LoanIQCanada's AI Loan Advisor
    Equipment Financing

    Equipment Loans in Canada — Finance What You Need to Grow

    Last updated: April 17, 2026Fact-checked: April 25, 2026

    Estimate your equipment financing approval odds and rates in under 2 minutes. The equipment is your collateral.

    Equipment financing in Canada offers rates from 5.99% to 18.99% with terms typically matched to the equipment's useful life (3 to 7 years). Because the equipment itself serves as collateral, approval is more accessible than unsecured business lending — even startups can qualify with a 10–20% down payment. The Canada Small Business Financing Program (CSBFP) backs equipment loans up to $1 million at prime + 3% maximum. LoanIQ's free AI Equipment Financing Advisor estimates your approval odds in under 2 minutes.

    Quick Answer

    Equipment financing in Canada offers 5.99%–18.99% APR with terms matched to the asset's useful life (3–7 years). Because equipment serves as collateral, even startups can qualify with a 10–20% down payment. The CSBFP backs equipment loans up to $1M at prime + 3% maximum. LoanIQ's AI Advisor estimates approval odds in under 2 minutes — no credit check.

    Key Numbers

    5.99%–18.99%

    Rate range

    36–84 mo

    Term range

    10–20%

    Typical down payment

    $1M

    CSBFP cap

    1+ year

    Preferred time in business

    New & used

    Equipment types

    $0

    Cost to estimate

    0

    Credit checks

    Estimate Your Equipment Financing

    2 minutes. The equipment is your collateral.

    FreeNo Credit Check50+ LendersAI-Powered

    50+ Canadian lenders analyzed · Licensed & regulated only

    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

    1

    Describe your equipment needs

    Type of equipment, new or used, and estimated cost.

    2

    Share your business profile

    Time in business, revenue, and credit range. Under 2 minutes.

    3

    Review your estimate

    Estimated approval odds, rate band, monthly payment, and lease vs. buy comparison.

    4

    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 TierEstimated Rate RangeApproval 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. Canada's 35% APR Criminal Code cap (in force January 1, 2025) applies to consumer credit agreements; loans to incorporated businesses are commercial agreements and may exceed this rate. Your actual rate may vary. These are not offers.

    Equipment Financing Channels Compared

    Bank loan, lease, vendor finance, and CSBFP — picking the right structure for your asset.

    Lender CategoryRate RangeMax AmountFunding SpeedCredit Score
    CSBFP-Backed Equipment Loan (via banks/credit unions)Prime + 3% max$1,000,0003–6 weeksBank-qualified, 1+ yr trading
    Bank / BDC Equipment Loan6.50% – 11.50%$500,000+2–4 weeks650+, 2+ yrs in business
    Specialty Equipment Lessors (CWB Maxium, Travelers Capital)8.99% – 14.99%$300,0005–10 business days600+, 1+ yr operating
    Vendor / OEM Finance Programs5.99% – 12.99%Equipment list priceSame weekVaries by program

    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.

    AI-Powered

    AI Equipment Financing Advisor for Canadians

    LoanIQ's AI advisor analyzes your financial profile against Canadian lenders to provide:

    • Instant approval probability for any equipment type
    • Loan vs. lease comparison with cash-flow impact
    • CSBFP eligibility check
    • Matched to lenders specializing in your industry

    Free. No credit check. Results in 2 minutes.

    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

    By Situation

    600 Credit Score
    Bad Credit
    No Credit History
    Self-Employed

    Plan With Our Free Calculators

    Estimate payments, compare options, check affordability

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    Sources & References

    1. 1
      ised-isde.canada.caCanada Small Business Financing Program — equipment loan terms
    2. 2
      bdc.caBDC equipment financing — rates and terms
    3. 3
      cfla-acfl.caCFLA Asset-Based Finance — Q4 2025 industry data
    4. 4
      www150.statcan.gc.caCapital expenditures, non-residential — Q4 2025 (Table 36-10-0096-01)
    5. 5
      bankofcanada.caBank of Canada policy interest rate — current 2.25%

    Estimate Your Equipment Financing

    2 minutes. The equipment is your collateral.