Equipment Financing Companies in Canada: How Banks, Independents and Brokers Compare
Compare the six types of equipment financing companies in Canada and learn which lender structure fits your business.
Equipment financing companies are the lenders, lessors and intermediaries that help Canadian businesses acquire equipment without paying the full cost up front. They include chartered banks, a federal Crown corporation, manufacturer-linked captive lenders, private independent finance companies, credit unions, and brokers that place files across multiple lenders. The type of company you work with shapes the rates, approval criteria and structures you can access, so knowing the differences matters before you start comparing offers.
Key takeaways
- Chartered banks hold 70.3% of business lending volume in Canada but approve a narrower band of files than alternative lenders, and most require two or more years of operating history
- About 35% of all spending on equipment and commercial vehicles in Canada is financed through a lease or loan, according to the CFLA’s 2026 Annual Report
- BDC, independent lenders and brokers each exist because banks decline files that still represent sound lending: newer businesses, used equipment from private sellers, industries with cyclical revenue
- A finance broker submits one application to multiple lenders and brings back competing offers, which means competing quotes without running separate applications
| Item | Detail |
|---|---|
| Chartered banks’ share of business lending | 70.3%, as of H2 2024 |
| Equipment and vehicle spending financed | 35% of total, 2025 |
| Average interest rate on business debt | 5.8%, 2025 |
| BDC equipment loan term | Up to 12 years |
| CSBFP equipment loan limit | Up to $500,000 |
| Bank of Canada policy rate | 2.50%, as of October 2026 |
Chartered banks
The Big Five (RBC, TD, BMO, Scotiabank and CIBC) and other domestic chartered banks account for 70.3% of new business lending in Canada, as of the second half of 2024. For equipment, they offer term loans and leases at rates that tend to be lower than other lender types for qualified borrowers.
The qualification bar is higher than other lender types. Banks typically want two or more years of operating history, strong personal and business credit, full financial statements, and the equipment as collateral. Most bank equipment loans run two to seven years. If you meet the criteria, start here. If the bank says no, the same file may work with another type of lender.
Banks also deliver loans through the Canada Small Business Financing Program (CSBFP), which is government-backed and carries a different risk profile for the lender. CSBFP loans for equipment go up to $500,000, with a registration fee of 2% and an annual administration fee of 1.25%. Interest is capped at prime plus 3%. Your business needs gross annual revenue under $10,000,000 to qualify.
Business Development Bank of Canada (BDC)
BDC is a federal Crown corporation that lends exclusively to Canadian businesses. It sits between chartered banks and private lenders in terms of pricing and risk tolerance. BDC’s equipment loan covers up to 125% of the purchase price of new or used equipment, with the extra covering shipping, installation and training. Repayment terms run up to 12 years, and borrowers can defer principal payments for up to 24 months at the start of the loan.
BDC rates are higher than what the Big Five charge for the same credit profile. The trade-off is flexibility: longer amortization, a higher loan-to-value ratio, and willingness to work with businesses that sit outside a chartered bank’s approval window. BDC does not publish a rate schedule; pricing is set per file.
Captive and dealer lenders
Captive lenders are financing arms tied to equipment manufacturers or dealer networks. Cat Financial, John Deere Financial, PACCAR Financial and Volvo Financial Services are common examples in Canada. They finance the equipment their parent company sells.
The advantage is convenience and sometimes promotional rates on new equipment. The limitation is that they only finance their own brand or dealer inventory. You cannot use Cat Financial to finance a Komatsu excavator, and you cannot use a captive lender to finance a used unit from a private seller. If you are buying new, brand-specific equipment from a dealer, the captive offer is worth comparing against independent quotes. For anything else, you need a different lender type.
Independent finance companies
Independent finance companies are private lenders that are not banks, not Crown corporations, and not tied to an equipment manufacturer. They account for roughly 7.1% of new business lending volume in Canada, as of the second half of 2024.
Independents typically approve a wider range of credit profiles than banks. They move faster, and many will structure deals on used equipment, private sales, auction purchases, or assets that banks find harder to underwrite. Rates are higher than bank rates for a comparable credit profile, but for businesses that cannot access bank financing because of time in business, credit history, or the nature of the equipment, an independent lender may be the only realistic path to funding. For more on how credit history affects your options, see our guide to equipment financing with bad credit.
Credit unions and caisses populaires
Credit unions handle roughly 5.1% of new business lending. They are member-owned cooperatives and their equipment loan products often mirror what chartered banks offer, sometimes with more relationship flexibility for long-standing members.
In Quebec, Desjardins operates at a scale comparable to the Big Five for business lending. Outside Quebec, credit union capacity for equipment financing varies by province and by the size of the institution. Smaller credit unions may not have a dedicated commercial lending desk, which can limit the size and complexity of the deals they handle.
Finance brokers
A finance broker is not a lender. Brokers prepare your file and submit it to multiple lenders, then bring back the offers for you to compare. The broker’s value is access to lenders you might not approach directly, and the ability to match your file to the lender most likely to approve it at the best available terms.
Brokers are particularly useful when you are not sure which lender type fits your situation, when your file is not a straightforward bank deal, or when you want competing offers without filling out separate applications at each institution. For a walkthrough of what lenders ask for during the process, see our guide to equipment financing requirements.
| Lender type | Typical rates | Approval speed | Used / private-sale equipment | Best for |
|---|---|---|---|---|
| Chartered banks | Lowest (for qualified files) | Slower (days to weeks) | Limited | Established businesses with strong credit |
| BDC | Mid-range | Moderate | Yes (new and used) | Businesses that need longer terms or higher LTV |
| Captive / dealer | Competitive on own brand | Fast (at the dealership) | Own brand only | New equipment from a specific manufacturer |
| Independent lenders | Higher | Fast (often same day) | Yes, including auction and private | Newer businesses, challenged credit, niche equipment |
| Credit unions | Similar to banks | Varies | Varies | Members with an existing relationship |
| Brokers | Depends on the lender placed | Fast (one application) | Yes, across lenders | Businesses that want to compare multiple offers |
Pro tip: When you get a quote from a captive or dealer lender, do not sign on the spot. Take the offer to a broker or independent lender and ask them to match or beat it. The dealer rate is sometimes subsidized by the manufacturer, in which case it wins. Other times, an independent or bank offer is lower because the dealer’s financing arm built a margin into the rate. You will not know which situation you are in unless you compare. For a deeper look at how rates are set, see our guide to equipment loan rates in Canada.
How CBL Financial can help
CBL Financial is an equipment financing broker. We prepare one application and send it to the lenders best matched to your file, whether that is a bank, an independent, or a combination. Funding goes up to $1,000,000, with terms from 24 to 72 months, and we work with new equipment, used equipment, and private sales across Canada. To compare your options, apply online or try the equipment financing calculator.
Frequently asked questions
What is the difference between a lender and a broker?
A lender provides the capital directly. A broker prepares your file and submits it to multiple lenders on your behalf. The advantage of a broker is that one application reaches several lenders, so you can compare offers on rate, term and structure without approaching each institution separately. CBL Financial operates as a broker.
Can I get equipment financing with less than two years in business?
Yes, but your options narrow. Most chartered banks want two or more years of operating history. BDC, independent lenders and brokers that work with those lenders can often place files for newer businesses, particularly when the equipment itself is the primary collateral. See our startup equipment financing guide for more detail.
Are BDC rates higher than bank rates?
Generally, yes. BDC does not publish a rate card, but its pricing tends to run higher than what the Big Five chartered banks offer for the same credit profile. The trade-off is flexibility: BDC finances up to 125% of equipment cost, offers terms up to 12 years, and works with businesses that banks may decline.
Do I have to use the dealer’s financing when I buy from a dealer?
No. Dealer financing through a captive lender is one option, but you are not required to accept it. You can bring your own financing from a bank, independent lender or broker. Comparing the dealer’s offer against at least one outside quote is a practical way to confirm you are getting competitive terms.
What percentage of equipment purchases in Canada are financed?
About 35% of all spending on equipment and commercial vehicles in Canada goes through some form of lease or loan, according to the CFLA’s 2026 Annual Report. The rest is purchased outright, often by larger companies with the cash reserves to do so.
Does it cost anything to apply through a broker?
It depends on the broker. CBL Financial does not charge an application fee. Funding up to $1,000,000 is available, with terms from 24 to 72 months and approvals that can come the same day. You compare offers and choose whether to proceed.
General information, not financial advice.
