close. Settle on the program that is the best match for your business compared to the requirements.
How to Tip:
Provide the lender your asset information. Ask if they can review your asset list and pre-qualify you based on the value.
4. Complete an application
Provide any income verification and asset information you have when applying. Pictures and copies of any titles front and back are advised.
5. Close Transaction
Review any approval terms and conditions. A site inspection paid by the borrower may be required as well as proof of purchase and ownership. If you are declined, contact the lender to find out if you can cure the decline reasons and obtain an approval.
Once you are ready to close, request documents and finish the paperwork. Complete all closing items required and receive funding.
FAQ Frequently asked questions on a loan against equipment or vehicles.
What is a loan against equipment?
A loan on equipment lets businesses use the equipment or vehicles they own outright to qualify for a business loan. Borrowers can get a loan against construction equipment as well as tractor trailers and semi-trucks. Other qualifying assets include business vehicles and some types of machinery. The approval process is usually one or two days and the collateral stays on your property.
How much can I get?
You can get up to 60% against the current retail value of qualifying pieces. If your equipment has higher than market value, then provide documentation to prove the value from upgrades or customization.
How do put a value on the pieces?
Asset value data is used for each equipment type. The prices of comparable pieces on sale through industry leading vendors and suppliers may be used.
How old can my assets be?
Most trucks can be up to 8 years old. More than 8 years can still be funded with reduced approvals. Construction pieces and machinery can be older depending on the type, manufacturer, model and age.
Do I need to have proof of ownership?
Proof of ownership will be needed. Title, registration or bill of sale can be used for proof of ownership. Proof of purchase may also be needed and can be a paid invoice, loan or lease payoff letter, or bank proof of payment.
Can you take trucks or cars as collateral?
Free and clear trucks or cars including big rigs, semi trucks, OTR over the road tractor trailers, dump trucks, and vans may be used as security. Standard trailers such as big tex and gooseneck can be pledged. Cars, trucks and passenger vehicles may qualify if they are used partially for business.
Cnc milling machines, 18-wheelers, rigs, tractor trailers qualify. Machine tools may also bring significant working capital.
Construction equipment such as front end loaders, bobcats, skid steers, bulldozers, ditch witches, woodworking equipment, semi trucks, 18 wheelers, tractor trailers may also qualify.
Your business makes money by using equipment rather than owning it. Get the unused cash in your equipment and use it for cash flow in your business.
Submit the one page loan against equipment application and also the equipment list . Decisions are usually made in 1 day. Funding happens within five business days. $150,000 total funding is available.
Tell us the type of loan you are looking for. Callers ask for different types of loans. Some ask for a loan against construction equipment. Others ask for a loan on equipment using their construction assets. Some callers request a loan on machinery.
Underwriting reviews the age and condition of the equipment. Complete the equipment list. Use the most valuable and newest equipment on hand. Older equipment may qualify. This includes trucks and tractors. Through this loan against equipment, loans against a tractor-trailer is approved. It is also called a loan against an 18 wheeler as well as a loan against semi-trailer truck. Other products are a loan against a big rig, and loan against a semi truck.
Top 3 equipment types to get a business loan on or against
1 OTR Over the road trucks 2012 and newer
2 Construction Equipment or yellow iron
3 Dump trucks
Top 7 vehicles to get a business loan against:
1 Commercial Vehicles
2 OTR Over the road trailers
3 Big Rigs
4 Semi Trucks
5 Dump Trucks
The following are examples of equipment and vehicles that can qualify under the program!
1. Cat 314ELCR
2. Cat TL943
3. Doosan DX 300LL-5
4. Ford F250XL and Ford F350XL
5. Ford F450
6. John Deere 225DLC
7. Kenworth T370
Thank you for visiting our loan against equipment resource page.