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How Skid Steer Dealers Can Offer Customer Financing

A contractor can want the skid steer, agree with the price and still hesitate because paying cash would leave less money for payroll, fuel, materials, insurance and the next job.

A customer financing program lets a skid steer dealer address that concern during the equipment sale without necessarily lending its own money or carrying the customer's receivable.

Quick Answer: Skid steer dealers can offer customer financing through third-party equipment lenders, lessors or financing intermediaries. The dealer provides the machine and transaction information, the customer applies, the financing provider reviews the business and equipment, and the dealer receives payment after all funding conditions are satisfied. Used machines, attachments and trade-ins require additional documentation.

What Does It Mean for a Skid Steer Dealer to Offer Financing?

In a third-party dealer financing model, your dealership remains the equipment seller.

The lender, lessor or financing provider handles the financing agreement and makes the credit decision.

The sales process can therefore remain straightforward. Your customer selects the machine, your salesperson asks whether the buyer wants to compare cash and financing, and the customer completes an approved financing application.

If the transaction qualifies, the financing provider issues terms, completes documentation and releases the applicable purchase proceeds after closing conditions are satisfied.

Your dealership does not necessarily need to fund the loan or collect payments for the next several years.

That same structure is described more broadly in Mehmi's guide to embedded equipment financing for business customers. Embedded Equipment Financing for Business Customers

For Canadian construction dealers, Mehmi also has a broader construction-equipment dealer playbook covering skid steers, excavators and loaders. Construction Equipment Customer Financing Dealer Playbook

Why Should Financing Be Introduced Before the Buyer Leaves the Dealership?

Because the equipment purchase and the customer's liquidity are separate decisions.

A landscape contractor may have enough cash to buy a skid steer outright while still preferring to retain that money for labour, materials and seasonal working capital.

A construction company may need the machine for a recently awarded project but not receive its first project payment for several weeks.

An established U.S. business can therefore view equipment financing as a capital-allocation decision rather than evidence that the company cannot afford the asset. Mehmi's U.S. guide to equipment financing for established businesses explains that distinction in more detail. Equipment Financing for Established Small Businesses

The dealer does not need to tell the customer financing is better than cash.

The salesperson simply gives the buyer another way to evaluate the purchase.

Is a Skid Steer the Same as a Compact Track Loader?

No, and the financing quote should identify the correct machine.

Bobcat explains that a skid-steer loader runs on wheels while a compact track loader uses tracks. That undercarriage difference changes traction, ground pressure, operating characteristics and maintenance considerations.

That distinction matters to credit because the equipment being financed needs to be accurately identified and valued.

A dealer should not write "skid steer — $90,000" when the actual transaction is a tracked loader with a high-flow hydraulic package, forestry guarding and multiple attachments.

The quote should show the exact manufacturer, model, year, serial number when available, new or used condition and sale price.

The buyer-side underwriting issues for Canadian skid steers—including hours, condition, service history and resale value—are covered in Mehmi's dedicated Canadian guide. Skid Steer Financing Canada

Can Dealers Finance Attachments With the Machine?

Potentially.

Attachments can represent a meaningful percentage of the complete purchase.

A customer might buy the loader together with a bucket, pallet forks, grapple, auger, hydraulic breaker, snow pusher, broom or other job-specific attachment.

Those components should be itemized.

Do not hide a USD $20,000 attachment package inside one lump-sum skid steer price.

Financing providers need to understand what they are financing and which pieces have durable collateral value.

A general-purpose bucket attached to the loader is straightforward to understand. A large package of consumables, spare parts and unrelated jobsite expenses may require separate treatment.

This is one reason an equipment-focused financing partner can be more useful to a dealer than a generic unsecured-business-loan process. Mehmi's cross-border guide to choosing a financing partner for vendor sales covers equipment fit, documentation and payout responsibilities. Business Financing Partner for Vendors

What Does the Financing Provider Review About the Customer?

A productive machine does not replace the need for repayment capacity.

Commercial underwriting can consider the buyer's operating history, revenue, profitability, recent bank activity, existing equipment payments, other debt, liquidity and credit profile.

A customer buying a skid steer to replace an unreliable unit already used every day presents a different operating case from a startup buying several machines before it has established job volume.

The financing provider may ask whether the machine is a replacement or fleet addition.

For an addition, the business should be able to explain what work supports the extra capacity.

That could be an awarded excavation contract, a growing landscaping route, increased snow-removal volume or reduced reliance on rented equipment.

There is no responsible universal credit-score, revenue or down-payment threshold that applies to every provider.

Why Does the Machine Itself Matter So Much?

Skid steers are hard assets.

That means underwriting can consider both the business and the machine.

For a used unit, the provider may look closely at hours, overall condition, tires or tracks, hydraulic system, service records, attachments and remaining useful life.

A mainstream machine with clear ownership and an established resale market is generally easier to evaluate than a heavily modified unit with an uncertain history.

The financing provider may also require photographs, the hour meter and serial plate before funding.

Canadian buyers considering used machinery can review Mehmi's broader used-equipment financing guidance. Used Equipment Financing Guide

The dealer should therefore collect good equipment information before the financing team asks for it.

How Should Dealers Handle Trade-Ins?

Treat the trade-in as a separate transaction component.

Suppose the new skid steer is priced at USD $90,000 and the buyer has a USD $25,000 trade.

First determine whether the trade is actually free and clear.

If USD $15,000 remains owing to another financing provider, only the net equity should be treated as customer value after the applicable payoff is addressed.

Do not tell credit that the customer has a USD $25,000 contribution if most of that trade value is still securing another obligation.

The purchase quote should identify the selling price, trade allowance and known payoff separately.

The financing provider can then determine the actual financed balance and what documents are required to release any existing security interest.

Illustrative Example: USD $90,000 Skid Steer and Attachment Package

Assume a U.S. construction contractor is purchasing a skid steer and attachment package for USD $90,000.

This is an illustrative transaction amount only and is not intended to represent the current selling price of any specific Bobcat, Caterpillar, John Deere, CASE or other machine.

Assume the customer contributes 15%, or USD $13,500.

The amount financed is therefore USD $76,500.

For illustration only, assume a 10.25% fixed annual interest rate, a 60-month term and monthly payments.

Also assume a 1.50% financing fee, or USD $1,147.50, paid separately.

The estimated monthly principal-and-interest payment would be approximately USD $1,634.83.

Across 60 scheduled payments, total principal-and-interest repayment would be approximately USD $98,089.51.

That includes approximately USD $21,589.51 of interest.

Including the USD $13,500 customer contribution and USD $1,147.50 assumed fee, total simplified cash outlay would be approximately USD $112,737.01.

The example excludes sales tax, insurance, UCC expenses, registration costs, maintenance, replacement tires, attachments purchased later, late charges, prepayment costs and other transaction-specific expenses.

It is a mathematical illustration only—not a Mehmi Financial Group offer, advertised rate, approval or customer result.

Now consider the buyer's cash flow.

Suppose the machine allows the contractor to retain approximately USD $4,500 per month of additional contribution margin by completing work internally that was previously rented or subcontracted.

After the illustrative USD $1,634.83 payment, approximately USD $2,865.17 per month remains before maintenance, fuel and other incremental operating expenses.

That is the more important financing conversation.

The buyer should test whether the payment works during slower months—not only when every machine is fully utilized.

Should the Dealer Offer a Loan or a Lease?

Potentially both, depending on the financing providers available.

A loan can suit a customer whose objective is long-term ownership.

A lease can make sense when the customer's priorities involve cash preservation, replacement cycles or a particular end-of-term structure.

The dealership should not describe every lease as equivalent to a loan.

Customers need to understand the upfront payment, regular payment, term, fees, ownership position and any end-of-term buyout or residual obligation.

For Canadian construction dealers wanting deeper product comparisons, Mehmi's existing construction equipment dealer financing program explains how loan and lease structures interact with the equipment and borrower profile. Construction Equipment Dealer Financing Program Canada

Can U.S. Buyers Use SBA Financing for a Skid Steer?

Potentially.

The SBA's 7(a) program currently permits eligible loan proceeds to be used for the purchase and installation of machinery and equipment. The borrower applies through a participating lender, and the lender still evaluates creditworthiness and repayment ability.

That can make SBA-backed financing worth comparing for some U.S. small businesses.

It is not necessarily the simplest structure for every standalone skid steer purchase.

A dealer should avoid telling the customer that SBA financing is guaranteed or that a particular machine automatically qualifies.

Conventional equipment financing may have a different documentation process, so the buyer should compare the structures based on the actual transaction.

Can Canadian Buyers Use the CSBFP?

Potentially.

The Canada Small Business Financing Program permits eligible businesses to finance new or used equipment through participating financial institutions. Current government guidance also states that directly related freight and installation costs can be included in eligible equipment cost under program rules.

The participating bank, credit union or caisse populaire makes the actual approval decision.

A skid steer dealer should therefore treat CSBFP financing as another customer option—not as an automatic dealer approval program.

For Canadian buyers, Mehmi's dedicated skid steer guide can be used as the supporting asset-specific resource rather than applying U.S. SBA guidance to a Canadian transaction. Skid Steer Financing Canada

How Do UCC and PPSA Liens Affect Dealer Financing?

This is where U.S. and Canadian transactions need to stay separate.

In the United States, secured commercial financing can involve a UCC financing statement. The California Secretary of State describes a UCC-1 financing statement as a filing used to perfect a security interest in named collateral and establish priority. Exact filing rules depend on the applicable state and transaction.

In Ontario, creditors taking security over business personal property can register through the Personal Property Security Registration system under the PPSA, which helps establish priority among competing interests.

Quebec uses the RDPRM. The Government of Quebec describes the register as indicating whether certain property, including company assets, has been given as security or is affected by debt.

The dealer does not need to become a lien-law expert.

But existing liens, trade-in payoffs and unclear ownership should be disclosed early so the financing provider can resolve them before the machine is released.

When Does the Dealer Actually Get Paid?

After the funding conditions are complete.

Credit approval alone should not be treated as authorization to release the skid steer.

The financing provider may still be waiting for signed documentation, insurance, the customer contribution, final machine information, lien searches, trade-in payoff information or another condition.

That distinction is important enough that a dealership should maintain separate internal statuses for approved and funded/cleared for release.

Mehmi's current disclaimer expressly states that preliminary or conditional approvals can still change because of equipment verification, vendor verification, lien searches, insurance, down payment and other closing conditions, and that approval is not the same as funding.

Canadian vendors can review Mehmi's detailed payout guide before designing their internal release process. How Vendors Get Paid When Customers Finance

Should Skid Steer Dealers Use White-Label or Embedded Financing?

Not every dealership needs a custom integration.

A smaller dealer may only need a financing application link, a defined internal contact and a repeatable handoff.

A multi-location dealership can benefit from a dealer portal, co-branded application, website integration or financing built directly into the quote process.

Mehmi's guide to white-label equipment financing explains the branded-program model for Canadian dealers. White Label Equipment Financing for Dealers

For dealerships comparing simple referrals with deeper integrations across both countries, the embedded equipment financing guide provides the broader workflow. Embedded Equipment Financing for Business Customers

Start with the simplest process your sales team will actually use consistently.

What if a U.S. Dealer Sells a Skid Steer to a Canadian Customer?

Treat it as a cross-border transaction before discussing financing terms.

A Canadian buyer can introduce different currency, tax, import, insurance and security-registration requirements.

Do not assume a U.S. equipment loan can simply follow the machine across the border.

Mehmi's guide for U.S. equipment dealers selling to Canadian customers explains why the borrower location and final location of the equipment need to be identified early. U.S. Equipment Dealer Financing for Canadian Customers

For repeat Canadian sales, create a defined cross-border workflow rather than solving the same documentation issues from scratch on every transaction.

What Should a Dealer Avoid Promising?

Do not guarantee approval.

Do not invent one minimum down payment for every buyer.

Do not quote one universal rate.

Do not promise a funding date before underwriting and closing conditions are complete.

Do not treat a high trade-in value as customer equity before checking the payoff.

And do not describe an estimated monthly payment as an approved financing offer.

The dealer's role is to present financing as an option and supply accurate transaction information.

The financing provider controls underwriting.

Frequently Asked Questions About Skid Steer Dealer Financing

Can skid steer dealers offer financing without becoming lenders?

Yes, through a properly structured third-party financing relationship. The dealer sells the equipment while an independent financing provider handles underwriting and the financing agreement.

Can used skid steers be included in a dealer financing program?

Potentially. Used machines usually require closer review of year, hours, condition, serial number, seller documentation, value and remaining useful life.

Can attachments be financed with the loader?

Potentially. Attachments should be itemized on the quote so the financing provider can determine eligibility and value rather than receiving one unexplained lump-sum price.

Can the customer's trade-in be used as the down payment?

Potentially, but existing debt against the trade must be identified. The relevant contribution is based on the transaction structure and actual equity after applicable payoffs—not simply the gross trade allowance.

Should a dealer show estimated monthly payments on its listings?

Potentially, when the assumptions are clear. State the assumed financed amount, term, pricing assumption and any important residual or end-of-term obligation. Do not present an illustration as an approval.

Can startup contractors finance a skid steer?

Potentially, but a startup has less operating history to support repayment. The provider may place greater emphasis on owner experience, credit, available cash, contracts, customer contribution and the machine itself.

Is a compact track loader financed differently from a wheeled skid steer?

Both can be treated as commercial equipment, but the quote and collateral review should identify the correct machine. Tracks, hours, undercarriage condition and configuration can materially affect used-equipment value.

How quickly does a dealer get paid?

There is no universal timeframe. Vendor payout depends on credit approval, completed documentation, insurance, customer contribution, lien resolution, machine verification and any other funding conditions.

Add Customer Financing to Your Skid Steer Dealership

A good skid steer financing program should fit the way the equipment is actually sold.

Your salesperson builds an accurate quote.

The buyer chooses whether to compare financing.

The financing provider evaluates the business and machine.

Outstanding conditions are completed.

The dealership releases the equipment only after the transaction reaches the appropriate funding stage.

Mehmi Financial Group operates as a commercial financing brokerage and intermediary rather than a direct lender. Independent financing providers establish their own underwriting, pricing, documentation and funding requirements. Mehmi's current public disclaimer also states that U.S. availability depends on the product, borrower location, transaction and applicable authorization.

Skid steer dealers interested in a customer-financing program can call 833-863-4644 or use the verified Mehmi Financial Group contact page. Contact Mehmi Financial Group

Be prepared to discuss the typical financing amount, whether customers are in the United States or Canada, the relevant states or provinces, the types of skid steers, compact track loaders and attachments you sell, the customer's use of the equipment, and your expected sale and delivery timing.

That information helps determine whether a referral model, dealer program, multi-provider workflow, white-label program or embedded financing process fits your dealership.

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