Equipment financing in Canada

How the structure works

An equipment loan supports ownership; the equipment may secure repayment.

The label does not establish the amount, rate, security, personal guarantee, fees or decision time available to a particular business. Obtain the actual agreement and disclosure from the applicable provider.

Tradeoffs to consider

• Useful life, maintenance and resale value matter.
• Installation and operating costs may require separate funding.

Questions to ask before accepting

• What down payment, security and guarantees are required?
• Does the repayment period match the useful life?

Documents to prepare for a provider discussion

• Business financial statements and cash-flow forecast
• Recent business bank statements
• Business identity and ownership information
• Details of existing obligations
• Supplier quote and equipment specifications

Compare the cash-flow commitment

Write down net proceeds, the complete payment schedule, upfront and ongoing fees, conditions for changes, and the cost of early repayment. Test whether the business can meet the obligation when receipts are delayed.

Sources and editorial scope

• BDC: equipment financing

  Verified 2026-09-30 · CA · Primary source

Sources support product mechanics. CBL’s tradeoffs and preparation questions are educational synthesis; they do not represent any provider’s underwriting policy. Editorial policy