Why “low down” matters for box & reefer buyers
Straight trucks earn on uptime and route density, not on how much cash you tie up. A low down payment preserves working capital for fuel, insurance, payroll, and reefer service—while you ramp new contracts. Mehmi sells equipment directly and can finance it through in-house or partner programs, so your file moves from quote to delivery without friction. Start with our Transportation & Trucking page and model payments in the calculator.
Are you looking for a truck? Look at our used inventory.
What “low down” usually looks like
In practice, “low down” can mean:
- Minimal cash due at signing on a lease with a modest buyout. See Equipment Leases.
- Standard 10–20% contribution on a loan, reduced by trade-ins or equity unlocked via sale-leaseback.
- Staging purchases through an Equipment Line of Credit so you draw only when units are delivered.
Your exact contribution depends on time in business, credit depth, asset age/spec, and contract strength. If the file is unique, ask about In-House Financing.
The main financing routes (and how they keep cash in the business)
| Structure |
Ownership Path |
Typical Down |
Monthly Impact |
Best For |
Link |
| Equipment Loan |
Own from day one |
10–20% (offset with trade/equity) |
Predictable amortization |
Long holds (7–10 yrs box; 4–8 yrs reefer) |
Loans |
| Equipment Lease |
Use now, buy at term |
Often minimal due at signing |
Lower payment via residual |
Cash-flow priority; tech refresh |
Leases |
| Sale-Leaseback |
Sell owned unit, lease back |
N/A (unlocks cash) |
Replaces ownership with payment |
Funding down payments & ramp |
Refi |
| Equipment Line of Credit |
Draw per unit |
As negotiated |
Interest on draws only |
Staggered deliveries, multi-unit adds |
E-LOC |
| Asset-Based Lending |
Borrow on assets/AR |
Collateral-driven |
Liquidity buffer |
Seasonal cash needs |
ABL |
| Truck Repair Financing |
Service events |
Short-term |
Targeted payments |
Mid-life reefer or power repairs |
Repairs |
Pair the structure with your operating plan, then price it in the calculator.
Box vs reefer: financing nuances you should model
| Item |
Box (Dry) |
Reefer (Chilled/Frozen) |
Financing Note |
| Useful life |
7–10 years typical |
4–8 years (unit hours matter) |
Reefers often favour leases with a buyout |
| Maintenance profile |
Body/box integrity, liftgate |
Compressor, hours, service logs |
Complete records can lower perceived risk |
| Resale dynamics |
Broad secondary demand |
Condition-sensitive resale |
Residuals influence payment strongly |
| Cash flow seasonality |
Retail, parcel, B2B |
Produce, pharma, foodservice |
Bridge seasonality with ABL or Working Capital |
| Spec add-ons |
Liftgate, E-track, telematics |
Multi-temp, sensors, telematics |
Roll add-ons into financed amount |
If you’re pairing trucks with trailers later, see Trailer Financing. Confirm asset eligibility on Eligible Equipment.
How to qualify for low down (without stretching the business)
- Show route demand: awards/LOIs, broker rate-cons, delivery schedules.
- Present clean banking and realistic projections; even startups can qualify with a sensible structure.
- Consider a blended plan: lease the reefers for lower payments, loan the dry units you’ll keep longest, and use sale-leaseback on an owned asset to fund deposits.
- Keep a liquidity lane for fuel/tires via Working Capital Loan or Asset-Based Lending.
Model it first: payments that match your routes
Use the calculator to compare:
- 60 vs 72 months on a box truck loan.
- Lease on a reefer with a 10% buyout vs a straight loan.
- Rolling deliveries under an E-LOC to avoid multiple applications.
- Repair-now vs replace-now using Truck Repair Financing and cost-per-mile.
Documentation that speeds a 24–48h decision
- Government ID, void cheque, business registration/HST.
- 3–6 months bank statements (personal if startup).
- Unit specs (year, kms/hours, box size, reefer hours), photos, and any service records.
- Insurance broker contact and target bind date.
- Customer mix, lanes, or letters of award.
Send your package via Contact Us and our team will structure the file for the best terms available.
Case study: adding cold-chain capacity with minimal cash out
Profile: Ontario distributor servicing grocery DCs and restaurants.
Need: Two late-model 5-ton reefers and one 26’ dry box to win a seasonal contract. Cash must stay available for fuel, payroll, and initial reefer PMs.
Structure:
- Lease the two reefers with 10% buyouts to reduce monthly payments.
- Loan the dry box the company expects to run 8–10 years.
- Sale-leaseback an owned straight truck to fund deposits and onboarding costs.
- Hold an E-LOC for a possible fourth unit if volumes persist.
Outcome: All three units delivered before contract start, average monthly obligation ~12% lower than an all-loan approach, and cash buffer maintained for operations. Twelve months later, the client refinanced the buyouts after stable revenue, further improving terms.
FAQs: Box & Reefer Truck Financing (Canada)
Can I get low down with a startup?
Often, yes—pair a sensible contribution with contracts/LOIs and consider In-House Financing.
Is leasing cheaper than a loan?
Leasing usually lowers the monthly via a residual; loans can lower total interest if you’ll hold the truck longer. Compare both in the calculator.
Do you finance used box and reefer trucks?
Yes—subject to age, mileage, and reefer hours/condition. Check Eligible Equipment and our inventory.
Can I bundle liftgates, telematics, or multi-temp options?
Typically yes; add-ons can be rolled into loans or leases.
What if I’m cash-tight right after purchase?
Use Working Capital or ABL for fuel, tires, and reefer service.
How fast is funding?
With a complete file, many approvals can turn in 24–48 hours, subject to credit and asset review. Start via Contact Us.
Ready to price your box or reefer truck?
Run your numbers in the Equipment Financing Calculator, compare Loans vs Leases, or set up an E-LOC for staged deliveries. Feel free to contact our credit analysts—Mehmi sells equipment directly and can finance it on terms that fit your routes, seasonality, and growth plan.
Are you looking for a truck? Look at our used inventory.
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