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If you're a business owner in Ontario trying to secure equipment financing with bad credit, the road can feel steep—but it’s not impossible.
Whether you need to upgrade construction machinery, buy commercial kitchen equipment, or replace outdated medical devices, bad credit doesn’t mean you’re out of options. In 2025, many specialized lenders and alternative financing paths are designed to support businesses just like yours.
This guide explores how to get approved for equipment financing in Ontario—even with poor credit—and how Mehmi Financial Group can help.
Equipment financing involves using a loan or lease to acquire tools, vehicles, or machinery needed to run your business. The equipment typically serves as collateral, lowering risk for lenders.
Examples of financed equipment:
🔗 Explore Equipment Financing Solutions
Bad credit signals a higher risk to lenders—typically due to missed payments, high debt usage, or lack of credit history. As a result:
But you’re not out of luck. Specialized lenders and leasing programs in Ontario still offer realistic paths forward.
Some lenders focus on credit-challenged businesses. While rates may be higher, they offer:
🔗 Speak with a Financing Advisor at Mehmi
Adding a co-signer with strong credit can drastically improve your odds of approval. It shows the lender someone else is backing your loan.
This is ideal for partnerships or family-run businesses with shared financial responsibility.
If you can put more money down (20–40%), you reduce the lender’s risk, which often:
Equipment leasing requires lower credit scores, smaller upfront costs, and more flexible terms. You don’t own the asset unless you choose to buy it later, but it gets the job done when capital is tight.
🔗 Explore Equipment Leasing Options
Include cash flow projections, a breakdown of how the equipment will improve operations, and how you’ll repay the loan.
Lenders want to see that you generate regular income—even if your credit isn’t perfect. Show bank statements and monthly invoices.
Start rebuilding while you apply:
Mehmi Financial Group can help you align your financing with your business stage—even while rebuilding credit.
Construction Business (London, ON)
Despite a 580 credit score, the owner secured a $40K loan for a skid steer by offering a 25% down payment and a detailed growth plan.
Café Owner (Mississauga, ON)
Unable to qualify for a bank loan, the owner leased a full kitchen upgrade through a no-credit-check lease agreement.
Mehmi Financial Group specializes in equipment financing for businesses with all credit backgrounds, offering:
We help you go from “denied” to “delivered”—whether you need $10K for a bakery oven or $200K for a construction excavator.
✅ Apply Now for Equipment Financing
📞 Talk to a Financing Advisor
Can I get financing with a credit score under 600?
Yes, especially through specialized or alternative lenders. A strong business plan or larger down payment can help.
Is leasing better than a loan if I have bad credit?
Leasing is often easier to qualify for and offers lower monthly payments, making it a smart option for credit-challenged applicants.
Does Mehmi Financial Group work with new businesses?
Yes. We help startups secure financing using revenue potential, projections, or co-signers.
How long does it take to get approved?
Approvals typically take 24–72 hours once documentation is submitted.
Getting equipment financing with bad credit in Ontario isn’t just possible—it’s achievable with the right strategy. Whether through leasing, co-signers, or credit-rebuilding plans, your business can still access the tools it needs to grow.
Let Mehmi Financial Group help you build a financing path that fits your reality—and your ambitions.
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