- Tools and equipment · TDM
- Operations Manager, Accounting / Analytics, Plant / Operations Director, IT Director / CTO
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Equipment loan agreement: a printable template and what each part is for
In short
An equipment loan agreement records that one party lends equipment to another for a defined period and purpose, without payment, and sets out condition, duties and return. Use it when equipment leaves your control for longer than a shift, or goes to someone outside the company. There is no single official form, so adapt the template and have legal counsel review it for your jurisdiction.
When a loan agreement is needed
A checkout form is enough when a technician takes a drill for a day. A loan agreement is for situations with more at stake:
- equipment lent to an employee for weeks or months (a laptop for remote work, a measuring instrument for a project),
- equipment lent to a contractor, a partner or a customer without a rental fee,
- valuable or calibrated equipment where condition and liability must be written down,
- equipment that leaves the site and may be used where you cannot see it.
For short internal issues, the Equipment checkout form is lighter. For a one-off change of holder, use the Equipment handover form.
No single official form
There is no standard document that every organization must use. What matters is that the agreement identifies the parties and the items, states the purpose and period, describes the condition and says what happens on return or damage. Terms about liability, insurance and deductions from pay vary by state and by situation. Have legal counsel review the text once before you adopt it as your standard, and do not change the legal parts case by case.
Printable template
EQUIPMENT LOAN AGREEMENT no. ……… / ………
Date and place: ……………………………………………
| Lender (company, representative) | …………………………………………… |
|---|---|
| Borrower (name, position or company) | …………………………………………… |
| Purpose of the loan | …………………………………………… |
| Loan period | From ……………… to ……………… |
| Place where the equipment will be used | …………………………………………… |
| No. | Item and model | Asset / tag number | Serial number | Condition at handover | Accessories |
|---|---|---|---|---|---|
| 1 | |||||
| 2 | |||||
| 3 |
1. The Lender lends the equipment listed above to the Borrower free of charge for the stated purpose and period.
2. The Borrower will use the equipment only for the stated purpose, keep it in good condition, not pass it to third parties and not modify it.
3. The Borrower will report loss, theft or damage to the Lender without delay.
4. The Borrower will return the equipment with all accessories by the end of the loan period or on earlier request of the Lender.
5. Responsibility for loss or damage, and any insurance: ……………………………………………………………
6. Additional terms: ……………………………………………………………
| Signature, Lender | Signature, Borrower |
|---|---|
Return: date ……………… condition ……………………… accessories complete: yes / no. Received by ……………………… signature ………………
How to fill it in
- Parties. Use full names and a role. For a person, add the position; for a company, the person who signs for it.
- Purpose and period. A specific purpose ("site survey, project X") and real dates. "Until further notice" invites trouble.
- Items. One line per item with the asset tag and the serial number. Add accessories, because chargers and cases are what goes missing.
- Condition. Write what you can see: "scratch on the lid, battery at full charge". A photo attached to the record helps.
- Clauses 5 and 6. Leave blank or complete them after your counsel has set the standard wording.
- Signatures. Both parties sign, and each keeps a copy.
- Return block. Complete it at return, so the same document closes the loan.
Common mistakes
- No serial number, so the item cannot be identified later.
- An open-ended period, so nobody asks for the item back.
- No condition noted at handover, which leaves a dispute about damage unresolved.
- An agreement filed in a drawer and never linked to the register, so the holder is still the old name.
- A different clause set for each loan, which makes the documents hard to compare.
From paper to a register
A loan that exists only on paper is hard to find a year later. The better pattern is to keep the record in the register and attach the signed document to it. In Remanently Tools equipment can be issued to an employee or lent to a customer, with a handwritten signature given on a smartphone screen and a history of issues and returns. The document, the holder and the due date then sit on the same item. Quick Start adds deadlines and reminders for returns. For more on the flow, read Equipment management software.
Loan, rental or handover?
Three situations look alike and need different paper. A handover changes the responsible person inside the company, usually for an indefinite time. A loan gives equipment to someone, often outside the company or for a defined project, without payment and with a return date. A rental involves a fee and usually a longer set of terms, which counsel should prepare.
If you are unsure, ask who is the other party and whether money changes hands. Inside the company and no money: handover or checkout form. Outside the company or a long period, no money: loan agreement. Money involved: rental terms. Keeping the three separate stops a loan from slowly turning into an informal, unpaid rental with no written conditions.
Frequently asked questions
Is there an official equipment loan agreement form?
No single official form applies to every organization. Use a template with the elements above and have legal counsel review the standard wording for your jurisdiction.
What is the difference between a loan agreement and a checkout form?
A checkout form records a short, routine issue inside the company. A loan agreement adds purpose, period, duties and liability, and fits longer loans or loans to outside parties.
Should the loan be free of charge?
The template assumes a free loan. If a fee is charged it is a rental, and you need different terms, which counsel should prepare.
Can we sign electronically?
Whether an electronic signature is enough depends on your jurisdiction and your own policy. In Remanently Tools a signature can be given on a smartphone screen at handover; check the legal side with counsel.
Who keeps the agreement?
Both parties keep a copy, and the company links its copy to the item in the register so the holder and due date stay visible.
Link loans to your equipment records
Book a short demo and we will show how a loan, the signature and the return are recorded on one item, using your own equipment list.
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