What equipment financing covers
Equipment financing can fund almost any business asset: delivery vehicles, construction machinery, restaurant kitchens, medical devices, manufacturing lines, and computer systems — new or used.
Equipment loan vs. equipment lease
With a loan, you own the equipment and build equity as you pay. With a lease, you make lower payments to use the equipment and may buy it, return it, or upgrade at the end. Leases suit technology that becomes outdated quickly; loans suit durable assets you will use for years.
How to qualify
- A quote or invoice from the equipment vendor
- Recent business bank statements showing steady revenue
- Details on the equipment's age and expected useful life
- A down payment for some requests, though many approvals need little or none
Tax considerations in Canada
Eligible equipment can usually be depreciated through Capital Cost Allowance, and interest on the financing is generally a deductible business expense. Always confirm treatment with your accountant.
Frequently asked questions
Can I finance used equipment?
Yes. Many lenders finance used equipment, though terms may be shorter depending on the asset's age and condition.