Zero-Down Equipment Leasing in Canada

You’ve found the right truck, trailer, or machine. Cash is tight, but work is waiting. Is zero-down equipment leasing in Canada realistic—or just marketing? From a credit analyst’s desk (and as a seller of used Class 8 trucks, trailers, and commercial assets), here’s the practical answer: $0-down can be done, but only when the overall deal strength makes a lender comfortable. That means strong deposits, a marketable asset, and compensating structure. When those pieces aren’t there, we still get operators moving using equity top-ups, working-capital overlays, or staged approvals.

If you want a quick read on your odds, feel free to contact our credit analysts. Are you looking for a truck? Look at our used inventory.

What “Zero-Down” Really Means in Equipment Leasing

Zero-down (or “no money down”) means the lender funds the full asset cost and you bring no initial cash beyond standard fees (first payment, insurance binder, PPSA/admin—sometimes blended into the payment). In practice, “zero-down” is a risk trade: the less cash you contribute on day one, the stronger other risk levers must be.

At Mehmi Financial Group, we finance and sell equipment across Canada and place files with 30+ lenders. Explore options: Financing & Leasing.

The Four-Lever Approval Model (How Lenders Say Yes)

Private and non-bank lessors approve $0-down when the deal pencils across four levers:

• Capacity: 3–6 months of bank statements show deposits comfortably covering the proposed payment plus fuel, payroll, parts, and insurance.
• Security: If not cash down, then refundable security deposit, additional collateral, or a co-signer.
• Asset: Late-model, serviceable, and marketable—clean inspection and verifiable history.
• Story: What happened then, what’s changed now, and how this asset generates reliable cash (contracts, lanes, signed POs).

If receivables timing is your constraint, normalize deposits first with Invoice Factoring or a small Line of Credit & Working Capital. It often turns a “maybe later” into a “yes this week.”

When Zero-Down Is Realistic (and When It Isn’t)

Realistic when:

• Bank statements are clean (limited NSFs) with steady inflows from established customers.
• The asset is mainstream (e.g., popular day cab, tandem dump, mini-excavator) with strong resale.
• You can offer alternative security (security deposit, co-signer) or show near-term contract revenue.

Difficult when:

• Start-up with thin deposits and no signed work.
• Highly specialized/end-of-life equipment with uncertain resale.
• Multiple recent NSFs or tax arrears without a plan.

If you’re in the “difficult” bucket, we typically switch to a low-down approach (5–15%) or raise the down payment for you by unlocking equity via Refinancing & Sale-Leaseback.

Structures That Commonly Fund $0-Down (or Close)

• FMV Lease with Security Deposit: Lower initial cash, deposit refundable at term-end if conditions met.
• Step-Up Payments: Modest first 2–3 payments, rising once the asset is productive.
• $0-Down + Working Capital Overlay: Small LOC to cover early fuel/repairs so bank statements remain stable.
• Equity Top-Up via Sale-Leaseback: Lease back an owned asset to create the “effective down” while keeping day-one cash at $0.

Sanity-check affordability first with our Calculator.

Broker Advantage: Why a Seller-Broker Funds Faster

Because we sell the asset and arrange financing, we pre-underwrite the unit (serials, lien search, inspection, valuation) and deliver lender-ready paperwork. That removes the back-and-forth that usually kills $0-down timelines and keeps delivery dates intact.

• One accountable partner from quote to keys
• Clean bill of sale, PPSA, inspection, and insurance timing
• Asset guidance toward units that actually price and fund

Are you comparing loan vs lease? Start with our explainer: Financing & Leasing and this primer: Understanding the Basics of Truck Loans.

Step-by-Step: How We Pursue Zero-Down This Week

Day 1 — Discovery & Pre-Underwrite
We align on goal, budget, and timeline; review statements; shortlist assets (from our lot or your spec). We identify compensating strengths (security deposit, co-signer, or equity via leaseback).

Day 2 — Structure & Conditional Approval
We select term/residual (FMV, $1, or 10% buyout), confirm insurance and any overlays (factoring/LOC). We aim for $0-down; if not quite, we propose the lightest low-down that funds.

Day 3–5 — Docs, Inspection, Funding
We finalize PPSA, bill of sale, and binder; clear conditions; and release funds. You pick up the unit and start generating revenue.

What You’ll Need (Zero-Down File Checklist)

• Application, government ID, void cheque
• 3–6 months business bank statements (personal if new)
• Quote or bill of sale, VIN/serials, lien search, inspection/condition report
• Insurance quote (binder timed for funding)
• Optional strength: contract letters, broker confirmations, service history

If paperwork is slowing you down, feel free to contact our credit analysts—we’ll sequence and pre-package the file.

Practical Cost Reality (Even at $0-Down)

“Zero-down” rarely means zero cost. Budget for:

• First payment (sometimes blended), PPSA/admin, and insurance binder
• Sales tax/HST on rentals as they’re billed
• Transport/recon (if any), or include eligible soft costs in structure

Model the cash flow with our Calculator before you commit.

Quick Comparison: $0-Down vs Low-Down vs Traditional

For Ontario-specific context, see: 2025 Equipment Financing Options for Small Businesses in Ontario.

Case Study: $0-Down on a Used Day Cab (With a Twist)

Profile: Ontario carrier adding a 4th tractor for a regional lane; cash tight after repairs; credit mid-600s.
Problem: Wants $0-down to keep working capital for fuel/tires.
Structure: FMV lease with refundable security deposit (no cash down beyond standard fees), step-up payments, and a small invoice factoring line to smooth weekly deposits.
Outcome: Conditional approval in 48 hours; funding on inspection and binder; unit on the road the following Monday.

If Zero-Down Isn’t Feasible Today, Do This

• Use a Sale-Leaseback to unlock equity from another unit and create the “down” without touching cash: Refinancing & Sale-Leaseback.
• Add Working Capital to protect statements while you ramp: Line of Credit & Working Capital.
• Stabilize Receivables First with Invoice Factoring for 60–90 days, then resubmit for lower payments.
• Re-select the Asset: Switch to units with stronger resale and cleaner inspections from our inventory to improve pricing and approval odds.

Why Operators Choose Mehmi

• Seller + Financier: We carry used Class 8 trucks, trailers, and commercial assets—and can finance them directly.
• Speed: Pre-approvals and funding commonly within 24–48 hours for deal-ready files, up to $5M across lenders.
• Flexibility: Newcomers, thin files, or past credit issues—we structure to your reality, not a template.
• Breadth: Transportation, construction, food service, medical, manufacturing, and more.

Browse inventory or explore funding:
Financing & Leasing • Refinancing & Sale-Leaseback • Invoice Factoring • Line of Credit & Working Capital • Calculator

Frequently Asked Questions

Is zero-down equipment leasing really possible in Canada?
Yes—when deposits are strong, the asset is marketable, and we add compensating structure (security deposit, co-signer, or overlays). Otherwise, low-down is the pragmatic path.

What credit score do I need for $0-down?
There’s no single number. Many lenders prefer 650+, but sub-650 files can still work if capacity and asset quality are strong. We’ll pre-underwrite and place accordingly.

What’s the catch with $0-down?
Expect a higher monthly payment and tighter conditions. It’s a risk trade. If that strains cash flow, consider a small down or equity via sale-leaseback.

Can I blend soft costs (transport, minor repairs) into the lease?
Often yes—case-by-case. It can improve day-one liquidity but confirm eligibility and limits first.

Is a loan better than a lease for zero-down?
Loans usually need more day-one equity. Leases are more flexible for $0-down structures, especially with FMV and step-ups. We’ll model both.

How fast can I be approved?
Deal-ready files often receive conditional approval within 24–48 hours, funding shortly after inspection and insurance.

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Curious what your monthly payment might look like on a specific unit? Start with our Calculator. When you’re ready for a fast, honest assessment—and a structure that will actually fund—feel free to contact our credit analysts: Contact Us.