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Purchasing business equipment can be one of the most expensive operational decisions you'll make. Whether you're running a construction company, a dental clinic, or a logistics fleet, access to reliable equipment is essential—but paying for it all upfront isn't always practical.
That’s where equipment loans come in. At Mehmi Financial Group, we help Canadian businesses access the financing they need to invest in vital tools and machinery—without draining their working capital.
What Is an Equipment Loan?
An equipment loan is a form of business financing used to purchase tangible assets like machinery, vehicles, computers, or office equipment. Rather than paying upfront, you make monthly payments over a fixed term. The equipment typically serves as collateral, which can make approval easier and rates more competitive.
Explore our equipment leasing and financing options.
Who Qualifies for Equipment Financing?
Lenders evaluate several factors when reviewing equipment loan applications:
- Value of the Equipment: Lenders often finance a percentage of the purchase price (typically 80–100%). For used equipment, an appraisal may be required.
- Business Credit Score: Your score helps determine the interest rate and loan terms.
- Financial Documents: You may be asked to provide tax returns, bank statements, and income projections.
- Age and Condition (for used equipment): Include clear photos, serial numbers, and service history for older assets.
We work with both startups and established businesses across industries.
Types of Equipment Financing Options
There are several equipment financing structures available in Canada:
1. Equipment Loan
Borrow the full amount to purchase new or used equipment and repay over time. You own the asset once the loan is paid off.
2. Equipment Line of Credit
A revolving credit facility that allows you to draw funds when needed. Offers more flexibility, but usually at a higher interest rate.
3. Equipment Lease
Rent the equipment with the option to buy it later or return it at the end of the lease term. Ideal for fast-changing industries.
4. Sale and Leaseback
Sell existing equipment to a lender and lease it back. This frees up capital while allowing continued use of the asset.
Learn more about equipment credit line options.
How to Apply for an Equipment Loan in Canada
Here’s a step-by-step guide to securing an equipment loan:
- Define Your Needs
Determine what type of equipment you need, how much it costs, and how long you plan to use it. - Compare Lenders
Research banks, credit unions, and alternative lenders like Mehmi Financial Group. Pay attention to repayment terms, rates, and fees. - Prepare Your Application
Gather documents like:- Business license
- Equipment quote or invoice
- Tax returns
- Cash flow projections
- Submit Your Application
You can apply online, in person, or through a financing broker. Approval and funding timelines vary by lender, application completeness, and required conditions. - Get Funded
Once approved, the lender sends funds directly to the equipment vendor so you can finalize your purchase.
Advantages of Equipment Loans
- Preserve Cash Flow
Spread the cost over time while keeping working capital free for other needs. - Quick Access to Equipment
Start generating revenue immediately without waiting to save for the full cost. - Tax Benefits
You may be able to deduct interest and depreciation. Speak with your accountant about CRA-compliant deductions. - Fixed Monthly Payments
Protects against inflation and simplifies long-term budgeting. - Easier Upgrades
Choose financing terms that align with your industry’s technology lifecycle.
Industries We Serve
We provide equipment loans and leases for businesses across multiple sectors, including:
- Construction and Industrial
- Medical and Dental Practices
- Transportation and Trucking
- Manufacturing and Warehousing
- Office Tech and Small Business
Ready to grow your business without the cash strain? Apply now with Mehmi Financial Group and explore Canada’s most flexible equipment loan solutions.
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