Get earthmoving capacity without starving cash flow
Backhoes and dozers are revenue engines—site prep, trenching, fine grading, road base, winter pushes. The challenge isn’t if you need the iron; it’s structuring the purchase so cash stays available for payroll, materials, fuel, and mobilization. Mehmi sells equipment directly and builds flexible financing around Canadian construction cycles. Start with our equipment financing overview, then price scenarios in minutes using the calculator.
Explore sector context on Construction & Contractors and our construction equipment expertise. Confirm eligible assets on Eligible Equipment; if you’re buying from Mehmi, browse current inventory.
What we finance
- Backhoes: 14–17 ft dig depth units, extend-a-hoe, 4×4, pilot controls, ride control, hydraulic thumb, quick coupler, auxiliary hydraulics.
- Dozers: Small-to-mid track machines for fine grade and residential pads, to production dozers with GPS/grade control, winch/ripper configurations, SU/U blades.
- Attachments & tech: Buckets, rippers, thumbs, quick couplers, grade control kits, telematics, guarding packages, winter gear (plows/pushers).
Your financing options (and when each wins)
| Structure |
Ownership Path |
Monthly Cash Flow |
Best Use Case |
Key Advantage |
Learn More |
| Equipment Loan |
Own from day one |
Moderate (fixed amortization) |
Backhoes/dozers you’ll keep 7–10 years |
Build equity + claim CCA |
Loans |
| Equipment Lease |
Use now; buy at term |
Lower (residual reduces payment) |
Faster refresh or spec upgrades |
Cash-flow friendly; options at end |
Leases |
| Equipment Line of Credit (E-LOC) |
Draw per unit/attachment |
Flexible; interest on draws only |
Staggered deliveries; multi-unit seasons |
Add iron without reapplying |
E-LOC |
| Refinancing / Sale-Leaseback |
Sell owned gear; lease back |
Replaces ownership with payment |
Unlock equity for deposits/payroll |
Immediate liquidity |
Sale-Leaseback |
| Asset-Based Lending |
Borrow against assets/AR |
Liquidity buffer |
Materials, subs, fuel, bonds |
Pairs with equipment facility |
ABL |
| Working Capital Loan |
Unsecured/secured term cash |
Short-to-mid term |
Mobilization, insurance, tires |
Smooths seasonal swings |
Working Capital |
| In-House Financing |
Mehmi-placed approvals |
Case-by-case |
Startups / unique files |
Flexible underwriting |
In-House |
If the transaction needs title/lien control via a conditional structure, we can use Conditional Sales Contracts. Certain borrowers may also benefit from the Canada Small Business Financing Program (subject to lender fit).
Backhoe vs dozer: financing nuances you should model
| Item |
Backhoe |
Dozer |
Financing Implication |
| Useful life |
7–10 years typical |
7–10+ years, duty-cycle dependent |
Loans favored for long holds; leases help where refresh cadence is faster |
| Wear drivers |
Hydraulics, pins/bushings, transmission |
Undercarriage %, idlers, rollers, final drives |
Stronger condition → longer term, better pricing |
| Spec options |
Extend-a-hoe, 4-in-1 bucket, aux hydraulics |
GPS/grade control, rippers, guarding |
High-value options improve residual confidence |
| Resale dynamics |
Broad market; strong municipal & utility demand |
Utilization-sensitive; records matter |
Clean service history supports approvals and terms |
| Add-ons/tech |
Thumbs, couplers, buckets |
GPS blades, winch, telematics |
Roll into financing to protect cash |
What actually moves approvals in 2025
Time in business & credit depth. Established contractors often qualify for sharper pricing and longer terms. Startups can still proceed with contracts/LOIs, a sensible contribution, and In-House Financing.
Asset profile. Year/hours, undercarriage %, maintenance records, and add-on packages influence term length and residual viability.
Pipeline & seasonality. Bid awards, MSAs, and POs reduce perceived risk. If winter or shoulder season squeezes liquidity, pair your deal with Working Capital or ABL.
Cash position. If deposits and crew ramp will be tight, a sale-leaseback on owned iron can fund the down payment and onboarding.
Insurance & safety. A ready binder and maintenance plan speed funding and reduce conditions at close.
Model payments like a pro (5-minute workflow)
- Open the calculator and enter the quoted price (roll taxes/fees/add-ons if desired).
- Test 48/60/72-month terms to balance monthly affordability vs total interest.
- Run a lease with a practical buyout (e.g., ~10% residual) if you prefer a lower monthly and plan a five-year refresh.
- Bundle attachments—ripper, thumb, buckets, grade control—into the financed amount so cash stays in operations.
- If units will arrive in phases, price an E-LOC and draw per delivery.
Documentation that speeds a 24–48h decision
- Government ID, void cheque, business registration/HST
- 3–6 months business bank statements (personal if startup)
- Machine specs: year, hours, make/model/SN, photos, service records
- Attachment list and quotes
- Insurance broker contact and target bind date
- Contract/LOI or pipeline summary
Send your file via Contact Us. Our credit analysts will structure the most competitive path, subject to credit and asset review.
Case study: subdivision pads and municipal work—no cash crunch
Profile: Prairie contractor awarded a subdivision pads package (fine-grade dozer + backhoe for services) plus winter municipal pushes.
Constraint: Cash earmarked for payroll, base material, and winter spares.
Structure we built:
- Lease on a mid-size dozer with 10% buyout to reduce the monthly during winter.
- Loan on a low-hour backhoe intended for 8–10 year retention.
- Roll attachments (ripper, buckets, quick coupler) into the contracts to avoid upfront cash.
- Sale-leaseback on an owned skid steer to fund insurance and early materials.
Outcome: Both machines delivered within 10 business days; average monthly obligation ~11% lower than an all-loan approach; liquidity preserved for crews and materials. After 12 months of clean performance, the dozer buyout was refinanced on improved terms.
Practical tips for backhoe & dozer buyers
- Match term to utilization. Long-hold assets (core dozers) often suit loans; mixed-use or tech-sensitive units lean to leases.
- Don’t under-spec. Grade control, guarding, or rippers that raise productivity usually pay for themselves—roll them in.
- Stage intelligently. If delivery is staggered, use an E-LOC to keep documents light and draws controlled.
- Protect uptime. Telematics + PM logs improve resale and underwriting confidence.
- Think total cost, not just rate. The “cheapest” APR can be a worse structure if it starves working capital or mismatches the refresh window.
FAQs: Backhoe & Dozer Financing (Canada)
Do you finance used backhoes and dozers?
Yes—subject to age/condition and documentation. Start at Eligible Equipment and browse inventory.
Is leasing cheaper than a loan?
Leasing typically lowers the monthly via a residual; loans may minimize total interest if you’ll hold the machine long-term. Compare both in the calculator.
Can a startup get approved with low down?
Often, yes—with LOIs/contracts, clean banking, and the right structure. Ask about In-House Financing.
Can I roll attachments and grade control into the financing?
Usually yes—rippers, thumbs, buckets, couplers, GPS kits, and telematics can be financed via loans or leases.
What if I need liquidity after purchase for materials and subs?
Pair your facility with Working Capital or ABL to smooth cash flow.
Can you support conditional sale structures?
Yes, where appropriate—see Conditional Sales Contracts.
Are government-backed programs available?
Some borrowers may benefit from CSBFP depending on lender fit and use case.
Ready to price your backhoe or dozer?
Run your numbers in the Equipment Financing Calculator, compare Loans vs Leases, stage deliveries with an E-LOC, or unlock equity with Sale-Leaseback. Feel free to contact our credit analysts—Mehmi sells equipment directly and can finance it on terms that fit your workload and seasonality.
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