Hypothetical example: deposit, inspection and balance timeline for a $48,000 machine
| Day | Event | Cash out |
|---|---|---|
| Day 0 | Sign purchase agreement and pay 10% deposit | $4,800 |
| Day 1 | Submit application with agreement and bank statements | $0 |
| Day 4 | Inspection of the machine; decide to proceed or invoke refund | $0 |
| Day 9 | Review the written offer and sign if it works | $0 |
| Day 12 | Balance due to seller ($48,000 minus $4,800) | $43,200 |
| Day 13 | Pickup and transport to site | $1,500 |
| Total cash out | Deposit plus balance plus transport | $49,500 |
The dates and amounts are hypothetical. Replace each day with the dates in your own agreement, and note that a funder decides its own review timing.
What deposit terms should you read first?
Read the amount, the due date, the form of payment and whether the deposit is refundable, because those four terms decide how much risk you carry.
In the example the deposit is 10% of $48,000, or $4,800. Sellers set the amount to hold the machine off the market, and some ask for far more. A larger deposit is a bigger bet before you have seen the machine.
Pay by a traceable method and get a receipt that names the machine and the serial number. Ask whether the deposit goes toward the price or is a separate holding fee. The guide to presenting a deal to a funder shows how a clear agreement helps your file.
What inspection and refund rights should be in writing?
Write down who inspects, by what date, what counts as a pass and exactly when the deposit comes back if the machine fails.
A verbal promise that you can get the deposit back is not a refund right. Put it in the agreement: the inspection window, the standard (for example, runs under power as described), and the number of days the seller has to return the money.
- Name the inspector, or reserve the right to choose one.
- State whether you may run the machine under load.
- Say whether the deposit is returned in full or less a fee.
- Keep photos and the report together with the agreement.
Ask your attorney to review the agreement if the deposit is large. That is legal advice we do not give here.
Also decide in advance what you will do if the seller finds a second buyer. A clause that stops the seller from accepting other offers during the inspection window protects your deposit and your time. If the seller refuses, treat the deposit as spent money when you plan your cash, and keep it small.
When should you start the funding review?
Start the application as soon as the agreement is signed, and do not wait for the inspection, so the review runs while you verify the machine.
In the example, the application goes in on Day 1 and the offer is in hand by Day 9, before the Day 12 balance date. Decisions typically come within 24 hours of a complete application, but actual funding time varies by product, so never build the plan around one day.
Share the agreement, the machine details and your recent business bank statements. If the inspection changes the price, tell the funder right away rather than letting the file go stale. A funder that sees a price change after the fact may need to restart parts of its review, which costs days you may not have. You can describe your purchase and deadline even before the inspection, and an offer need not be accepted.
How do you plan the balance and pickup?
Set the balance date a few days after the review should finish, and leave a buffer so that a delay does not put your deposit at risk.
Many agreements forfeit the deposit if the balance is late. Ask the seller for a few extra days in writing, in exchange for a firm date. Then book transport for the day after the balance clears, as in the example.
The total in the example is $49,500: a $4,800 deposit, a $43,200 balance and $1,500 for transport. Add rigging and installation if you need them. See equipment financing for auction and used equipment for the funding products that commonly apply.
If the inspection fails, use your refund right promptly and tell the funder. Stopping is cheaper than buying the wrong machine.
Finally, keep a simple log of every date, payment and message with the seller. If a dispute comes up over the deposit, a clear record is the strongest thing you can hold, and it also gives the funder an easy file to review if it asks questions.
Frequently asked questions
Is an equipment deposit refundable?
Only if the agreement says so. Get the inspection window, pass standard and refund timing in writing before you pay. Ask your attorney to review a large deposit.
Can funding cover the deposit itself?
It depends on the product and the funder. Many deposits are paid from cash on hand, and funding is arranged for the balance. Tell the funder how you plan to pay each part.
Should I apply before or after the inspection?
Start the application once you have a signed agreement, so the review runs while you inspect. If the inspection changes the price, send the funder the updated paperwork.
What if the seller wants the balance before my funding is ready?
Ask for a written extension tied to a firm date. Do not release the machine or sign over the deposit terms without understanding what happens if the date slips.
What documents help the funder most?
The signed purchase agreement, the machine details, recent business bank statements, ID and a voided business check. An inspection report adds useful evidence.
Describe your purchase and deadline
Share the agreement, the deposit and the balance date so the review can start.
Updated October 17, 2026 · Prime Funding Now Funding Team