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Equipment Loans in Ontario

Equipment loans in Ontario and throughout Canada allow for the financing of the equipment a company needs for their day to day operations.  This allows the owner to receive control of the equipment, and quickly use it to generate revenue, which is then used pay for the equipment.

A significant benefit of Ontario equipment loans is that many times – and for all non-recourse financing – there is no additional collateral required.  The equipment being purchased serves as the collateral for the loan, which makes this financial vehicle perfect for small business owners who have been denied a business loan from another lender.  In addition, equipment loans tend to be much faster than other asset-based loans, allowing companies to move quickly on getting the material they need to operate.

Equipment Leasing Canada

Our Ontario equipment leasing agents offer solutions for enhancing a company’s liquidity, helping to manage cash flow, and optimizing balance sheets.  We offer a variety of leasing options including True Lease or Fair Market Value (FMV) Leases, Early Buy-Out Leases, Terminal Rental Adjustment Clause (TRAC) Leases, and Rebate Leases.

While not right for every business, equipment leasing in all of Canada can have a number of benefits over purchasing equipment directly.  True leases finance 100% of the equipment, meaning there is no down payment needed.  Leasing also uses the equipment itself as collateral for the financing, thereby eliminating further risk to the business owner by putting additional personal or business assets on the line.  Finally, leasing significantly decreases a company’s risk exposure, removing concerns about non-functioning equipment or being stuck with obsolete equipment that is difficult to sell.

Equipment Sale-Leasebacks in Canada

A sale with leaseback allows companies not just in Ontario but all of Canada that need to receive funding quickly to do so while removing the need to store and maintain costly equipment.  Under these agreements the equipment – usually vehicles, heavy machinery, and manufacturing tools are used as assets to receive financing in days.

Financing through an equipment sale-leaseback comes quicker than searching for a buyer to purchase equipment outright.  While the company sells the title to the equipment and receives immediate cash from the sale, the business retains the full right to continue using the equipment through an ongoing rental agreement.  This approach combines all the advantages of funding speed with longer terms, low payment options, and lower rates.

Equipment Refinancing in Canada & The USA

Refinancing equipment that is currently owned can provide lower rates or better terms. In addition, refinancing equipment can also improve cash flow and finance other projects or purchases. Loans are calculated based on the value and condition of the equipment and are typically 12 months in length. The company still owns the equipment; however, it is used as collateral only if the account goes into default.  As a result, they can continue to use it as they normally would in the course of their business, while receiving a more generous repayment plan.

Ontario and USA Hard Money Equipment Loans

A hard money loan is a shorter loan, typically between a few months and a few years in length, and is secured by real property such as equipment or machinery. Hard money loans are most effectively used to provide temporary funding to help with a financial situation or while a business is waiting for long-term financing to be approved.

Often hard money loans can be acquired even if money is still owed on the property or equipment. Funding is usually for up to 75% of the value of the owned property and can be used for most business operations, including the purchase of new equipment, employee wages, inventory, and construction projects. Payment for hard money loans is often only the interest on the loan, with the final balance due at the end of the term typically in the form of a balloon payment.  For any Canada equipment loan or leasing needs you may have, our team is standing by.

Understand your options.

The starting place is to become informed. Once you understand your options, available rates, and timelines you can make good decisions.  Our Ontario business loan specialists are here for you – reach out today!