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Most Canadian dealers don’t need “a finance arm.” They need a repeatable way to say yes when a good customer says, “Can you finance this?”—without turning into a bank.
A smart vendor finance program does exactly that. You plug into a specialist lender (or a small panel), offer on-the-spot monthly payments, and let your finance partner handle underwriting and funding in the background. Done right, dealers see higher close rates, larger average tickets, and faster turns—without carrying credit risk on their own balance sheet. (easylease.ca)
This playbook walks Canadian dealers through how to design, launch, and grow a vendor finance program that actually works in the field—not just on a slide deck.
A vendor finance program is a formal partnership between an equipment dealer/manufacturer and a finance provider where you:
You’re not turning into a bank. You’re integrating financing into your sales process so it becomes just another way for customers to say “yes.”
Mehmi’s own vendor program is a good example: dealers across Canada can offer leases and loans from roughly 12–72 months with options like low buyouts, FMV structures, sale-leaseback, and seasonal payments, while Mehmi handles approvals, contracts, and funding behind the scenes. (Mehmi Financial Group)
The short version: vendor finance programs help you sell more, faster, with less discounting—and they’re becoming normal, not “nice to have.”
BDC’s guidance on vendor financing for equipment buyers is blunt: if you’re selling capital equipment, your customers expect to be offered financing. (BDC.ca) Programs that are well-tailored to both dealer and customer needs tend to:
From the dealer side, a structured program also:
Mehmi’s equipment financing suite is built around exactly those outcomes—more approvals, cleaner structures, and predictable dealer payouts—across sectors like trucks, yellow iron, CNC, medical, and hospitality equipment.
Before you slap a lender’s brochure on your counter, you need to make a few intentional design decisions. These are the levers that decide whether your program is a sales engine or just another PDF no one uses.
Start with your customer profile:
Share that with your finance partner. Strong vendor programs are “tuned” to the real credit spectrum of your buyers, not an idealized one. Mehmi, for example, places A–D credit across multiple Canadian lenders so good customers get sharp pricing while tougher files still have a path to yes when it’s workable. (Reddit)
You don’t need every structure under the sun. Most Canadian dealers win with a short menu:
Behind the curtain, your finance partner might also use tools like asset based lending or equipment lines of credit, but your sales team only needs a simple story:
“Here’s the monthly payment range for this package, over X–Y years, with these options at the end.”
This is the line you don’t want to cross without thinking:
There’s no single right answer, but you should clarify:
Many Canadian dealers start with low-recourse programs, then negotiate selective support (e.g., small buy-downs or extended warranties) for strategic accounts.
Now let’s turn design into execution. Here’s a practical, seven-step playbook you can adapt to your dealership—whether you sell trucks, construction gear, CNC, or medical equipment.
A vendor program is a sales tool, not an art project. Be specific about what “good” looks like in year one:
At the same time, set guardrails:
Write this down. This “charter” will guide which finance partners you short-list.
Lay out, on one page, how a typical sale flows today:
Then ask: where would on-the-spot monthly payments reduce friction?
Common touchpoints:
Your finance partner should help you design templates, scripts, and workflows that fit naturally into your sales process. Mehmi’s blog and FAQ pages are good references for the kind of questions customers actually ask.
You don’t need ten lenders. You need one or two partners who can actually service your customers across credit grades and provinces.
When you evaluate partners, look for:
Don’t be shy about asking for references—other dealers in your segment that have run the program for at least a year.
Once you’ve chosen a partner, get precise on how everyone gets paid and when. Key questions:
This is also where you align on documentation standards so deals don’t get stuck on missing invoices or serial numbers.
A vendor program only works if your frontline salespeople actually use it. That means:
Run a dedicated training session with your finance partner:
Mehmi’s transportation expertise content is a good example of the practical, industry-specific language you want reps to use when they talk about finance.
Start with a 90-day pilot on a subset of products or locations, then measure:
Review results with your partner monthly. Tweak:
Use simple tools—an internal dashboard plus your finance partner’s reporting—to keep the program “alive,” not just set-and-forget.
Once the pilot works, roll it out across:
Over time, mature vendor programs evolve into:
The payoff: customers perceive you as a one-stop shop—equipment plus financing—without you having to run an internal lending operation.
Programs like this line up closely with how Mehmi structures its vendor program and related equipment financing options across Canada. (Mehmi Financial Group)
Background
A mid-sized material handling dealer in Ontario sold new and used forklifts, reach trucks, and warehouse equipment. They had:
The sales manager suspected they were losing deals to competitors who offered monthly payments.
Problem
Solution: vendor program with a specialist lender
They partnered with an equipment finance provider similar to Mehmi and launched a tailored vendor program:
They embedded monthly payment options into all quotes and on their website, using a calculator similar to Mehmi’s calculator.
Results over 12 months
The owner’s summary:
“We thought vendor finance was a ‘nice extra.’ It turned out to be one of the easiest ways to grow sales without adding new product lines or branches.”
That’s the practical power of a well-designed vendor finance program in the Canadian equipment market.
1. Do I need a finance licence to run a vendor program in Canada?
In most cases, no. You’re not lending your own money—you’re referring deals to a licensed lender who does the underwriting and holds the contracts. Your role is to present financing options, collect basic information, and hand the file off. The specifics vary by province and by how “hands on” you are, so it’s important to work with a reputable partner (like Mehmi) who understands Canadian regulatory expectations. (canadianequipmentfinancing.com)
2. What does it cost a dealer to set up a vendor finance program?
Most vendor programs don’t have a big upfront cost. The real “price” is in the commercial terms and your time:
The key is ensuring the economics are fair and transparent so you’re comfortable putting your brand behind the program.
3. Can I work with more than one finance company in my vendor program?
Yes. Many dealers use one primary partner (for simplicity) plus one or two specialists for niche situations (e.g., very large deals, tough credit, or specific industries). The risk is complexity—too many partners and your reps get confused. A common approach is a lead partner like Mehmi for most deals, plus occasional placements through other lenders via Mehmi’s broader equipment financing network when the file doesn’t fit the main box. (canadianequipmentfinancing.com)
4. How fast can vendor finance approvals happen for my customers?
For standard, well-documented deals, many Canadian equipment finance partners aim for decisions in 24–72 hours, occasionally faster for smaller tickets. (BDC.ca) Larger or more complex files may need full financial statements and can take longer. Your partner should tell you what’s realistic and help you set expectations with customers.
5. What happens if my customer defaults—am I on the hook?
That depends on your program design. Many dealer-friendly programs are non-recourse—once the lender funds you, you’re not responsible for later defaults, unless there was misrepresentation. (canadianequipmentfinancing.com) Some programs involve limited recourse or charge-backs on early defaults in exchange for better approval rates or pricing. Clarify this up front and make sure it aligns with your risk appetite and margins.
6. How can Mehmi support my vendor finance program?
Mehmi’s vendor program is built for Canadian dealers, manufacturers, and distributors who want:
If you’re thinking about launching or upgrading a vendor program, you can explore the Mehmi blog, check quick answers in the FAQ, or connect directly through Contact Us to sketch out a pilot.
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