Lenders sort deals into two lanes. Application-only deals are approved on the credit application, the equipment quote, and a credit pull. Full-package deals add bank statements and financials. Where the line falls depends on the lender, the amount, and the credit, but the shapes are consistent.
Every deal
- The one-page application. Business name, EIN, address, time in business, owner name, ownership percentage, home address, date of birth, and Social Security number for the guarantee. Signed, with the credit authorization.
- The equipment quote or invoice. Dealer quote, auction listing, or a private seller's bill of sale with year, make, model, serial number, hours or miles, and price. A listing link works to start.
- Proof the business exists. Usually pulled by the lender from the state. Have the formation date and the state ready.
Application-only, up to about $150,000
Two or more years in business and a score of about 650 or better, and that is the whole file. Some programs go to $250,000 app-only on strong credit. Under two years or under 650, the lender usually asks for the next list.
Full package, or any deal over about $150,000
- Three months of business bank statements. All pages, all accounts the business uses. The lender is looking at average balance, deposits, and whether any daily or weekly draws are hitting the account.
- Last two years of business tax returns. The full return, all schedules. Sole proprietors and single-member LLCs provide the personal return with Schedule C.
- Year-to-date profit and loss and balance sheet. From your accounting software or your accountant. Internal statements are fine under about $500,000.
- Personal financial statement. Requested by banks and on larger deals. A one-page list of what you own and owe.
Situations that add a document
What slows a file down
Missing pages of bank statements. A quote without a serial number. An application signed by someone who owns less than 20 percent. Tax returns without the schedules. Each one adds a day, and a file that goes back and forth three times reads as disorganized to the credit desk. Send the complete list once.
Lenders make their own credit decisions and set their own terms. Nothing here is an offer of credit or tax advice.
Questions we get
Do I need tax returns for equipment financing?
Not on application-only deals, which cover most purchases under about $150,000 for businesses with two or more years of history and decent credit. Larger deals, start-ups, and challenged credit usually require the last two years of returns.
Why do lenders want bank statements?
To see the average balance, the deposit pattern, and whether the account carries other daily or weekly obligations. Three months is standard; some programs ask for six on larger deals.
Can I apply before I have picked the equipment?
Yes. A pre-approval on the application alone tells you the amount and terms you qualify for. The quote comes in when you find the machine, and the lender confirms it fits.
Do I need to send my Social Security number?
For the personal guarantee, yes. Most lenders under $250,000 require an owner guarantee and pull personal credit. The application can be sent with the number by phone if you prefer not to put it in email.
