Essential Documentation for New Equipment Finance Application

Your business plan offers the lender a glimpse into your business operations, strategies, and future plans. It should outline your business goals, how you plan to achieve them, and how the new equipment fits into this plan. Demonstrating a well-thought-out plan for the equipment's utilization can be persuasive to lenders.

Lenders will need to see a snapshot of your business's financial health. This includes profit and loss statements, balance sheets, and cash flow statements for the past two to three years. For newer businesses, you might also need to provide projected financial statements.

Business tax returns for the last two to three years give lenders a clear picture of your business's profitability. It's an essential document to prove your ability to repay the finance.

Your bank statements reflect your cash flow status. They help lenders determine whether your business has a stable, positive cash flow to manage loan repayments.

You will need to provide a quote or invoice for the equipment you intend to finance. This should detail the cost of the equipment and any related expenses such as delivery or installation fees. Some lenders may also want specifics about the equipment, such as make, model, and condition.

Proof of your business's legal status, such as your business license or articles of incorporation, helps to verify your business identity.

If your finance agreement is secured, lenders may require information about the collateral you're offering. This could include documentation related to equipment, property, or other assets your business owns.

Lenders often request information about the business owners or principals. This might include personal identification, proof of address, or even personal financial information.

For some types of finance, lenders may request a snapshot of your business's current debt and credit situation. Accounts receivable and payable reports can provide this insight.