When this service may fit
A useful starting point for these transactions
- Business-to-business equipment sales
- Used trucks, trailers and machinery
- Specialized assets with limited dealer inventory
- Transactions requiring lien and ownership checks
- Arm’s-length Canadian sellers
- Buyers who have not yet paid the seller
Why private sales receive more scrutiny
A dealer normally has established processes for ownership, taxes, invoices and delivery. In a private sale, the lender must independently establish who owns the equipment, whether liens exist, whether the seller is legitimate and whether the price is reasonable.
That added diligence protects the buyer, lender and seller. It also means a one-page handwritten bill of sale is rarely enough for a financed transaction.
Information to gather before committing
Start with the seller’s legal name and contact details, equipment make, model, year, serial number, hours or kilometres, detailed price, photos and any maintenance or inspection records.
The final requirements may include corporate documents, proof of ownership, lien discharges, tax treatment, an appraisal or inspection and lender-controlled funding instructions.
Keep the transaction arm’s-length and documented
Related-party transfers, unclear ownership, cash components or a seller unwilling to provide information can limit the available options. Do not send funds or take ownership informally while expecting the lender to reconstruct the transaction afterward.
Merrit Capital coordinates the financing process, but does not act as the buyer’s legal advisor or equipment inspector.