Typical Equipment Financing Structures for Canadian Multi-Location Businesses

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If you run a Canadian business with multiple locations, most of your equipment ends up financed through a mix of equipment leases, master lease agreements, equipment lines of credit, and asset-based facilities, with working capital loans supporting build-outs and refreshes. The structure you choose has as much impact as the interest rate.

Below, we’ll unpack how lenders actually structure these deals for chains, franchises, and multi-site operators—plus how to avoid the chaos of every location “doing its own thing.”

Why multi-location changes the equipment financing conversation

For multi-location businesses, financing isn’t just “how do I buy this one piece of equipment”—it’s how do I scale and refresh dozens of locations without choking cash flow or admin?

A few Canadian realities to set the stage:

• SMEs dominate the landscape: small and medium-sized enterprises make up over 98% of employer businesses and provide more than half of private-sector jobs.(ISED Canada)
• As firms get larger (and more likely to have multiple locations), they borrow more. In 2023, 80.6% of SMEs with 100–499 employees requested external financing, compared with 39.6% of firms with 1–4 employees.(Statistics Canada)
• Capital spending is rising: total non-residential capital expenditures are expected to reach about $353.9 billion in 2024, the fourth straight annual increase.(Statistics Canada)

On top of that, Canada’s asset-based finance sector is doing a lot of heavy lifting: estimates suggest asset-based finance (leases, secured loans, lines of credit) finances more than 40% of all equipment and commercial vehicle spending.(World Leasing Yearbook)

For businesses with multiple locations—restaurants, clinics, retail chains, logistics networks—that typically translates into:

• Frequent equipment rollouts and refreshes
• Different needs by region or store size
• Pressure to standardize equipment and financing so corporate isn’t managing 37 random leases and vendor loans

That’s where structured approaches like Equipment Financing, Equipment Leases, and Asset Based Lending come in.

Single-location building block: equipment leases by site

Most multi-location equipment strategies still start with a simple idea: lease the gear at each site, so it pays for itself over time.

For a single site—whether it’s a clinic, store, branch, or depot—the classic structure is:

• The location gets equipment (POS systems, refrigeration, diagnostic tools, lifts, line equipment, etc.).
• Mehmi or another funder pays the vendor.
• You lease the asset over 3–7 years.
• Payments are tied to the expected life and revenue of that gear.

Anything with a serial number that’s central to operations usually fits well inside Equipment Leases. Mehmi’s Eligible Equipment list covers everything from medical devices to shop equipment to material handling, across multiple Industries.

Key advantages for multi-location operators:

• Asset-based approvals – underwriting leans on the equipment as collateral, not just unsecured credit.
• Cash-flow alignment – you pay over the period the asset is productive, not upfront.
• Location-level accountability – each store/clinic/depot has a clear monthly equipment cost.

On its own, though, location-by-location leasing can get messy—especially if each site negotiates separately or vendors bring their own financing. Which brings us to the next layer.

Master lease agreements: one umbrella, many locations

For multi-location businesses, lenders often use master lease agreements: one overarching contract with separate “schedules” for each draw, site, or project.

In plain language:

You negotiate terms once at the corporate level, then roll out equipment to locations under that umbrella instead of redoing the entire credit process every time.

Typical features of a master lease structure:

• Single master document with agreed term ranges, pricing grid, and security language.
• Individual schedules per equipment group or site, each with its own start date and term.
• Ability to mix new locations, retrofits, and refreshes under one program.
• Centralized invoicing and reporting for head office.

This is where a partner like Mehmi blends leasing experience with program design:

• The master sets the framework under Equipment Financing.
• Each new draw becomes a new schedule referencing your master terms.
• Equipment specifics, shipping, and install may be pre-coordinated with preferred vendors via Mehmi’s Vendor Program.

The result:

• Faster approvals for each rollout
• Less paperwork
• More consistent pricing and structure across locations

Opinion: for any Canadian business with more than 5–7 locations, getting to a master lease or similar umbrella structure is usually more valuable than squeezing an extra 0.25% on rate at one store.

Equipment lines of credit: ready capital for rollouts and refreshes

When you’re planning multiple projects over several years—for example, refreshing 10 locations per year or rolling equipment into new markets—a plain master lease can feel a bit clunky.

That’s when lenders often move to an equipment line of credit.

An Equipment Line of Credit is essentially:

• A pre-approved ceiling for equipment purchases (say $2–5M).
• You draw down as you open or renovate locations.
• Each draw can convert into its own amortizing lease schedule.
• The overall facility is reviewed periodically (often annually).

For multi-location operators, this structure offers:

• Speed – locations can move quickly once corporate signs off.
• Planning – you know how much capacity you have for next year’s rollout.
• Leverage with vendors – you can negotiate better pricing when financing is already lined up.

In Canada, asset-based finance is already a central pillar of equipment spending—one estimate suggests it financed about 43% of all equipment and commercial vehicle spending in 2021, with growth since then.(World Leasing Yearbook) An equipment line of credit is simply the multi-location version of that logic.

Asset-based lending on equipment for larger networks

As your footprint grows and your equipment base gets larger, lenders may propose a full asset-based lending (ABL) structure on your equipment (and sometimes receivables).

Under Asset Based Lending:

• The borrowing base is linked to eligible assets (equipment, sometimes inventory or A/R).
• Availability typically floats with asset values.
• You can fund:
  • New equipment across multiple locations
  • Refinancing of existing gear
  • Occasionally, related capital projects

For multi-location operators—think regional logistics networks, large healthcare groups, or multi-site manufacturers—ABL can:

• Consolidate equipment debt into one managed facility
• Allow higher total limits than a stack of isolated leases
• Make it easier to reallocate capital as some locations grow and others shrink

The trade-offs:

• More reporting (borrowing base certificates, appraisals).
• Usually better suited once you’ve hit a certain scale and have strong financial reporting.

In practice, Mehmi often blends term-style equipment leases for specific projects with a broader ABL facility to give head office a more flexible pool on top.

New locations vs refresh cycles: different structures, same toolbox

Multi-location equipment decisions usually fall into two buckets:

1. Opening or acquiring new locations
2. Refreshing or upgrading existing locations

The financing structure is often different for each.

Financing equipment for new locations

For a new store, clinic, branch, or depot, you’re usually dealing with:

• A full fit-out (fixtures, signage, equipment, IT).
• Pre-opening hiring and training.
• Inventory and marketing.

A typical stack might be:

• Lease the hard assets through Equipment Leases.
• Use a Working Capital Loan for soft costs, pre-opening expenses, and initial losses.
• Maintain a Line of Credit for ongoing operating swings.
• If you’re a franchise group, combine this with a central Franchise Loan or guarantee structure.

Banks like BDC explicitly advertise that they can finance up to 125% of an equipment purchase to cover related costs such as shipping, installation, and training—showing how tightly equipment finance and working capital tend to be linked.(BDC.ca) Mehmi achieves the same effect by stacking leases with the right working capital tools rather than burying everything in a single loan.

Financing refreshes and rollouts

For refreshes—say, upgrading POS across 30 locations, or replacing cold tables chain-wide—you’re usually working off existing cash flow, not a brand-new P&L.

Here, a mix of:

• Master lease schedules under a Equipment Financing umbrella
• Draws on an Equipment Line of Credit
• Small Working Capital Loans for any unfinanced soft costs

…lets you standardize and modernize without hammering your bank line.

Using refinancing and sales-leaseback across your network

Many multi-location operators are sitting on fully or partially paid-off equipment at older sites.

A refinancing or sales-leaseback strategy can:

• Unlock equity from those assets
• Smooth capex spikes
• Help fund upgrades at newer or under-invested locations

Under Refinancing or Sales Leaseback:

1. Mehmi buys eligible equipment from you at an agreed value.
2. You lease it back over a new term.
3. You get a lump sum that can be used for:
   • New-location equipment
   • Chain-wide refreshes
   • Paying down expensive short-term debt

For multi-location businesses, you can think of it as rebalancing the capital between mature and growth locations.

Caution:

• You don’t want to over-leverage assets that are close to end of life.
• A good advisor will help you decide which equipment to refinance and which to leave alone.

Centralized vs decentralized structures: who actually borrows?

One big design question for multi-location equipment financing is whether head office or each location is the borrower.

Corporate-owned networks

If you own all locations corporately, lenders will usually:

• Underwrite and lend to the parent company.
• Take security over a pool of equipment across sites.
• Use master leases, equipment LOCs, or ABL to manage everything centrally.

This simplifies administration and matches reality: cash flows are effectively pooled, even if each location has its own P&L.

Franchise and hybrid models

For franchise systems, the structures are more varied:

• Location-level leases – each franchisee leases equipment directly, often using a preferred lender and standard documentation.
• Corporate support – the franchisor may:
  • Provide partial guarantees or subsidies.
  • Negotiate master terms with a lender and let franchisees opt in.
  • Centralize some shared assets (e.g., distribution equipment) under corporate.

Mehmi works with both sides here: franchisors use the Vendor Program to make financing part of their system, while franchisees tap into Business Loans and leases sized to their individual locations.

Contrarian view: letting every franchisee “do their own thing” on equipment financing is usually a mistake. Corporate doesn’t need to borrow everything itself—but it should set a standard playbook and preferred structures, or you end up with a patchwork that’s impossible to manage.

What lenders look at in multi-location equipment deals

The core credit questions are the same as for single-site businesses, but with more emphasis on scale, consistency, and diversification.

Using the classic five Cs of credit (Character, Capacity, Capital, Collateral, Conditions), lenders like Mehmi emphasize:

• Character – track record of the business and management team across locations.
• Capacity – consolidated cash flow, plus how resilient it is if one region underperforms.
• Capital – how much equity is in the business; whether owners are putting fresh cash in for expansion.
• Collateral – the value and quality of equipment across sites, which drives structures like Asset Based Lending.
• Conditions – sector outlook and how your concept is positioned.

StatCan’s 2023 Survey on Financing and Growth of SMEs makes it clear that larger SMEs (100–499 employees) are both more likely to seek financing and more likely to get approvals, with about 88% of debt financing requests at least partially approved.(Statistics Canada)

For multi-location borrowers, a solid data package is non-negotiable:

• Clean consolidated financials
• Location-level P&Ls or at least contribution margins
• A current equipment roll with age, type, and debt against each unit

This is exactly the sort of picture Mehmi expects when structuring multi-location Equipment Financing programs.

Comparing common equipment financing structures for multi-location businesses

Here’s a quick at-a-glance view of the main options you’re likely to use.

You can model payment scenarios for each using Mehmi’s online Calculator before you commit.

Practical roadmap: structuring equipment finance for your network

Here’s a concrete step-by-step approach you can take right now.

1. Map your network and equipment needs
   • List locations and what’s needed: new sites, refresh, one-off upgrades.
   • Group projects by type (e.g., IT upgrades, cold chain, diagnostic, shop equipment).
2. Decide what gets leased vs loaned
   • Anything with a serial number → Equipment Leases.
   • Construction, training, and other soft costs → Working Capital Loan or Business Loans generally.
3. Choose your “spine”: master lease, equipment LOC, or ABL
   • 3–7 locations with intermittent projects? A master lease may be enough.
   • Planned chain-wide refresh or rapid expansion? Consider an Equipment Line of Credit.
   • Large, asset-heavy network? Explore Asset Based Lending.
4. Look at refinancing opportunities
   • Identify older, owned equipment at mature locations.
   • Decide whether Refinancing or Sales Leaseback could fund upgrades elsewhere.
5. Standardize your vendor and franchise playbook
   • Set preferred vendors and integrate them via the Vendor Program.
   • For franchises, define whether corporate guarantees or centralized programs will be offered.
6. Prepare one solid credit package—not 20 half-baked ones
   • Consolidated financials, location breakdowns, equipment list, project plan.
   • This dramatically improves speed and quality of decisions.
7. Engage an equipment finance specialist early
   • Mehmi’s About Us page gives you a sense of the team behind the numbers.
   • You can also scan their Blog and FAQ for similar scenarios before you reach out via Contact Us.

Done right, you end up with a repeatable equipment playbook for your entire network, rather than a collection of one-off decisions.

Case study: Master leasing for a 15-location healthcare group

Background

A privately owned healthcare group in Western Canada operated:

• 9 physiotherapy clinics
• 4 imaging/diagnostic centres
• 2 occupational health clinics

Each location had accumulated equipment over the years using a mix of bank loans, vendor financing, and cash—no central tracking. The group planned to:

• Open 3 new clinics over the next two years
• Refresh treatment tables, cardio equipment, and diagnostic devices at 10 existing locations
• Standardize IT and digital imaging across the network

Challenges

• No consolidated view of equipment debt or remaining life.
• Several locations had aging assets that needed replacing soon.
• The bank was open to lending but wanted hard security and didn’t love the patchwork of existing loans.

Mehmi’s structure

Working with a Mehmi advisor, the group reshaped its entire approach to equipment financing:

1. Installed a master lease program
   • They put a master equipment lease agreement in place under Equipment Financing.
   • Terms, pricing ranges, and documentation were standardized for all clinics.
2. Refinanced older gear selectively
   • At mature sites with strong patient volumes, they used Refinancing or Sales Leaseback on specific diagnostic and rehab equipment.
   • This freed up cash to pay off expensive vendor loans and cover part of the deposit on new equipment for growth sites.
3. Funded new locations and upgrades under the master
   • Each new clinic’s equipment package ran under its own schedule, tied back to the master lease.
   • Upgrades at existing locations (new tables, treadmills, ultrasound units) were grouped into two “refresh” schedules for simplicity.
4. Handled soft costs with a working capital loan
   • Mehmi provided a Working Capital Loan to cover leaseholds, training, and initial marketing.
   • Day-to-day swings stayed on the existing Line of Credit) with their bank.
5. Set up a small equipment line of credit for future needs
   • A modest Equipment Line of Credit was approved for rapid replacement of critical equipment without reopening a full credit file.

Outcomes

Within 18–24 months:

• All 15 locations were on standardized equipment where it mattered (diagnostics and IT).
• The group opened 3 new clinics without straining its bank line or resorting to short-term, high-cost debt.
• Management could see total equipment obligations by site and in aggregate—something they’d never had before.
• Payment performance under the master lease improved their profile for future Asset Based Lending discussions as the group continued to grow.

The key wasn’t just getting equipment financed; it was designing a structure that matched how a multi-location healthcare group really operates.

FAQ: Equipment financing for Canadian multi-location businesses

1. What’s the most common equipment financing structure for multi-location businesses in Canada?

The most common building block is still equipment leases at the location level, but larger and growing networks usually move to a master lease agreement or an equipment line of credit. These frameworks let you roll out and refresh equipment across locations without renegotiating every time. Mehmi’s Equipment Financing and Equipment Leases are designed with that in mind.

2. How is financing different for a franchise system versus corporate-owned locations?

For corporate-owned locations, lenders typically underwrite and lend to the parent company, then secure a pool of equipment across sites. For franchise systems, each franchisee might sign their own lease or loan, but the franchisor can still standardize terms through a preferred lender and programs like Mehmi’s Vendor Program. Sometimes corporate adds guarantees or incentives to ease approvals for franchisees.

3. Can I finance equipment for multiple locations under one facility instead of separate loans?

Yes. That’s the whole point of structures like master leases, equipment lines of credit, and asset-based lending. Rather than dozens of one-off agreements, you have one overarching facility with separate schedules or draws for each project or site. Mehmi does this with tools like the Equipment Line of Credit and Asset Based Lending.

4. Can I include installation, training, and fit-out costs in my equipment financing?

Often, yes. Many Canadian lenders, including crown corporations like BDC, highlight the ability to finance up to 125% of equipment cost to cover transport, installation, and training.(BDC.ca) Mehmi usually handles this by either:

• Including eligible soft costs in the lease, or
• Pairing the lease with a Working Capital Loan so you’re not underestimating project costs.

5. When does it make sense to use asset-based lending instead of just leases?

Asset-based lending makes more sense once you have:

• A large base of equipment across locations
• Reasonably sophisticated reporting
• Ongoing capital needs across the network

In that case, a single Asset Based Lending facility can often provide larger, more flexible borrowing capacity than a pile of individual leases, while still letting you track projects by site. Smaller networks are usually better served by master leases and equipment lines of credit.

6. How do I get started designing an equipment financing program for my network?

Start by treating financing as a network-level strategy, not a series of one-off store decisions:

1. Map your locations, current equipment, and upcoming projects.
2. Decide what to lease vs what to fund with Business Loans.
3. Prepare a clean package of financial statements and equipment lists.
4. Talk with a specialist funder like Mehmi through Contact Us.

Before you reach out, you can get a feel for Mehmi’s approach on the Homepage, learn about the team on About Us, and dig into similar scenarios on the Blog and FAQ.

Internal links used

1. https://www.mehmigroup.com/services/equipment-financing
2. https://www.mehmigroup.com/services/equipment-financing/equipment-leases
3. https://www.mehmigroup.com/services/equipment-financing/asset-based-lending
4. https://www.mehmigroup.com/eligible-equipment
5. https://www.mehmigroup.com/industries
6. https://www.mehmigroup.com/services/vendor-program
7. https://www.mehmigroup.com/services/equipment-financing/equipment-line-of-credit
8. https://www.mehmigroup.com/services/equipment-financing/refinancing-sales-leaseback
9. https://www.mehmigroup.com/services/business-loans/working-capital-loan
10. https://www.mehmigroup.com/services/business-loans/line-of-credit
11. https://www.mehmigroup.com/services/business-loans/franchise-loan
12. https://www.mehmigroup.com/services/business-loans
13. https://www.mehmigroup.com/calculator
14. https://www.mehmigroup.com/about-us
15. https://www.mehmigroup.com/blog
16. https://www.mehmigroup.com/faq
17. https://www.mehmigroup.com/contact-us
18. https://www.mehmigroup.com

External citations used

1. Innovation, Science and Economic Development Canada – Key Small Business Statistics 2024: share and number of SMEs in Canada; definition of small and medium-sized enterprises. (ISED Canada)
2. Statistics Canada – Survey on Financing and Growth of SMEs, 2023: proportion of SMEs requesting external financing (49.3% overall) and higher request rates for firms with 100–499 employees (80.6% vs 39.6% for micro firms). (Statistics Canada)
3. Statistics Canada – Non-residential capital and repair expenditures, 2023–2024: total non-residential capital expenditures expected to rise 4.5% to $353.9 billion in 2024. (Statistics Canada)
4. World Leasing Yearbook – Canada chapter: estimate that the asset-based finance sector finances about 43% of all spending on equipment and commercial vehicles. (World Leasing Yearbook)
5. CFLA Annual Report 2024: role of asset-based finance and leasing in supporting Canadian equipment investment; description of the EFAS survey tracking equipment financing volumes.
6. BDC – Equipment loan and equipment financing articles: ability to finance up to 125% of purchase price to cover transport, installation, and training; comparison to vendor financing. (BDC.ca)

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