Key takeaways
- The list of equipment loan documents required varies based on the lender, type of loan and type of equipment being purchased.
- Documents a lender may require include business plan, multiple financial statements, personal and business tax statements and other legal documents.
- The main objective of the documents is to give a snapshot of a business’s viability and its ability to make loan repayments for the long term.
- Providing proper debt documentation is increasingly important, as “too much existing debt” is now cited in 41 percent of financing denials.
Equipment financing continues to be one of the most accessible forms of business credit, with 76 percent of applicants receiving full or partial approval according to the 2024 Small Business Credit Survey published in March 2025. This high approval rate reflects the secured nature of equipment loans, where the purchased assets serve as built-in collateral for lenders.
The 2025 report indicates that auto and equipment loans maintain strong approval rates compared to other financing options, with approval rates of 73 percent of applicants receiving full approval and another 18 percent receiving partial approval.
Despite favorable approval odds, the documentation requirements for equipment financing can be substantial and vary significantly by lender type, loan structure, and equipment category. While traditional banks typically ask for extensive documentation packages, online lenders often streamline requirements to expedite processing.
Understanding what paperwork you’ll need before applying can significantly improve your chances of approval and help secure better terms. This comprehensive breakdown covers the essential documents commonly required when applying for equipment financing.
Business plan
A business plan speaks volumes about your strategy for how you’ll grow and become profitable. Some lenders require a business plan to learn more about the business, its operations, overall market conditions and financial projections. Details to include in your business plan are:
- Key objectives
- Target market
- Description of products and services
- Marketing strategy
- Market research into competitors and target customers
- Mission statements
- Current financial picture
- Financial projections, including the break-even point
Financial statements
Lenders request multiple financial documents to review your business’s overall financial health. They use these statements to predict whether your business has the ability to repay the loan and to determine the loan amount you qualify for.
Have these financial documents on hand when you apply:
- Bank statements for a picture of cash flow
- Balance sheet to show assets and liabilities
- Profit and loss statement
- Revenue forecasts
- Personal and business income tax statement from the past three years
- Personal and business credit history
In some cases, lenders require personal financial statements or credit reports, particularly if you’re a startup or don’t have an extensive business credit history. Lenders may also require you to have a business checking account.
Purchase or franchise agreement
Next, if you bought your business from another individual, you will also need the business purchase agreement. A business purchase agreement will have information about the buyer, seller and equipment or assets purchased.
It also outlines the responsibilities that the buyer and seller have toward the business after the sale, important if the previous owner will still retain some ownership or employment.
Likewise, if your business is a franchise, you’ll need to provide the franchise agreement granting the rights to operate under the franchised brand.
Accounts receivable and accounts payable
Along with the other financial statements required for an equipment loan, lenders also need an income statement showing your business’s revenue and expenses. Seeing all accounts receivable and payable helps the lender understand your current financial position.
Different lenders have different requirements for how much revenue you need in order to be eligible for the loan. Many top small business lenders will have low revenue requirements to keep their loans accessible to businesses still in the growing phases.
Equipment specifications and quotes
When applying for equipment financing, you’ll need to provide detailed information about what you plan to purchase. This typically includes manufacturer specifications, model numbers, serial numbers (for used equipment), and official quotes from vendors. For substantial purchases, many lenders request quotes from multiple vendors to verify you’re getting fair market value.
For used equipment, expect to provide additional documentation such as maintenance records, operating history, and current condition reports. These details help lenders assess the equipment’s remaining useful life and potential resale value — key factors in determining loan terms.
Appraisal
Depending on the types of equipment or how much equipment you’re buying, the lender may want an appraisal to determine the commercial equipment’s true value. The lender is more likely to require this documentation for used equipment since the valuation will factor in the equipment’s current wear and tear.
Legal documents
Finally, lenders who offer equipment loans will need to see that your business is compliant with registration and licensing requirements to run legally. Documents you may need to provide:
- Business entity documents, such as articles of incorporation
- Business licenses
- Commercial lease, if applicable
- Contracts with third parties
- Employer Identification Number (EIN)
To look up your EIN, you can check business financial documents like recent income tax returns. Otherwise, you’ll need to call the IRS directly to retrieve the number.
SBA loan documentation
If you’re pursuing equipment financing through an SBA loan program like the 7(a) program, additional documentation will be required. The SBA offers several loan types with varying requirements, but all typically require SBA Form 1919 (Borrower Information Form) at minimum. SBA loans generally have stricter documentation requirements but offer competitive terms and high guarantee percentages — up to 85 percent for loans under $150,000 and 75 percent for larger amounts through the 7(a) Small Loan program.
Debt schedule
Lenders are increasingly concerned about businesses’ existing debt levels. The 2025 Federal Reserve Small Business Credit Survey found that firms denied financing were significantly more likely to cite “too much debt already” as the reason for denial (41 percent in 2024 versus just 22 percent in 2021). Providing a comprehensive debt schedule detailing all outstanding loans, monthly payments, interest rates, and remaining terms demonstrates transparency and helps lenders assess your repayment capacity.
Bottom line
Equipment loan applications require substantial documentation to prove your business’s financial health, legal standing, and ability to handle loan payments. While specific requirements vary by lender, most will request financial statements, business documentation, and detailed equipment information.
The financing landscape continues to evolve, with the 2025 Federal Reserve report showing that 59 percent of small businesses sought financing in 2024, with 41 percent receiving all the funding they requested. However, 24 percent of applicants received none of the financing they sought, highlighting the importance of thorough preparation.
Online lenders typically have more streamlined documentation requirements than traditional banks but may charge higher interest rates. Small banks continue to offer the highest full approval rates at 54 percent compared to 30 percent at online lenders.
Before applying, contact potential lenders to confirm their exact document requirements, as being well-prepared can significantly impact both your approval chances and the terms you receive.
Frequently asked questions
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