What Is an Equipment Line of Credit?

An equipment line of credit (ELOC) gives you a revolving borrowing base secured by your equipment (and often receivables or inventory). You draw funds when needed, pay interest only on the portion used, and repay to free up capacity for future use. It’s ideal for recurring purchases, emergency repairs, or bridging cash flow gaps.

Reusable credit line secured by assets
Interest-only payments until you draw principal
Revolves as you repay — no need to reapply each time
Designed for new, used, or private-sale equipment

Benefits of an Equipment Line of Credit

1. Liquidity on demand
Have capital ready when opportunity strikes — you’re not locked into fixed payments when you don’t need them.
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‍2. Cost efficient
You only pay interest on what you borrow, not on unused credit.
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‍3. Flexibility for growth
Use it for multiple small purchases, maintenance, or equipment upgrades — draw and repay repeatedly.
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‍4. Reduced reapplication friction
Once your line is established, future draws often require minimal underwriting.
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‍5. Leverage existing assets
Your equipment (or other eligible assets) can secure the line; lessors see lower risk when they have collateral.

‍6. Improved cash flow management
Easily synchronize draws and repayments with seasonal revenue cycles or project timing.

How Much Can You Borrow?

Typical ELOC programs in Canada allow borrowing up to a percentage of your equipment’s appraised value (often 60–80%). Each lender has their own advance rate policy.

Draw limits, renewal terms, and advance rates depend on:

Asset condition, age, and usefulness
Type of equipment and resale demand
Borrower financials and credit profile
Security and guarantee structure

Why Choose Mehmi for an Equipment Line of Credit?

At Mehmi Financial Group, we structure revolving credit facilities for Canadian businesses that need flexible, recurring access to capital. Whether you operate in construction, transportation, manufacturing, or medical sectors, we help you leverage your assets for smarter growth.

Our advisors analyze your business performance, asset base, and revenue cycle to tailor an equipment-backed credit facility that fits your unique needs.

‍With Mehmi, You Get:

Credit limits up to $500,000+
Access to 100+ specialized equipment lenders
24–48 hour approvals for prequalified applicants
Transparent terms — no hidden fees or surprises

Finance Smarter — Equipment Line of Credit Made Easy

Flexible equipment-backed credit options that let you access funds instantly without reapplying. Whether you’re financing repairs, upgrades, or inventory, we’ll help you get approved quickly and manage your cash flow effectively.
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Borrow up to $500,000+

Secured by equipment or A/R

Interest-only payments available

Funds within 48 hours
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Get Started Browse Equipment

What You Can Finance with Us

We offer equipment financing solutions for businesses across construction, manufacturing, agriculture, medical, and industrial sectors. Whether you’re expanding operations or upgrading outdated gear, we make it easy to finance the tools that power your business.

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 an Equipment Line of Credit?

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.

Apply now

Documents Required

Articles of Incorporation

Last 3 Months of Business Bank Statements

Credit Application

Driver's License

Equipment Loan vs Lease vs Line of Credit: What’s Right for Your Business?

Feature	Equipment Loan	Equipment Lease	Equipment Line of Credit
Ownership	You own the asset from day one	Lender owns asset during term; option to buy	No ownership until you make a purchase
Best For	Long-term use & building equity	Preserving cash & tax flexibility	Urgent needs, auctions, and fast-moving purchases
Upfront Costs	Low to moderate (down payment may apply)	First payment + basic lease fees	None until you draw funds
Payment Structure	Fixed monthly payments	Fixed or variable lease payments	Interest-only until drawn, then amortized
End-of-Term Options	You own the equipment	Renew, return, or buy it out	Revolves for future use
Credit Requirements	Flexible — options available for challenged credit	More lenient for startups and low-credit	Stronger credit or collateral often needed
Tax Benefits	Depreciation and interest deductible	Lease payments may be fully deductible*	Interest may be tax-deductible

*Tax benefits depend on structure and jurisdiction. Always consult your accountant.

FAQ: Got Questions? We’re Straightforward.

Can I qualify for an equipment line of credit with limited credit history?

Yes. Mehmi Financial Group helps Canadian businesses of all credit types — including startups, new incorporations, and owners rebuilding their credit. We evaluate your business performance, cash flow, and equipment value, not just your credit score.

How does an equipment line of credit work?

An equipment line of credit provides revolving access to funds secured by your business equipment. You can draw money when needed, repay as revenue comes in, and reuse the available balance — making it ideal for recurring purchases, maintenance, or short-term working capital needs.

How fast can I get approved and access my line of credit?

Most approvals happen within 24–48 hours once documents are received. Funding can be drawn immediately after setup, allowing fast response to business needs, supplier discounts, or repair emergencies.

Can I use the line of credit for both new and existing equipment?

Absolutely. Your line can be secured by owned equipment, new purchases, or private-sale assets. Many clients use it alongside a term loan or lease to improve flexibility and working capital.

Do I pay interest on unused funds?

No. Interest only accrues on the amount you draw from your approved limit — not on the entire facility. This makes it one of the most cost-effective options for managing ongoing expenses.

Can I increase my limit as my business grows?

Yes. Lines are reviewed annually and can be expanded with strong payment history, new equipment, or improved cash flow. Many Mehmi clients double their limits within the first year.

Do you offer other revolving or asset-backed credit options?

Yes. We also structure accounts-receivable lines, inventory credit, and hybrid asset-based lending (ABL) for companies that want to leverage multiple forms of collateral.

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Across Canada

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Serving Canada nationwide

Equipment Line of Credit

What Is an Equipment Line of Credit?

Benefits of an Equipment Line of Credit

Why Choose Mehmi for an Equipment Line of Credit?

What You Can Finance with Us