Private Party Equipment Financing: A Complete Guide
If you are buying equipment from a private party seller and need financing for your business, Crest Capital can help. Notably, we are one of the only equipment lenders who offer private party financing tailored for small and midsize companies.
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Crest Capital provides private party equipment financing for business purchases from any seller.
Found the perfect piece of equipment or vehicle from a private seller and need financing? We are one of the only equipment lenders who offer private party equipment financing and have done so for over 30 years. Crest Capital finances equipment a business uses in its own operations, not equipment for personal use. Private party purchases are one part of our used equipment financing and the broader equipment financing program.
What Is Private Party Equipment Financing?
Private party equipment financing involves funding business equipment or vehicles (usually used) from a seller who is not an authorized dealer or retailer. The seller could be another company or an individual.
B2B Private Party Equipment Financing (sometimes called user-to-user financing) is where one company buys equipment or vehicles from another company. The selling company may have the item for sale for several reasons:
• The owner is retiring/closing the company and selling equipment and vehicles.
• The company is moving to a new location and selling the old location's contents.
• The company is replacing vehicles or equipment and is selling the old units.
Regardless of the seller’s circumstances, Crest Capital can consider B2B private party equipment financing, and purchases from an individual seller as well.
How a Private Party Purchase Works With Crest Capital
• Check your eligibility first, before you commit to the seller. Use Check Your Eligibility Instantly to see whether your business qualifies, with no personal-credit inquiry.
• We consider purchases from any seller, another company or an individual, new or used.
• After approval, the bill of sale and signed financing agreement are part of the process before Crest Capital pays the seller.
• The title or bill of sale is in your business's name.
Financing Private Seller Purchases
A private seller is any seller that is not an equipment dealer: another business, or an individual. Buying from one is also called a private sale. Private seller purchases go through the same application as a dealer purchase; the steps above show how the purchase works.
Why is Private Party Equipment Financing Hard to Find?
In the equipment financing industry, private party transactions are hard to find, and there are several reasons for their scarcity:
Complex Risk Assessment: The nature of private party transactions makes risk assessment more challenging for lenders. It involves evaluating the equipment's condition and market value and confirming there are no existing liens, tasks that can be intricate and time-consuming.
Verification of Ownership: Ascertaining the clear ownership of equipment in private transactions can be tricky. Unlike dealers who have straightforward ownership records, private sellers may not always provide a clear or verifiable history.
Additional Processing Cost: Private party transactions are not one-size-fits-all and require skilled staff for specialized handling, which increases the processing time and cost for the finance company. These transactions demand more resources, which makes them less attractive to most lenders.
Despite these challenges, private party equipment financing presents a real opportunity for buyers. A company or individual selling used equipment may offer a better price than an authorized dealer.
Crest Capital has financed private party equipment purchases for over 30 years. Private party purchases are a deliberate part of our business, not an exception. We consider new and used equipment, including purchases from private sellers. Eligibility depends on your business and the equipment you choose.
Some Examples of Equipment Financed from Private Sellers:
Private Party Machinery Financing
Companies often sell machinery when they upgrade or replace it. Buyers in the same or a similar industry can find hard-to-find machinery this way, usually at a lower price than new.
Private Party Construction Equipment Financing
Construction equipment holds its value for a long time and has no shortage of buyers, which makes it a common private party financing request.
Private Party Vehicle Financing
Companies that buy new vehicles regularly sell their used ones. A business can acquire a good used vehicle from a private seller this way, for use in its own operations.
Private Party Furniture Financing
When a location closes, companies often sell the furniture rather than move it. Furniture is universal, so buyers come from nearly any industry.
Private Party General Equipment Financing
We've financed private party deals that included signage, heavy equipment and machinery, warehouse equipment, medical equipment, and more.
Main Advantages of Private Party Equipment Financing With Crest Capital.
Financing a private party purchase through Crest Capital has several advantages.
First of All, We Actually Offer It
Crest Capital is one of the only lenders offering private party equipment financing. Most lenders, even most banks, will not fund these deals, especially for small and midsize companies. But Crest Capital has been doing it for more than 30 years.
Cash Flow Advantages
Buying used equipment from a private seller can be a good value, and financing it spreads the purchase into monthly payments instead of paying in full. Fixed rates and monthly payments make budgeting predictable. On most transactions, there is no blanket lien on your other business assets.
Tax Advantages of Private Party Financing
Used equipment and vehicles bought for business use are typically still eligible for tax deductions such as Section 179 and bonus depreciation, and a financed purchase can still qualify.
Get The Equipment You Really Want
Business owners sometimes settle for a new model because their lender would not finance the used one they found from a private seller.
You do not have to compromise. If you have found the used piece of equipment you want from a private seller, check your eligibility first.
How to get Private Party Equipment Financing with Crest Capital
One Online Application
Complete one simple online application. No financial statements are needed for financing up to $250,000.
Fixed Rates
Your rate is fixed for the term of the financing, so it does not change after signing.
No Blanket Liens on Most Transactions
Crest Capital also does not use compensating bank balances or ask you to requalify for the loan annually. You run your business as you see fit.
Approval Timing
Approval and funding timing depend on the application and the transaction. Private party deals can involve an extra step to confirm the equipment and its ownership, and having the seller's paperwork and the bill of sale ready can help.
Private Party Equipment Financing and Leasing FAQs
What are the rates for private party equipment financing?
The rate for private party equipment financing can vary based on many criteria: the borrower's credit, the term, the type of financing, the equipment type, and more. Crest Capital's rates are fixed, so your rate does not change over the term, and there is no blanket lien on most transactions.
What lease and loan options are available for private party equipment financing deals?
Crest Capital offers several lease and loan types for your private party financing needs.
Can I finance used equipment from a private seller?
Absolutely. In fact, almost all private seller financing deals are for used equipment and vehicles. The title or bill of sale is in your business's name.
How fast can my company be approved for a private seller equipment financing deal?
Private seller deals can take a bit longer than dealer deals, because there is more to confirm about the equipment and its ownership. We have financed private seller deals for more than 30 years, and the extra steps are a normal part of the process. Approval and funding timing depend on the application and the transaction.
For financing, how is buying from a private seller different than buying from an authorized dealer?
The biggest difference is who is responsible for true ownership of the equipment being sold.
For any piece of used equipment, it is nearly impossible to 100% guarantee it is lien-free. This is largely because of blanket liens. Intentional or not, oftentimes a lien will exist on equipment even if it's not obvious. And technically, an item covered by a blanket lien cannot be sold.
There have been instances where a company sold an item covered by a blanket lien and went out of business a year later. The lienholder then traced the equipment to the new owner and claimed it, and the law will typically back the lienholder, not the new owner. In a case like this, the new owner loses the equipment and the money they paid for it.
If the new owner bought the equipment from an authorized dealer or reseller, the dealer may stand behind the sale. In a private sale, that is less likely. So there is more risk to the buyer with a private party deal, and it pays to know your seller.
What can I do to make my private party equipment financing deal go smoothly?
Having original paperwork for the item and establishing a paper trail back to the original owner can help speed things up. If your seller is the original owner this is easier. If they aren't, getting Crest Capital as much information and paperwork as possible will help. But it will still take a little extra time no matter how much paperwork you can (or cannot) provide.
Please note that the buyer is ultimately responsible for the item being free of any liens.
How can I qualify for private party equipment financing?
Use Check Your Eligibility Instantly to see whether your business qualifies, with no personal-credit inquiry. Start online with your business and purchase details.
Private Party Equipment Financing for Your Business.
Check Your Eligibility Instantly.
About 2 minutesNo personal-credit inquiryInstant answer