How to Finance U.S. Equipment as a Canadian Business

If you’ve ever shopped for used equipment online, chances are you’ve found a listing in the U.S. with better specs or a lower price than anything in Canada.

That’s why more Canadian business owners are asking:

“Can I finance equipment from the U.S.?”

The answer: Yes—with the right structure.

Cross-border financing is possible—but it comes with additional steps around documentation, compliance, and logistics. In this guide, we’ll explain:

• Why some Canadian companies buy from the U.S.
• What’s different about financing a cross-border purchase
• How to navigate duties, exchange rates, and transportation
• Lender considerations to keep in mind
• How Mehmi helps businesses finance cross-border equipment smoothly

Why Canadian Businesses Buy Equipment from the U.S.

✅ Lower Pricing

Used trucks, trailers, or machines in the U.S. can be 20%–40% cheaper than Canadian inventory—especially in strong USD supply states like Texas, Ohio, or Georgia.

✅ Wider Selection

The U.S. market offers:

• More brands and models
• Shorter wait times for delivery
• Access to niche or discontinued units

✅ Favorable Exchange Windows

If the CAD is performing well, cross-border purchases may yield significant savings—especially on higher-ticket gear.

✅ Specialty Auctions and Liquidations

Many Canadian buyers attend Ritchie Bros. U.S. auctions or online marketplaces like MachineryTrader, IronPlanet, and Commercial Truck Trader.

Yes, You Can Finance U.S. Equipment—But Here's What Changes

Lenders approach cross-border financing with added diligence, to protect themselves and you.

1. Extra Documentation

Lenders often require:

• Formal invoice or bill of sale from the U.S. seller
• Proof of ownership (no outstanding U.S. liens)
• Photos, serial numbers, condition reports
• Import broker information
• Border paperwork, if already imported

2. Import Duties & Compliance

You may face:

• Duties or taxes on import (varies by asset type)
• Transport and brokerage fees
• Equipment must meet Transport Canada or CSA standards if regulated (especially for trucks, brakes, lighting)

You can often bundle duties, taxes, and delivery into your financing, if invoiced up front.

3. Currency Exchange & USD Invoicing

• Lenders may require CAD-denominated contracts
• If the invoice is in USD, they may convert at the current exchange rate on funding day
• Some lenders hedge FX risk or allow you to pay vendors directly in USD

Ask your analyst to confirm how currency conversion is handled before signing.

Common Equipment Types Imported from the U.S.

Real Case Study: Cross-Border Reefer Financing

Business: Ontario-based food hauler
Need: 2019 reefer trailer listed for USD $34,000 in Michigan
Challenge: Needed to import, pay duties, and fund before weekend delivery

What They Did:

• Used Mehmi to arrange financing in CAD equivalent
• Provided bill of sale, VIN, import broker contact
• Funded seller directly in 48 hours
• Duties and delivery bundled into total financed cost

Outcome:
Trailer was in service within 5 days—client saved over $6,000 vs. local options and used 60-month term with deferred first payment.

What Lenders Will and Won’t Approve

✅ Approvals Common For:

• Equipment with serial number and hard value
• Properly documented used assets (not custom builds)
• Canadian businesses with 1+ year history
• Vendor verification (e.g. BBB listing, website, invoice)

❌ Typically Not Approved For:

• “As-is” auctions without paperwork
• Grey-market or non-compliant machines (e.g. missing safety certification)
• Vehicles with active U.S. liens or salvage title
• Buyers with poor credit or cash flow issues

Importing U.S. Equipment: What You’ll Need

🔹 Buyer Requirements:

• Business license or incorporation
• 3–6 months of bank statements
• Valid driver’s license
• Down payment (optional, but helpful for speed)

🔹 Seller/Vendor Requirements:

• U.S. invoice or bill of sale
• Equipment photos and serial numbers
• Ownership proof or lien clearance
• Estimated delivery date and location

🔹 Import Logistics:

• Licensed customs broker
• HS code classification (for duties)
• RIV/Transport Canada compliance for vehicles
• Freight or towing quote (optional to bundle)

Tips to Finance a Cross-Border Equipment Purchase

✅ Get pre-approved before committing to a seller
✅ Work with a broker who has cross-border experience
✅ Bundle import costs and transport into financing if possible
✅ Confirm compliance before purchase—especially for regulated assets
✅ Know your exchange risk and ask about FX handling
✅ Act quickly—good U.S. deals disappear fast

FAQs: U.S. Equipment Financing for Canadians

Can I finance equipment before it crosses the border?
Yes—if documentation is in order, most lenders will fund prior to delivery.

Do I need to convert USD to CAD for the loan?
Typically yes. Most Canadian lenders fund in CAD and convert based on the USD invoice amount.

Can I finance duties and shipping too?
Yes—Mehmi can often include customs fees, brokerage, and delivery into your lease or loan.

What if I’ve already purchased the equipment?
You may still qualify for refinancing or sale-leaseback to free up capital after import.

Final Word: Border Doesn’t Mean Barrier

Buying U.S. equipment can unlock better value, faster access, and more selection.
And with the right financing partner, it doesn’t have to mean more hassle.

Mehmi helps Canadian businesses finance cross-border purchases confidently and quickly—from heavy trucks to specialty gear.

Looking to finance equipment from the U.S.?
Speak to a credit analyst or use our calculator to get pre-approved before you commit to a cross-border deal.

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