Estimate Your Equipment Financing
2 minutes. The equipment is your collateral.
Bad Credit
Having bad credit (typically below 580) limits your options but doesn't eliminate them. Alternative lenders specialize in higher-risk profiles, though rates will be significantly higher. Focus on the Highest Approval strategy, consider smaller loan amounts, and look into secured options if available.
What This Means for You
Bad credit in Canada — generally defined as a score below 580 — creates real challenges, but the lending market has evolved to serve this segment responsibly. Understanding your options prevents two common mistakes: assuming you can't borrow at all, or falling for predatory offers. The key distinction is between "bad credit" lenders and "subprime" or alternative lenders. Legitimate alternative lenders are licensed, regulated, and transparent about costs. They've built sophisticated risk models that go beyond credit scores to evaluate employment stability, income consistency, and banking behaviour. Companies like Fairstone, easyfinancial, and Spring Financial serve this market with regulated products. Your biggest advantage as a bad-credit borrower is collateral. If you own a home, car, or other assets, secured lending dramatically changes your options — a homeowner with a 520 credit score can often access rates under 15% through a home equity product, compared to 35%+ for unsecured borrowing at the same credit level. Income stability is your second-biggest lever. Lenders at this tier weight employment history and income consistency heavily. Two years of stable full-time employment or self-employment income can offset a low credit score significantly.
Your Action Plan
- 1Review your credit report for errors — dispute any inaccuracies with Equifax and TransUnion (this is free and can improve your score)
- 2Calculate your debt-to-income ratio — if it's above 40%, focus on paying down existing debt before taking on more
- 3Determine if you have collateral available — home, vehicle, RRSP, or GIC — secured lending dramatically improves your options
- 4Research legitimate alternative lenders through LoanIQ — avoid any lender who doesn't clearly disclose rates and fees upfront
- 5If you're a homeowner, explore home equity lending first — even with bad credit, secured options offer much better rates
- 6Consider a debt consolidation approach — one lower-rate loan to pay off multiple high-interest debts can improve both your finances and credit score
- 7Start building credit immediately with a secured credit card (available with any credit score) to improve your future options
- 8Contact a non-profit credit counselling agency — they can help you create a credit improvement plan at no cost
Common Questions — Bad Credit
From construction equipment to medical devices, restaurant gear to manufacturing machinery, LoanIQ helps you estimate your equipment financing options. Because the equipment itself serves as collateral, approval odds are typically higher and rates lower than unsecured business loans — even for newer businesses.
How It Works
Describe your equipment needs
Type of equipment, new or used, and estimated cost.
Share your business profile
Time in business, revenue, and credit range. Under 2 minutes.
Review your estimate
Estimated approval odds, rate band, monthly payment, and lease vs. buy comparison.
Connect with equipment lenders
Apply to lenders who specialize in your equipment type.
Equipment Financing Approval Factors
Equipment type and condition affect loan-to-value ratios and available terms
Time in business matters — 1+ year is ideal, but some lenders finance startups
Business revenue demonstrates your ability to service the loan payments
Personal credit score of the business owner is still considered
Down payment or trade-in reduces risk and can improve your rate
Estimated Rate Bands
| Credit Tier | Estimated Rate Range | Approval Likelihood |
|---|---|---|
| Established (3+ years, 700+ credit) | 6.99% – 12.99% | Very High |
| Growing (2+ years, 650+ credit) | 9.99% – 18.99% | High |
| Early Stage (1-2 years, 600+ credit) | 14.99% – 24.99% | Moderate |
| Startup (Under 1 year) | 18.99% – 29.99% | Moderate-Low |
* Rates are estimates based on typical lender criteria. Your actual rate may vary. These are not offers.
Getting the Best Equipment Financing Terms
New equipment often qualifies for better rates and longer terms than used — manufacturer financing programs can be very competitive.
A down payment of 10-20% significantly improves your rate and approval odds. Trade-ins count as down payment value.
Consider leasing vs. buying: leasing preserves capital and may offer tax advantages, while purchasing builds equity in the asset.
Frequently Asked Questions
Why Trust LoanIQ
Equipment serves as its own collateral
New and used equipment financing
Competitive rates from 6.99%
No credit check for estimates
Plan With Our Free Calculators
Estimate payments, compare options, check affordability
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Estimate Your Equipment Financing
2 minutes. The equipment is your collateral.