Can I finance equipment from a private seller?

Many lenders do, often with a bill of sale, inspection, or lien search. Expect slightly stricter review than dealer paper.

Loans build equity; leases may swap lower payments for return/end-of-term options. Your accountant should weigh Section 179 and cash flow.

Equipment financing & leasing

What it is

Equipment financing is a loan or lease tied to a specific asset: an excavator, semi, trailer, CNC mill, service van, or similar. Payments are spread over months or years. Leasing may offer lower payments or tax treatment your advisor can explain; a loan builds equity in the asset.

Section 179 deadline calculator (2026) — estimate the deduction before you apply, using IRS Pub. 946 limits.

Who it fits

A restaurant upgrading kitchen equipment before a busy season.
A dental practice financing imaging or chair-side equipment.
A trucking company adding a used day cab and flatbed.
A manufacturer or machine shop financing a second CNC for overflow work.

What many lenders look for

Many lenders look for roughly 6–12+ months in business, though some programs work with newer companies when revenue is strong.
Many equipment lenders cite personal/business credit around 600+, with stronger files getting better rates.
Revenue that comfortably supports the payment after fuel, payroll, and materials.
A quote or invoice for the equipment, VIN or serial when available, and new vs. used.

Pros

The equipment secures the financing, which can help approval vs. unsecured options.
Terms can match useful life — 3–7 years is common on heavy equipment.
Lease vs. buy choices let you align payments with how long you keep the asset.

Cons

You can owe more than the asset is worth early on if values drop.
Default risk includes repossession of the machine you rely on for work.
Soft costs (documentation, interim interest) vary by lender.

Questions to ask any provider

Is this a loan or a lease, and who owns the title?
What is the total cost including fees, and is there a prepayment penalty?
For used equipment, how do you determine value and required down payment?

Run the numbers

Illustration only — not a quote or offer.

Equipment payment estimate

Standard amortization at the APR you enter — total finance charge is interest plus any fees the lender adds (not modeled here).

Amount financed ($)APR (%)Term (months)

Monthly payment: $3,796
Total paid over term: $227,733
Finance charge (interest): $42,733
Finance charge as % of amount financed: 23.1%

Compare other options

FAQ

Can I finance equipment from a private seller?: Many lenders do, often with a bill of sale, inspection, or lien search. Expect slightly stricter review than dealer paper.
Lease or loan?: Loans build equity; leases may swap lower payments for return/end-of-term options. Your accountant should weigh Section 179 and cash flow.