Can I finance part of the purchase using equipment I'm buying as part of the deal?

Yes. Equipment being acquired as part of a business purchase can itself serve as collateral for financing that specific portion of the price, working in a similar way to ordinary equipment financing outside an acquisition context. A lender asked to finance this way will typically want to register a security interest under Ontario's Personal Property Security Act directly against that equipment, and will usually want some confirmation, sometimes through an independent appraisal, that its value genuinely supports the amount being financed.

Before relying on this approach, a lender will also generally want to confirm there are no existing registrations against that equipment from the seller's own lenders that could take priority, since those need to be discharged as part of closing before the buyer's new lender can be confident in its own position. Coordinating this kind of equipment-specific financing with the overall closing process, including confirming discharges of the seller's existing security, is worth working through with both the lender and a lawyer well before the closing date itself.