How to qualify for equipment financing in Canada
Equipment financing uses the equipment itself as collateral, which makes it one of the most accessible financing categories for Canadian SMBs. Underwriting weighs the asset's value, the business's cash flow, and the owner's credit profile.
Start an applicationDocuments typically required: Vendor quote or invoice (with serial/VIN); 3–6 months of business bank statements; Business registration / articles; Owner ID and basic personal info.
Can I finance used equipment? Yes. Used equipment is widely financed, though pricing and term length adjust for age, condition, and resale liquidity.
Is a down payment required? Not always. New equipment for established businesses often funds at 100%. Used or specialized assets may require 10–25% down.
Typical eligibility requirements
- 6+ months in business (12+ for the most competitive pricing)
- Identifiable, sellable equipment (new or used)
- Documented quote or invoice from the vendor
- Reasonable owner credit (typically 600+)
- Down payment may be required for used/specialized assets