Glossary · People and paperwork
Certificate of Title
In short
A legal document proving ownership of an asset, often a vehicle or real estate. For buyers, it confirms the seller can legally transfer specific property, preventing future ownership disputes.
What it means in a deal
When buying a business with vehicles or titled equipment, your lender will require a clean Certificate of Title. This ensures the asset is free of undisclosed liens and can be properly transferred to you. Verify that the seller's name on the title matches the business entity selling the asset.
Related terms
Common questions about Certificate of Title
- Can a borrower's investment in a certificate of deposit (CD) count towards the required equity injection?
- Can I use funds from a Certificate of Deposit (CD) that matures after closing for my equity injection?
- What are the SBA's lien requirements for a 7(a) loan when the collateral includes titled vehicles?
- What are the specific requirements for securing a lien on titled vehicles as collateral for a 7(a) loan?
- Can I use a secured personal line of credit as part of my equity injection?
- Can a seller-financed portion of the sale be considered part of my equity injection?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Know what you'll need before you apply
Tell us about the deal and who's buying — we'll flag the guaranty, eligibility, and paperwork issues that slow SBA approval before they cost you time.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.