Can Freight, Customs and Brokerage Be Included in Equipment Financing?

Start with the landed cost, not the seller's invoice alone

A USD equipment quote can understate the Canadian cash requirement. Freight, insurance, customs brokerage, duties where applicable, provincial or federal sales taxes and rigging can create a meaningful gap between the seller's price and the amount required to put the machine on the floor.

Build that budget before the application so the requested financing amount reflects the actual transaction.

Lenders can treat hard equipment and soft costs differently

The machine is the primary collateral in many equipment-finance structures. Freight or brokerage has no independent resale value once the move is complete. That does not mean those costs can never be financed, but it explains why the lender may cap them, require cash for part of them or structure them differently.

BDC's public equipment-financing guidance is one example of a lender that can finance additional purchase costs in some circumstances. Raymond Leigh works across many financing partners, so treatment varies by source and file.

Taxes and duties need their own line in the budget

• Equipment purchase price in the invoice currency
• Exchange-rate assumption
• Freight and cargo insurance
• Customs brokerage and any applicable duties
• GST/HST or GST/QST timing
• Rigging, delivery and installation

Do not let the currency move turn an approval into a shortfall

If a machine is quoted in U.S. dollars, a Canadian-dollar approval can become too small when the exchange rate moves before funding. The buyer should know whether the vendor invoice will be converted at funding, whether the lender pays in the foreign currency and how much cushion is available.

The safest approach is to discuss the currency mechanics early rather than assume the original conversion will remain exact.

Example: imported CNC with a landed-cost gap

A Canadian manufacturer agrees to buy a machine for the Canadian-dollar equivalent of $400,000. Freight, brokerage, duties and rigging add another $48,000. If the financing request is submitted at $400,000 and the buyer has only budgeted the deposit, the project can become underfunded even after approval. Showing the $448,000 landed budget up front lets the lender decide what portion fits and lets the buyer plan cash for the rest.

Shipping should not begin until funding conditions are understood

A lender may need final invoices, serial numbers, insurance or other closing items before funds are released. The seller may have its own rule about when the machine can leave the facility.

Align those timelines before a truck is booked. Cross-border logistics are expensive to reverse when the financing documents are still incomplete.

Cross-border guides to review together

The financing mechanics are easier to plan with U.S. manufacturing equipment purchases, imported CNC financing, and installation and rigging. Each page addresses a different part of the import and installation process.

Incoterms can change who is responsible for the cost and risk

The seller's quote may use trade terms that determine where freight responsibility transfers and which party handles customs or insurance. The buyer should understand those commercial terms before building the landed-cost estimate.

A financing provider is not the customs broker. Its job is to finance an agreed transaction. If the buyer assumes freight is included when the contract makes it responsible from the seller's dock, the cash requirement can change materially after approval.

Keep a buffer for costs that are not final when the application starts

Cross-border freight can move with fuel, distance and equipment dimensions. Brokerage and duty treatment can depend on the asset and origin. Currency can move as well. A buyer should avoid building a transaction that only works if every estimate lands at its lowest number.

A modest project contingency or available cash reserve gives the business room to close even when one landed-cost item changes. That is a capital-planning decision, not a promise that the lender will finance the overrun.

Frequently asked questions

Can freight always be financed with the equipment?

No. Some structures may include freight, while others require the buyer to pay it separately.

Can customs brokerage be included?

Possibly, depending on the lender and structure. Itemize it in the landed-cost budget.

What about sales tax?

Tax treatment varies by financing structure and province. The buyer should confirm the cash timing with the lender and its accountant.

Should I apply using the foreign-currency price?

Provide the original invoice currency and a Canadian-dollar budget so the exchange-rate exposure is visible.