Equipment Leasing in Canada
Flexible leasing options designed to match your business's cash flow cycle, allowing for customized terms that meet your unique financial requirements and help you manage your business expenses more efficiently.
See eligible equipment
Lease from $10,000
Rates as low as 4.99%
Terms up to 84 months
Funds within 48 hours
What is equipment leasing?
Think of equipment leasing as a specialized rental agreement. In this arrangement, the equipment remains the property of the leasing company, while your business benefits from using it in exchange for regular lease payments.
This approach differs from traditional loans in that the leased equipment does not appear as an asset on your company’s balance sheet. Moreover, the lease payments you make are considered deductible business expenses, offering potential tax benefits as they can be claimed on your income statement.
Why equipment leasing?
Equipment leasing offers a financially savvy alternative to purchasing, bypassing the need for substantial initial investment. This option holds considerable appeal for businesses in search of an effective strategy to access necessary equipment. Leasing allows for the use of cutting-edge equipment without the full cost weighing on your budget upfront, distributing payments across the period of use.
This distribution of costs frees up capital, enabling investment in other essential business areas. The inherent flexibility of leasing agreements, tailored to match your business’s cash flow, is a significant benefit. It provides the opportunity to manage expenses more efficiently, thereby boosting financial agility and operational effectiveness.
Equipment Leasing Benefits
Tax Benefits
Deduct the full amount of your lease payments as a business expense on your tax filings. This allows you to lower your taxable income by the total of all lease payments made for the equipment during the fiscal year, providing a notable financial advantage when managing your business's taxes.
Stay Ahead Of The Competition
Leasing empowers your business to stay at the forefront of industry advancements, enabling access to the latest and most efficient equipment with ease. Remain competitive and capable of meeting rising demands, all without the financial burden of purchasing new tools outright.
Preserve Working Capital
Applying for an equipment lease, especially for purchases under $200,000, is quick and straightforward. The process usually takes about 48 hours, depending on the type and value of the equipment and your business's credit standing.
Unlock Cost-Efficient Growth With Leasing
Paul, a forward-thinking business owner from Ontario, took a decisive step to advance his farm operations by leasing new equipment valued at $117,000, benefiting from a very competitive rate of 4.9%.
This not only equipped his business with the essential tools required for success but also secured a substantial fiscal advantage.
Over the next five years, his business will enjoy an annual tax write-off of approximately $23,400, significantly reducing the overall cost of his investment and improving his financial management.
- Apply for Lease: Start by submitting a lease application with us.
- Acquire Equipment: Once approved, use the lease agreement to get the equipment your business requires.
- Monthly Lease Payments: Make regular, fixed lease payments over the agreed period.
- End-of-Lease Options: At the end of the lease term, you may have options such as extending the lease, upgrading the equipment, or returning it based on your agreement. Apply Now
How Equipment Leasing Works
Equipment Leasing FAQ
How does leveraging the full value of equipment benefit my business before I pay the full price?
By leasing, you can use the equipment immediately and start generating income for your business. This income often surpasses the lease payment, improving your cash flow even before you’ve paid off the equipment.
Who can apply for equipment leasing?
All registered businesses in Canada, from small to medium enterprises, are welcome to apply. While eligibility criteria may differ among lenders, we’re here to help find the perfect match for your unique needs. Get started today, and we’ll connect you with the ideal lender to support your business goals.
How long does it take to get approved?
Approval times can vary, but we aim to get your application processed within 48 hours. Many of our lenders offer quick decision-making processes, sometimes within a few business days.
Can I avoid expensive upfront costs when acquiring new equipment?
Yes, with our leasing options, there’s no need for a costly upfront purchase. You can maintain your business’s cash reserves and instead manage affordable monthly payments over a 2 to 5-year term.
Can I lease used equipment?
Yes, our lenders offer leasing options for both new and used equipment. Whether you’re looking to acquire the latest technology or find cost-effective alternatives with pre-owned machinery, we have leasing options designed to support your specific operational requirements and financial constraints.
Does an equipment lease add to my business's debt load?
No, in most cases, the amount of your lease isn’t counted in your total debt load for credit score calculations. This means your lease won’t impact future loan possibilities or reduce your debt ceiling.
What are the tax benefits of equipment leasing?
Lease payments are considered a business expense and can be written off on your income taxes. Plus, you can spread out the sales tax over the lease term, allowing for ongoing tax advantages.
How flexible are the leasing terms with CBL Financial?
Our leasing terms are highly flexible and tailored to your unique business needs. Whether it’s flexible payment terms for seasonal businesses, options to skip payments, or consistently low monthly payments, we customize the lease to fit your situation.
Are the terms and payments of the lease transparent and straightforward?
Absolutely. Our leases are clear and transparent, with no hidden fees or surprises. We offer clear-cut terms and straightforward payment structures, guaranteeing that you are thoroughly informed and comfortable with the obligations you undertake. This approach ensures you can commit with confidence, knowing exactly what to expect without any unwelcome surprises.
How do I start the application process for equipment leasing?
You can start by contacting us directly through our online application portal or by phone. If you have any questions, reach out via our contact form. Our team will guide you through the application process.
