Conditional Sales Contracts (CSC) for Canadian Businesses

Conditional Sales Contracts (CSC) let you rent-to-own or conditional-purchase expensive machinery, trucks, or industrial gear. You’ll use the equipment from day one while paying over time. Ownership transfers once you’ve met the agreed conditions.

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What Is a Conditional Sales Contract (CSC)?

A conditional sales contract is a financing agreement in which the seller retains ownership of the asset until the buyer satisfies specific conditions (often full payment). Under a CSC, you can immediately use the equipment while making periodic payments. Once all conditions are met, title transfers to you.

CSC blends the benefits of leasing and purchasing:
  • No large upfront capital outlay
  • You use the asset immediately
  • Final ownership once payments complete
  • Maintenance costs often handled as operating expenses

Key Terms & Conditions in CSCs

Common clauses in conditional sales contracts in Canada typically include:
  • Title retention: Seller retains legal ownership until conditions met.
  • Payment schedule: Fixed installments over months or years.
  • Taxes & fees up front: HST/GST due at signing.
  • Full payment condition: Ownership only transfers after last payment.
  • Default and repossession: If payments fail, seller may repossess.
These clauses protect both parties: you gain usage, seller retains security.

Why Use a CSC? (Advantages)

  • Affordability: Secure expensive equipment without paying full cost upfront.
  • Cash Flow Management: Spread payments over time, reducing strain.
  • Immediate Use: Operate the asset while paying — you don’t wait until the purchase is complete.
  • Tax Efficiency: Maintenance costs treated as current expenses; the capital expense becomes depreciable once ownership transfers.
  • Flexibility: Some contracts include warranty, maintenance, or upgrade options built into terms.
In sectors like trucking and agriculture, CSCs dominate because they let businesses upgrade fleets without the capital burden.

Why Choose Mehmi for Conditional Sales Contracts?

At Mehmi Financial Group, we make conditional sales contracts simple, fast, and fully transparent for Canadian businesses that want to own equipment without the upfront cost. Whether you’re financing a truck, excavator, CNC machine, or other commercial asset, our CSC programs let you take immediate possession while paying over time.

We understand how critical access to equipment is for business growth — especially when banks decline traditional loans. That’s why our CSC options are tailored for owner-operators, startups, and established firms alike, helping you preserve working capital while securing the tools that keep your business running.

Our team partners with over 30 leading lenders across Canada, allowing us to negotiate flexible terms and competitive rates — even for businesses with limited or non-prime credit. Every contract is structured around ownership transfer at term-end, ensuring you build long-term equity in your business assets.

‍Why Businesses Choose Mehmi CSC Financing:
  • Use the equipment immediately — ownership transfers after full payment
  • Available for new, used, or refurbished assets across multiple industries
  • Flexible structures for low or $0 down options
  • Transparent terms — no hidden fees or surprises
Finance Smarter — Conditional Sales Contract Made Easy

Structure a CSC that gives you use of vital equipment today with ownership down the line. Whether for trucks, machinery, or specialty assets, Mehmi crafts flexible conditional purchase plans made for Canadian businesses.
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Borrow up to $5,000,000

Used & private-sale gear approved

Terms up to 72 months

Funds within 48 hours
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What You Can Finance with a Conditional Sales Contract

Our CSC programs cover nearly every business sector across Canada. Whether you’re expanding operations, replacing older assets, or adding capacity, we’ll help you secure the right equipment with flexible ownership terms and rapid approval.

‍Eligible Equipment Categories:
  • Construction Equipment: Excavators, skid steers, trenchers, loaders, bulldozers, backhoes
  • Industrial Machinery: CNC machines, presses, compressors, power tools, generators
  • Agricultural Equipment: Tractors, harvesters, sprayers, tillers, irrigation systems
  • Warehouse & Material Handling: Forklifts, pallet jacks, scissor lifts, conveyors, racking
  • Medical & Dental Equipment: Imaging machines, treatment chairs, sterilization units, lab devices
  • Restaurant & Food Service: Ovens, mixers, refrigeration, prep stations, fryers
New or used — we help you find the best deals.
Check Out Our Full List of Eligible Equipment

Who Qualifies for a Conditional Sales Contract?

You’re likely a strong match if:

  • Your business has been operating for 6+ months (or 3+ with reliable revenue)
  • You earn roughly $50K+ in annual sales
  • You're financing equipment for commercial use (not personal)

Even businesses with lower credit or shorter histories may qualify — strong cash flow, equipment collateral, or a co-signer can help secure lender approval.

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Documents Required

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Articles of Incorporation
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Last 3 Months of Business Bank Statements
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Credit Application
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Driver's License

3 Steps. No Surprises.

The Mehmi Financial Group experience is simple, quick, and customized to your financial needs.
1

Find the Equipment you need

Whether it be an individual's private sale or equipment listed by a dealer, there are numerous options available.
Browse Used Equipment
2

Get In Touch

An all-in-one customer service platform that helps you balance everything your customers need to be happy.
3

Get Approved

Secure approval and funding in as little as 24–48 hours with flexible terms.

Equipment Loan vs Lease vs Line of Credit vs Conditional Sales Contract: Which Fits Your Business?

Feature Equipment Loan Equipment Lease Equipment Line of Credit Conditional Sales Contract (CSC)
Ownership You own the asset from day one Lender owns asset during term; option to buy No ownership until you use credit for purchase You use the asset immediately; ownership transfers once contract terms are met
Best For Long-term use & building equity Preserving cash & maximizing flexibility Short-term liquidity & repeat purchases Businesses that want ownership with lower upfront cost and fixed repayment terms
Upfront Costs Low to moderate (down payment may apply) First payment + lease setup fees None until funds are drawn Low or no down payment; taxes and documentation fees upfront
Payment Structure Fixed monthly payments Fixed or variable lease payments Interest-only until drawn, then amortized Fixed monthly installments; final payment triggers ownership transfer
End-of-Term Options You own the equipment Renew, return, or buy it out Revolves for future use Automatic ownership transfer after contract completion
Credit Requirements Flexible — options available for challenged credit Moderate — easier for startups and newer firms Requires stronger credit or asset security Asset-backed approval — credit flexibility if collateral holds resale value
Typical Term Length 24–72 months 24–84 months Revolving credit facility 36–84 months with option to accelerate final payment
Tax & Accounting Benefits Depreciation and interest deductible Lease payments may be fully deductible* Interest may be tax-deductible Payments may qualify for capital cost allowance after ownership transfer

*Tax benefits depend on contract structure and provincial regulations. Always consult your accountant for specific advice.

FAQ: Got Questions? We’re Straightforward.

Can I get approved for a Conditional Sales Contract with low or bad credit?

Yes. Mehmi Financial Group works with over 30 lenders across Canada to help businesses with a wide range of credit profiles — including startups, low-credit applicants, and those rebuilding after financial challenges. Conditional Sales Contracts (CSC) are often easier to approve because the equipment itself secures the loan, making it an ideal option for businesses banks may decline.

Do Conditional Sales Contracts apply to used or private-sale equipment?

Absolutely. Mehmi can finance new, used, or private-sale equipment purchases through a CSC — whether you’re buying from a dealer, auction, marketplace, or private seller. From excavators and CNC machines to commercial trucks, we’ll help structure the agreement so ownership transfers smoothly once payments are complete.

How fast can I get approved and take possession of the equipment?

Most CSC approvals happen within 24–48 hours. Once documents and invoices are submitted, our underwriting team can finalize the contract quickly so you can take immediate possession of the equipment. Funding and delivery often occur within 1–2 business days.

Is a Conditional Sales Contract the same as a lease?

No. With a CSC, you take possession and use of the equipment immediately, but legal ownership stays with the lender until the final payment is made. Once the terms are fulfilled, ownership automatically transfers to your business — unlike a lease, which typically requires renewal or buyout.

Do I need a down payment to start?

Not always. For qualified applicants, Mehmi can arrange CSC agreements with low or even $0 down payments depending on the equipment type, credit strength, and overall structure. This helps preserve cash flow while allowing your business to grow with the assets it needs.

Can I finance older or high-hour equipment through a CSC?

Yes. We evaluate the asset’s resale value and condition — not just its age. Many Canadian construction, farming, and industrial companies use CSCs to finance older or refurbished equipment that still performs reliably on the job.

Can a Conditional Sales Contract include maintenance or warranty coverage?

Yes. Extended warranties, maintenance, or service plans can often be bundled into your monthly CSC payments. This helps protect your investment and maintain predictable operating expenses over time.

What happens if I miss a payment?

If a payment is missed, legal ownership remains with the lender until all conditions are met. In most cases, Mehmi works proactively with clients to find payment solutions and avoid repossession. Making consistent payments also strengthens your business credit for future financing.

Can I combine a CSC with other types of financing?

Yes. Many clients pair CSCs with asset-based lending or working capital loans to cover deposits, repairs, or cash flow gaps. Our credit analysts can help build a hybrid structure that keeps your business flexible and well-capitalized.

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Ready to own your next truck, excavator, or piece of commercial equipment through a Conditional Sales Contract? Mehmi Financial Group helps Canadian businesses get approved fast — even if you’ve been declined by a bank.
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