Skidders, harvesters, processors, feller bunchers, and forwarders don’t earn when they sit. If your file is B/C/D credit (thin history, past delinquencies, volatile seasons), banks can stall. Private lenders focus on cash flow and collateral—so the right structure and complete package can still get you cutting, delimbing, and hauling this season. Mehmi Financial Group both finances and, where inventory fits, sells commercial assets—coordinating vendor payouts, bundling install/transport, and moving fast. If you’d like a second set of eyes, feel free to contact our credit analysts.
What’s financeable (typical forestry scope)
- Primary iron: Track/wheel harvesters, processors, feller bunchers, skidders, forwarders
- Support & attachments: Delimbers, heads, grapples, winches, mulchers, road-building gear, trailers
- Telematics & safety: GPS/RTK, fire suppression, cameras, guarding kits
- Soft costs: Delivery, PDI, swap/rigging, forestry guards, warranty add-ons—often eligible to bundle in one facility
Explore structures: Financing & Leasing • Refinancing & Sale-Leaseback • Equipment Line of Credit. Run quick numbers with our calculator.
How B/C/D private lenders really underwrite
| Factor | What Moves Approvals |
|---|
| Asset quality | Late-model mainstream OEMs, documented hours, service history, clean inspections, parts availability |
| Resale/liquidity | Popular classes (e.g., 20–25t harvesters, mid-class skidders), strong secondary markets |
| Work visibility | Active contracts, rate sheets, mill letters, stumpage/permit status, seasonal plan |
| Cash-flow coverage | 6–12 months bank statements showing room for the new payment (even if taxable income is thin) |
| Sponsor strength | Operator experience, safety record, WSIB/WCB standing, insurance, contingency plan |
| File hygiene | No unresolved PPSA conflicts; tax arrears plan documented |
Structures that fit forestry cash flow
| Structure | Best For | End-of-Term |
|---|
| FMV (Operating) | Lower payment; frequent refresh | Return, renew, or buy at fair value |
| $10 / Fixed-Residual (Capital) | Units you’ll run long-term | Title transfers for nominal/fixed amount |
| Sale-Leaseback | Raise cash from owned iron | Reacquire at residual buyout |
| Progress-Funding | Factory orders / rebuilds | Interest on draws; converts at acceptance |
Payment shaping: step-up in the first 3–6 months; seasonal/skip to match road bans, fire season, or thaw.
Typical terms & pricing levers
- Term: 36–72 months (84 on larger tickets)
- Down / first & last: 0–15% or 1–2 payments in advance (helps C/D files)
- Security: PPSA on unit/attachments, telematics, insurance naming lender as loss payee
- Refi window: After 12–18 clean payments, consider Refinancing to reduce rate/extend term
Levers that lower your monthly:
- Add modest down or first/last
- Use seasonal/step-up schedules
- Cross-collateralize with paid-off attachments/trailers
- Choose FMV for tech-heavy or high-hour assets you’ll rotate
B/C/D approval checklist (credit-analyst view)
- Application, IDs, void cheque; incorporation/ownership
- 6–12 months bank statements + last filed year (if available) + YTD interims
- Quote with serials, hours, inspection/condition report, photos
- Work evidence (contracts, mill letter, permit/stumpage status)
- Insurance binder naming lender as loss payee (fire suppression noted where applicable)
- PPSA search & payoff details (if trading out)
- Simple utilization model: machine hours/week, $/hour, downtime allowances
Short on paperwork? Send what you have—we’ll stage the rest so underwriting doesn’t stall. Use the calculator for a quick payment preview.
Broker fast-track: from quote to cut in 7 steps
- Lock the BOM: machine, head/attachments, guarding, delivery/PDI.
- Pick structure: FMV for rotation; fixed-residual for keepers; sale-leaseback if cash is tight.
- Package statements: 6–12 months; flag seasonal swings.
- Prove the work: contracts or mill letter + rate sheet + schedule.
- Milestone funding: deposit → delivery → install → acceptance certificate.
- Shape payments: step-up + seasonal/skip around road bans/thaw.
- Month 12–18 review: reprice if performance is clean.
Case study (Northern Ontario): Skidder + head on a C-tier file
Situation. Contractor replacing a high-hour skidder and adding a grapple—$212,000 all-in (delivery, guarding). Prior late payments from a fire-closure season; bank declined.
Structure. 60-month FMV, 3-month step-up, seasonal weighting to the cutting calendar; progress-funding for rebuild items; small sale-leaseback on a paid-off delimber to reduce advance.
Outcome. Approved and staged in weeks. Downtime dropped; after 14 on-time payments we refinanced, trimming monthly ~8%.
Common pitfalls (and how to avoid them)
- No inspection photos. Provide wear measures (undercarriage %, hose/roller condition).
- Ignoring insurance gaps. Confirm fire/theft coverage and name the lender correctly.
- Under-scoping soft costs. Guarding, delivery, and rebuilds add up—bundle them.
- Thin work proof. Even a mill intent letter + historic load tickets helps.
FAQs
Can I finance used units?
Yes—late-model, inspected machines with strong resale are common on private files.
What score is “enough”?
Many lenders prefer 650+, but stable deposits, solid collateral, and visible work can offset thinner credit.
Seasonal payments?
Standard. We align to road bans/fire season and thaw periods.
Can I include guarding, delivery, and warranty?
Often yes—soft-cost bundling is typical.
Can payments drop later?
Often. After 12–18 clean payments, we revisit via Refinancing & Sale-Leaseback.
If you’d like a no-pressure comparison of FMV vs. $10 buyout—or help aligning payments to your cutting calendar—feel free to contact our credit analysts.
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