Quick answer: A third-party financing program connects a customer’s purchase or funding request with a provider that makes the credit decision. Define the application handoff, documentation, compensation and payout conditions clearly, and avoid promising approval before the provider completes its review.
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.
- Approval and funding timelines vary by lender, application completeness, and required conditions.
- 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)
| Dimension | Broker (Mehmi) | Bank | Vendor/Manufacturer Finance |
|---|---|---|---|
| Options | Many lenders & structures | Limited product set | Tied to brand/promos |
| Approval Odds | High (place with best-fit lender) | Good if you fit policy | Strong for new OEM units |
| Speed | Fast ( decisions common) | Often slower | Fast if buying their units |
| Used/Specialty Assets | Regularly placed | Mixed appetite | Usually new only |
| Cash-Flow Fit | Custom (residuals, seasonal) | Rigid | Promo-driven; less flexible |
| End-of-Term Options | Multiple buyouts/paths | Fixed by policy | Preset buyouts/returns |
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.
Approval and funding timelines vary by lender, application completeness, and required conditions.
Note: Mehmi sells equipment directly, which can simplify inspection, pricing, and closing timelines.
How to compare your real options (5-minute workflow)
- List target unit(s) and price—confirm it’s on our Eligible Equipment list.
- Run 2–3 scenarios in the calculator (loan vs lease; 48 vs 60 months; add a residual).
- Decide cash-flow priority vs. total cost.
- Send the quote/invoice, business basics, and last 3–6 months bank statements via Contact Us.
- 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?
Approval and funding timelines vary by lender, application completeness, and required conditions. Start here: Contact Us.
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 subject to lender review.
Are you looking for a truck? Look at our used inventory.
Authoritative references
- Innovation, Science and Economic Development Canada — Canada Small Business Financing Program:
The Canada Small Business Financing Program makes it easier for small businesses to get loans from financial institutions by sharing the risk with lenders.
- U.S. Small Business Administration — 7(a) loans:
The 7(a) loan program is SBA’s primary business loan program for providing financial assistance to small businesses.
Program eligibility, lender criteria, tax treatment, and product terms can change. Verify current official guidance and the final financing documents before making a decision.
Source perspective
Competition Bureau Canada explains the rule against misleading marketing under the Competition Act.
“it is against the law to advertise or market something in a way that is false or misleading”
For a financing program, describe the application process, provider’s credit decision, costs and funding conditions clearly. Do not turn conditional availability into an approval promise.