Quick answer: Skid steers are the Swiss-army knife of Canadian farms—feeding, silage, snow, pallets, augers, trenchers. Waiting on cash flow or a slow bank credit box can stall day-to-day work and seasonal deadlines.
Leasing through a broker opens private-lender options that move faster, bundle attachments and install costs, and keep monthly payments predictable.
Mehmi Financial Group is both a financing partner and, in select categories, a seller of commercial equipment. We arrange milestone funding to your dealer, wrap soft costs (delivery, PDI, attachments, quick-couplers), and—when our inventory fits—provide one integrated quote with in-house financing. If you want a side-by-side of structures, feel free to contact our credit analysts.
What’s financeable on a farm skid steer file
- Units: Wheel and track skid steers (ag-spec)
- Attachments: Buckets, forks, bale spears, grapple, snow pushers, augers, trenchers, brush cutters
- Tech & protection: High-flow hydraulics, 2-speed, ride control, telematics, extended warranty, engine block heater
- Soft costs: Delivery, PDI, installation/hoses, dealer setup, training—often eligible to bundle in the same lease
Explore structures here: Financing & Leasing • Refinancing & Sale-Leaseback • Equipment Line of Credit. Run quick numbers with our calculator.
Why farmers choose leasing (quick wins)
- Preserve cash for inputs. Keep liquidity for feed, seed, fuel, and repairs.
- Match cost to seasons. Step-up or seasonal/skip schedules to align with milk cheques or harvest receipts.
- Bundle attachments now. Including forks/snow gear up front is cheaper than scrambling later with short-term cash.
- Refresh easily. FMV terms make swaps or upgrades straightforward when hours stack up.
Lease structures in plain English
| Structure | Best For | Cash-Flow Impact | End-of-Term |
|---|---|---|---|
| FMV (Operating) | Lower payment + future upgrade | Lowest monthly; flexible | Return, renew, or buy at fair value |
| $10 / Fixed-Residual (Capital) | Keeping the unit long-term | Moderate payment | Title transfers for nominal/fixed amount |
| Sale-Leaseback | Raise cash from owned equipment | Immediate liquidity | Reacquire at residual buyout |
| Progress-Funding | Factory order + multiple attachments | Interest on draws; converts at acceptance | Term begins after delivery/PDI |
Not sure which fits? We’ll price FMV vs. buyout side-by-side and map payments to your receipts.
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.
How private lenders actually underwrite farm deals
As a credit analyst, here’s what moves approvals beyond a bureau score:
- Asset quality & dealer. Make/model, hours (if used), service history, tire/track wear, warranty, parts availability.
- Bank-statement coverage. 6–12 months of deposits/outflows showing room for the new payment (even if net income is modest).
- Operation snapshot. Dairy, grains, mixed; acres, herd size, seasonal cash timing; snow/removal side income.
- Security. PPSA on the unit/attachments, telematics/keys, insurance with lender as loss payee.
- Sponsor strength. Guarantor depth, past performance, simple contingency plan (breakdown coverage, winter revenue).
Tight on working capital? Consider a small revolving overlay via Line of Credit & Working Capital. If you invoice B2B (custom work, snow contracts), Invoice Factoring can smooth receipts.
Typical ranges & levers (what affects your monthly)
| Lever | Typical Range | Effect |
|---|---|---|
| Ticket size | $35,000–$140,000+ (unit + attachments) | Scope drives approval structure |
| Term | 36–72 months (84 in cases) | Longer term = lower payment |
| Down / First & Last | 0–15% or 1–2 payments in advance | Improves pricing/odds on C/D files |
| Seasonal/Skip | Light pre-harvest; heavier post-harvest | Smooths cash flow |
| Structure | FMV / $10 residual / Sale-leaseback | Refresh vs. ownership trade-off |
Broker fast-track: from quote to delivery in 7 steps
- Lock your bill of materials. Unit, tires/tracks, hydraulic options, attachments, soft costs (delivery/PDI/hoses).
- Pick a structure. FMV for future upgrades; fixed-residual if you’ll run the unit long; sale-leaseback if you need a down payment.
- Package the file. Application/IDs/void cheque, farm/corp docs, last filed year + YTD interims, 6–12 months bank statements.
- Add an operations one-pager. Herd/acres, seasonal receipts, planned hours, side contracts.
- Milestone funding. Deposit → shipment → delivery/PDI → acceptance; we pay the dealer so you don’t float progress bills.
- Seasonal/step-up. Lighter early payments; full after receipts clear.
- 12–18 month review. If performance is clean, we explore refinancing to trim the rate or extend term.
Case study: winter work + spring chores, one payment plan (Prairies)
Situation. Mixed farm needed a high-flow track skid steer with snow pusher, forks, and auger—$96,000 all-in (delivery, PDI, couplers). Credit file showed late payments from a drought year; bank declined.
Structure. 60-month FMV lease with seasonal/step-up (lighter Nov–Mar to match snow income; full Apr–Oct for farm work). Progress-funding paid dealer at order, delivery, and acceptance.
Outcome. Approved quickly; downtime and rental costs dropped. After 15 on-time payments, we refinanced and reduced the monthly ~8%.
Common pitfalls (and how to avoid them)
- Under-scoping attachments. Add forks/snow now—bundling is cheaper than separate financing later.
- Ignoring tracks/tires. Worn consumables impact appraisals and approvals; document replacements.
- No insurance binder at delivery. Causes funding delays—have the lender listed as loss payee.
- Forgetting soft costs. Hoses, couplers, PDI, delivery add up; include them.
Approval checklist (credit-analyst view)
- Application, IDs, void cheque
- Farm/corporate registration and ownership
- Financials: Last filed year, YTD interims, 6–12 months bank statements
- Dealer quote with serials (if used), options, attachments, warranty
- Insurance binder naming lender as loss payee
- Operations one-pager (acres/herd, receipts timing, planned hours)
Short on paperwork? Send what you have—we’ll stage the rest. For a quick payment preview, try the calculator.
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.
Program eligibility, lender criteria, tax treatment, and product terms can change. Verify current official guidance and final financing documents before making a decision.
FAQs
Can I lease used skid steers and attachments?
Often yes—late-model units with service history and good resale are financeable; expect photos/inspection.
What credit score is “good enough”?
Many lenders prefer 650+, but stable deposits, solid collateral, and a credible seasonal plan can offset thinner credit.
Can I include delivery, PDI, and hoses in the same lease?
Usually—soft-cost bundling is common to avoid cash crunches.
Can payments be seasonal?
Yes. We structure seasonal/skip or step-up schedules around your receipts.
Can payments drop later?
Often. After 12–18 clean payments, we can explore refinancing to reduce rate or extend term.
If you’d like a no-pressure comparison of FMV vs. $10 buyout—or help structuring seasonal payments—feel free to contact our credit analysts. Start with a quick estimate using our calculator or reach us here: Contact Us.