Asphalt Paver Leasing in Canada: Steps to Fund

When temperatures rise and municipal tenders drop, the only thing worse than a breakdown is a stalled approval. Asphalt pavers are high-ticket, high-utilization assets; banks often hesitate on older units, private sales, or growth-stage financials. As both a seller of heavy equipment (when in stock) and a financing partner with 30+ Canadian lenders, Mehmi Financial Group knows how to move a paver file from inquiry to funding—cleanly, quickly, and with the right structure for your cash flow.

If you want a pre-screen before you negotiate, feel free to contact our credit analysts for tailored guidance.

The broker playbook: 10 steps to a funded asphalt paver lease

1) Pre-qualify the asset before you haggle on price

Collect the credit-critical details up front:

• Make/model/year (screed type & width, augers, conveyors)
• Hours on engine and auger/conveyor drives
• Condition photos (hopper, screed plates, extensions, undercarriage, controls)
• Recent service records (screed heaters, hydraulic pumps/hoses, conveyors/augers, sensors)
• Emissions compliance (Tier rating), and any electrical/heater repairs
• Serial & lien check, plus bill of sale (for private sales)

Well-documented, liquid brands typically earn better advances and tighter pricing.

2) Match structure to how you use the paver

• Lease-to-own ($10/$1 buyout): Best for long-term fleet keepers; predictable total cost.
• FMV/Residual (often 10–20%): Lower monthly for contractors who refresh equipment every few seasons.
• Sale-leaseback: Unlock equity in a paver you already own and redeploy into crews, rollers, or trucks.

Explore options here: Leasing & Loans.

3) Underwrite the revenue, not just the asset

Tell the story of cash generation:

• Award letters, POs, municipal MSAs, or subdivision schedules
• Rental-replacement math if you’re currently renting a paver
• Crew utilization plan (days/month), target lane-km/tonnage, internal day rate

4) Clean up the banking signal 30 days before submission

Private lenders weigh real bank behaviour:

• Provide 3–6 months business bank statements
• Minimize NSFs, keep average balances healthy, reduce unnecessary transfers
• If receivables are lumpy, consider Invoice Factoring to normalize deposits

5) Decide down payment early

For growth-stage or older/high-hour units, 10–20% down can:

• Improve the rate band
• Offset age/hour risk
• Unlock a longer term or remove covenants

6) Pre-clear insurance

Bind coverage with the lender as loss payee; include the paver, screed, and key attachments on the schedule to avoid last-minute delays.

7) Paper the private sale properly (if applicable)

Private lenders fund private-sale pavers daily—with extra diligence:

• Seller ID/company docs, photos, serial plate, lien release, inspection
• Clear bill of sale and payment instructions via trust/escrow

8) Pick a payment shape that matches seasonality

• Monthly during core months, optional seasonal skips or interest-only shoulder months
• FMV residual can lower the payment without over-stretching term length

9) Submit a one-touch package

Upload everything once via Leasing & Loans:

• Application, IDs for owners ≥25%, corporate registry
• Invoice/quote, photos, serial, lien check, inspection
• Bank statements, insurance binder or broker contact
  Same-day routing to best-fit lenders is typical for complete files.

10) Bridge cash flow around mobilization

Overlay a small facility to protect payroll, fuel, and asphalt purchases during ramp-up:

• Line of Credit & Working Capital
• If you already own gear, consider Refinancing/Sale-Leaseback to raise the down payment

What terms you’ll actually see on asphalt pavers (private lenders)

• Ticket size: ~$75k–$400k+ depending on age, hours, and spec
• Terms: 24–60 months standard; 72 months possible on newer Tier-compliant units
• Down payment: 0–10% on clean, dealer-sourced assets and stronger credit; 10–30% for startups, private sales, older/high-hour units, or softer credit
• Conditions: PPSA lien, documentation fee, first/last in advance, insurance loss-payee, GPS/inspection as required
• Funding speed: With docs and insurance ready, same-week is common

Get a ballpark payment with our calculator, then we’ll price your file precisely.

How private-lender “rates” are actually determined

Private lenders price total risk—not just a score:

• Asset quality & liquidity: Late-model, well-maintained pavers with strong resale trade inside better bands
• Bank behaviour: Consistent deposits, headroom for payment, controlled NSFs
• Structure: More down, modest residual, or shorter term reduces loss severity
• Guarantor & collateral: Strong guarantors or cross-collateral (roller, tack truck) help
• Deal hygiene: Clean paper, fast insurance, cooperative seller = fewer touches, sometimes sharper pricing

If affordability is tight, pair FMV/Residual with seasonal/skip payments to match shoulder months.

Snapshot: $10 buyout vs. FMV for a paver

Budget the “true monthly,” not just the payment

• Insurance with correct loss-payee wording
• Wear & maintenance: Screed plates/heaters, augers, conveyors, pumps/hoses, sensors, track/undercarriage or drive systems
• Fuel & fluids (and DEF where applicable)
• Hauling if you don’t self-transport
• Downtime reserve: Aim for 1–1.5 payments saved for unplanned repairs

Use our calculator for the payment, then add the above to validate margins on current contracts.

Real-world case pattern (Ontario)

A mid-size paving contractor won a municipal resurfacing tender but faced a bank delay on a late-model tracked paver purchased via private sale. We structured a 48-month FMV lease with a private lender:

• 15% down, first/last in advance
• Seller provided inspection, heater element receipts, conveyor/auger service ticket, and lien release
• Insurance binder same day; GPS condition accepted
• Added a $100k working-capital LOC for payroll/asphalt purchases during the first two progress draws

Outcome: Mobilized on time, lower monthly than renting, smooth cash conversion through the first 60 days.

Fast-track application checklist

• Invoice/quote, serial, hours, attachment list; clear photos (hopper, screed, conveyors/augers, controls, serial plate)
• Last inspection/service records (screed heaters, hydraulics, conveyors/augers)
• 3–6 months business bank statements
• Government IDs for all owners ≥25%; corporate registry
• Insurance broker contact to bind with lender as loss payee
• Use-of-funds note (award letters, POs, schedule, rental-replacement math)

Submit once via Leasing & Loans—we route to best-fit lenders the same day.

Bank vs. private lender: choosing the lane

• Bank/credit union: Best headline rates, long amortizations; stricter on age/hours, private sales, and statement requirements
• Private lender: Speed, flexibility, private-sale comfort, sale-leasebacks, and A/B/C/D credit solutions—ideal when season timing matters

If you already own equipment free/clear, a Refinancing/Sale-Leaseback can raise down payment capital and preserve working cash. To bridge receivables during peak season, consider Invoice Factoring or a Working-Capital/LOC.

Frequently Asked Questions

Can I lease a used asphalt paver from a private seller?
Yes. Private lenders fund private-sale pavers routinely with extra diligence (inspection, lien search, bill of sale, seller verification). Start here: Leasing & Loans.

What credit score is required?
Banks often look for 650–700+ with strong financials. Private lenders can fund below 650 with compensating factors like down payment, contracts, co-signer, or cross-collateral. Contact our credit analysts for a tiered quote.

How much down payment should I expect?
Commonly 10–30% on older/high-hour or private-sale units; 0–10% is possible on strong files with dealer equipment.

Is FMV or $10 buyout better for pavers?
If you’ll keep the paver long term, $10/$1 buyout is simple and predictable. If you refresh frequently or need a lower monthly, FMV/Residual is worth exploring.

How fast can funding happen?
With a complete package and insurance ready, 24–72 hours from approval to funding is common in private lending. For estimates, try our calculator.

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Why Mehmi (seller + financier)

We’re unusual in Canada: we sell commercial assets and finance them—daily. Our credit team understands real auction values, paver wear points (screed, conveyors, augers), and what an underwriter will flag instantly. We place files across 30+ Canadian lenders, deliver 24–48h approvals on deal-ready applications, and structure payments to match seasonality.

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Next step: Pricing a specific paver—or want a clean pre-approval before you negotiate? Feel free to contact our credit analysts for a friendly, no-pressure review: Contact Us. Prefer to start with numbers? Use our calculator.