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Learn how B2B point of sale financing works in Canada and the U.S., including loans, leases, customer costs, seller payout and setup
A business customer has chosen your product and accepted the price. The remaining question is how to pay without using cash needed for payroll, inventory or other commitments.
Point of sale financing brings that discussion into the purchase process instead of sending the customer elsewhere to arrange credit.
But a financing button is only the beginning. Your company needs to understand which purchases qualify, what the buyer must repay and what triggers payment to your business.
Quick Answer: Point of sale financing for B2B companies lets business buyers request credit while reviewing a quote, placing an order or checking out. The underlying product may be short-term purchase credit, an equipment loan or a lease. Approval, customer repayments and seller payout depend on the financing agreement, not the checkout button.
It is business financing offered where the customer makes a purchasing decision.
That could be an online checkout, equipment listing, emailed proposal, showroom conversation or sales representative’s application link. For example, Balance’s published B2B financing product supports applications at checkout, in-store and through email. Its product illustrates how the “point of sale” can extend beyond a physical payment terminal. (Balance)
This guide concerns financing your customers’ purchases, not borrowing to buy cash registers or funding your own business through its card-processing revenue.
The distinction matters because point of sale describes where financing appears. It does not establish the interest rate, repayment period, ownership arrangement or eligibility requirements.
Start with the purchase and the buyer’s repayment needs. Then choose the financing structure.
Match the repayment period to the purchase’s business purpose and cash-generation cycle.
Short-term credit can be worth evaluating for inventory, supplies and other purchases expected to convert into cash relatively quickly.
B2B buy now, pay later is not necessarily a multi-year loan. Balance, for example, describes deferred-payment financing of up to 60 or 90 days for approved business users. That is a provider-specific product, not an industry-wide term or a promise of availability through Mehmi. (Balance)
Canadian sellers can review Mehmi’s B2B buy now, pay later guide when evaluating purchase-specific business credit.
Ask whether the customer can repay from the expected sale or collection cycle. Moving an unaffordable invoice to a later date does not resolve the underlying problem.
Durable machinery requires a different comparison.
An equipment loan can spread acquisition costs over the asset’s productive life. A lease requires additional attention to ownership, purchase options, renewal and return obligations. BDC’s equipment financing guidance connects repayment with equipment lifespan, while the U.S. SBA’s acquisition guidance emphasizes reviewing each lease’s actual provisions. (BDC.ca)
Canadian buyers can use the loan-versus-lease quote comparison. U.S. buyers can review the equipment finance agreement versus lease example.
Neither structure is automatically preferable. Compare the full obligation, not just the smallest payment.
A revolving line of credit supports repeated borrowing within an approved limit. Factoring involves purchasing receivables. They are distinct from a purchase-specific equipment loan, as illustrated by New York’s commercial-financing definitions. (New York State Senate)
Do not force every inventory, equipment and operating-cash requirement into the same product.
Yes, a third-party program can separate your sale from the customer’s financing agreement.
BDC describes equipment sellers partnering with financial institutions to help customers obtain loans or leases rather than necessarily providing the financing themselves. (BDC.ca)
Before launching, identify the actual lender or lessor and establish who handles applications, credit decisions, customer questions and closing documents.
Your business should remain responsible for accurate product descriptions, quotations and delivery information. A branded application does not give your sales team authority to promise financing.
Mehmi’s Canadian dealer-branded financing guide explains how the customer experience can stay connected to the seller while financing functions remain separate.
Have the vendor agreement reviewed for any obligations involving fraud, non-delivery, returns, inaccurate representations or customer default. Do not assume “third party” means your company retains no contractual exposure.
Introduce it beside the cash price and preserve the transaction details through closing.
Use a neutral question:
“Would you prefer to pay cash, use your existing financing source, or review a financing option for this purchase?”
Then establish the customer’s country, state or province, purchase purpose and required timing.
Build the application around an identifiable quote. Include the correct buyer and seller, currency, equipment description, quantities, condition, deposits and delivery requirements.
Separate equipment from freight, installation, software, training and other services. Ask the financing source which items it can include rather than assuming the entire proposal qualifies. Mehmi’s U.S. warehouse automation financing guide provides an example of that itemization.
Use the same quote or order identifier throughout the process. When the customer changes the equipment, price or delivery schedule, send the revised information for confirmation before changing finance documents.
An estimated payment should show its assumptions and remain distinct from an approved offer.
The application must support both the customer’s repayment capacity and the proposed purchase.
In Canada, BDC identifies cash flow, existing debt, management experience, assets and business or personal credit among relevant lending considerations. In the United States, the SBA’s lender-preparation guidance highlights the requested amount, use of funds, credit history, projections, collateral and industry experience. Neither provides a universal POS-financing approval threshold. (BDC.ca)
Prepare customers to explain their operating history, current obligations, available contribution and reason for the purchase.
Supporting information may include financial statements, bank records, ownership details, an existing-debt schedule and the seller’s quote. The provider determines the actual requirements.
For equipment, discuss age, condition, remaining useful life and value. A low purchase price should not distract from major repairs or a short remaining service life.
A useful submission explains whether the purchase replaces rentals, protects existing production or supports identifiable demand. Resolve inconsistent names, unexplained deposits and missing ownership information before submission.
The application is stronger when its documents tell one consistent story.
Compare cash required upfront, total repayment and payment timing together.
Request the financed amount, payment frequency, number of payments, interest or other financing charges, documentation fees and any final purchase obligation.
Ask whether paying early reduces the cost and request a sample payoff calculation. The SBA specifically recommends asking lenders about prepayment penalties and circumstances in which full repayment could be demanded. (Small Business Administration)
For secured financing, review the collateral description and any personal guarantee. Do not assume a business-purpose application means the owners have no personal obligations.
Payment frequency matters too. Have the customer place the actual debit dates into a cash-flow forecast rather than comparing only monthly averages.
For your business, request a separate explanation of setup costs, transaction fees, financing subsidies, holdbacks and net proceeds.
A customer financing cost and a vendor program cost are not the same expense.
Illustrative Canadian equipment transaction
Assume a Canadian customer purchases equipment for CAD $90,000, contributes CAD $15,000 and finances CAD $75,000.
The illustration assumes:
Using a standard fully amortizing loan calculation, the estimated payment is CAD $1,902.19 per month.
Total scheduled loan repayment is approximately CAD $91,305.30, including CAD $16,305.30 in interest. Including the separate documentation fee, the financing cost is approximately CAD $17,055.30.
Adding the customer’s contribution produces approximately CAD $107,055.30 in total cash outlay.
Applicable sales taxes, registration, delivery, installation, insurance and maintenance are excluded. Totals use the unrounded calculated payment; the final payment may require a small adjustment.
This is not a Mehmi offer, approval or current rate quote. The 10% assumed interest rate is not an all-in APR incorporating the separate fee.
Suppose the equipment is expected to create CAD $2,500 of additional monthly cash contribution after its added operating costs. The financing payment leaves approximately CAD $597.81, before any other unallocated costs. That limited cushion deserves scrutiny.
Canadian readers can test principal, rate and term assumptions using the Loan tab of Mehmi’s equipment financing calculator. Add separately paid fees to the comparison. The calculator uses CAD and provides estimates, not financing offers. (Mehmi Group)
Confirm the disbursement conditions rather than relying on the customer’s approval status.
Credit approval and released funds are different milestones. Mehmi’s disclosures explicitly distinguish preliminary or conditional approvals from funding. (Mehmi Group)
Ask what triggers payment: completed documents, verified customer contribution, shipment, delivery, installation, acceptance or another agreed event.
For Canadian transactions, Mehmi’s vendor payout guide explains why those triggers need to be established separately from the buyer’s repayment schedule.
Address custom-build deposits and progress payments before production begins. A financing source must specifically accept the proposed disbursement structure; do not treat a general approval as authorization for every manufacturing milestone.
Assign one person to confirm written release instructions.
Never ask the customer to certify delivery or acceptance before it has actually happened.
Define the process before the first financed order.
Ask the financing partner how a cancellation changes the application, which party receives a refund and what happens to the customer’s payment obligation while a dispute is being resolved.
For partial shipments, identify whether each batch requires separate documentation or acceptance.
For equipment substitutions, confirm whether the original approval still applies. Do not quietly replace a serial number or financed item.
Avoid assuming that refunding the customer directly closes the financing agreement. Obtain the provider’s instructions and reconcile the order, proceeds and financing balance through the agreed process.
These controls deserve as much attention as the application form.
Use country-specific workflows even when the customer-facing experience looks similar.
Canadian secured transactions use provincial frameworks. British Columbia’s Personal Property Security Act provides for financing-statement registration and searches. Quebec uses the RDPRM, which can disclose rights affecting company assets and other movable property. (BCLaws)
Confirm who handles searches, registrations and existing-creditor releases.
Where applicable privacy law requires consent, explain what personal information is collected, why it is needed and who receives it. The Office of the Privacy Commissioner’s meaningful-consent guidance also emphasizes safeguards and limiting collection; consent does not replace those obligations. (Office of the Privacy Commissioner)
Keep sensitive owner and guarantor records out of unnecessary sales-team circulation.
The CFPB confirms that Regulation B covers commercial credit. Certain nondiscrimination and anti-discouragement provisions also apply to businesses that regularly refer applicants or select prospective creditors. A referral-only description does not automatically remove every responsibility. (Consumer Financial Protection Bureau)
For secured equipment, UCC filing rules generally apply subject to exceptions, including certificate-of-title requirements for certain vehicles and trailers. Have the financing provider determine the correct process. (Legal Information Institute)
Mehmi’s U.S. used-equipment lien-check guide illustrates the ownership questions that should be resolved before funding.
Confirm state and product availability before promoting a national program. Mehmi’s current service-availability disclaimer lists general commercial loan-broker restrictions and separate restrictions for covered sales-based financing. Those operating policies are not a statement that financing is prohibited in the listed states. (Mehmi Group)
Start with one product category and a controlled sales handoff before commissioning extensive integration.
Test the application on a phone. Confirm that the customer understands the next step and that staff can identify outstanding actions without seeing unnecessary financial records.
Require distinct statuses for submitted, under review, conditionally approved, documentation outstanding and funded. Decide how the team handles a technical failure.
Canadian companies considering deeper implementation can review the POS equipment financing integration guide and vendor program setup checklist.
Measure funded sales, net proceeds, administrative effort and time to payout. Record why applications fail to become completed purchases.
Compare incremental gross profit with program costs. Do not count every financed sale as a sale that would otherwise have been lost.
Mehmi combines a customer application workflow with financing coordination.
Its published vendor financing program includes branded applications for websites and quotes, lender matching, document uploads, deal tracking and support with outstanding conditions. Available approvals can be compared by amount, payment, term, rate, fees and conditions. (Mehmi Group)
Mehmi Financial Group is a financing brokerage and intermediary, not a direct lender. Independent financing providers control final credit decisions and funding. Confirm geographic coverage, eligible purchases and implementation scope for your business. (Mehmi Group)
The starting point is a representative customer purchase, not a promise that every transaction will qualify.
Not necessarily. When your company directly offers Net 30, it carries the invoice until payment. Third-party financing introduces a separate provider and funding agreement. Canadian sellers can review the Net 30 versus B2B BNPL comparison for that distinction.
No. A proposal or salesperson-assisted application can be the starting point. Match implementation to how customers actually purchase rather than redesigning the entire sales process around software. Mehmi’s published program supports applications from sales quotes as well as websites. (Mehmi Group)
Request a review of the specific asset. Prepare its age, condition, ownership history, price and remaining-life information. Do not advertise all used inventory as eligible or assume the longest available term is appropriate.
Ask which parties obtain reports, when inquiries occur and what authorization is required. Do not promise “no credit check.” Mehmi’s disclosures explain that properly authorized financing providers may conduct separate inquiries and that soft inquiries are not sufficient for every transaction. (Mehmi Group)
Have the provider review an itemized proposal. Separate physical equipment from installation, subscriptions, consulting and other charges. Confirm exclusions before showing a payment on the entire invoice.
Pause when the customer cannot support the payment, has continuing operating losses or depends entirely on speculative future demand. Consider a smaller purchase, temporary rental, an existing bank facility or waiting. Financing should make a sensible purchase possible, not make an unsuitable purchase appear affordable.
Bring a sample quote and explain where customers currently encounter payment difficulties.
To discuss a program, share your typical financing amount, whether customers are in the United States or Canada, their states or provinces, what they are purchasing, the use of funds and required timing.
Call Mehmi Financial Group at 833-863-4644 or contact the team about B2B point of sale financing. (Mehmi Group)
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