Equipment leasing in Canada

How the structure works

The lessor retains ownership during the lease; return and purchase options depend on the agreement.

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

• Compare end-of-lease obligations and total payments.
• Usage, maintenance and early-termination conditions matter.

Questions to ask before accepting

• Is there a purchase option and at what price?
• Who pays for maintenance, insurance and damage?

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
• Lease proposal 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