As the need for new equipment rises along with the growth of Canada’s small and medium enterprises, equipment leasing companies have become popular sources for new equipment. It’s important for new or cash-low business owners to choose their equipment leasing company wisely.
What are equipment leasing companies?
Equipment leasing companies are entities, corporations, or organizations that offer equipment leasing to a wide market of clients.
They usually buy equipment from sellers and, in turn, lease this equipment to businesses. They may also provide other services such as financing and other equipment-related maintenance.
Some of these equipment leasing companies focus only on equipment leases, while others also provide other types of loans or leases for their customers.
Advantages of equipment leasing
Leasing equipment is an alternative to buying equipment. Equipment leasing companies are also an alternative to traditional lending or financing methods, such as bank loans.
If you’re a small or a medium enterprise that seeks to establish or expand your business, equipment leasing may be a good choice for you.
Updated equipment
In contrast to buying or purchasing equipment, you won’t have to worry about your leased equipment becoming obsolete.
New versions of equipment are regularly released. You can choose to lease equipment instead of buying them to lessen your costs and update your equipment.
For example, if there’s new equipment on the market, your equipment leasing company can replace or upgrade your current equipment with a new lease contract.
Manageable payments
Payments in an equipment lease are relatively lower, since it will be spread over a period of months (or per quarter). This is highly advantageous if you’re a small business owner who does not have ready access to cash or capital. This makes it possible for you to acquire expensive but much-needed equipment, since payments will come from your monthly income.
Depending on the equipment leasing company that you’re partnering with, the interest rates and capital payments are usually fixed for the term of the lease. This will help you manage your monthly payments and budget your business’s earnings accordingly.
Conserve capital
Another effect of the equipment lease’s payment structure is that you will be able to conserve capital or cash for other expenses. This will also prevent you from taking too many loans to finance your business’s other needs.
What are the largest equipment leasing companies in Canada?
Below are some of the largest and leading equipment finance companies in Canada, ranked in no specific order:
CWB National Leasing
One of the leading equipment leasing companies, CWB National Leasing has been operating since 1977. Its main office is in Winnipeg, Manitoba but serves several clients across the country.
Applications for equipment leasing may be done online or through their representatives.
CWB partners with equipment dealers to serve as a connection between sellers and those who want to lease equipment. It also offers a Vehicle Protection Plan for the equipment you want to lease from them. Among the industries it serves are:
- Agriculture
- Construction and transportation
- Golf and landscaping
- Industrial and material handling
- Medical
- Office and telecommunications
Commercial Funding Group Inc.
Established in 1981, Commercial Funding Group Inc. is in Richmond Hill, Ontario. You may send applications for pre-approvals through phone or via email.
Aside from offering asset-based loans, working capital loans, and short-term loans, it also serves numerous industries as an equipment leasing company, such as:
- Construction
- Transportation
- Medical or dental
- Manufacturing
- Technology and Internet of Things (IoT)
- Hospitality financing
Thomcat Leasing
Thomcat Leasing is an equipment leasing company located in Victoria, British Columbia. Watch this video below to know more about the company:
For a broader view on equipment leasing, read our guide on the legal concepts to know in equipment finance.
FCL Financial Services Inc.
First Choice Leasing or FCL is in Edmonton, Alberta. Other than equipment leasing, it also engages in pre-approvals, line of credits, engine repairs, auctions, and lease-to-own options, among others. The following are the industries it provides equipment leasing for:
- Agriculture
- Construction
- Industrial or manufacturing
- Mining
- Oil and gas
- Transportation
- Waste management
Go Lease It Inc.
Go Lease It Inc. operates out of Kelowna, British Columbia. Aside from equipment leasing, it also provides other services, such as auction sales, rental conversions, and engine repair. As for equipment leasing, it mainly leases semi-trucks, trailers, heavy equipment, commercial equipment, machinery, and farm tractors to the following industries:
- Construction
- Farming
- Forestry
- Oil and gas
- Trucking
LeaseDirect Canada
Founded in 2005 and based in Calgary, Alberta, LeaseDirect Canada specializes as an equipment leasing company for commercial equipment and vehicle leasing. Its options include used and new equipment and vehicles, such as:
- Pickup truck
- Utility van
- Heavy truck
- Commercial trailer
- Arborist equipment
- Skid steer
- Specialty vehicle
- Excavator
- Forestry equipment
Equipment Finance Canada
Located in Langley, British Columbia, EFC offers numerous services aside from equipment leasing, such as the buying and selling of used equipment. It offers other forms of leases such as skip payment lease, step payment lease, and master lease, among others. The industries that it serves include:
- Agriculture
- Aviation and marine
- Construction
- Hospitality
- Industrial
- Medical
- Office and technology
- Transportation
Priority Leasing
Another equipment leasing company headquartered in Calgary, Alberta, Priority Leasing focuses on equipment leases. Applications can fall under Corporate Application or for Sole Proprietor Application. Although it may also provide unusual equipment needs, the company grants leases on a wide range of equipment, such as:
- Agricultural
- Construction
- Forestry
- Hotel and restaurant
- Industrial printing
- Materials handling
- Medical, dental, and health care
- Mining and petroleum
- Office furniture and fixtures
- Storage solutions
- Telecommunication and broadcasting
TPine Leasing Capital Corp.
Located in Mississauga, Ontario, TPine was established in 2012. It specializes as an equipment leasing company for the trucking industry, but also serves other industries such as:
- Construction equipment
- Hospitality business
- Office furnishing and equipment
First Capital Leasing
First Capital Leasing is based in Calgary, Alberta and was founded in 1994. Aside from equipment and vehicle leasing, the company also offers private sales, auction financing, equipment loans, and sales-leaseback. It offers equipment for a wide range of industries, such as:
- Transportation or automotive
- Fabrication and machines
- Construction
- Office furniture
- Technology and telecommunications
- Materials handling
- Fitness
- Surveying equipment
- Hospitality
- Healthcare, medical or dentistry
- Software
- Beauty and aesthetic
- Forestry or agricultural
Know more about industrial equipment finance and how does it work in this article.
In dealing with these equipment leasing companies, take counsel from the Lexpert-Ranked best Canadian lawyers for asset equipment finance/leasing.