Learn how Canadian clinics and dental practices can finance new medical equipment with leases, lines of credit, and refinancing while protecting cash flow.
Small clinics and dental practices in Canada can usually finance new medical equipment through equipment leases, equipment lines of credit, refinancing or sale-leaseback of existing assets, and, where needed, working capital or unsecured business loans. The right mix depends on your cash flow, credit profile, and how fast the equipment will pay for itself.
The Canadian dental and clinic market is big and competitive: there are roughly 25,000–26,000 dentists working out of about 15,000–16,000 dental offices across the country, and the sector has returned to growth after COVID disruptions.Tempfind+2Canadian Dental Association+2 Upgrading chairs, imaging, sterilization, and software is now a constant, not a one-time event—so how you finance those upgrades matters as much as which brand you buy.
The rest of this guide walks through the main options, when each fits, and how a lender like Mehmi typically looks at small medical and dental deals in Canada.
For most clinics and dental practices, leasing medical equipment is the cleanest way to spread cost, preserve cash, and keep up with technology. Compared with paying cash or taking on a generic bank loan, leases are purpose-built for hardware and often give you more flexibility.
Leasing is widely used in Canadian healthcare for exactly these reasons: it preserves working capital, helps clinics stay current with rapidly changing technology, and can offer tax advantages where lease payments are treated as deductible operating expenses.Soluco+3Remington Medical+3Henry Schein+3
You can explore Mehmi’s leasing options on the Equipment Leases page:
https://www.mehmigroup.com/services/equipment-financing/equipment-leases
In a typical lease for clinic equipment:
Key points:
For a quick feel of what payments could look like, it’s worth playing with Mehmi’s online Calculator:
https://www.mehmigroup.com/calculator
Most of what a small clinic or dental office needs can be leased:
Mehmi keeps a broad and evolving view of what qualifies as Eligible Equipment:
https://www.mehmigroup.com/eligible-equipment
If you’re unsure whether a specific device, refurb package, or software module is financeable, that’s usually a 5-minute conversation with an underwriter, not a deal-killer.
The main reasons we often recommend leases first:
You can see how Mehmi positions these advantages on the Equipment Financing overview page:
https://www.mehmigroup.com/services/equipment-financing
Leasing isn’t perfect for every situation:
In those situations, we start looking at lines of credit, asset-based structures, or specialized working capital solutions instead.
If your project involves multiple phases—say, opening an additional treatment room now and adding imaging or a second location next year—an equipment line of credit (ELOC) can be more flexible than a series of one-off leases.
An Equipment Line of Credit gives you a pre-approved limit to draw from as you buy equipment over a period of time. You only pay on what you’ve drawn, and each draw is amortized over its own mini-term.
You can learn more here:
https://www.mehmigroup.com/services/equipment-financing/equipment-line-of-credit
An ELOC tends to work best when:
From a risk perspective, lenders underwrite your clinic and expected equipment list up front, similar to leases, but allow draws over time within that framework.
If your clinic already owns equipment outright—or nearly outright—you can use that strength to fund the next round of upgrades.
Under Mehmi’s Refinancing or Sale Leaseback approach, the lender essentially buys your existing equipment and leases it back to you, freeing up cash today while you keep using the assets.
https://www.mehmigroup.com/services/equipment-financing/refinancing-sales-leaseback
Refinancing or sale-leaseback can be powerful when:
Internally, lenders will look at:
For larger refinances and older assets, expect to provide recent bank statements and a short write-up explaining the reason for refinancing.
Sometimes the equipment is only half the story. Opening or expanding a clinic usually also means hiring, training, marketing, and software changes. In those situations, combining equipment financing with a general-purpose business facility can make more sense than trying to cram everything into one lease.
Mehmi offers a suite of Business Loans that can complement dedicated equipment structures:
https://www.mehmigroup.com/services/business-loans
Key tools we see used by small clinics and dental practices:
Banks and crown lenders like BDC also provide term loans and working capital facilities that can be used alongside vendor or non-bank equipment financing.
Using both an equipment lease and a working capital or unsecured facility can make sense when:
In other words: keep the equipment on an equipment lease, and use loans for soft costs and general growth.
Two clinics could want the same CBCT or laser and walk away with very different financing—because their underlying credit stories are different.
In practice, most lenders (including Mehmi’s funding partners) group applicants into broad “A / B / C” bands based on:
For deals under $100,000, many funders will rely on a signed application, equipment details, and a concise summary of your business and experience. Over $100,000—and especially over $250,000—you should expect to provide financial statements and more detailed supporting documents.
For medical/dental/aesthetic transactions specifically, lenders also care about:
If your file includes lower scores, recent late payments, or a short operating history, you still have options—but the structure may shift:
The key is to be upfront. A good advisor can often still secure an equipment lease if your story—and the clinic’s revenue potential—make sense.
Most small clinics and dental offices see three paths:
Each has strengths:
Mehmi’s own Equipment Financing and Vendor Program offering is built around that third path—matching clinics with an appropriate funder and structure rather than forcing everything into one product:
https://www.mehmigroup.com/services/equipment-financing
https://www.mehmigroup.com/services/vendor-program
Before you sign, ask:
If the answers are vague or avoid the small print, that’s a signal to slow down.
The fastest approvals we see are for clinics that do a bit of homework up front. You don’t need a 40-page business plan—but you do want a clear story and basic numbers.
Before you apply, sketch out:
From there, estimate:
If the added profit comfortably exceeds the lease payment, your file gets easier to approve—and you personally sleep better.
For most small medical and dental deals, lenders will usually want:
If you’re not sure where your clinic fits, Mehmi’s FAQ and About Us pages are useful starting points, and you can always talk directly to the team:
A solo dentist in a suburban Ontario practice wanted to move from film X-rays to a full digital suite: sensors, a small CBCT unit, and upgraded sterilization. The total project, including electrical work and cabinetry adjustments, quoted at $185,000 plus tax.
The challenge:
Step 1 – Structure the equipment lease
Working with an independent lender, she arranged a 72-month equipment lease for the new imaging and sterilization gear:
Step 2 – Refinance existing equipment
At the same time, they completed a sale-leaseback on older but still valuable assets:
Step 3 – Add working capital support
Finally, the lender arranged a working capital loan for $40,000 over 36 months to cover:
Within 9–12 months:
This type of blended solution—equipment lease + sale-leaseback + working capital—is typical of what Mehmi can arrange for growing clinics without requiring them to choose between technology and liquidity.
1. How do small clinics qualify for equipment leasing in Canada?
Most funders look at your professional experience, personal credit, time in business, and basic financials. For deals under $100,000, you can often be approved with a signed application, equipment quote, and a short summary of your clinic, plus credit checks and sometimes recent bank statements. Over $100,000, expect to provide financial statements and more supporting documents.
2. Is it better to lease or buy dental equipment?
Leasing is usually better if you want to preserve cash, keep up with technology, and potentially deduct payments as operating expenses. Buying with cash can make sense when you have surplus capital and expect to keep the equipment for a very long time with little risk of obsolescence. Many Canadian dentists use a mix: lease tech that changes quickly (imaging, CAD/CAM) and consider buying long-life items like cabinetry.
3. Can I finance used medical or dental equipment?
Yes—many lenders will finance used equipment, especially well-known brands with clear resale value. They’ll focus on age, condition, and proper documentation: original invoices, proof of payment, and clear registration or serial information. For older assets or private sales, you may see more conservative terms or require inspection.
4. How long can you finance dental or clinic equipment for?
Typical terms range from 24 to 84 months, depending on the equipment type, cost, and your clinic’s profile. High-tech imaging and software often sit in the 60–72 month range; more durable assets may go longer. The key is to align the term with the realistic period you’ll use the equipment to avoid paying long after it’s obsolete.
5. Can a new clinic with limited credit history still finance equipment?
New clinics can still get equipment financing as long as the owner has relevant experience (e.g., dentist, physician, nurse, aesthetician), a reasonable personal credit profile, and a clear plan. Lenders may ask for more cash down, proof of contracts or patient base, and sometimes personal bank statements. Dedicated healthcare lenders and partners like Mehmi often have specific programs for start-ups.
6. Are equipment lease payments tax-deductible for Canadian clinics?
In many cases, yes. Lease payments for business equipment are often treated as deductible operating expenses, meaning you can write them off against practice income. Some lenders also structure leases so you don’t have to finance GST/HST up front, which improves cash flow.Henry Schein+1 Always confirm the specific treatment with your accountant, as rules depend on lease type and your overall tax situation.
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