Equipment loans are loans secured by the equipment you are purchasing — in other words, your purchase itself becomes the loan collateral.
This type of loan is meant to finance the purchase of a vehicle or equipment that produces or aids in earning income, and there should be a clear distinction between personal and business use.
It's important to note that defaulting on an equipment loan will result in the equipment becoming repossessed by your lender, so we recommend carefully evaluating your finances before applying.
What you'll need
By bringing a complete loan package, you'll ensure the fastest service and best loan structuring for your particular situation and needs.
In order for us to review and respond to you business loan request, we require the following documents with original signatures and dates:
For all guarantors and individuals who own or control 20% or more of the business:
- Personal financial statement (contact us for this form)
- Personal federal tax returns (minimum past 2 years with all K1s, W2s, and supporting schedules)
For the business:
- Business loan application (contact us for this form)
- Business debt schedule (contact us for this form)
- Business financial statements (past 2 fiscal year-ends of Balance Sheet & Income Statement)
- Interim financial statements (dated within 60 days of application)
- Business federal tax returns (including all supporting schedules for past 2 years)
- Business plan (when requested)
- Current Accounts Receivable (A/R) and Accounts Payable (A/P) aging reports
- Business licenses and registrations required for you to conduct business
- Articles of Incorporation/Organization (501c3, if tax-exempt)
- Bylaws
Depending on your unique circumstances, additional documentation may be required. If you're not sure where to get started, our Commercial Team is ready to answer your questions!
Additional documents
In addition to the documentation needed for a business loan with Freedom First, for an equipment loan you may also be asked to provide:
- Equipment quote
- Assessment of equipment condition
If you're not sure where to get started, our Commercial Team is ready to answer your questions!