Quick answer
Choose an equipment financing application route by the work you need done. A direct lender assesses your request against its own products and criteria. A broker helps prepare and present the request to potential financing sources. Neither route guarantees a lower cost, faster funding or approval for a particular machine.
Start with a complete project brief and ask each contact whether the asset, seller, amount and timing fit the available process. Then compare written offers on the same assumptions. The useful decision is where to apply first, what information may be shared and when you have enough evidence to choose a proposal.
Key takeaways
- A broker is an intermediary; identify the party that would actually provide the financing.
- Do not assume direct lenders reject used equipment or brokers automatically approve it.
- Ask about the application process, submissions, credit reviews and compensation before authorizing them.
- Compare funded costs, upfront cash, the complete payment schedule and remaining conditions.
- Keep a submission record so several contacts do not create duplicate or inconsistent applications.
Separate the provider from the product
“Direct” describes the relationship with the funding institution. “Brokered” describes how the application reaches a financing source. Those labels do not tell you whether the proposal is a loan or lease, how long it runs, which costs it covers or what obligations continue after funding.
A direct lender can offer more than one product. A broker may have access to several sources but cannot assume every source will consider every request. Ask what options are actually available for your equipment and business. A network size is not the number of approvals or competing offers you will receive.
Public equipment-loan guidance shows that a lender may consider related project costs and tailor repayment to the business. Public broker guidance describes preparing and presenting applications to a lender network. Those are different services, but they do not establish a universal winner. Use the descriptions to prepare questions, then rely on your written proposal.
Prepare one project brief before choosing the route
Describe the equipment, seller, price, age and intended use. For used equipment, include available condition information, serial numbers and records. For a private sale, identify the seller and the documents available to establish the transaction. For an imported machine, explain delivery and installation arrangements rather than treating the quoted purchase price as the whole project.
Add freight, installation, training and any other costs you need considered. Separate the costs you can pay from cash from the amount you want financed. State the deadline and explain whether it comes from a signed purchase commitment, an auction date or an internal preference.
Finally, explain how the business will support the payments. Current financial information, existing obligations and a realistic operating forecast help a contact assess the request. Use the same facts with each contact. If a cost, date or financing requirement changes, update the brief instead of allowing several inconsistent versions to circulate.
When a direct application may be a useful first step
A direct application can be practical when you already understand a lender's relevant product, the project appears to fit its published scope and you want to deal with the funding institution throughout the process. An existing relationship may also make it easier to discuss the business context, although it does not remove the need for review.
Ask which project costs can be considered, what information is needed and who will handle the file. Confirm whether the proposed timing is realistic once valuation, documentation and delivery conditions are included. A quick preliminary response is not the same as funds being ready for the vendor.
Do not assume a published maximum term or financing amount is available to your business. Current public lender pages distinguish general product features from the final terms determined during assessment. Treat a useful product feature as a question for the representative, not as an approved component of your budget.
When a broker conversation may add value
A broker conversation can be useful when you are unsure which financing sources consider the equipment, need help presenting a complicated acquisition or want assistance comparing structures. The value should be visible in the work: clarifying the request, identifying plausible routes, explaining conditions and keeping the process coordinated.
Ask how the broker chooses where to submit the file. Request an explanation of any borrower-paid fee, when it becomes payable and whether it is refundable. Also ask whether the broker receives compensation from the financing source and whether that affects the options presented. Obtain the relevant engagement terms before committing.
A broker cannot make an unsuitable asset or unaffordable payment suitable merely by finding a willing source. Review the resulting obligation carefully. If a proposal requires more upfront cash, a longer commitment or additional security than expected, assess those changes against the operating plan rather than focusing only on receiving an approval.
Use a short screening call to avoid the wrong application
| Question | Why it matters | Record before proceeding |
|---|---|---|
| Can this equipment and seller type be considered? | Prevents an application outside the product's scope | Asset details and any restrictions discussed |
| Which costs could be included? | Shows the likely cash contribution | Equipment, delivery, installation and exclusions |
| What review and documents are required? | Sets realistic expectations | Missing information and responsible person |
| Where will the application be sent? | Helps control duplicate submissions | Authorized recipients and submission dates |
| What charges or commitments apply? | Clarifies the cost of proceeding | Written fee and engagement terms |
Ask how personal and business information will be collected, used and shared, including any credit-review authorization. Do not assume all contacts use the same process. Keep a copy of the consent and any limits you have agreed. If an answer is unclear, resolve it before providing authorization for the next step.
Worked example: two proposals, different cash demands
Consider a hypothetical $120,000 equipment project. Proposal A requires $20,000 upfront and 48 monthly payments of $2,500, with no final amount in this illustration. Proposal B requires $5,000 upfront, 60 monthly payments of $2,100 and a $10,000 final purchase amount. Assume both otherwise deliver the same ownership outcome and cover the same project costs.
Proposal A's scheduled outlay is $140,000: $20,000 plus $120,000 in monthly payments. Proposal B's scheduled outlay is $141,000: $5,000 plus $126,000 in payments plus $10,000 at the end. These simplified figures exclude other charges and do not represent interest-rate quotes or a calculation of present value.
Proposal B preserves $15,000 more cash at the start and has a payment $400 lower each month, but it runs for 12 additional months and leaves a final amount. It is not automatically better or worse. A business with a tight installation period may value the initial cash, while another may prefer the shorter commitment.
At the end of month 48, Proposal A's illustrated scheduled payments are complete. Proposal B still has $25,200 of monthly payments and the $10,000 final amount remaining, for $35,200. Make that future commitment visible when comparing the two routes. The fact that one proposal came directly and the other through a broker does not answer this financial question.
Now add a real-world check: are the upfront amounts inclusive of every fee, and is the final amount genuinely fixed? If either proposal leaves installation outside the advance, add that cash requirement. If ownership outcomes differ, the illustration no longer provides a like-for-like comparison and must be rebuilt.
Control submissions and follow-up
Keep a simple record with contact, proposed financing source, date authorized, date submitted, documents outstanding and current status. Tell the broker about relevant applications already underway. Tell a direct contact if another party is presenting the same transaction to that institution.
The goal is a clear record, not the largest possible number of applications. Ask for a specific next action after each conversation. If the file is incomplete, identify the missing document. If the project is outside scope, understand which feature creates the mismatch before trying another route with unchanged assumptions.
When an offer arrives, save the expiry date and conditions. Confirm what must happen before the vendor can be paid, including any equipment verification, insurance or acceptance requirement. Avoid treating a conditional offer as permission to make an irreversible purchase commitment without understanding the remaining steps.
Make the choice from the final documents
Compare the total scheduled payments, upfront contribution, end-of-term amount, security, guarantees, reporting obligations and early-exit terms. Ask for explanations of unfamiliar provisions. The choice should reflect what the business can afford and the equipment's expected role, not a general belief that one type of provider is always more flexible.
Also confirm who will service the account after funding. The person who helps arrange a transaction may not be the contact for payment changes, statements or an early settlement quote. Record the relevant contacts while the documents are being finalized.
Frequently asked questions
Does going through a broker guarantee several offers?
No. Available options depend on the business, equipment and financing request. Ask what submissions were made and what responses were received. A broker's role is to help with the process, not to guarantee that several sources will approve the same terms.
Is going direct always cheaper?
No universal cost ranking can replace actual proposals. Fees, term, funded amount and final obligations can change the comparison. Ask for complete written costs and compare equivalent outcomes before deciding.
Can a newer business apply through Mehmi?
For Mehmi's startup financing scope, prepare at least 6 months of revenue in bank statements. Meeting that requirement does not guarantee approval. Equipment, affordability, credit and the proposed structure still need review.
Tools and next steps
Prepare your project brief using the equipment financing document checklist. For the payment and ownership structure itself, see our conditional sale versus lease guide.
To discuss an equipment financing application, contact Mehmi Financial Group or call 1-833-863-4644. Bring the equipment quote, project costs and details of any current applications.
Sources
- Public Canadian equipment-loan product guidance, checked November 12, 2026. Published features remain subject to assessment.
- Public Canadian business-financing application FAQ, checked November 12, 2026.
- Public Canadian brokerage process description, checked November 12, 2026; used to verify the intermediary role, not advertised approval timing.
By Jodhbir Mehmi. Read our editorial standards.