Production downtime is brutal. Whether you’re running CNCs, sandblasting, food packaging, or auto service bays, your compressed-air system is mission-critical—and lenders know it. Approvals often hinge less on price and more on documentation quality: clear specs, proof of condition, clean banking, and insurance. As a seller of commercial equipment and a financing partner across 30+ Canadian lenders, Mehmi Financial Group funds rotary screw, oil-free, piston, portable diesel, dryers, and receiver packages—dealer or private sale, new or used. Below is the broker document playbook we use to move compressor files from inquiry to funded, fast. If you’d like a pre-screen, feel free to contact our credit analysts.
What underwriters expect on an industrial compressor file
Asset documents (prove what you’re buying)
- Invoice/Quote with make, model, year, and full spec: CFM @ PSI, duty cycle, horsepower/kW, voltage/phase, tank size, controller model.
- Package components: dryer (refrigerated/desiccant), filters, receivers, condensate management, aftercooler, VFD, enclosure/sound level.
- Hours & condition (for used): hour meter photo, service records (oil, separator, belts, filters), recent oil/air-end report if available.
- Photos (clear, labelled): nameplate/serial, full 360°, control panel, air-end, dryer/filters, receiver, wear areas, and any leaks or repair tags.
- Emissions/fuel (portable diesel): Tier rating, DEF/DPF service history.
- Installation plan (if fixed): floor location, ventilation, electrical run, condensate treatment, anchor points; note any permits or ESA/Electrical sign-off.
Sale type documents (so the lien is clean)
- Dealer (new/used): invoice, warranty, delivery terms, lead time.
- Private sale: bill of sale, seller ID/company details, lien (PPSA) search & release, inspection notes.
- Sale-leaseback/refinance: proof of ownership (original invoice/paid receipts), serial list, valuation or recent comparable sales.
Business & insurance documents (prove affordability & protection)
- 3–6 months business bank statements (steady deposits, low NSFs, headroom for payment).
- IDs for all owners ≥25%; corporate registry details.
- Insurance binder naming lender as loss payee, scheduling the compressor, dryer, receivers (and trailer for portables).
- Use-of-funds note: where the compressor works (lines/bays), revenue impact (uptime, throughput), rental-replacement math if applicable.
- Optional: contracts/POs tied to capacity increases.
If one area is light (e.g., young company), we offset with structure: down payment, modest residual, or shorter term.
The core checklist (copy/paste for your intake)
- ✅ Vendor invoice/quote with complete specs (CFM @ PSI, HP/kW, VFD, dryer/filters, receiver)
- ✅ Serial/nameplate photos, hour meter (used), 360° photo set
- ✅ Service records; oil/air-end report (if available); ESA/permit notes for fixed installs
- ✅ Bill of sale + lien release (private sale) OR ownership proof/valuation (sale-leaseback)
- ✅ 3–6 months business bank statements
- ✅ IDs (≥25% owners) + corporate registry
- ✅ Insurance broker contact (loss payee wording ready)
- ✅ Short use-of-funds memo (throughput, bays/lines affected, rental-replacement)
Submit once via Leasing & Loans and we’ll route to best-fit lenders the same day.
What changes by scenario (docs & structure)
| Scenario | Extra Documents | Typical Structure | Down Payment |
| Dealer – New Rotary Screw + Dryer | Warranty, lead-time, install scope | $10/$1 buyout or FMV (lower monthly) | 0–10% (strong files) |
| Dealer – Used Oil-Free Pack | Service log, air-end report, hours | $10 buyout; shorter term | 10–20% |
| Private Sale – Shop Piston + Receiver | Bill of sale, lien release, inspection photos | $10 buyout; sometimes FMV | 10–30% |
| Portable Diesel – Field Service | Tier/emissions records, service tickets | $10 buyout; GPS/insurance conditions | 10–20% |
| Sale-Leaseback – Owned Plant Air | Original invoices or valuation, serial list | Refinance/sale-leaseback | Often $0 (equity unlock) |
Bank vs. private lender: documentation reality
- Bank/credit union: Strongest rates, heavier package (financials, covenants), stricter on used/private sales and high-hour packs.
- Private lender (B/C/D tiers): Faster decisions, comfortable with private sales, sale-leasebacks, and mixed packages (compressor + dryer + receiver), priced to risk but tailored to your go-live.
If the bank stalls, we can restructure via Refinancing & Sale-Leaseback or layer Working Capital/LOC for install and ramp-up costs. If receivables are slow, Invoice Factoring stabilizes deposits so payments don’t choke payroll.
Terms you’ll actually see (Canada, 2025)
- Ticket size: ~$15k–$250k+ (from shop pistons to large rotary screw/oil-free with dryers and receivers)
- Term length: 24–60 months typical; 72 months on newer, long-life packs
- Structures: $10/$1 buyout, FMV/residual (10–20%), or sale-leaseback/refi
- Down payment: 0–10% strong files/dealer; 10–30% startups, private sale, high-hour or softer credit
- Conditions: PPSA lien, documentation fee, first/last in advance, insurance loss-payee, GPS for portable diesel, inspection as required
- Funding speed: With a complete package and insurance ready, 24–72 hours from approval is common
Estimate payments with our calculator, then we’ll price it precisely.
How to tighten a tough file (and still get to “yes”)
- Older/high-hour unit: Shorter term + modest residual + service plan documents.
- Startup shop: 10–20% down, clean 90-day bank behaviour, possible co-signer/collateral.
- Private sale: Extra photos, nameplate + hour meter, lien search & release; we manage the paper trail.
- Cash-tight install: Unlock equity on other gear via sale-leaseback or overlay a LOC.
- Lumpy receivables: Add factoring on anchor customers.
Case pattern (Ontario fabrication shop)
A fab shop’s 40HP screw compressor was failing. Vendor quoted a new VFD pack + dryer + receiver. Bank delayed over thin retained earnings. We submitted a clean one-touch package: full spec sheet, install plan, photos, 6 months statements, insurance. Result: 48-month $10 buyout, 10% down, first/last in advance; funded after binder the same week. Output improved, overtime dropped, and scrap fell with stable air.
FAQs
What compressor details matter most to lenders?
CFM @ PSI, HP/kW, hours/condition, service history, and whether the package includes dryer/filters/receiver. Clear photos and nameplate/serials are critical.
Can I lease a private-sale compressor?
Yes. Provide bill of sale, seller details, lien search/release, and a solid photo/inspection set. We arrange the diligence.
Is FMV or $10 buyout better?
If you’ll keep the pack 5–7 years, $10/$1 buyout is simple. If you want a lower monthly or expect to refresh, FMV/residual is worth exploring.
How big a down payment will I need?
Strong files/dealer units can see 0–10%. Startups, older/high-hour, or private sales typically see 10–30%.
What slows compressor deals down?
Missing serial/nameplate photos, no service records on used units, unprepared insurance, and bank statements with repeated NSFs. Send a complete package once and we move quickly.
How fast can this fund?
With documents and insurance ready, 24–72 hours from approval is common. Start with payment ranges on our calculator.
Why Mehmi (seller + financier)
We sell commercial assets and finance them—daily. Our credit team understands real wholesale values, air-end risk, and installation pitfalls underwriters flag instantly. We place files across 30+ Canadian lenders, deliver 24–48h approvals for deal-ready applications, and align terms to your load profile and shift pattern.
Next step: If you’re pricing a compressor—or want pre-approval before you negotiate—feel free to contact our credit analysts for a friendly, no-pressure review: Contact Us. Prefer numbers first? Use the calculator.
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