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Optometry Equipment Leasing in Canada | Private Lender Terms

Optometry Equipment Leasing in Canada | Private Lender Terms
Written by
Alec Whitten
Published on
November 5, 2025

Speaking as a credit analyst, optometry assets sit in a favourable middle ground for many non-bank lenders: predictable revenue (exams + eyewear), professional licensing, and equipment with measurable resale value (OCT, autorefractors, slit lamps, edgers). That allows approvals even when the clinic is new, thin-file, or recovering from past credit events.

Mehmi Financial Group finances medical and optical equipment across Canada and can underwrite in-house or place files through 30+ lenders. We also carry inventory of commercial assets and can pair leases with working capital when a new lane strains cash flow. If you’d like tailored guidance, feel free to contact our credit analysts.

What private lenders look for on optometry files

Clinic profile

  • Professional corporation or sole prop with College registration
  • Time in business: 0–24+ months (startups possible with mitigants)
  • Stable payer mix (OHIP/insurance/private pay) and eyewear sales

Equipment profile

  • New or used OCT/retinal imaging, autorefractor/keratometer, phoropter/lane packages, slit lamps, edgers, topographers, visual field analyzers, practice-management hardware
  • Invoice, serials, and warranty notes preferred; refurbished accepted with reputable vendor documentation

Financial signals

  • Business bank statements (6–12 months) showing recurring deposits
  • Personal credit for guarantor(s) (soft pull for pre-screen; full at approval)
  • If available: T1s with T2125/T2 + Notice of Assessment, YTD interim, lease schedules

Security & structure

  • PPSA lien on equipment (first position); general security agreement if needed
  • Personal guarantee common; landlord waiver for fixtures in plaza locations
  • Insurance with loss-payee clause prior to funding

Typical private-lender terms (what we see day-to-day)

Ranges below are indicative, not offers. Lenders price to risk, asset, and file strength.

  • Ticket sizes: ~$15,000–$350,000 per piece; multi-asset bundles to $500,000+
  • Advance (LTV): 80–100% of invoice (plus soft costs up to ~10–20% on A/B files)
  • Down payment / security deposit: 0–15% common; B/C credit may see 10–25% or first/last in advance
  • Terms: 36, 48, 60, 72 months; occasional 84 months on premium imaging
  • End-of-term options: FMV lease (operating), $10 or 10% buyout (capital), or conditional sale/loan
  • Fees: Documentation $295–$895 typical; PST on rentals per province; UCC/PPSA filing; interim rent if staged delivery
  • Funding speed: same-day pre-approvals; funding in 24–48 hours once conditions are cleared

If you want to see how term and buyout impact your monthly payment, try Mehmi’s simple payment calculator.

How to package an approval-ready optometry file

1) Quick application package

  • Completed app + business info
  • Government ID and void cheque
  • Equipment quote (SKU/serial if known), delivery address, install date

2) Financials that reduce risk pricing

  • 6–12 months business bank statements (startup: personal statements)
  • Last filed T1/T2 + NOA if available; YTD interim if operating >6 months
  • OHIP/insurer remittance summaries or POS reports (if handy)

3) Site & insurance

  • Lease agreement/landlord contact for waiver
  • Proof of business insurance (content/equipment) with lender as loss payee

4) Mitigants for new clinics

  • Co-signer, down payment, or cross-collateral on owned equipment/vehicle
  • Evidence of employment contracts/transfer of patient base if buying a practice
  • Vendor warranty & service plan on high-tech devices (reduces residual risk)

Prefer a checklist you can reuse? Our team can send a one-pager—feel free to contact our credit analysts.

Private lender vs. bank for optometry equipment

Private lender advantages

  • Faster underwriting (hours/days), lighter covenants
  • Approvals for startups, newcomers to Canada, or credit rebuild situations
  • Higher advance on soft costs (delivery, install, training, software)

Bank advantages

  • Potentially lower headline rates for strong, established clinics
  • Relationship value across deposit/merchant/LOC—if you already qualify

Practical approach
Many clinics secure equipment via a private lease to get open fast, then consider refinancing or a sale-leaseback 12–24 months later once financials season and rates improve. If cash flow is tight during ramp-up, pair the lease with a small equipment line of credit or invoice factoring for eyewear/insurance receivables.

Bad-credit and thin-file workarounds that actually move the needle

  • Meaningful down payment or first/last in advance to lower risk and payment
  • Co-signer (spouse/partner) or corporate guarantor with stronger credit
  • Cross-collateral using owned vehicle/equipment; add-on blanket GSA if needed
  • Shorter term (36–48mo) to reduce lender exposure window
  • Split-structure: finance core device; pay cash for ancillary items
  • Revenue evidence: POS/EDP reports, eyewear margins, exam volume pipeline

If your file was declined at a bank, don’t give up—private lenders evaluate cash flow and asset quality differently. You may want to explore leasing & loans options with our team.

Case study (anonymized)

A first-time clinic in the GTA needed $178,000 for an OCT, edger, lane package, and software. Guarantor score 626, zero business history. We structured a 60-month FMV lease at 90% advance with first/last + 10% security deposit, PPSA on assets, landlord waiver, and vendor service agreements. Funded in 48 hours from final docs. Twelve months later, stable deposits allowed a rate-down refinance and the return of the deposit.

Common pitfalls (and how to avoid them)

  • Staged deliveries without interim rent language → clarify funding milestones up-front.
  • No landlord waiver for plaza installs → start this early to avoid closing delays.
  • Under-insuring equipment → set correct replacement value and name loss-payee.
  • Over-long terms on fast-obsolescence tech → match term to useful life; consider FMV.
  • Mixing working capital into the lease → keep non-asset needs on a separate LOC to preserve residual value.

When a sale-leaseback makes sense

Already bought equipment cash in the last 12 months? You can often recapitalize through a sale-leaseback, freeing working capital without changing your setup. This can pair well with refinancing if you’ve improved credit since purchase.

Helpful Mehmi resources for optometry clinics

Frequently asked questions

What credit score do I need to lease optometry equipment in Canada?
Many private lenders can work with mid-600s; approvals below that are possible with down payment, co-signer, or cross-collateral. Feel free to contact our credit analysts to review your options.

Can startups get approved without two years in business?
Yes. Professional licensing, a solid business plan, and mitigants (deposit/co-signer) often bridge the gap for new clinics.

Which lease type is best—FMV or $10 buyout?
FMV can reduce payments and align with faster-moving tech; $10/10% buyouts suit assets you’ll keep long-term (e.g., lane, edger). We’re happy to run both through the calculator.

How fast can funding happen?
With complete docs and a clean vendor invoice, we routinely see 24–48 hour funding post-approval.

Can I include software, training, and installation?
Often yes. Many private lenders advance on soft costs up to set caps when itemized on the invoice.

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If you’re planning an equipment refresh or launching a clinic and want numbers you can trust, feel free to contact our credit analysts for a quick pre-approval and side-by-side structures you can compare: https://www.mehmigroup.com/contact-us.

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