Equipment Financing Partner for Canadian Dealers and Suppliers
An equipment financing partner lets you offer your customers monthly payments without lending your own money. Your customer wants the equipment. They’ve seen the demo, they like the specs, and it will make them money. Then they see the price and say they need to talk to their bank. Too often, that’s where the deal stalls.
Reviewed by Matt N., Associate, NewCap Leasing
Most Canadian small and mid-sized businesses run on tight cash flow. They need your equipment to earn revenue, but many would rather not tie up a large share of their working capital in one purchase. So when you can show a monthly payment instead of only a sticker price, the conversation changes from “can we afford it?” to “does it fit the budget?”
A financing partner can help you:
- Give customers another way to buy, especially those who prefer monthly payments.
- Reduce price friction during the sale, so the discussion stays on the equipment.
- Keep deals moving instead of waiting while a customer shops their bank.
- Support higher-value orders. Attachments, warranties or a higher-spec model add only part of their cost to the monthly payment, which can make upgrades easier to approve.
- Offer financing without building a lending department, with no credit staff, collections or capital of your own tied up.
- Have a backup option when a customer’s usual lender is slow or says no.
However, no partner can guarantee these outcomes. They depend on your customers, your equipment and how well financing is built into your sales process.
How a third-party equipment financing partnership works
- You identify a customer who wants to buy equipment but would prefer to spread the cost.
- You introduce the financing option, either by referring the customer or helping them start the application.
- The customer applies. With NewCap, that’s a one-page application with the equipment quote.
- The partner assesses the application and, where relevant, works with its lending network to find available options. NewCap reviews most applications within 24 hours and keeps you updated at every step.
- If the partner approves the deal and it closes under the agreed terms, the partner pays you for the equipment according to the transaction arrangements.
- Your customer makes payments under their financing or lease agreement with the lender.
In other words, the key difference from in-house financing is that the agreement is between your customer and the lender, not with your business.
In-house financing vs. an equipment financing partner
Some dealers consider financing customers directly from their own balance sheet. It can work for large dealers with capital and credit expertise, but it changes your business.
| Financing customers yourself | Using an equipment financing partner | |
|---|---|---|
| Who lends the money | Your business | The financing partner or its lenders |
| When you get paid | Over the customer’s term | When the approved deal closes |
| Credit assessment | Your staff | The partner |
| Collections and admin | Your staff | The partner, under the agreement |
| Capital required | Significant | None for lending |
| Exposure if the customer defaults | Yours | Depends on the partner agreement; confirm the terms |
For most independent and mid-sized dealers, therefore, a partner is the faster and lower-overhead way to offer financing. Whatever model you choose, read the partner agreement carefully, especially any recourse terms.
What to look for in an equipment financing partner
- Range of equipment. Can they finance what you sell, including used inventory and mixed brands?
- Range of customers. Do they work with new businesses as well as established ones, and customers with varied credit?
- Speed and simplicity. How long is the application, and how quickly do they review files?
- Communication. Will you see where a deal stands, or does it go quiet after submission?
- Payment to you. When and how do you get paid once a deal is approved?
- Agreement terms. What are your responsibilities, and is there any recourse to your business?
- Fit with existing lenders. Can they work as your main partner or alongside a manufacturer or bank program?
How to offer equipment financing to your customers
You don’t need to be a finance expert to sell with monthly payments. In fact, it’s better if you aren’t. Instead, keep it simple and let your partner handle the details.
- Introduce it early. Mention financing in the first conversation, not after the customer balks at the price. For example: “Many of our customers finance this to keep their cash free. We can get you a payment quote.”
- Show monthly numbers. Add an “as low as $X/month” figure next to prices on your website or showroom tags, using payment estimates your partner provides. A lease calculator can help with rough estimates.
- Lower the barrier. Tell hesitant customers the application is one page and there’s no obligation to proceed.
- Make the hand-off easy. Keep your partner’s contact details and application link handy, so customers can start the same day.
Which equipment vendors can work with a financing partner?
Most sellers of commercial equipment can offer financing through a partner. Below are the industries NewCap serves and how financing typically fits each one. Still, NewCap assesses every application on its own merits.
Construction, heavy equipment and material handling dealers
Contractors often need a machine for a job that starts soon, and waiting on a bank can cost them the contract. Excavator, skid steer, telehandler, forklift and racking dealers can use financing to keep those timelines intact. NewCap can also consider used and private-sale equipment. See our guides to excavator and skid steer financing and used construction equipment financing.
Restaurant, hospitality and commercial laundry suppliers
Restaurant and commercial kitchen suppliers often sell to new operators furnishing a whole kitchen at once, or to existing ones replacing failed refrigeration. In both cases, financing can turn a large package into a manageable monthly cost. See restaurant equipment financing and commercial laundry equipment financing.
Medical, dental and lab equipment suppliers
Clinics and labs often face high-cost diagnostic or treatment equipment that they can’t justify paying for upfront. Monthly payments, however, can let them buy now rather than waiting for next year’s budget. See medical equipment financing in Canada.
IT, server and audio visual equipment vendors
Vendors often sell server rooms, networking, conferencing systems and AV installations as projects that combine equipment and services. As a result, financing can help customers fit the project into an operating budget. NewCap’s IT equipment financing page has more detail.
Agriculture, landscaping, automotive and other specialized dealers
Farm equipment, landscaping machinery, auto shop lifts and alignment equipment, surveying instruments and manufacturing equipment are all categories NewCap finances. See landscaping equipment financing and auto shop equipment financing.
Why dealers choose NewCap as an equipment financing partner
NewCap Leasing has more than 14 years of experience and has served more than 2,000 Canadian businesses. Its vendor program focuses on a few practical points:
- You get paid upfront once an approved deal closes.
- You get updates at every step of the approval process.
- A one-page application for your customers, with most applications reviewed within 24 hours.
- Lease-to-own options from 24 to 72 months, for new and existing businesses.
- Used equipment, private sales and auctions are all options NewCap can consider.
- A range of industries, from construction and agriculture to medical, hospitality, IT and transportation.
Of course, terms, eligibility and approval depend on each application, the equipment and the transaction. Not every customer or asset will qualify.
Looking for an equipment financing partner for your customers? Contact NewCap Leasing to discuss a vendor partnership.
FAQ about working with an equipment financing partner
How does a third-party equipment financing partnership work?
You introduce financing to your customer, the customer applies, and the partner assesses the application. If the partner approves it and the deal closes, the partner pays you for the equipment and the customer makes payments to the lender.
Does my dealership need to provide the financing itself?
No. Instead, the lender provides the financing. You don’t need your own capital, credit staff or collections process.
Will my business get paid upfront?
With NewCap’s vendor program, NewCap pays you upfront once an approved transaction closes, according to the transaction arrangements.
Who handles the credit assessment and customer payments?
The financing partner assesses each application, and the customer makes payments under their agreement with the lender. Your partner agreement sets out your responsibilities.
How does an equipment financing partner get my customers approved?
The partner reviews the application, the equipment and the transaction, and may work with its lending network to find options. No partner can guarantee approval, but a clear quote and complete application help.
Can an equipment financing partner support new businesses or customers with varied credit?
NewCap works with new as well as established businesses. NewCap assesses each application individually, including the customer’s credit history, but it can’t guarantee approval.
Can we finance both new and used equipment?
Yes. NewCap can consider new and used equipment, including private-sale and auction purchases. However, every deal still needs approval.
What if my customer already has a bank or financing relationship?
That’s fine. In that case, a partner can be your main financing option or an extra one alongside your customer’s bank or a manufacturer program. It’s especially useful when a customer’s usual lender is slow or declines.
How can my dealership get started?
Contact NewCap Leasing to talk about your equipment, your customers and how a vendor partnership would work for your business.
This article is for general information only and is not financial or legal advice. Financing is subject to application review, approval and applicable terms. Each partner agreement sets out the vendor program details.
