Laundry Equipment Leasing: Bad-Credit Tips (Canada)

If your coin-op, on-premise laundry (OPL), hotel, or multi-residential facility needs new washers, dryers, ironers, or payment systems, waiting on a slow bank approval can mean outages, refunds, and churn. Private/alternative lenders can move quickly on used or new equipment—even for newcomers or businesses rebuilding credit—when the file is packaged properly.

Mehmi Financial Group is both a seller of commercial assets and a financing partner with 30+ Canadian lenders. We place laundry files daily and can pair equipment leasing with working capital for installation and ramp-up. If you want a quick read on your scenario, feel free to contact our credit analysts.

What private lenders actually look for (and how to offset risk)

Asset signals (prove utility and resale)

• Make/model/year and capacities (e.g., 60 lb soft-mount washer, 75 lb dryer), hours/cycle counts if available.
• Gas/electric/steam details, card/coin systems, OPL vs. vended.
• Install scope (venting, gas, electrical, makeup air, drains, bases, payment kiosk).
• Condition docs for used units: maintenance logs, error history, serial plates, photo set.

Business signals (prove affordability)

• 3–6 months business bank statements with steady deposits and limited NSFs.
• Revenue mix: vended turns-per-day (TPD), vend price; OPL contract volumes (hotels, seniors’ homes, hospitals).
• Site readiness: landlord consent, utility capacity, and insurance.

If something is soft, we balance with structure: down payment, residual (FMV), shorter term, or cross-collateral on other equipment.

Bad-credit structures that actually fund

• $10/$1 Buyout (lease-to-own): Best for core washers/dryers you’ll keep 7–10 years; higher payment, clear title at term.
• FMV/Residual lease (10–20% typical): Lower monthly; good if you plan tech refresh on payment systems or controls.
• Sale-leaseback / refinance: Already own equipment? Unlock cash for install, first/last, or signage while machines keep running. See Refinancing & Sale-Leaseback.
• Hybrid stack: Machines on $10 buyout; install/ancillaries (bases, changers, kiosks, venting) on short FMV to smooth cash flow.

If collections are lumpy during ramp-up, pair the lease with Invoice Factoring (for B2B OPL contracts) or a Working-Capital/LOC.

Terms you’ll actually see (Canada, 2025 reality)

• Ticket size: ~$20k–$500k+ (mix of washers, dryers, ironers, changers, kiosks)
• Term length: 36–72 months (24–60 most common; 72 on strong files/late-model)
• Down payment: 0–10% strong files/dealer units; 10–30% for startups, private sales, older units, or softer credit
• Conditions: PPSA lien, doc fee, first/last in advance, insurance (loss payee), landlord waiver, inspection as needed
• Speed: With a complete package and insurance ready, same-week funding is common

Price scenarios quickly with our calculator.

Approval playbook (step-by-step)

1) Pre-qualify the asset before you haggle
Send quote/invoice with SKUs, capacities, utility type, control/payment system; serial plates for used units; photo set; install scope (venting, drains, bases, electrical/gas, make-up air).

2) Tell the revenue/throughput story

• Vended: TPD by machine size, vend price, card/coin split, seasonal spikes.
• OPL: Contract volumes, $/lb or per-piece rates, service levels, renewal dates.
  Short, numbers-first notes help rate and advance.

3) Pick the structure early
Long-term keeper → $10/$1 buyout.
Lower payment or frequent tech refresh (kiosks/controllers) → FMV.
Cash-tight → sale-leaseback/refi on owned equipment to fund install and deposits.

4) Stabilize banking for 30 days
Reduce NSFs, keep balances healthy; if AR is slow (OPL), add factoring so deposits land predictably.

5) Pre-clear site & insurance
Landlord waiver for plaza/strata; proof of utility capacity; binder naming lender as loss payee.

6) Submit a one-touch package
Application, IDs (owners ≥25%), corporate registry, 3–6 months bank statements, invoice/quote (or bill of sale + lien release on private sale), install scope, insurance contact—via Leasing & Loans.

Snapshot: Which structure fits your cash flow?

Copy-paste checklist (what to send first)

• Invoice/quote with models, capacities, utility type, payment system
• Used equipment: serial plates, photo set, service logs; bill of sale + lien search/release
• Install scope: venting, gas/electrical, drains, make-up air, bases, kiosk location
• Business banking: last 3–6 months statements
• IDs (≥25% owners) + corporate registry
• Insurance broker contact (loss-payee wording ready)
• Short revenue memo (TPD & vend price, or OPL contract volumes)

Tough-file tactics that still get to “yes”

• Meaningful first/last or 10–20% down to tighten pricing.
• Co-signer or cross-collateral (truck, other equipment).
• Shorter term (36–48 months) to reduce lender exposure.
• Split-funding: machines on $10 buyout; install/ancillaries on FMV.
• Add a small LOC via Working Capital for utility upgrades and signage.

Example (anonymized)

A GTA laundromat needed a mid-life refresh: six 60-lb soft-mounts, six 75-lb dryers, and a new card system. Bank declined on past late payments. We placed a 48-month FMV lease with a private lender: 15% down, first/last in advance, landlord waiver, and insurance binder same day. We added a $40k LOC to cover venting/electrical. Result: higher TPD, fewer refunds, and stable cash conversion.

FAQs

Can I lease used washers and dryers with bad credit?
Yes—private lenders fund used and private-sale units with extra diligence and sensible down payment. Start here: Leasing & Loans.

FMV or $10 buyout—which is better?
If you’ll keep the machines long term, $10/$1 buyout is straightforward. If you need the lowest monthly or plan frequent tech refresh on kiosks/controllers, FMV helps.

How fast can this fund?
With documents, site approvals, and insurance ready, 24–72 hours from approval is common. See ranges on our calculator.

What if I also need cash for installation and signage?
Use Refinancing/Sale-Leaseback on owned gear and add a Working-Capital/LOC.

‍

We sell equipment and finance it—daily. Want a fast, pressure-free pre-approval for your laundry upgrade? Feel free to contact our credit analysts: https://www.mehmigroup.com/contact-us.