Canadian growers know a dry week can erase a season’s margin. Pivots, drip tape, fertigation, filtration, and telemetry help stabilize yield and quality—but buying the full system ties up cash you need for seed, fuel, and labour. Private-lender leasing aligns payments to crop receipts, bundles “invisible” install costs, and moves faster than banks with rigid boxes.
As both a financing partner and (where inventory fits) a seller of commercial equipment, Mehmi Financial Group structures irrigation projects across Canada with milestone funding, seasonal/step-up payments, and practical covenants. If you want a second set of eyes on your dealer quotes, feel free to contact our credit analysts.
What you can finance in an irrigation build
- Delivery systems: Center pivots (standard/linear), wheel lines, reels, micro-sprinklers, drip (surface/sub-surface)
- Pumping & power: Electric or diesel pumps, VFDs, soft-starts, gensets, power drops (eligible portions)
- Water quality & fertigation: Sand/media filters, disc filters, chemical injection, fertigation tanks
- Controls & telemetry: Panels, pressure/flow sensors, soil moisture probes, gateways, remote dashboards
- Distribution: Mains/submains, valves, hydrants, manifolds, regulators
- Site-work & soft costs (often eligible): Trenching, pads, electrical, commissioning, training, as-builts, permitting
Explore structures: Financing & Leasing • Refinancing & Sale-Leaseback • Equipment Line of Credit. Run quick estimates with our calculator.
Why private lenders for irrigation
- Project staging: Pay vendors on deposit → delivery → installation → acceptance so timelines don’t slip.
- Seasonal fit: Step-up or seasonal/skip payments weighted to harvest cheques.
- Soft-cost bundling: Include trenching, electrical, filtration media, and commissioning to avoid mid-build cash crunches.
- Asset- and cash-flow view: Approvals look at collateral, water access, and bank-statement coverage—not just last year’s taxable income.
Lease structures (plain English)
| Structure | Best For | Cash-Flow Impact | End-of-Term |
|---|
| FMV (Operating) | Tech you’ll refresh (controls/telemetry) | Lowest monthly; flexible | Return, renew, or buy at fair value |
| $10 / Fixed-Residual (Capital) | Long-life items (pivots, pumps, mains) | Moderate monthly | Title transfers for nominal/fixed amount |
| Sale-Leaseback | Turn owned gear into cash for upgrades | Immediate liquidity | Reacquire at residual buyout |
| Progress-Funding | Multi-trade installs over weeks/months | Interest on draws; converts at acceptance | Term begins after commissioning |
Not sure which fits? We’ll price options side-by-side and map payments to your crop calendar.
What private underwriters actually look for (beyond the score)
- Water access & power: Confirmed source (licence/permit where applicable), pressure/flow, electrical one-line or genset plan.
- Crop & acreage model: Acres by crop, expected yield lift or saved loss, quality premiums, rotation.
- Design & vendors: BOM with pump sizing, filtration spec, pressure regulation, control layout, and installer credentials.
- Cash-flow coverage: 6–12 months of bank statements showing room for the new payment.
- Risk controls: Insurance binder naming lender as loss payee; filtration and freeze-protection plan; spare parts/maintenance schedule.
If cash is tight during build, a small revolving buffer helps: Line of Credit & Working Capital. If you bill B2B for custom irrigation work, consider Invoice Factoring.
Typical terms & levers
| Lever | Typical Range | Effect |
|---|
| Term | 36–84 months | Longer term lowers monthly payment |
| Down / First & Last | 0–15% or 1–2 payments | Improves approval & pricing on B/C/D files |
| Payment shape | Seasonal / skip / step-up | Matches receipts and ramp-up |
| Structure | FMV / $10 residual / Sale-leaseback | Refresh vs. ownership trade-off |
| Soft-cost bundling | Install, electrical, commissioning | Prevents mid-project cash squeezes |
After 12–18 clean payments, we can often improve rate/term via Refinancing & Sale-Leaseback.
Broker fast-track: from quote to commissioning
- Lock the bill of materials. Pumps, pivots/drip, filters, fertigation, controls, trenching/electrical—get firm quotes and a site plan.
- Pick your structure. FMV for controls; fixed-residual for pivots/mains; sale-leaseback if you need a down payment.
- Package the file. Application/IDs/void cheque; farm/corp docs; last filed year + YTD; 6–12 months bank statements.
- Add a one-pager. Acres by crop, expected yield/quality lift, source/power details, commissioning timeline.
- Milestone funding. Deposit → delivery → set-in/electrical → acceptance certificate; vendors are paid on time.
- Seasonal/step-up payments. Lighter early, full after harvest cheques clear.
- 12–18 month review. If performance is clean, we reprice to trim the monthly.
Case study: drip retrofit with limited cash (Prairies)
Situation. Vegetable grower retrofitting two blocks to sub-surface drip with fertigation, filtration, and telemetry. All-in $289,000 including trenching, electrical, and commissioning. Prior drought year hurt credit; bank declined.
Structure. 72-month capital lease (fixed residual on mains/pumps) + FMV sub-schedule for controls/telemetry, progress-funding across trenching, set-in, and acceptance. Seasonal weighting to fall cheques.
Outcome. Approved quickly; water use fell materially, yield and grade improved. After 14 on-time payments, we refinanced to reduce the blended monthly ~8%.
Approval checklist (credit-analyst view)
- Application, IDs, void cheque
- Farm/corporate registration & ownership
- Last filed financials, YTD interims, 6–12 months bank statements
- Vendor quotes + drawings (pump curve, filtration, control layout)
- Water access confirmation and electrical one-line or genset plan
- Insurance binder naming lender as loss payee
- One-page acreage/yield and commissioning plan
Short on paperwork? Send what you have—we’ll stage the rest so underwriting doesn’t stall. For a quick payment preview, use the calculator.
FAQs
Can I include trenching, electrical, and commissioning in the lease?
Often yes—those soft costs are commonly eligible with private lenders.
Do lenders support seasonal payments?
Yes. Seasonal or skip schedules are standard on ag files.
Will lenders fund used pivots or drip relocations?
Often—expect inspections, parts support, and a credible contractor scope.
FMV vs. $10 buyout—how do I choose?
Use FMV for rapidly evolving controls/telemetry and fixed residual for long-life hardware (pivots, mains, pumps).
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. fixed-residual—or help structuring seasonal and progress-funding—feel free to contact our credit analysts. Explore options:
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