Equipment Refinancing in Canada

By leveraging the equity in your existing equipment, you can secure better loan terms, reduce monthly payments, or access additional working capital.

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What is equipment refinancing?

Equipment refinancing involves replacing your current equipment loan with a new one, often with more favourable terms. This process uses the equipment you already own as collateral, potentially unlocking lower interest rates and better loan conditions. It’s an excellent strategy for businesses looking to improve cash flow, invest in growth, or adjust to changing financial circumstances.

What is the process for refinancing equipment?

Assessment of Current Equipment Value: We start by evaluating the current market value of your equipment to determine how much capital you can access.
Review of Financial Standing: Our team reviews your business’s financial health, including credit history and current loan terms, to identify refinancing opportunities.
Application Submission: We guide you through the application process, ensuring all necessary documentation is complete and accurate.
Loan Matching and Approval: Leveraging our network of lenders, we find the best refinancing options for your situation and assist in securing approval.
Closing the Deal: Once approved, we finalize the new loan terms, ensuring they align with your business goals.

What are the benefits of equipment refinancing?

Improved Cash Flow: Lower monthly payments can free up cash for other operational needs.
Access to Additional Capital: Refinancing can provide extra funds for business expansion or other investments.
Better Loan Terms: Take advantage of lower interest rates and more favorable repayment terms.
Financial Flexibility: Adapt more easily to changes in your business or market conditions.

How to Get Started

Contact Us: Reach out to our team for an initial consultation.
Provide Equipment Details: Share information about the equipment you wish to refinance.
Financial Documentation: Prepare your financial statements and current loan details for review.
Application Process: We’ll guide you through each step, from application to approval.

Equipment Refinancing Benefits

Lower Interest Rates

One of the most significant benefits of refinancing is the potential to secure a lower interest rate. This can lead to substantial savings over the life of the loan. Lower interest rates mean reduced monthly payments, freeing up cash that can be reinvested into the business, used to pay down debt faster, or allocated to other operational needs.

Improved Cash Flow

Refinancing can lead to better cash flow management. By extending the loan's term or lowering monthly payments, businesses can have more available cash on hand. This improved liquidity is crucial for day-to-day operations, helps in managing unexpected expenses, and provides more financial flexibility to invest in growth opportunities.

Access to Additional Capital

Refinancing can also provide access to additional funds. By tapping into the equity built up in your assets, you can secure extra capital without the need for a separate loan. This additional funding can be pivotal for businesses looking to expand, invest in new technology, increase working capital, or even consolidate other debts under more favorable terms.

Equipment Refinancing FAQ

What is equipment refinancing?
Equipment refinancing in Canada involves replacing your existing equipment loan with a new one, often under different terms. This process uses your current equipment as collateral.
How can my business benefit from equipment refinancing?
Benefits include potentially lower interest rates, improved cash flow through reduced monthly payments, and access to additional capital by tapping into the equity of your equipment.
What types of equipment can be refinanced?
Most types of business-related equipment can be refinanced, including machinery, vehicles, technology systems, and more. The key factor is that the equipment should have retained value.
What are the eligibility criteria for equipment refinancing in Canada?
Eligibility typically includes having a clear title to the equipment, a positive credit history, and the equipment’s value being sufficient to secure the loan.
How does the refinancing process work?
The process involves evaluating your current loan and equipment value, applying for a new loan, and using the proceeds to pay off the existing loan, with new terms set for the remaining balance.
Will refinancing affect my credit score?
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.
Can I refinance equipment that is already under a lease?
This depends on the terms of your lease and the policies of the refinancing lender. In some cases, buyout options at the end of a lease can be refinanced.
How long does the refinancing process take?
The timeline can vary depending on the lender and the complexity of your financial situation, but it generally takes a few weeks from application to approval.
Are there any risks associated with equipment refinancing?
As with any financial decision, there are risks, such as extending the life of your debt or potential penalties for early loan payoff. It’s important to carefully consider these factors.
How can I get started with equipment refinancing?
You can start by contacting us directly through our online contact form or by email. Our team will guide you through the application process.