An Equipment Bill of Sale Form is a document exchanged between a seller and a buyer for the purchase of equipment or machinery upon an agreed amount of money.
Any form of exchange between a buyer and seller in the business world needs to be documented. As a seller, you must ensure to keep records of your sales in line with each buyer’s information and the amount paid for the products purchased by them. Usually, a receipt is a document you issue to a buyer after a successful purchase. Still, an equipment bill of sale form is usually more preferable when it comes to selling equipment and/or machinery.
In this article, you will learn about the perks of having an equipment bill of sale form handy and how to use one for your business in just a few steps.
As a vendor or seller, you need an equipment bill of sale to document your equipment/machinery sales and legally confirm that a buyer purchased such equipment from you.
Apart from being a legal document representing a change of ownership, it also serves as a sales receipt for such transactions. It usually contains the terms and conditions of the sale, as agreed by both parties involved – depicting a clear understanding and subsequent agreement.
As-Is Equipment Bill of Sale
To be on the safer side, a seller can issue an as-is equipment bill of sale to a buyer upon the purchase of equipment or machinery. When you issue an as-is bill of sale to a buyer, it means the buyer agrees to purchase an item in its condition at the time of exchange. Therefore, you will not be liable for any faults, known or unknown, neither will you (the seller) issue any form of guarantee or warranty. In other words, with an as-is equipment bill of sale, a seller exchanges an item with a buyer in whatever state the item is and will not be responsible for any faults or give a warranty.
Once the buyer agrees to the terms, the bill of sale is signed (signifying endorsement), and ownership and title are transferred to the buyer.
When to Use an Equipment Bill of Sale?
Usually, a bill of sale is not mandatory when selling a piece of equipment or machinery. However, issuing one will put you on a safer side because it explicitly states the arrangement between you and the buyer, especially since the equipment tends to be purchased at a higher amount than the regular. Similarly, issuing an equipment bill of sale form can protect you from any form of liability involved after the equipment has been exchanged. It will also protect you from legal disputes that might arise from such exchange since it can serve as proof that the buyer agreed to certain terms and conditions stated before the exchange and payment.
There are quite a few examples of equipment that you may need to issue an equipment bill of sale for.
An equipment bill of sale form can be used to sell general office tools and machinery, including computers, printers, projectors, desks, photocopiers, scanners, fax machines, etc.
Kitchen equipment and appliances, such as cookware, toasters, coffee makers, microwave ovens, baking ovens, knife sets, dishwashers, etc., are also considered machines. Therefore, you should have an equipment bill of sale form for the sale of such equipment.
Entertainment equipment, including musical instruments, sound systems, lighting instruments, stages, etc.
General and home appliances
Different people purchase general and home appliances from time to time. In some cases, associated liabilities might arise if there is an issue with such equipment. Therefore, it is essential that you issue an equipment bill of sale form to a buyer of general and home appliances, such as ladders, toolsets, snow blowers, refrigerators, lawnmowers, etc. In addition, issuing the bill of sale helps you keep track of your sales records and protects you against refunds or chargebacks.
Construction and commercial equipment
Heavy construction and commercial equipment, including forklifts, bulldozers, boom lifts, scissor lifts, telescopic handlers, etc., are used to make construction works easier. Usually, the sale of such equipment requires an equipment bill of sale form.
For medical equipment, such as defibrillators, syringe pumps, EKG/ECG machines, ventilators, patient monitors, X-ray machines, surgical tables, stretchers, among others, you should ensure an equipment bill of sale form is generated and issued for transactions.
An equipment bill of sale form must accompany various sports equipment on the market during an exchange. Common sports equipment in this category includes sports helmets, shin guards, racquets, wickets, etc. Similarly, hobby equipment such as fishing equipment, hiking tools, camping tents, among others, require an equipment bill of sale form during an exchange between a buyer and seller.
This includes loudspeakers and soundbars, microphones, webcams, projectors, projector screens, audio amplifiers, etc., which can also be sold with an equipment bill of sale form.
Firearms, such as pistols or rifles, can be exchanged using a firearm bill of sale between a buyer and seller. However, the regular equipment bill of sale form can also be used in firearms sales. Therefore, we recommend using a firearm bill of sale form if your business falls in this category.
Equipment Bill of Sale Form Template
Generally, an equipment bill of sale form is a one-page document with necessary information about both parties involved in the transaction, the equipment name and description, the terms of payment (whether cash, check, transfer, or card), as well as the signatures of both the buyer and seller.
You can create a free equipment bill of sale form for your transactions and have it handy for your equipment sales. Simply fill in the relevant details, generate the form, and you are ready to use it as per convenience.
Following are some free downloadable templates for you:
Key Components of the Equipment Bill of Sale Form
Typically, there is some essential information that must be present on an equipment bill of sale form, and the onus is on the seller to ensure all of this information is available. Therefore, as a seller, you must put in all the key details related to the equipment for sale and the transaction as a whole.
The vital information that should be available on an equipment bill of sale form include:
The purchase date
As the name implies, the purchase date is the date of the transaction. At the same time, it is the date on which both the seller and buyer assented their signatures to the equipment bill of sale. Therefore, the corresponding day, month, and year of the purchase have to be specified for record purposes.
The full information of the seller must be available on the equipment bill of sale form. The necessary seller’s information is; the seller’s full name/business name and their mailing or business address.
Similar to the seller, the buyer should provide their details, including their full name and address.
The equipment about to be sold must be fully described by the seller in the document.
The relevant details to be provided are:
- The description of the item (including its color and other specifics or peculiarities).
- The product make, including the manufacturer’s name and other information.
- The product model information.
- The year of manufacture.
- The product’s serial number.
- The number of hours the product has worked for (if applicable).
- The reading on the equipment’s odometer (if available).
Liens and encumbrances
Your goal is to ensure that the buyer understands the condition of the good at the time of purchase and ensure the transaction is free from all liens and encumbrances after the purchase.
The amount agreed by both parties for the item(s) should also be clearly stated in the document. The amount can be written in words and numbers (if applicable), including the sales tax amount.
How the buyer chooses to pay should be included in the information on the equipment bill of sale form. Options include credit or debit card, cash, check, or any other means of payment accepted by the seller.
At the end of it all, after the terms and conditions stated have been agreed upon between both parties, the document must be endorsed to be valid. The equipment bill of sale only becomes legally binding after the signatures of both the buyer and seller have been appended with signature dates. Usually, at least, a witness is also needed to sign and date the document. Subsequently, each party should keep a copy as part of their records.
How to Sell Used Equipment
Getting used equipment sold might not be as easy as it seems, primarily because of the high level of trust needed by buyers before they can initiate a purchase. So, as a seller, you want to make sure you have the best practices in place to boost your sales.
We have highlighted a few recommended steps to follow when trying to sell used equipment:
Check the condition of the equipment
In order to protect your business image and avoid any form of liability that might arise from selling poor equipment, you must ensure you do a thorough check of your equipment and ascertain its working condition from time to time. If the equipment needs repair or refurbishing, you can get it done to have your bargaining power in check. Once you are sure the equipment is good enough to be sold, you can now put it up for sale.
Create an impressive advertisement
There is a great probability that you are not the only one with the equipment for sale. Therefore, you want to stand out among your competitors – and a compelling ad can help you achieve this. Start by creating very descriptive information about the equipment, including the make, model, color, year of manufacture, and serial number. You can also add all the additional specs and any issues the equipment has for more credibility. Ensure to add apparent photos of the item, and make sure you get your angles right. You can also study your competitors’ similar ads or related ads on online platforms used for the same purpose for more insights about descriptions and average pricing.
List your promotions to make a sale
For more reach and potentially more sales, get some publicity done for your product. You can use traditional marketing channels like newspapers, neighborhood magazines or publications, and flyers. You may also resort to digital marketing, using online ads on various platforms like Facebook marketplace/groups, eBay, Instagram, equipment trader at $24.95, machinery trader for free, Craigslist, etc. Both traditional and online marketing methods can help you attract more buyers and ultimately make more sales.
Negotiate and seal the deal
Once you are able to find a buyer, what is left is for you to schedule a meeting with the interested buyer to inspect the product and finalize the deal. It is advisable to meet in an open space in public to ensure a decent level of safety. Similarly, if a huge amount of money is to be exchanged, suggest a bank transfer, check, or agree to meet at the buyer’s bank to avoid moving around with a lot of cash. Upon successful negotiation, get a bill of sale form ready, endorse the document alongside your customer, receive your payment, and seal the deal.
Before finalizing a sale, the seller should always be aware of the fact that the buyer might ask for the serial number, original purchase receipt/bill of sale, financing proof of original purchase, and run the serial number through Stolen Register to verify the authenticity of the equipment.
As a businessperson, it is imperative that you have the legal aspect of your business airtight and avoid every form of liability that might arise from errors and loopholes. Having an equipment bill of sale form can help you ensure you have your sales records and legalities intact. It also puts your business on the good side of the law in case there is an after-sale dispute. So create a tested and trusted free equipment bill of sale form from Word Templates Online – and have your form ready within minutes.