.avif)
Learn how skid steer dealers can offer customer financing in the U.S. and Canada for new, used and attachment-equipped machines.
A contractor may want the skid steer on your lot but hesitate to put $60,000, $80,000 or more into one machine at once.
The buyer still needs cash for payroll, fuel, materials, insurance and the attachments that actually put the skid steer to work.
A customer financing program allows skid steer dealers to address that problem at the point of sale without necessarily lending their own money or carrying customer receivables.
Quick Answer: Skid steer dealers can offer customer financing through a commercial lender, lessor or financing brokerage that handles underwriting and funding. The dealer supplies a clear equipment quote and introduces financing during the sale. Approval, down payment, pricing and term depend on the business, machine, attachments, credit profile and applicable U.S. or Canadian jurisdiction.
The dealership sells the equipment. A third-party financing provider handles the credit process.
The salesperson identifies the skid steer, purchase price and attachments the customer needs. Instead of sending the customer away to arrange a bank loan, the salesperson can introduce the dealer's commercial financing process immediately.
The buyer completes an application.
The finance partner reviews the business and the equipment, determines which available structure fits the transaction, and communicates any approval conditions.
Once documents, insurance and other required funding items are complete, the financing provider funds according to the approved transaction and the dealer receives its payout.
This is different from the dealership financing the customer from its own balance sheet.
Mehmi Financial Group's current vendor program is designed for North American dealers, OEMs and distributors that want co-branded or white-label customer financing while third-party finance sources handle underwriting. Mehmi Financial Group Vendor Financing Program
Canadian dealers that want the broader process can also review Mehmi's guide on how to offer financing to equipment customers without becoming a bank.
Skid steers are identifiable commercial assets with broad business applications.
Contractors use them for excavation support, grading, material handling, demolition, landscaping, snow removal, agriculture and property maintenance.
That versatility can also matter to the financing provider because the machine has uses beyond one highly specialized project.
But the lender is not simply financing "a skid steer."
Credit wants to know the year, manufacturer, model, serial number, hours, condition, sale price and included attachments.
A new mainstream machine with clean dealer documentation represents a different collateral risk from an older skid steer with high hours, uncertain maintenance and an inflated asking price.
Mehmi's current Canadian skid steer financing guide similarly identifies age, hours, condition, documentation and resale market as important parts of the equipment review.
Keep the program simple enough that a salesperson will actually use it.
A practical workflow should answer five questions.
First, how does a buyer apply?
Second, who gives the customer updates?
Third, what information must be on the equipment quote?
Fourth, who confirms that all funding conditions are complete?
Fifth, when may the dealer release the machine?
A dealer should not leave those decisions to individual salespeople.
A salesperson can introduce financing and gather basic deal information. The financing provider should handle actual underwriting.
Canadian dealerships building a more formal process can use Mehmi's dealer finance program setup guide and the more operational dealer finance desk workflow from intake to funding.
A clean quote makes underwriting easier.
The dealer should clearly identify the buyer, seller and equipment. For a skid steer, that normally means the year, make, model, serial number and current hours if used.
The purchase price should be clear.
Taxes, delivery, warranty products, attachments, deposits and trade-in allowances should be separated rather than hidden inside an unexplained lump sum.
For example, a quote could show:
That tells the credit analyst what the actual collateral package contains.
A quote that simply says "Skid steer package: $84,500" creates unnecessary questions.
Potentially, and this is especially relevant for skid steer dealers.
A contractor rarely buys the machine simply to own the base unit. Its usefulness often comes from attachments.
Common packages may include buckets, forks, grapples, augers, sweepers, snow pushers, breakers, trenchers or brush-cutting equipment.
The important point is to identify the attachments individually.
Financing providers may treat a skid steer plus commercially useful attachments differently from a quote loaded with accessories that have limited resale value or unclear business purpose.
The attachment package should also make economic sense.
A snow contractor buying a skid steer with a snow pusher has an obvious use case.
A small landscaping company trying to finance ten specialized attachments "in case they need them" may receive more questions.
Canadian dealers can review Mehmi's guide to financing accessories, installations and attachments for more detail on documenting full equipment packages.
Used skid steer financing puts more weight on the machine itself.
Hours become important because they help indicate remaining economic life.
Condition matters because two machines with 3,000 hours can have very different maintenance histories.
Tire or track condition matters. Hydraulic leaks, pins, bushings, cab condition, attachment wear and prior repairs can also affect the real value of the machine.
The financing provider may request photos, service history or additional equipment verification on older units.
The requested financing term should also match the machine.
A long amortization can create a lower monthly payment, but financing an older, heavily used skid steer for too long can leave the customer with a meaningful payment while major repair costs are increasing.
For additional Canadian context, Mehmi's used equipment financing guide explains why condition, resale market and remaining useful life matter more as equipment ages.
A good skid steer is collateral. It is not the repayment source by itself.
The customer's business still needs to support the payment.
Depending on the amount and credit profile, the finance provider may consider operating history, business cash flow, bank activity, owner or business credit, existing equipment obligations and overall debt.
The reason for the skid steer is also relevant.
A contractor replacing a machine that has been running six days per week presents a different credit story from a new company buying its first skid steer before winning any work.
For an expansion purchase, the buyer should be able to explain what additional capacity accomplishes.
Does the skid steer eliminate recurring rental expense?
Does it allow another crew to operate?
Is it tied to a new snow contract?
Will it replace subcontracted machine work?
The dealer does not need to underwrite those answers. But obtaining a clear explanation makes it easier for the financing partner to understand the transaction.
Monthly payments can help buyers compare cash flow, but dealers need to distinguish an estimate from an approved finance offer.
The monthly amount changes when the financed amount, customer contribution, interest or lease pricing, term, residual, fees or taxes change.
A dealer should therefore avoid putting "Only $1,299/month" beside a machine without explaining the assumptions behind that payment.
A better sales conversation is:
"This machine is $75,000. If you want to finance it, we can arrange options based on your business and the structure you choose."
The salesperson introduces the option.
The finance provider establishes the approved terms.
Canadian sales teams that regularly answer customer questions about financing can use Mehmi's dealer financing FAQ for sales and service teams as a training reference.
Assume a U.S. contractor purchases a skid steer package for USD $75,000.
For illustration only, assume:
Using standard monthly amortization, the estimated payment is approximately USD $1,365.12 per month.
Over 60 scheduled payments, total loan repayment would be approximately USD $81,907.26, including approximately USD $16,907.26 of interest.
Including the USD $10,000 initial contribution, total cash paid toward the skid steer purchase and assumed financing would be approximately USD $91,907.26, before the excluded costs.
This is an illustration, not a Mehmi Financial Group offer or indication of currently available pricing.
The customer should then compare the payment with the economics of using the machine.
If owning the skid steer eliminates $2,500 per month of rental expense and produces another $2,000 of contribution from additional jobs, a $1,365 payment may be reasonable.
But the business still needs to allow for fuel, maintenance, transportation, operator labour, tires or tracks, attachment wear and insurance.
The right test is not whether the machine can make its payment during the busiest month. The payment should still fit when work slows down.
Do not promise zero down.
Upfront requirements vary by borrower, machine, structure and financing provider.
A stronger borrower purchasing a newer machine may be structured differently from a newer company buying an older unit with high hours.
Customer contribution can also come from documented trade equity in some transactions.
But draining all available cash simply to create a larger down payment may be counterproductive for the buyer.
A contractor still needs working capital after the skid steer leaves the dealership.
Canadian buyers who want a deeper explanation can review Mehmi's equipment financing down-payment guide. The article explains why down payments are a risk-management tool rather than a universal fixed percentage.
Trade-in value and trade equity are not the same.
Suppose a dealer offers $30,000 for an older skid steer.
If the customer still owes $22,000, the potential equity is approximately $8,000 before other transaction adjustments.
The existing financing must be identified and handled correctly.
In the United States, secured equipment financing commonly involves UCC filings. California's Secretary of State, for example, explains that filing a financing statement can perfect a security interest in named collateral and establish priority if the debtor defaults or enters bankruptcy. Other states administer their own Article 9 filing systems.
The practical lesson for a U.S. dealer is not to assume a customer owns a traded skid steer free and clear simply because the machine is sitting in the yard.
Canada uses provincial secured-property systems rather than U.S. UCC terminology.
Ontario's Personal Property Security Act applies to transactions that create security interests in personal property and expressly covers several forms of secured transactions and longer-term leases.
Other common-law provinces have their own PPSA frameworks.
Quebec uses the RDPRM and movable-hypothec system instead. Quebec's RDPRM guidance explains that registered rights on movable property can include hypothecs, ownership reservations and rights affecting business equipment.
Dealers do not need to perform a lawyer's role.
They do need a process for identifying existing liens, obtaining payout information where necessary and making sure the financing provider is comfortable with title before funding.
The basic credit logic remains the same: buyer plus asset plus structure.
The legal and disclosure framework can differ by state.
California, for example, requires specified disclosures when covered providers extend certain commercial financing offers. The required information can include the amount of funds provided, dollar cost, term, payment method and frequency, and prepayment policies.
That does not mean every skid steer dealer personally becomes responsible for every provider disclosure.
It means a U.S. dealer program needs to be built around the actual financing provider, transaction and state involved.
Dealers should use approved financing language rather than copying a Canadian program and replacing CAD with USD.
For an example of Mehmi's current U.S. borrower-side skid steer content, see its Skid Steer Financing & Leasing in South Dakota guide. Availability and rules still need to be confirmed for the customer's actual state.
Usually, a compact-equipment dealership will encounter both skid steers and compact track loaders, but the machines should not be treated as identical collateral.
Track condition and undercarriage wear can materially affect the value of a used compact track loader.
The customer may also choose a CTL because the application involves mud, slopes or softer ground, while a wheeled skid steer may make more sense for hard surfaces or lower acquisition and wear costs.
The quote and financing file should identify the actual machine rather than using "skid steer" as a generic description for every compact loader.
Most preventable delays happen after the initial approval.
Common problems include an incomplete invoice, missing serial number, changed machine, unexpected attachments, unverified customer deposit, missing insurance or an unresolved lien on a trade.
A machine substitution can be particularly important.
If credit approved a nearly new skid steer with 600 hours, the dealership should not assume it can substitute an older machine with 4,000 hours at the same price without review.
The asset was part of the underwriting decision.
A useful internal rule is:
Do not release the skid steer solely because someone says the customer is approved. Release it according to the finance provider's confirmed funding instructions.
Financing should make a sensible equipment purchase easier.
It should not make a weak purchase look affordable.
If the contractor only needs a skid steer for one short project, renting may make more sense.
If the customer's existing skid steer spends most of the month idle, buying another one may add debt without adding productive capacity.
If an older used unit is likely to need major repairs shortly after purchase, buying a stronger machine or waiting may be safer.
And if the business is consistently losing money, another fixed equipment payment can increase pressure rather than solve the underlying problem.
Yes. A dealer can work with a third-party commercial lender, lessor or financing brokerage. The dealership sells the machine while the financing provider handles the underlying credit process, subject to the applicable agreement and jurisdiction.
Potentially. Used-machine approval generally places more emphasis on age, hours, condition, value, service history and remaining useful life.
Often, subject to the financing provider's approval. Dealers should identify each attachment and its price clearly instead of hiding attachments inside one lump-sum invoice.
Yes, but an application is not a guaranteed approval. New businesses may face additional review of owner credit, industry experience, contracts, cash contribution and available liquidity.
The financing provider establishes approved pricing and conditions after underwriting. The dealer should not promise a rate before an actual offer is issued.
Documented trade equity may potentially contribute to the transaction. Any existing lien on the traded machine needs to be identified and paid or otherwise resolved.
Follow the financing provider's funding instructions. Approval can still be subject to insurance, documents, customer contribution, lien resolution or other closing requirements.
Potentially. Co-branded and white-label programs can keep the dealership's branding in the customer journey while the financing brokerage or lender performs the credit functions. The underlying parties and required disclosures should still be represented accurately.
A skid steer dealer financing program should be straightforward for the salesperson and transparent for the customer.
Start with the machines you actually sell, including average prices, new-versus-used mix, attachment packages and customer industries.
Then establish a consistent process from equipment quote to application, underwriting, funding conditions and dealer payout.
Mehmi Financial Group's current North American vendor program supports dealers and equipment sellers with co-branded and white-label financing tools while independent financing sources make the underlying credit decisions.
For Canadian dealers looking for a broader vendor-program playbook, Mehmi also publishes its Vendor Financing Program Canada guide.
To discuss a customer financing program for your skid steer dealership, contact Mehmi Financial Group at 833-863-4644 or use the verified Mehmi Financial Group contact page.
Include your typical financing amount, U.S. or Canada, state or province, new-versus-used inventory, common attachment packages and expected customer timing so the financing program can be evaluated around the transactions your dealership actually handles.
.svg){kind=small}