# Buying used equipment from a private seller: what paperwork does a funder want?

A private sale has no auction house or dealer file behind it, so you build the evidence yourself. Funders commonly want proof the seller owns the machine, an invoice with the serial number, and a record of its condition. Gather these before you agree on a price and your funding review has far less to chase.

## Hypothetical example: private-sale document checklist for a used machine

| Document | What it shows | Ready? |
|---|---|---|
| Seller name and address | Who is being paid | Yes |
| Proof of ownership (title, prior bill of sale or purchase record) | Seller can legally sell it | Requested |
| Written invoice or bill of sale draft | Price, date, payment terms | Draft |
| Serial number photo from the nameplate | Exact asset identity | Yes |
| Lien search or written seller statement of no liens | No other claim on the machine | Requested |
| Inspection report or dated condition photos | Working order today | Scheduled |
| Your bank statements, ID and voided check | Your side of the file | Yes |
The statuses are hypothetical. Mark each row for your own purchase and ask the funder which items it requires, since acceptance differs by funder.

## What seller and asset evidence should you collect?

Collect the seller's full legal name, address and proof that they own the machine, because a funder needs to know who is being paid and that they have the right to sell.

If the seller is a business, ask for the company name on the title or earlier purchase record. If the seller is an individual, ask for the title, a prior bill of sale or the original purchase invoice. Photos of the machine in place help connect the paperwork to the physical asset.

Ask the seller for a written statement about liens. A lien search can confirm it, but a funder may want its own check anyway. Our guide to [documents for opportunity funding](https://primefundingnow.com/blog/documents-for-opportunity-funding/) lists what is commonly requested on your side of the file.

## Why do the invoice and serial number matter?

The invoice fixes the price and the date, and the serial number fixes exactly which machine is being bought, so both are central to a funder's review.

Write the invoice or bill of sale so it names the buyer, seller, make, model, year, serial number, price and payment method. Photograph the manufacturer's nameplate and make sure the number matches the paperwork, character for character.

A vague receipt that says "one lathe, $25,000" invites questions. A clear one answers them before they are asked. If the seller is reluctant to put the price in writing, treat that as a warning about the deal itself.

Avoid paying the seller in full before the funder has seen the invoice. Ask the funder what order of steps it expects so you do not complete the sale in a way that complicates the review.

## How should you document inspection and condition?

Document condition with a dated inspection report or, at minimum, dated photos and a short video showing the machine running.

A used machine from a private seller usually has no warranty and no return policy. An independent technician's report is the best protection, and it also gives the funder something concrete about value and working order.

- Photograph hours or mileage meters, wear points and the nameplate.
- Record a short video of the machine under power.
- Note any repairs the seller mentions, in writing.
- Keep the inspector's contact details and invoice.If the report finds problems, renegotiate or walk away. A lower price with known repairs is a decision you can fund. An unknown defect is not.

## How does funder-specific acceptance work?

Each funder decides which private-sale evidence it accepts, so the same checklist can be enough for one and incomplete for another.

Some funders are comfortable with a clean bill of sale and photos. Others ask for a title search, an appraisal or an inspection by a named company. Prime helps businesses get funded, and the funder that makes an offer reviews the file and sets its own requirements.

Ask early, and put every answer in your notes. The [equipment financing for auction and used equipment](https://primefundingnow.com/funding-solutions/equipment-financing-auction-and-used-equipment/) page explains the products that usually apply, and you can [start your application](https://primefundingnow.com/apply/) with the checklist items you already have, then add the rest as they arrive.

Describe your purchase and your deadline plainly. A seller who knows you are arranging funding is more likely to wait for the paperwork.

## Frequently asked questions

**Can I get funding to buy equipment from an individual?**

Often a request can be reviewed, depending on the funder and the evidence. Expect to show ownership, a written invoice with the serial number, and condition records. Each funder decides what it accepts.

**What is the most important document in a private sale?**

Usually the written invoice or bill of sale with the serial number, supported by proof the seller owns the machine. Both identify the asset and the right to sell it.

**Do I need an inspection for a private-seller machine?**

It is not always required, but it is strongly advised. A dated inspection report protects you from hidden defects and gives the funder evidence of working order.

**What if the seller has a lien on the equipment?**

A lien means someone else has a claim. Ask the seller to clear it as part of the sale, with written proof, before funds are sent. Ask your attorney how to handle it.

**Should I pay the seller before I have an offer?**

Avoid it. Paying in full first can complicate the funder's review and leaves you exposed if the sale falls through. Ask the funder what order it expects.

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Canonical: https://primefundingnow.com/guides/used-business-equipment-private-seller-funding/
Updated: 2026-10-17