Why trailer financing is different in 2025
Canadian carriers are navigating tight margins, volatile freight demand, and higher capital costs. Yet uptime still depends on having the right mix of dry vans, reefers, and flatbeds—and getting them financed quickly. The best structures protect cash flow, align terms to asset life, and let you scale without starving operations.
Mehmi sells equipment directly and offers equipment financing through in-house and partner programs across Canada. Whether you’re adding late-model reefers ahead of produce season or swapping aging dry vans, we’ll help you price and structure the deal the right way, the first time.
What you can finance
- Dry van trailers (53’ high-cube, food-grade, logistics posts)
- Reefer trailers (single/multi-temp units, telematics-ready)
- Flatbeds & step decks (steel/aluminum, spread-axle, curtain kits)
- Specialized add-ons (APUs, liftgates, cargo sensors, telematics, tire inflation)
Confirm eligibility on Eligible Equipment and explore our trailer expertise. If you’re pairing tractors with trailers, see Transportation & Trucking.
Your financing options (and when to use each)
- Loans – Own the trailer from day one with fixed amortization. Best if you run equipment to full life and want depreciation benefits.
Explore Equipment Loans.
- Leases – Lower monthly payment via residual/buyout; keep flexibility to refresh spec sooner.
See Equipment Leases.
- Equipment Line of Credit (E-LOC) – Pre-approved limit for repeat trailer purchases; draw and repay as lanes change.
Use Equipment Line of Credit.
- Refinancing / Sale-Leaseback – Convert owned trailers into working cash, then lease them back for use.
Try Refinancing & Sales-Leaseback.
- Asset-Based Lending (ABL) – Borrow against trailers and receivables to smooth cash flow alongside your equipment facility.
Consider Asset-Based Lending.
- Repair/Overhaul Financing – For reefer units, suspension, floors, doors—extend life and avoid downtime.
Use Truck Repair Financing.
Lease vs. loan vs. E-LOC at a glance
| Structure |
Ownership Path |
Monthly Cash Flow |
Typical Use Case |
Pros |
Watch-outs |
| Equipment Loan |
Title in your name from day one |
Moderate (fixed amortization) |
Dry vans/flatbeds you’ll keep 7–10 years |
Build equity, clear depreciation, predictable cost |
Higher monthly vs. lease; less upgrade flexibility |
| Equipment Lease |
Use now; buyout or return at term end |
Lower (residual reduces payment) |
Reefers or spec upgrades on 4–6 year cycles |
Cash-flow friendly, easier refresh cadence |
Buyout due; total cost can rise if extended |
| Equipment Line of Credit |
Draw as needed; close per unit |
Flexible; interest on draws only |
Rolling trailer additions across the year |
Speed to add units, less paperwork |
Discipline needed to manage limits and terms |
Price your scenarios in minutes with the calculator.
Trailer-specific underwriting: what actually moves the needle
- Asset profile & age – Late-model vans and flatbeds generally support longer terms. Reefers add the compressor’s service life into the equation.
- Spec & usage – High-cube food-grade vans, aluminum decks, or multi-temp reefers can affect residual assumptions and term.
- Fleet story – Time in business, safety profile, and customer mix matter. Startups can still qualify with contracts and a sensible down payment via In-House Financing.
- Cash position – If liquidity is tight, a sale-leaseback on owned trailers can fund down payments for new acquisitions.
- Operating cycle – Seasonal carriers often benefit from leases with buyouts that match expected trade windows.
- Working capital – Pair equipment financing with a Working Capital Loan for fuel, insurance, and tires during ramp-up.
Dry van vs. reefer vs. flatbed: operational considerations
| Trailer Type |
Primary Use |
Hold Period (Typical) |
Financing Nuance |
Notes for Resale/Uptime |
| Dry Van |
General freight, retail, e-comm |
7–10 years |
Loans popular for long holds |
Floor integrity, door seals, logistics posts |
| Reefer |
Temperature-controlled food/pharma |
4–8 years (compressor-driven) |
Leases common due to tech refresh |
Unit hours, service records, telematics health |
| Flatbed |
Construction, steel, lumber |
7–10 years |
Loan or lease depending on spec |
Deck wear, twist-locks, winches, corrosion |
How to model payments correctly
- Run a loan and a lease case in the calculator (e.g., 60 vs. 72 months, with/without buyout).
- For reefers, add a buyout (e.g., small residual) to lower monthly cost and align with tech refresh.
- Include taxes/fees and any add-ons (liftgate, telematics) so you’re not surprised at close.
- If you’re staging units, model an E-LOC to draw per delivery.
- If you own older trailers, compare a sale-leaseback plus new-unit lease vs. buying everything outright.
Case study: 40-unit refresh without breaking cash flow
Profile: Mid-size Ontario carrier running retail and grocery lanes.
Need: Replace 25 aging dry vans, add 10 reefers, 5 flatbeds for a new steel contract.
Constraints: Preserve cash for fuel and payroll; stagger deliveries over 90 days.
Structure we built:
- Sale-leaseback on 18 owned dry vans to unlock equity for initial deposits.
- Lease for 10 reefers with a modest buyout aligned to expected refresh in five years.
- Loan for 25 dry vans the fleet plans to run 8–10 years.
- E-LOC for the 5 flatbeds arriving in two batches.
- ABL + Working Capital to stabilize liquidity during the ramp (Asset-Based Lending + Working Capital Loan).
Result: All 40 units funded on schedule, average monthly obligation trimmed ~11% vs. an all-loan plan, with enough buffer for maintenance and driver onboarding.
Documentation checklist for a 24–48h decision
- Business registration and HST/GST number
- Driver abstracts and safety snapshot (if available)
- Last 3–6 months bank statements (or personal if startup)
- Trailer specs (year, make, model, options), VINs, photos
- Insurance broker contact and target bind date
- Customer/lane overview or award letters for new routes
Send your file through Contact Us and our credit analysts will structure the most competitive path.
FAQs: Trailer Financing in Canada
Do you finance used trailers?
Yes. We finance new and used dry vans, reefers, and flatbeds (subject to age/condition). Start at Eligible Equipment.
Is leasing cheaper than a loan?
Leasing usually lowers the monthly payment via a residual; loans can minimize total interest if you keep trailers longer. Compare both in the calculator.
Can a startup get approved?
Often, yes—with contracts, a sensible contribution, and the right structure. See In-House Financing.
Can I bundle tractors and trailers?
Yes, we regularly package both. Explore Transportation & Trucking and our trailer expertise.
What if I need cash for fuel and tires after I buy?
Pair your equipment facility with Working Capital or Asset-Based Lending.
How fast is funding?
With a complete file, many approvals are turned in 24–48 hours, subject to credit and asset review. Start via Contact Us.
Ready to price your next trailer order?
Run your numbers in the Equipment Financing Calculator, compare Loans vs Leases, or set up an E-LOC for staged deliveries. Feel free to contact our credit analysts to tailor a plan that fits your lanes, seasonality, and fleet strategy.
Are you looking for a truck? Look at our used inventory.
.avif)