Quick answer: Refinancing or a sale-leaseback may release equity from eligible business equipment, subject to valuation, existing liens and the business’s repayment capacity. Compare net cash after payouts and fees with the full replacement payment schedule and any change in ownership or security.
Turn idle equity into working cash
If you own trucks, machines, or trailers, you may be sitting on the cheapest capital in your business. Equipment refinancing lets you pull equity out of owned assets or restructure current loans/leases for better cash flow—without disrupting operations. Use our calculator to test payments, then choose the structure that fits your plan.
When equipment refinancing makes sense
- You need cash for inventory, payroll, or a new contract but don’t want to sell a productive asset.
- Your current payment is too high; you want a longer term or a balloon to ease cash flow.
- You’ve stacked short-term advances and want one clean, lower-cost facility.
- You’re upgrading soon and want to position residual/buyout timing.
Common structures (at a glance)
| Structure | Best For | Cash-Flow Impact | End of Term | Learn More |
|---|---|---|---|---|
| Refinancing (replace existing debt) | Lower rate, longer term, consolidate payments | Reduce monthly; simplify to one payment | Own free & clear | Business Refinancing |
| Sale-Leaseback | Unlock cash from owned equipment | Immediate lump-sum + lease payment | Buy, upgrade, or return | Refinancing & Sale-Leaseback |
| Equipment Loan (term refinance) | Long-life assets you’ll keep | Predictable fixed term | Own free & clear | Equipment Loans |
| Equipment Lease (restructure) | Lower monthly via residual | Payment relief; upgrade path | Buyout or upgrade | Equipment Leases |
| Asset-Based/LOC add-on | Seasonal or rolling cash needs | Draw as needed | Reusable facility | Asset-Based Lending · Equipment LOC |
BDC’s equipment-financing guide emphasizes the complete financing structure when comparing offers.
“Don’t focus only on interest rates”
For the equipment decision discussed here, compare the amount financed, payment schedule, collateral and remaining obligations alongside the quoted rate.
What we can refinance
Heavy-duty trucks and trailers, yellow iron (excavators, loaders, dozers, telehandlers), forklifts, shop machinery, crushers/screeners, medical/diagnostic equipment, restaurant/kitchen lines, and more. Check Eligible Equipment. Mehmi also owns inventory—you can refinance one unit and acquire another from our inventory in one workflow.
How it works (simple path)
- Model the target payment (48/60/72 months; lease buyout vs loan) in the calculator.
- Apply with 3–6 months bank statements and your equipment list (make/model/year, hours/km, serials).
- Approval and funding timelines vary by lender, application completeness, and required conditions.
If you also need operating cash, pair the refinance with a Working Capital Loan or Line of Credit. Slow-pay customers? Layer Invoice/Freight Factoring.
Approval checklist (saves days)
- Equipment list with VIN/serials + current photos or invoice
- Payoff letters (if any), existing contract details
- 3–6 months business bank statements (PDFs, all operating accounts)
- Brief use-of-funds plan (e.g., “$150k to mobilize awarded contracts; payment covered by margin on POs 1234/1235”)
- Insurance binder naming lender as loss payee
Case study (realistic)
A GTA contractor owned two excavators and a telehandler outright but was turning down work due to upfront mobilization costs. We executed a sale-leaseback on all three units, releasing $275,000 while keeping the machines on site. We paired this with a small working capital facility for materials. Result: jobs launched on time, a single predictable lease payment, and a 12% cash buffer throughout the season.
FAQ
Is refinancing only for paid-off equipment?
No. We can refinance existing loans/leases to improve term, rate, or structure, or use sale-leaseback to unlock equity from owned assets.
Will my payment always go down?
Not always. It depends on term, residual, and amount advanced. Use the calculator to compare options.
Can I refinance used or high-hour assets?
Often yes—condition, age, resale value, and documentation drive the decision. Start with Refinancing & Sale-Leaseback.
Can I wrap multiple units into one payment?
Yes—through Business Refinancing or a consolidated equipment facility.
What if my cash issue is receivables, not debt?
Consider Invoice/Freight Factoring or an Asset-Based Lending facility on AR/inventory.
Do you also supply equipment?
Yes. Mehmi sells equipment directly and can bundle purchase and finance—see our inventory.
If you’d like a tailored refinance quote—or you want to compare a loan vs sale-leaseback side-by-side—run numbers in the calculator and feel free to contact our credit analysts via Contact Us.
Authoritative references
- Innovation, Science and Economic Development Canada — Canada Small Business Financing Program:
The Canada Small Business Financing Program makes it easier for small businesses to get loans from financial institutions by sharing the risk with lenders.
Eligibility, pricing, tax treatment, and program terms can change. Verify current official guidance and final financing documents.