Broker vs Bank for Equipment Financing

Quick take

Banks are great when you’re an established borrower buying standard, new equipment and you can wait weeks. A specialized equipment financing broker wins when you need speed, multiple quotes, used/specialty assets, or a structure that fits cash flow (lease residuals, sale-leaseback, lines of credit). If you want to compare paths side-by-side today, start with our equipment financing overview and model payments in the calculator.

What a bank does well (and where it struggles)

Strengths

• Competitive pricing for strong, established borrowers
  
  
• Familiarity with your operating accounts
  
  
• Simple term loans on new, standard equipment
  
  

Limits

• Narrow approval box for startups, newer firms, or credit blips
  
  
• Slower underwriting; rigid policies on asset age/condition
  
  
• Fewer structures (e.g., limited residuals, seasonal payment sculpting)
  
  

What a broker brings to the table

A broker is your matchmaker and deal architect. You provide one application; the broker maps it to multiple lending programs and negotiates the best fit.

• Choice of programs: loans, leases, equipment line of credit, refinancing & sale-leaseback, and asset-based lending.
  
  
• Approval odds: targeted placement to lenders that like your asset type, time-in-business, province, and credit profile.
  
  
• Speed: streamlined packaging → decisions often within 24–48 hours when files are clean.
  
  
• Cash-flow fit: dial term length, down payment vs residual, and seasonal structures to your revenue cycle.
  
  
• End-to-end execution: vendor coordination, insurance, PPSA searches, inspections, and funding day logistics.
  
  

Learn more about our process on About Us and the full menu on Equipment Financing.

Broker vs bank vs vendor finance (at a glance)

When a broker is clearly better

• Startups or thin history: structure matters (e.g., lease with modest residual, or collateral via asset-based lending).
  
  
• Used or specialized equipment: broader lender appetite and tailored terms.
  
  
• Tight timelines: coordinated packaging and lender competition cut weeks off funding.
  
  
• Cash-flow constraints: lower monthly via lease residuals or blended solutions (e.g., sale-leaseback on owned gear + new purchase).
  
  
• Ongoing purchases: an equipment line of credit) for draw-as-needed acquisitions.
  
  

Structures a broker can tailor

• Equipment loans: ownership from day one; fixed payments; interest & depreciation benefits.
  
  
• Equipment leases: lower monthly using residual/buyout; upgrade flexibility; often expensed.
  
  
• Refinancing & sale-leaseback: unlock equity without losing use.
  
  
• Asset-based lending: leverage equipment, inventory, or receivables to boost working capital.
  
  

Model the options in our calculator before you choose.

Case study: why a broker beat the bank

Business: GTA contractor expanding earthmoving capacity
Need: Mid-life excavator and skid steer (used)
Bank path: 25% down, 4–6 weeks, rigid term; used asset policy hurdles
Broker path (Mehmi): Packaged file for a construction-focused lender; structured a lease with 10% residual to lower monthly payments and added a small sale-leaseback on an owned loader to free working capital.
Outcome: Approval in ~36 hours; equipment sourced from Mehmi’s own inventory; jobs started on time; cash preserved for fuel, operators, and parts.

Note: Mehmi sells equipment directly, which can simplify inspection, pricing, and closing timelines.

How to compare your real options (5-minute workflow)

1. List target unit(s) and price—confirm it’s on our Eligible Equipment list.
   
   
2. Run 2–3 scenarios in the calculator (loan vs lease; 48 vs 60 months; add a residual).
   
   
3. Decide cash-flow priority vs. total cost.
   
   
4. Send the quote/invoice, business basics, and last 3–6 months bank statements via Contact Us.
   
   
5. We place and negotiate—then coordinate delivery and funding.
   
   

Explore by industry: Transportation & Trucking, Construction & Contractors, Manufacturing & Wholesale, Hospitality & Food Service, Medical, Dental & Wellness, Farming & Agriculture.

FAQ

Are brokers more expensive than banks?
Not necessarily. Many brokers are lender-paid; even with an admin fee, better structure or faster funding can reduce real-world cost. Ask for a full amortization before you decide.

Will a broker hurt my credit with multiple pulls?
We typically pre-screen and sequence lenders to minimize hard inquiries. Ask us how we handle bureaus for your file.

Can a startup get approved?
Often yes—with the right structure (lease/residual), down payment, or collateral via asset-based lending.

Is leasing always cheaper than a loan?
Leases can lower monthly payments using a buyout; loans can minimize total cost if you’ll keep the asset long-term. Compare both in the calculator.

Do you finance used equipment?
Yes. We regularly place used/specialty assets with appropriate terms, and we also sell equipment directly—see our inventory.

How fast can I be approved?
With a packaged file and straightforward asset, decisions in 24–48 hours are common. Start here: Contact Us.

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Next step

If you want options—not just an answer—run your numbers in the calculator, compare loans and leases, and feel free to contact our credit analysts for a tailored quote within 24–48 hours.

Are you looking for a truck? Look at our used inventory.