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Compare U.S. dealer financing programs for business customers, including loans, leases, costs, approval requirements and dealer payment conditions.
A customer has selected the equipment, accepted the specifications and discussed delivery. The remaining question is how to pay without leaving the business short of operating cash.
For an equipment dealership, that is the moment to offer a clear financing path, not an unsupported promise of approval.
This guide covers commercial equipment dealers helping U.S. business customers finance purchases. It does not cover consumer auto loans or financing the inventory on your dealership’s lot.
Quick Answer: Dealer financing programs let U.S. equipment sellers help business customers apply for loans or leases through financing providers. Dealers supply the equipment and transaction details; providers assess credit and set funding conditions. Choose a program around customer eligibility, total cost, dealer obligations and state availability, not approval promises. (Mehmi Group)
A dealer financing program connects the equipment sale with a process for arranging customer financing.
In a third-party arrangement, the dealership introduces the opportunity and supplies accurate equipment information. A lender or leasing company evaluates the customer and establishes the terms. A brokerage may coordinate the application, identify potential financing sources and help resolve outstanding conditions.
Mehmi Financial Group operates as a commercial financing brokerage and intermediary, not a direct lender. Independent financing providers make the final credit and funding decisions. (Mehmi Group)
Before comparing programs, identify which financing need you are trying to solve.
Customer financing helps the buyer acquire equipment for its business.
Floorplan financing helps the dealership carry inventory before selling it. The Office of the Comptroller of the Currency’s floorplan lending guidance explains that advances are made against specific inventory and generally repaid as those items sell. It is a separate obligation from the customer’s financing. (OCC.gov)
In-house financing means your dealership extends credit itself rather than simply arranging third-party financing. Do not enter that business casually: funding, collections, documentation and regulatory responsibilities need separate evaluation.
A branded application on your website does not, by itself, mean your dealership is the lender.
Start with the equipment and customers you actually serve.
Prepare a representative sample of transactions: a straightforward established-business purchase, a used-equipment sale, a larger installation project and a customer whose previous application was declined.
Then ask each potential partner how it would assess those situations. Do not submit identifiable customer information without authorization.
Ask whether the program considers your equipment categories, typical purchase amounts, used inventory and customer locations. Discuss how it handles limited operating history, older assets, private-party purchases and transactions involving several machines.
For a manufacturer-backed offer, compare the eligible equipment and complete transaction cost with independent alternatives. For a brokerage arrangement, ask which financing sources may realistically consider your customer profile.
The useful question is not simply, “How many lenders do you work with?”
It is:
“Which of our transactions fit, which do not, and what information will you need to tell the difference?”
Request a demonstration of the customer application and dealer experience.
Find out who follows up on missing documents, who explains offers and how your salesperson learns that a file needs attention. Agree on who can communicate approval conditions and authorize delivery.
A financing program should make the next step clear even when the answer is “more information required” or “this transaction does not fit.”
Review exclusivity, termination rights, compensation, customer-contact permissions and responsibility for disputed transactions.
Ask what happens when a customer cancels, equipment changes, a deposit becomes disputed or the financing provider discovers inaccurate information after payment.
Have counsel review material obligations before signing a dealer agreement. Treat “no recourse” as a contract term to investigate, not a substitute for reading the exceptions.
Match the structure to the customer’s ownership goal, equipment use and repayment capacity.
These structures can suit customers purchasing equipment they expect to retain.
The OCC describes an equipment finance agreement, or EFA, as a loan document financing an equipment purchase with a security interest in the equipment. Unlike a traditional lease, the borrower owns the equipment rather than exercising a purchase option at the end. (OCC.gov)
Ask whether the proposed agreement fully pays down the balance or leaves a balloon payment. Also confirm the early-payoff calculation before describing the financing as flexible.
A lease provides the right to use equipment under an agreement with its owner. The customer’s end-of-term choices depend on the contract. (OCC.gov)
Compare the required upfront payments, payment schedule, purchase option, return conditions and any renewal provisions. A lower scheduled payment may come with a substantial amount required to purchase the equipment later.
The SBA’s equipment acquisition guidance specifically recommends reviewing lease details, including buyout options and early-termination consequences. Do not assume maintenance or an easy exit is included. (Small Business Administration)
A customer planning repeated purchases may want to discuss a credit facility rather than financing every acquisition independently. Confirm whether repayments replenish available credit and whether each equipment purchase still requires approval.
Keep working-capital products separate from equipment financing. Factoring involves receivables; sales-based financing ties repayment to revenue under its agreement. Neither should be presented as interchangeable with a conventional equipment loan. New York’s commercial financing definitions illustrate these distinctions. (New York State Senate)
Build the application around repayment capacity, equipment quality and a credible business purpose.
The OCC’s leasing guidance emphasizes credit history, financial resources, repayment capacity and asset value. These are connected considerations: acceptable collateral does not eliminate the need for an affordable obligation. (OCC.gov)
For your dealership’s intake, organize three groups of information:
Documentation requirements vary. Do not advertise one universal credit-score, revenue or down-payment threshold.
Explain whether the purchase replaces existing equipment or adds capacity. For a replacement, identify the work already being performed. For an addition, explain what demand supports the extra machine.
An established customer adding equipment for documented orders presents a different proposal from a business buying speculative capacity.
For a buyer-facing discussion of these questions, Mehmi’s Columbia equipment-financing guide examines repayment, project costs and the difference between replacement and expansion purchases.
Used-equipment financing requires attention to the specific asset, not merely the selling price.
For each used unit, establish what the customer is buying and what evidence supports its condition. Obtain maintenance records, major repair invoices, current photographs and an inspection when appropriate.
Consider the equipment’s expected condition at the end of the proposed financing term, not just on delivery day.
A shorter term may be more sensible for an older asset, but the resulting payment must still fit the customer’s cash flow. Avoid solving an equipment-age problem by creating an unaffordable monthly obligation.
Commercial truck dealers can use Mehmi’s older day cab financing guide for Rincon, Georgia to explore how mileage, engine hours, maintenance and remaining useful life affect the assessment.
Keep inspection and financing decisions separate. A credit approval should not be presented to the customer as a mechanical warranty.
The payment depends on the financed amount, pricing, term, timing and contract structure. Compare complete cash outflows rather than the monthly payment alone.
Assume a business purchases equipment for USD $120,000, contributes USD $20,000 and finances USD $100,000.
For this example only, assume:
The calculated monthly payment is approximately USD $2,512.31.
Using the unrounded payment calculation, scheduled loan repayments total approximately USD $120,591.06, including USD $20,591.06 in interest.
Including the fee, financing cost is approximately USD $21,341.06. Including the down payment as well, total cash paid is approximately USD $141,341.06.
The customer needs USD $20,750 at closing, before excluded expenses. Sales taxes, delivery, installation, registration, insurance, maintenance and other operating costs are excluded. Rounding may slightly adjust the final payment.
This is an illustrative calculation, not a Mehmi offer, current market quote or approval. The 9.5% assumption is an interest rate, not a fee-inclusive APR.
Suppose the customer has USD $6,000 monthly cash available after operating expenses and existing debt payments, before the proposed equipment payment.
The example leaves approximately USD $3,487.69 afterward.
During a slower month with only USD $3,000 available, the remaining cushion falls to approximately USD $487.69.
That comparison is more useful than saying the equipment “only costs” a particular amount per month. Ask whether the remaining cash can absorb repairs, delayed collections and ordinary operating uncertainty.
Request a written explanation of every amount the customer must pay, including upfront charges and end-of-term obligations.
Separate the equipment price from financing charges. Identify documentation fees, required advance payments, inspection costs, security deposits and any dealer subsidy or customer-paid compensation.
Do not describe a factor rate, lease payment factor or flat financing charge as APR. Different pricing measures are not directly interchangeable. (Mehmi Group)
For secured transactions, ask exactly which assets are covered. A security interest limited to the purchased machine is different from an agreement covering a broader group of business assets. UCC filings help establish secured-creditor rights; the California Secretary of State’s UCC explanation describes their role in perfection and priority. (California Secretary of State)
For titled vehicles, confirm the required title and lien process rather than assuming an equipment filing completes every step.
Review any personal guarantee separately. Ask who signs, whether liability is limited and what obligations remain following a default or equipment sale.
Finally, request a sample early-payoff calculation. Do not assume paying early eliminates every remaining charge.
Credit approval and completed funding are different milestones. A preliminary approval may remain subject to financial verification, equipment checks, insurance, documentation and other conditions. (Mehmi Group)
Build the closing process around written confirmation.
The final invoice should match the approved equipment and amount. Reconcile deposits, trade-in allowances and any payoff on the traded or sold asset. Identify who supplies ownership documents and who verifies payment instructions.
For installed machinery, agree on what constitutes delivery and acceptance. Discuss factory deposits, shipping milestones and commissioning requirements before accepting an order that requires advance payment.
Never ask a customer to confirm receipt or acceptance before the relevant event has occurred.
Your dealer agreement should also explain whether payment can be adjusted or recovered in circumstances involving cancellation, non-delivery, misrepresentation or breached obligations.
The operational objective is simple: everyone should know what must happen before money moves and before equipment leaves.
Using an outside financing partner does not automatically remove every responsibility from the dealership.
The CFPB’s Regulation B guidance explains that equal-credit-opportunity protections apply to commercial as well as personal credit. Its creditor definition also includes regular referral activity for specified anti-discrimination provisions. (Consumer Financial Protection Bureau)
Train salespeople to offer financing consistently and avoid discouraging applicants based on protected characteristics. Have the financing partner and counsel establish the appropriate application, referral and notice procedures.
Do not assume one disclosure process fits every transaction.
For example, New York requires standardized disclosures for certain commercial financing offers. Its law also contains exemptions, including qualifying true leases and specified institutions. The financing structure and provider’s role matter. (Department of Financial Services)
Ask who is responsible for applicable disclosures, licensing or registration checks, customer authorizations and record retention.
Mehmi’s published policy restricts general commercial loan-broker applications involving borrowers principally located in California, Illinois, Missouri, Nebraska, North Carolina, North Dakota and Vermont, unless an applicable authorization or exemption has been confirmed. Additional product-specific restrictions apply.
These are Mehmi’s stated business restrictions, not a claim that financing is unavailable throughout those states. Review the current geographic availability disclosure before launching customer-facing messaging. (Mehmi Group)
Do not force financing to preserve a sale that does not make economic sense.
A customer may be better served by a smaller purchase, short-term rental, repair of existing equipment or waiting until demand is clearer. An existing banking relationship may also deserve comparison.
Treat a bank decline as information. Ask whether the issue was repayment capacity, documentation, the equipment or that provider’s policies.
A second review is worthwhile when there is a credible reason the transaction might fit another provider. It is not a solution to ongoing losses, unresolved ownership problems or a payment the business cannot support.
Mehmi’s vendor financing program includes branded application access from websites and quotes, document uploads, deal tracking, financing-specialist support and comparison of available approval terms. (Mehmi Group)
Start the discussion with your actual equipment line, customer profile and selling process. Clarify which states and transaction types can be supported before promoting the arrangement.
Measure results beyond application volume. Track completed applications, accepted offers, funded sales, outstanding conditions and customer complaints.
A useful program should help your dealership distinguish a workable financing opportunity from a sale that needs restructuring or should not proceed.
Yes, a third-party arrangement can provide an application and financing-review process without the dealership funding the customer’s purchase itself. Dealer onboarding, customer eligibility and state availability still need confirmation. Mehmi’s vendor program provides this type of dealer-facing process. (Mehmi Group)
Do not assume either answer. Review the dealer agreement for guarantees, recourse, reserves, repurchase requirements and exceptions. Distinguish responsibility for the customer’s credit performance from responsibility for your own representations, delivery and contractual obligations.
Ask whether the proposed agreement is exclusive and whether your existing agreements permit additional relationships. Define how second-look submissions will work, including customer authorization and avoiding conflicting applications.
No. Mehmi’s program page lists no setup or membership costs, but that is separate from the customer’s interest, fees and contractual obligations. Review the current dealer agreement and each financing offer. (Mehmi Group)
Ask for those costs to be reviewed with the original proposal. Itemize equipment, freight, installation and related work separately. Do not assume approval for the machine automatically includes every project expense.
Have the financing partner approve the wording and required disclosures first. Clearly identify assumptions such as price, contribution, term, fees and final payment. Keep an illustration separate from a customer-specific approved offer.
Bring a representative equipment quote and explain where financing currently stalls: customer affordability, older inventory, bank declines, incomplete applications or delivery conditions.
To discuss a program, share your typical financing amount in USD, dealership and customer states, equipment or use of funds, and expected purchase or delivery timing.
Call Mehmi Financial Group at 833-863-4644 or contact the team about dealer financing. Program fit and transaction availability must be confirmed before applications or financing commitments proceed. (Mehmi Group)
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