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Offer dealer-branded equipment financing in Canada and the U.S. Compare loans, leases, customer requirements, costs and dealer payout.
A customer agrees that your machine is right for the job. The price is acceptable. The sale still stalls because paying cash would leave too little for payroll, inventory or the next project.
White label equipment financing gives your dealership a way to introduce payment options within the buying process. The important part is what happens behind the branding: customer review, understandable financing terms, accurate equipment documents and a defined route to dealer payment.
This guide covers U.S. and Canadian dealers, with country-specific requirements distinguished below.
Quick Answer: White label equipment financing lets dealers offer a branded application and financing process while a third-party lender or lessor provides the capital. The dealer sells the equipment; the financing provider sets credit terms. Approval, customer costs, dealer payout and remaining dealer obligations depend on the transaction and program agreement.
White label equipment financing places your dealership’s identity on an agreed portion of the financing experience while another organization arranges or provides financing.
The customer might encounter financing through your website, equipment listing, sales quote or branded application page. Private-label financing is an established vendor-finance model: Wells Fargo’s Vendor Financial Services publicly describes private-label and referral programs for equipment manufacturers, dealers and distributors. (wellsfargo.com)
Three terms deserve separation.
White label describes branding. Embedded financing describes financing incorporated into a sales or software workflow. In-house financing means your dealership actually extends credit or carries the customer’s payment obligation.
This article concerns third-party financing, not a dealership financing purchases from its own balance sheet.
Agree on which application pages, communications and quote materials can carry your branding. Required lender identities, contractual information and disclosures should remain clear.
For Canadian dealers planning the customer-facing page, Mehmi’s guide to co-branded financing pages offers a practical starting point.
Consider it when customers regularly need an acquisition option beyond paying cash and your team can support a consistent application handoff.
A useful starting exercise is reviewing recently stalled quotes. Identify whether the obstacle was upfront cash, unavailable credit, an unsuitable payment, equipment condition or an unrealistic purchase.
Those problems require different responses.
A construction-equipment dealer selling new and used machines may need different financing coverage from a manufacturer selling one standardized product. Truck dealers must account for vehicle identification and title requirements. Industrial-equipment sellers may need to coordinate installation and manufacturing deposits.
Choose the financing relationship around those transactions.
One direct financing provider may be sufficient when its requirements consistently fit your buyers. A brokerage can be worth evaluating when equipment, customer profiles and requested structures vary. Neither arrangement guarantees approval or the lowest cost.
Canadian dealerships comparing these models can use Mehmi’s single-funder versus broker-backed program guide.
The process should keep the equipment sale and financing review connected without asking salespeople to become underwriters.
Ask a neutral question during discovery:
“Are you planning to pay cash, use your existing financing source or review financing options for this equipment?”
Keep the purchase price visible. Financing should help the customer evaluate how to acquire the asset, not obscure what it costs.
Any payment displayed before approval should clearly identify its assumptions and exclusions. Do not promise a particular rate, contribution or payment based only on a calculator.
Use the correct dealer and customer legal names. Identify the equipment, condition, price, attachments and serial number or VIN when available.
Separate freight, installation, training and other services. Show deposits already paid and the remaining seller balance. For a trade-in, distinguish its allowance from any existing financing payout; the full allowance is not necessarily usable customer equity.
Do not inflate equipment prices to disguise services or manufacture an apparent down payment.
Route financial documents through the agreed application process. Your salesperson needs the next action and transaction status, not unrestricted access to every owner’s identification document or bank statement.
For larger U.S. equipment purchases, Mehmi’s financial-document guide explains the role of statements, banking information and existing debt.
Credit approval is not dealer payment. Funding can remain conditional on signed agreements, verified equipment, insurance, customer contributions, lien clearance and delivery or acceptance requirements. Mehmi’s terms expressly distinguish approval from completed funding. (Mehmi Group)
Agree on the release and payout sequence. Never sign an acceptance document that inaccurately states delivery or installation is complete.
Canadian dealers can use Mehmi’s intake-to-funding workflow to assign responsibility for each handoff.
Offer the structures your financing partner can support, then compare them against the customer’s ownership objective.
An equipment loan generally finances an acquisition that the customer intends to own. In the United States, an Equipment Finance Agreement, or EFA, is another ownership-oriented financing structure. Mehmi’s U.S. EFA-versus-lease guide explains the contractual distinction.
A lease gives the customer equipment-use rights under the lessor’s agreement. Review the final purchase option, renewal provisions, return conditions and notice requirements. The SBA’s equipment acquisition guidance specifically warns buyers to examine buyout options and early-termination costs. (Small Business Administration)
A smaller monthly payment does not automatically mean a cheaper transaction. A residual value or final purchase obligation can leave part of the acquisition cost until later.
For Canadian customers, compare the entire ownership path using Mehmi’s loan-versus-lease quote comparison. BDC’s buy-or-lease guidance similarly emphasizes comparing costs within the business’s cash-flow projections. (BDC.ca)
Do not promise tax savings from either structure. Have the customer’s accountant assess the actual agreement and jurisdiction.
The financing provider needs a credible repayment source and sufficient information about what is being acquired.
Expect questions about operating history, cash flow, existing debt, credit history, liquidity and ownership. Depending on the request, supporting documents may include bank statements, financial statements, interim results, tax returns and a debt schedule.
Requirements vary. For example, BDC’s equipment-loan documentation explains that financing terms and required support depend on the applicant and transaction. Do not turn one provider’s criteria into a universal approval rule. (BDC.ca)
A stronger application explains the purchase clearly: replacing unreliable equipment, removing a production bottleneck or supporting documented work. It also discloses weaknesses rather than leaving the underwriter to discover them.
For used equipment, prepare condition information, hours or mileage, maintenance records and ownership details. Ask whether inspection or valuation support is required.
The proposed term should make sense for the asset’s remaining productive life. BDC’s equipment-financing guide connects repayment duration with equipment lifespan and collateral. (BDC.ca)
Financing cannot make an unnecessary machine productive or an unaffordable payment sustainable.
This hypothetical example uses CAD. It is not a Mehmi offer, available rate or customer result.
Assume a dealer sells a machine for CAD $180,000. The buyer contributes CAD $30,000, leaving CAD $150,000 financed.
Assume a fixed 9.00% nominal annual interest rate, calculated monthly, over 60 months. Payments are monthly, beginning one month after funding. There is no balloon payment.
Assume CAD $0 in financing fees solely for this calculation. Exclude GST/HST/PST, registration charges, inspections, insurance, delivery, installation, maintenance and late-payment or early-payoff costs.
The estimated monthly payment is CAD $3,113.75.
Total scheduled loan repayment is approximately CAD $186,825.20, including CAD $36,825.20 in interest. Adding the down payment brings the purchase-and-financing outlay to approximately CAD $216,825.20, before excluded costs.
Totals use unrounded calculations; the final payment may require a rounding adjustment.
Canadian buyers can explore assumptions using the Loan option in Mehmi’s equipment financing calculator. It uses CAD, excludes applicable sales taxes and produces estimates rather than financing offers. U.S. dealers should use a USD-configured calculation for U.S. quotations. (Mehmi Group)
Now test cash flow.
If the buyer has CAD $6,000 available monthly after operating costs and existing debt, the new payment leaves approximately CAD $2,886.25.
If available cash falls to CAD $3,000, the same payment produces an approximately CAD $113.75 shortfall, before unexpected expenses.
That comparison may support a smaller purchase, a different contribution, an approved seasonal structure or waiting. The lowest payment is not the only decision.
Review customer financing costs separately from dealer program economics.
For customers, request the amount financed, cash due at closing, payment frequency, total scheduled repayment, fees and final obligations. Ask how early payoff is calculated rather than assuming every remaining charge disappears.
Review personal guarantees and security separately. Ask whether the provider takes rights only in the equipment or also in other assets, and what an owner’s guarantee requires.
For your dealership, obtain the expected net payout. Identify any merchant fee, promotional-rate subsidy, reserve or other deduction. These are questions to investigate, not charges imposed by every program.
Read the agreement for customer-default recourse, repurchase duties, cancellations, refunds and representations about ownership or delivery. Ordinary buyer default and a dealer’s failure to supply the agreed equipment are different issues.
Also establish who answers servicing questions after funding. A branded sale should not leave the customer unsure whom to contact about payments or payoff.
They add transaction questions that should be resolved before closing.
With used equipment, confirm ownership and address existing security interests. For U.S. transactions, Mehmi’s used-equipment UCC and lien-check guide explains why a seller’s statement that a machine is “paid off” may not settle every lien question.
If the machine changes after approval, disclose the substitution before delivery. A different serial number, condition or price may require another review.
For custom builds, submit the actual deposit and milestone schedule. Ask whether the financing provider can pay before completion, what evidence each payment requires and how final acceptance works.
Mehmi’s U.S. palletizer vendor financing guide addresses that distinction between financing a finished machine and funding manufacturing stages.
Do not commit your production cash around an assumed advance-payment arrangement.
Business-purpose financing can fall within the Equal Credit Opportunity Act and Regulation B. Certain nondiscrimination and anti-discouragement provisions also cover businesses that regularly refer applicants or select creditors. The CFPB’s definitions and interpretations explain this broader scope. (Consumer Financial Protection Bureau)
Use consistent application practices. Have the dealer’s actual activities, compensation and offer presentation reviewed for relevant state requirements.
For secured equipment, UCC filings may be involved; titled assets can require a different process. The applicable state law and asset determine the requirements, including exceptions to ordinary financing-statement filing. (Legal Information Institute)
Mehmi’s current terms restrict applications involving borrowers or recipients located or principally based in California, Illinois, Missouri, Nebraska, North Carolina, North Dakota and Vermont, unless Mehmi confirms applicable authorization or an exemption in writing. These are Mehmi service restrictions, not blanket bans on equipment financing in those states. (Mehmi Group)
Canadian business applications can include personal information about owners and guarantors. Where applicable, privacy laws require meaningful consent concerning collection, use and disclosure. The Office of the Privacy Commissioner’s guidance emphasizes understandable purposes and information-sharing practices. Provincial obligations also need consideration. (Office of the Privacy Commissioner)
Use CAD quotations and confirm provincial availability, tax treatment and documentation separately. Ask the financing provider to identify applicable PPSA searches or registrations and, for Quebec transactions, RDPRM requirements.
Do not copy a U.S. financing process into Canada merely by changing the currency.
Start with a manageable equipment category and a clearly assigned internal coordinator.
Agree on approved branding, application routing, quote standards, customer communications and payout instructions. Test an incomplete application and a delivery change, not only a straightforward approval.
Canadian dealers can use Mehmi’s vendor-program setup checklist to organize that handoff.
Measure funded purchases, time spent resolving conditions and net contribution after program costs. Record why buyers reject offers. An approval count alone does not show whether the program is commercially useful.
Keep alternatives available. Customers may be better served by an existing bank facility, manufacturer financing, rental equipment, a smaller machine or postponement.
Not under the third-party model described here. Another provider supplies financing. However, introducing or arranging credit does not automatically remove every regulatory or contractual obligation. Have the activities your dealership performs reviewed before launch.
Review both agreements for exclusivity, referral and customer-contact restrictions. Where permitted, an additional financing relationship can complement your existing program. Establish a coordinated process to avoid duplicate submissions.
Potentially. Ask whether the original problem was repayment capacity, equipment eligibility or another provider-specific requirement. Present current, accurate information and any legitimate restructuring proposal. Another review is not a promise of approval.
Confirm whether compensation is offered, legally permitted and documented. Review when it becomes payable, disclosure requirements and any clawback provisions. Do not build the program’s financial case around assumed commissions.
Mehmi’s published vendor program states that there are no setup fees or membership costs. That enrollment statement is separate from customer borrowing costs and the scope of any custom implementation. (Mehmi Group)
Not necessarily. Agree on the branding and communication boundaries. The customer may need direct contact with the brokerage, lender, lessor or servicer, and financing documents must accurately identify the relevant parties.
Mehmi Financial Group operates as a financing brokerage and intermediary, not a direct lender. Its published vendor offering includes branded application options, financing coordination and application-status support; independent financing providers determine credit decisions and final terms. (Mehmi Group)
To discuss a dealer program, share your typical financing amount, whether customers operate in the United States or Canada, their state or province, equipment and intended use of funds, and expected purchase or launch timing.
Call Mehmi Financial Group at 833-863-4644 or contact the team about dealer-branded equipment financing.
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