What are my chances of getting an equipment loan in Canada?

What drives approval

• Equipment as collateral — significantly lowers lender risk vs. unsecured loans
• Time in business — 2+ years gets bank financing; 6 months–2 years qualifies for online lenders
• Personal credit (owner) — 650+ for prime, 600+ for alternative
• Revenue trend — stable or growing beats declining
• Industry — construction, transportation, manufacturing, healthcare have highest approval

Approval rates by lender type

Government-backed option — CSBFP

The Canada Small Business Financing Program backs equipment loans up to $1,000,000 with 85% government guarantee, at Prime + 3% maximum. Banks approve ~90% of CSBFP-eligible applications.

Improve your odds

• Provide 6+ months of business bank statements
• Have 10%–20% down payment ready (improves rate too)
• Choose new equipment over used (lower lender risk)
• Include your personal guarantee (often required under $250K)
• Apply through a broker who knows which lenders match your industry