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Equipment financing funds the purchase of equipment. Create the loan with at least one ASSET proceed that creates (or links) the financed asset; the API does not require it, but in practice there should be one. If the financing covers more than the equipment’s cost, add a cash DISBURSEMENT proceed for the remainder.

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Step 1: Create the loan

Create a loan with loan_type set to EQUIPMENT_FINANCING, original_principal, and loan_term_months. In the example below, a $42,000 loan funds a $40,000 forklift (an ASSET proceed that creates the asset) with the remaining $2,000 disbursed as cash. Giving the new asset an external_id lets you record its depreciation later without storing Layer’s IDs.
Request
Track the financed asset’s depreciation over time with asset value updates, referencing the asset by its asset_external_id (for example, equip-001-forklift).

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Step 2: Record repayments

Equipment financing repayments work exactly like term loan repayments: each is a loan payment split into PRINCIPAL and INTEREST, and if you have an amortization schedule we recommend pre-creating the installments with defer_posting set to true.