Many machines are sold before they're paid off. That's normal and completely doable. Here's how it works.
Can I legally sell equipment I still owe money on?
Yes. But the lender has a security interest, usually recorded as a UCC-1 financing statement, so the buyer won't get clear ownership until the loan is paid off and the lien is released. The sale has to be set up so the lender gets paid first.
What is a payoff letter, and how do I get one?
A payoff letter is a written statement from your lender showing the exact amount needed to pay off the loan by a specific date, with per-day interest, plus wiring instructions. Call your lender or check your online account. Ask for a letter that's good through your expected closing date.
How does closing work when there's a lien?
- The buyer, or the buyer's lender, sends the payoff amount directly to your lender.
- The rest of the purchase price goes to you.
- Your lender issues a lien release and files a UCC-3 termination.
- You sign the bill of sale and hand over the machine and its records.
Buyers who know what they're doing will insist on this setup, since paying the lender directly protects them. Our lien-check guide explains what buyers look for.
What if I owe more than the machine is worth?
That's called negative equity. You'll need to cover the gap at closing with cash or other funds, because the lender won't release the lien for less than the payoff. Check your machine's market value with our Value Estimator before you list, so you know where you stand.
Should I tell buyers about the loan up front?
Yes. Being open about it builds trust, and buyers will find the UCC filing anyway. Say that a payoff letter is available and that the lien will be paid off at closing. That reassures buyers and speeds up their financing approval.
Can the buyer finance a machine that still has my lien on it?
Yes. Equipment lenders handle this all the time. The new lender pays off your loan directly, gets the release and records its own lien. Buyers on EquipMarket can apply for financing straight from your listing, and lender-funded deals are among the cleanest ways to close a liened sale.
What about a leased machine?
If the machine is leased, not financed, you don't own it yet. Look at your lease. With a $1 buyout or a set purchase option, you'll usually need to exercise the buyout before selling, or have the buyer's funds cover it. Our guide to lease types explains the differences.
How do I apply for equipment financing through EquipMarket?
Financing is built into EquipMarket for buyers and sellers. Buyers can pre-qualify through our lending partner, Southend Capital, with one short application. Terms run 24 to 72 months, and you can choose an Equipment Finance Agreement (finance-to-own), a traditional lease, a 10% fair-market-value lease or a $1 buyout lease. Sellers benefit too: a buyer who is already approved can close quickly and pay in full.
Apply for financing now → or compare financing options and estimate a payment. Rates and approval are set by the lender based on your credit, time in business and the machine.
Ready to sell? List your machine free.
