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Learn how dealers can offer financing to business customers in the U.S. and Canada without lending their own money.
A business customer wants your equipment, truck, machinery or commercial asset but does not want to write a six-figure cheque today.
Without a financing program, your salesperson has two choices: wait while the buyer searches for financing or hope the customer has enough cash available to complete the purchase.
A dealer financing program creates a third option. Financing becomes part of the sales process while an independent finance provider handles the underlying credit decision.
Quick Answer: A dealer financing program lets business customers finance equipment or commercial assets directly through the dealer's sales process while a third-party lender, lessor or financing brokerage handles underwriting and funding. Dealers can use referral, co-branded or white-label models without lending their own capital. Approval, pricing and terms remain subject to the customer, asset and jurisdiction.
A dealer financing program is a structured relationship between a dealer and one or more commercial financing providers.
The dealership sells the equipment.
The financing partner evaluates the customer's credit request.
If the transaction is approved and all funding conditions are completed, the dealer receives payment according to the approved closing process. The customer then makes its scheduled payments under the financing agreement.
That is different from the dealer lending its own money.
The dealership generally does not need to hold a large financing receivable on its balance sheet, collect monthly payments or create an internal credit department simply to give customers another way to purchase equipment.
For dealers still establishing the basic model, Mehmi's guide on how sellers can offer financing without becoming the lender provides a useful starting point. How to Offer Financing to Your Equipment Customers
Mehmi Financial Group itself operates as a financing brokerage and intermediary rather than a direct lender. Independent financing institutions make final credit decisions and determine approved rates, terms and conditions.
Commercial customers frequently use outside financing.
In Canada, Statistics Canada's 2023 Survey on Financing and Growth of SMEs found that 49.3% of SMEs requested external financing, including debt, trade credit and lease financing. Financing demand was particularly high among manufacturing, wholesale and construction SMEs.
The U.S. shows a similar reliance on external capital. The Federal Reserve Banks' 2025 Small Business Credit Survey, published in March 2026, found that 60% of surveyed small employer firms applied for financing during the preceding 12 months. The survey included 6,525 employer firms across the United States and is a convenience sample rather than a random nationally representative sample.
For a dealer, the practical implication is straightforward.
Some customers who hesitate at a $150,000 cash price may still be comfortable purchasing the asset when they can evaluate it against a manageable payment and the revenue the equipment is expected to produce.
That does not mean financing guarantees a sale.
It means financing removes one potential obstacle without forcing the dealer to discount the equipment or carry the customer's debt.
A well-run program starts before financing becomes an emergency.
The salesperson identifies the customer's equipment requirement and produces an accurate quote. During that conversation, the salesperson can ask whether the business plans to pay cash, use its existing bank or review financing options through the dealership.
If financing is requested, the customer completes the applicable application.
The finance partner then reviews the business and equipment.
Depending on the transaction, underwriting can consider cash flow, credit, operating history, existing debt, bank activity, equipment age, condition, purchase price and collateral value.
The approval may still contain conditions.
Insurance, equipment serial numbers, customer contribution, final invoices, ownership documentation or lien releases may need to be completed before funding.
A dealer therefore needs to distinguish approved from ready to release.
Mehmi's dealer finance desk guide goes deeper into that handoff from intake through documents and final payout. Dealer Finance Desk Workflow: Intake to Funding
The salesperson should sell the equipment.
The financing partner should underwrite the credit.
That separation prevents many dealer-financing problems.
A salesperson can explain that financing is available, collect basic transaction information and direct the customer to the application.
The salesperson should not promise approval, a particular interest rate, zero down or a specific financing term before underwriting.
A useful phrase is:
"Would you like us to arrange financing options for the equipment?"
That keeps the financing conversation connected to the sale without turning the salesperson into the credit department.
Dealerships training larger sales teams can use Mehmi's dealer financing FAQ to standardize how sales and service staff discuss applications, payments, documents and funding. Dealer Financing FAQ for Sales and Service Teams
A dealer does not need the most complicated setup on day one.
A referral model is the simplest. The salesperson introduces the financing partner and the customer continues through the partner's process.
A co-branded model keeps both the dealer and financing partner visible in the customer journey.
A white-label model places more of the dealer's branding on the financing experience while the underlying partner still handles the finance function.
White-label does not mean the actual lender or broker should be hidden where disclosure is required.
It is primarily a customer-experience and branding model.
Dealers considering a branded process can review Mehmi's dealer-branded financing guide. Dealer-Branded Equipment Financing
For businesses that want financing more deeply incorporated into their own brand, the separate white-label dealer guide explains the distinction between branding the experience and actually becoming the finance company. White Label Equipment Financing for Dealers
A financing partner cannot properly underwrite collateral it cannot identify.
The dealer quote should make the equipment transaction clear.
Useful information typically includes the customer's correct legal business name, dealer's legal name, equipment year, manufacturer and model, serial number or VIN where available, hours or mileage for used equipment, cash purchase price, major attachments, customer deposit, trade-in allowance, freight, installation and applicable taxes.
Do not submit a $250,000 transaction as simply:
"Equipment package — $250,000."
If the package contains a $190,000 machine, $30,000 attachment, $15,000 installation and $15,000 freight, the finance provider should be able to see that.
The asset is part of the underwriting decision.
Changing it after approval can therefore require another credit review.
Used equipment requires more attention to collateral.
Age, operating hours, condition, service history and remaining useful life can affect the available financing structure.
A five-year-old excavator with reasonable hours and good documentation is different from a fifteen-year-old specialized machine with an uncertain maintenance history.
The financing term also matters.
A longer amortization lowers the monthly payment, but it can create poor economics if the customer is still paying significant debt while the machine is becoming increasingly expensive to maintain.
Used-equipment dealers should therefore disclose condition and hours accurately rather than trying to make every transaction look like a late-model asset.
Dealer financing does not need to mean one universal loan.
An ownership-oriented equipment loan or finance agreement may suit a customer intending to keep the asset for many years.
A lease may create different ownership, residual and end-of-term provisions.
Seasonal companies may need a payment schedule that better reflects when their business generates cash, where available.
A repeat buyer purchasing several pieces of equipment each year may eventually be better served by a broader equipment facility rather than a completely new standalone application every time.
The goal is to make appropriate structures available, not force every customer into the same product.
Dealers wanting a more formal program framework can review Mehmi's setup guide covering program requirements, dealer responsibilities and funding processes. Dealer Financing Program Setup: Requirements & Steps
Assume a U.S. dealer is selling equipment for USD $100,000.
For illustration only, assume the customer contributes USD $10,000, leaving USD $90,000 financed.
Assume:
Amount financed: USD $90,000
Assumed annual interest rate: 9%
Term: 60 months
Payment frequency: Monthly
Assumed fees: $0
Taxes, insurance, registration, documentation, freight and other third-party costs are excluded.
Using standard monthly amortization, the estimated payment would be approximately USD $1,868.25 per month.
Over 60 payments, estimated repayment on the financed amount would total approximately USD $112,095.12, including approximately USD $22,095.12 of interest.
Including the USD $10,000 customer contribution, total cash paid toward the purchase and assumed financing would be approximately USD $122,095.12 before excluded costs.
This is an illustrative example, not a Mehmi Financial Group offer or indication of available pricing.
For the dealer, the useful question is not merely whether $1,868 sounds easier than $100,000 upfront.
The buyer still needs enough business cash flow to support that payment alongside payroll, rent, fuel, existing loans and normal operating expenses.
Canadian customers can model CAD equipment purchases using Mehmi's equipment financing calculator, which is designed for estimated Canadian equipment-loan and lease scenarios rather than financing offers. Equipment Financing Calculator
Payments can make equipment affordability easier to understand.
They also need context.
An advertisement showing "$1,499/month" without explaining the assumptions can be misleading if the payment requires a large down payment, long term, residual or specific credit profile.
Dealers should establish an approved process for payment examples.
At minimum, the salesperson should understand what equipment price, financed amount, term and assumed pricing were used to produce the estimate.
Final payments remain subject to underwriting.
Mehmi's guide to co-branded financing pages covers how dealers can introduce financing prominently without turning an example into an unsupported credit promise. Co-Branded Financing Pages for Dealers
A trade allowance is not necessarily available customer equity.
Suppose the dealer values a customer's existing machine at $60,000.
If another financing company is still owed $42,000, the potential gross equity is only $18,000 before any additional adjustments.
Existing secured debt needs to be identified and resolved.
In the United States, equipment financing commonly involves UCC Article 9 security interests. California's financing system provides one example of how security interests can be perfected through financing statements, but filing jurisdiction and priority depend on the actual transaction.
In Canada, common-law provinces generally use PPSA systems, while Quebec uses its RDPRM framework.
The dealer does not need to perform the lender's legal work.
It does need to disclose the trade early enough for lien checks and payout requirements to be completed before delivery.
A financing application can contain bank statements, ownership information, personal guarantees, identification and credit information.
That material should not be treated like an ordinary sales lead.
Canadian organizations subject to PIPEDA must follow requirements around consent, limiting collection, use and disclosure, retention and appropriate safeguards when handling personal information in commercial activities. Provincial privacy laws may also apply.
The cleaner dealer workflow is to collect only the minimum information needed to start the transaction and direct sensitive documents into the finance partner's secure process.
Avoid asking customers to text bank statements or personal identification to individual sales representatives unless the approved secure workflow expressly supports it.
A North American program cannot assume one set of rules applies everywhere.
California, for example, requires covered providers of certain commercial financing offers to provide prescribed disclosures covering the amount provided, total dollar cost, term, payment method and frequency, and prepayment policies.
California also separately regulates certain finance lenders and brokers making or brokering commercial loans, subject to statutory exemptions.
Other states have their own commercial-financing frameworks.
The important dealer lesson is not to invent financing language.
Use program-approved applications, payment examples, disclosures and scripts for the customer's actual state.
Not when the customer says, "I got approved."
Release should follow the funding provider's instructions.
An approval can still be conditional on insurance, final equipment verification, signed financing documents, customer contribution, lien discharge or another closing item.
Releasing equipment too early can turn what should have been a financed transaction into a dealership receivable.
A practical rule is:
Sales confirms the purchase. Credit confirms the approval. Funding confirms the release.
Dealer teams implementing that process can use Mehmi's third-party dealer program guide as the operational reference. Dealer Finance Program With a Third-Party Partner
Coverage comes first.
Confirm the actual U.S. states or Canadian provinces supported by the program.
Then look at equipment expertise.
A lender that understands standard forklifts may have a different credit appetite from one that regularly finances used Class 8 trucks, CNC machines or specialized construction equipment.
Review the process for new and used assets, attachments, trade-ins and larger transactions.
Understand who communicates with the customer.
Know what triggers dealer payout.
And understand what happens when the first credit source declines the transaction.
A useful financing partner should help create a repeatable process rather than simply provide another phone number for the salesperson to call.
Mehmi's broader vendor-program guide explains how the dealer, financing intermediary and funding source can divide those responsibilities. Vendor Financing Program Guide
Yes. Dealers can introduce customers to third-party lenders, lessors or financing brokerages while remaining the equipment seller. The dealer's obligations depend on its actual activities and jurisdiction.
Potentially. Different financing providers have different credit appetites, but weaker credit can affect required equity, pricing, term, guarantees and available amount. Approval should never be promised.
Potentially. Available structures depend on the financing sources and equipment. Customers should understand ownership, buyout provisions, total cost and end-of-term obligations before choosing.
Potentially. Age, condition, operating hours, value, service history and remaining useful life can materially affect a used-equipment transaction.
No, not in a normal third-party financing program. The financing provider determines approved pricing and conditions after underwriting.
Potentially. Eligible attachments, freight and installation may sometimes be included, but the dealer should itemize them clearly and confirm what the financing provider accepts.
Potentially. Co-branded and white-label programs can keep the dealership's brand prominent while the financing partner handles underwriting and funding. Required lender, broker and contractual disclosures still need to be accurate.
Normally after the required funding conditions are satisfied and the transaction funds according to the finance provider's instructions. Credit approval alone should not be treated as payment confirmation.
A dealer financing program should make the sales process simpler, not add another layer of confusion.
Start with your average equipment price, customer industries, new-versus-used mix, transaction volume and geographic market.
Then standardize the process from quote to application, underwriting, conditions, documents, equipment release and payout.
Mehmi Financial Group currently publishes a vendor-financing program for dealers, OEMs and distributors and operates as a commercial financing brokerage/intermediary rather than a direct lender. Independent financing institutions make the final credit decision. Mehmi Financial Group Vendor Financing Program
To discuss a dealer financing program for your business customers, contact Mehmi Financial Group at 833-863-4644 through the verified contact page. Contact Mehmi Financial Group
Include your typical financing amount, U.S. or Canada, state or province, equipment or commercial assets sold, customer use and expected timing so the program can be evaluated around the transactions your dealership actually handles.
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