Skip to main content
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.

​
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
curl --request POST \
  --url https://sandbox.layerfi.com/v1/businesses/{businessId}/loans \
  --header 'Authorization: Bearer <token>' \
  --header 'Content-Type: application/json' \
  --data '{
  "loan_type": "EQUIPMENT_FINANCING",
  "external_id": "equip-001",
  "display_name": "Forklift financing",
  "origination_date": "2024-01-15",
  "original_principal": 4200000,
  "loan_term_months": 48,
  "proceeds": [
    {
      "loan_proceed_type": "ASSET",
      "amount": 4000000,
      "date": "2024-01-15",
      "asset": {
        "new_asset": {
          "name": "Forklift",
          "external_id": "equip-001-forklift",
          "asset_type": "EQUIPMENT",
          "original_value": 4000000,
          "useful_life_months": 60,
          "accumulated_depreciation_account": "ACCUMULATED_DEPRECIATION"
        }
      }
    },
    {
      "loan_proceed_type": "DISBURSEMENT",
      "amount": 200000,
      "date": "2024-01-15",
      "method": "ACH"
    }
  ]
}'
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).

​
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.