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Short answer: Canadian specialty trade contractors (electrical, plumbing, HVAC, concrete, drywall, etc.) get the best results when they separate how they finance small tools, work vehicles, and heavy equipment—but coordinate everything under one overall plan. In practice, that means leasing or asset-financing your big iron and trucks, using lines of credit and working capital loans for smaller tools and materials, and avoiding the trap of stuffing everything into one expensive, short-term loan.
Specialty trade contractors are the construction industry in Canada. Construction employed about 1.6 million workers in 2023, and 53% of them were in specialty trade contracting (electrical, HVAC, plumbing, concrete, etc.). Construction is also one of the top SME sectors by business count.
Within that, most specialty contractors are tiny shops: in the specialty trades industry, roughly 61% of employer businesses have fewer than five employees and average SME revenue is around $516,000, with just over 80% profitable.
So if you’re running:
…you’re exactly who this article is about.
Here’s the catch:
Meanwhile, the average interest rate on small-business debt financing is still 7.3% (2024) even after rate cuts, while merchant cash advances can quietly cost 35–45% effective interest.
The point isn’t “never borrow.” It’s borrow with a plan:
That’s where a structured approach with a partner like Mehmi matters.
Key point: You don’t need one giant loan; you need one overall plan that uses different tools properly and keeps your monthly payments in line with your project cash flow.
The contrarian view from the credit side:
Bundling everything—trucks, skid steers, hand tools, even tax arrears—into one big, high-rate loan is usually worse than having 2–3 well-structured facilities.
A healthier capital stack for a specialty contractor usually looks like this:
Mehmi’s role is less “sell you a loan” and more “help you design the stack”: using asset based lending and refinancing or sales leaseback where you’ve built up equity, and coordinating your business loans so you don’t end up double-pledging collateral.
Key point: Your pickups, vans, and trailers are how you make money. They belong on structured truck & trailer financing, not maxed personal LOCs or dealer promos that don’t fit your cash flow.
Most specialty contractors run more value in vehicles than they realize:
Too many of those end up:
A better play is dedicated truck and trailer financing through a specialist like Mehmi, backed by their transportation expertise. That usually means:
And when those trucks go down, truck repair financing can keep you rolling without blowing payroll on a big repair bill.
Opinion: For a trade contractor, a loaded ¾-ton truck is not a lifestyle purchase; it’s a mobile jobsite. It deserves professional, equipment-style financing.
Key point: Skid steers, mini-ex’s, lifts, and bigger jobsite gear should be leased or financed over their working life — often using equipment leases, heavy equipment programs, or an equipment line of credit.
This is where your balance sheet lives:
Instead of random loans and vendor terms, think in two buckets:
Almost anything with a serial number and resale value might qualify under eligible equipment — from manlifts to pipe threaders to compactors.
What to avoid? Using MCAs or short-term online loans to buy long-life equipment. When merchant cash advances are effectively 35–45% annually, putting a 10-year asset on that kind of product is like paying for a skid steer twice.
Key point: Small tools and working capital are real needs, but they belong on flexible working-capital facilities, not crammed into your equipment leases or truck loans.
You’ll never stop buying:
These are short-life or constantly turning costs. The right financing flavour is:
Mehmi’s business loans overview covers that whole menu — working capital loan, line of credit, invoice or freight factoring, plus secured and unsecured loans for specific needs.
One clear opinion: don’t hide working capital problems inside your equipment deal. Lenders see through it, and it makes future financing harder. Keep your iron facilities clean and use the right tool for cash-flow gaps.
Key point: If you already own trucks and equipment, there’s a good chance you’re sitting on the collateral you need to upgrade — without begging the bank for a new general loan.
Over a few good years, it’s easy to end up with:
That iron has value. Two powerful ways to put it to work:
This is where Mehmi, as a specialist, earns its keep: finding ways to use the value of your fleet and gear to trade bad debt for better-structured equipment financing.
Key point: The risk with multiple facilities isn’t “too many products” — it’s overlapping security and confusing covenants. The fix is to run everything through one advisor who sees the whole picture.
Most contractors cobble things together over time:
On paper, it “works” — until everyone wants to be first in line on the same collateral. That’s when approvals slow, rates climb, and you hear “no” more often than you should.
Working with a firm like Mehmi helps because they can:
The goal isn’t to have zero debt. It’s to have the right debt, in the right places, at the right cost.
Key point: A couple of hours with your numbers and a clear plan can save you years of expensive, mismatched financing.
Here’s a straightforward roadmap for a specialty trade contractor in Canada:
Compare your list with Mehmi’s eligible equipment to see what’s most financeable.
Over the next 12–24 months, list:
Now you can decide:
If you’ve got:
…these should be first in line to be refinanced or paid down. Mehmi can often use sale-leaseback or asset based lending to help with that.
Use the calculator to rough in:
Check that against your average monthly gross profit, not your best month. If it’s too tight, trim or stage the plan.
Before you shake hands with the truck dealer or equipment rep:
Once the plan is in place:
This is where Mehmi’s ongoing relationship matters more than any one product.
Profile (details changed for privacy)
Starting point
Assets:
Debts:
Cash flow was okay on paper, but the owner felt like they were working for the lenders.
The plan with Mehmi
The outcome (18–24 months later)
And importantly: they didn’t just get a new loan — they got a structure that matched the real way their electrical business earns money.
You can, but it’s rarely the best move. Trucks and iron are long-life assets, while many tools are short-life and constantly turning. A better approach is:
Mehmi can still coordinate all of this under one capital plan so it feels like “one solution,” even if it’s multiple facilities behind the scenes.
Yes. In specialty trades, micro-firms (under 5 employees) actually make up most employer businesses in Canada, and average SME revenue is just over $500,000 with 80% profitable. Lenders who understand the sector — like Mehmi — are used to working with small contractors. The key is to present clean equipment lists, realistic financials, and a structure that fits your scale.
Often yes. Both used trucks/trailers and used equipment can typically be financed as long as:
Mehmi can bundle these in a coordinated way — for example, a truck & trailer facility for road units plus an equipment lease or asset based lending structure for the iron.
In most cases, no. Merchant cash advances in Canada commonly carry effective rates in the 35–45% range, which is extremely expensive for long-life assets. They might be a last-resort bridge for a very short-term gap, but for equipment, trucks, and major tool buys, you’re almost always better off with equipment financing and structured business loans instead.
Start with your last 6–12 months of numbers:
Use Mehmi’s calculator to test different term lengths and amounts. A good rule of thumb: your financing plan should still work if revenue drops 15–20% for a few months — which happens often in construction. A Mehmi advisor can help stress-test that structure.
Your bank and dealers are important partners — but they tend to see only their piece of the puzzle. It’s worth involving Mehmi when:
You can start that conversation any time through Mehmi’s Contact Us page, or explore sector-specific insights via their industries overview and blog.
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