|Private Sales: An Alternative to the "Standard" Transaction
For some business people, visiting a dealer to purchase a piece of equipment may not be the best option. Sometimes, buying directly from the owner in what's called a "private sale" or "peer-to-peer" transaction is preferred.
There are several reasons why a buyer may find a private sale an attractive alternative to standard financing. Often, the equipment may be less expensive given that it's directly purchased by the buyer from the owner. Second, some products are not readily available from dealerships. And finally, some buyers would rather transact directly with people they know and trust.
Working with North Mill
At North Mill, we've been financing private sales for years and have found that our referral sources enjoy the flexibility. Generally speaking, we treat private sales just like any other transaction. That means for submission we need a signed credit application and an invoice or bill of sale with equipment specifications emailed to firstname.lastname@example.org. We also require:
Other documentation and information may be requested as the deal is processed. All equipment we normally consider for financing is eligible for a private sale except for over-the-road sleepers. Our standard guidelines remain in force for all eligible equipment, e.g., equipment type, age, mileage. Additionally, we only finance equipment that is unencumbered or free and clear.
- A notarized bill of sale and notarized documents prior to funding
- A clear UCC search and lien search performed by NMEF prior to funding
- Seller's evidence of ownership prior to requesting documents
- Equipment appraisal in support of the sales value prior to requesting documents
- Proof of paid property tax prior to requesting documents if applicable
Given the nature of the deal, a private sale may take a bit longer to process than a standard transaction; credit decisions sometimes require an additional 24 hours to finalize.
Please don't hesitate to learn more about the benefits of private party financing. Your North Mill account manager can tell you more.
Return to The Compass