Combine & Header Leasing (Canada) – B/C/D Credit

When yields and acres are up but your harvester can’t keep pace, delaying a combine or header upgrade risks grain loss, wet-harvest penalties, and paid custom work. If your file sits in B/C/D credit—thin history, past delinquencies, a tough season, or high leverage—banks may pass. Private lenders look at cash flow, asset quality, and resale value, so the right structure can still get you into the field this season.

Mehmi Financial Group finances agricultural equipment across Canada—and, when inventory fits, we can sell and finance select assets under one roof. We stage vendor payments, bundle “soft” costs (delivery, PDI, mapping unlocks), and move quickly. If you want a second set of eyes on your quote, feel free to contact our credit analysts.

What’s financeable on a combine/header file

• Combines: flagship and mid-class units (rotor/walker)
• Headers: draper, flex, corn, pickup, specialty (sunflower, belt pickup)
• Upgrades & tech: auto-steer, GPS/RTK, yield/moisture monitors, section control
• Support items: grain carts, header trailers, batteries/tires, lighting
• Soft costs: delivery, PDI, in-season support packages, software keys, training—often eligible to bundle in the same facility

Explore core options: Financing & Leasing • Refinancing & Sale-Leaseback • Equipment Line of Credit • Invoice Factoring • Calculator.

Why private lenders for B/C/D ag files

• Asset-centric: Strong collateral (late-model combine, mainstream header) plus service history can offset a blemished bureau.
• Cash-flow view: Lenders price on bank-statement coverage and projected acres, not just last year’s taxable income.
• Faster staging: Deposit → delivery → acceptance milestone funding pays your dealer on time and keeps install dates.
• Flexible payments: Step-up and seasonal/skip options align with harvest receipts.

Lease structures (plain English)

Run side-by-sides with our calculator.

B/C/D credit tactics that actually move approvals

Tell a yield story, not just a credit story.
Show acres, typical harvest window, current bottlenecks (loss %, moisture), and how the new setup improves throughput. A one-page “bushels saved × price” model is powerful.

Use seasonal and step-up schedules.
Lighter payments pre-harvest, full amortization after cheques clear. Private lenders understand crop cycles.

Right-size the down payment.
First/last in advance or 5–15% down can improve pricing and approval odds on C/D files.

Cross-collateralize and secure.
Add a paid-off header or cart; enable GPS/telematics and name the lender on insurance. Strong security lowers risk.

Bring a co-guarantor if needed.
A spouse/partner with stronger bureau or liquidity can shift a decline to an approval.

Leverage sale-leaseback for cash.
Refinance owned equipment to create the down payment for the new header or moisture/yield tech: Refinancing & Sale-Leaseback.

Stage accessories via progress-funding.
Deposit → delivery → install/calibration → acceptance. You don’t float big vendor bills mid-season.

Plan to refinance after 12–18 clean payments.
When cash flow stabilizes, we revisit rate/term to reduce monthly cost.

What private underwriters actually look for (beyond the score)

• Asset & dealer quality: Make/model, hours, service records, inspection results, tire/chain wear, header condition, and parts availability.
• Bank-statement coverage: 6–12 months of deposits/outflows; room for the new payment.
• Operation profile: Acres by crop, rented vs. owned land, custom work revenue, crop insurance.
• Sponsor strength: Guarantor depth, past performance, plan for wet harvest or weather risk.
• Exit value: Late-model, mainstream brands with healthy resale markets price best.

If cash is lumpy while you’re waiting on grain cheques, a small revolving buffer via Equipment Line of Credit can help. For B2B receivables (custom harvesting), consider Invoice Factoring.

Typical ranges & levers

Approval packet (credit-analyst checklist)

• Application, IDs, void cheque
• Corporate/farm docs (registration, ownership)
• Financials: Last filed year (if available), YTD interims, 6–12 months bank statements
• Guarantor snapshot: Address, bureau authorization; NOA/T1 summary if requested
• Dealer quote & inspection (hours, wear items, header details)
• Insurance binder naming lender as loss payee
• Operational model: Acres, crops, harvest window, custom revenue, contingency plan

Send what you have—our team stages the rest so underwriting doesn’t stall.

Case study: header upgrade on a C-tier file (Prairies)

Situation. Mixed-grain operator adding a flex draper header and moisture/yield package to an existing combine. Total $128,000 including delivery, setup, and unlocks. Credit showed late payments during a drought year; bank declined.

Structure. 60-month FMV lease with seasonal payments (light May–Aug; full Sep–Dec), 3-month step-up post-install, and a small sale-leaseback on a paid-off pickup header to reduce advance. Milestone funding paid dealer at deposit, delivery, and acceptance.

Outcome. Approved quickly; header loss dropped, harvest finished earlier, and overtime fuel spend fell. After 14 clean payments, we refinanced—monthly cost down ~8%.

Common pitfalls (and how to avoid them)

• Ignoring soft costs. Calibration, unlocks, PDI, and training add up—bundle them so cash isn’t tight in September.
• Over-spec or under-spec. Right-size class and header width to your acres and logistics; overbuying strains approvals.
• Weak insurance setup. Make sure limits and loss-payee language are correct before delivery.
• No contingency plan. Lenders want to see crop insurance or backup capacity for weather events.

FAQs

Can I lease just a header without replacing the combine?
Yes—headers, trailers, calibration, and software keys can be financed on their own, often with seasonal payments.

What credit score do I need?
Many lenders prefer 650+, but stable deposits, strong collateral, and a credible harvest plan can offset thinner credit.

Do lenders finance used units?
Yes—late-model, inspected combines and mainstream headers with solid resale are financeable; expect documentation and photos.

Can I include dealer delivery, PDI, and unlocks in the same lease?
Often yes. Soft-cost bundling is common so projects don’t stall mid-season.

Can payments drop later?
Often. After 12–18 on-time payments, we can explore refinancing to trim the rate or extend term.

‍

If you’d like a no-pressure comparison of FMV vs. $10 buyout—or help structuring seasonal and step-up payments—feel free to contact our credit analysts. Estimate payments in minutes with our calculator or start a conversation here: Contact Us.