Equipment leasing is one of the most effective financing solutions for Canadian businesses looking to scale without draining their capital reserves. From affordable restaurant appliances to heavy-duty machinery, leasing allows companies to access the equipment they need with lower upfront costs and greater cash flow control.
In this article, we explain the typical lease rates you can expect in Canada, what influences those rates, and how working with trusted partners can provide competitive pricing and flexible terms tailored to your business reality.
Equipment leasing allows businesses to use essential tools, vehicles, or machines without paying the full equipment cost upfront. Companies make structured monthly lease payments to a leasing company over a defined lease period, which can range anywhere from 24 to 60 months or more.
At the end of the term, lessees typically have options to:
This flexibility makes leasing an ideal alternative to equipment loans or outright purchase, especially during uncertain economic conditions or periods of growth.
At SPAR Leasing, we provide tailored equipment financing solutions that help Canadian businesses thrive—regardless of their size or industry. With over 30 years of experience, flexible lease structures, and fast credit approvals, we make it easier to access the equipment you need without compromising your cash flow.
Ready to grow your business? Let’s build a custom leasing plan
A good interest rate for equipment financing in Canada typically falls between 5% and 9%, depending on factors like your credit profile, the type and age of the equipment, and the lender’s risk assessment.
For well-qualified borrowers—especially businesses with strong financials and a solid track record—rates may dip below 5%, particularly through banks or government-backed programs. However, for startups or those with weaker credit, rates can exceed 10%, especially through alternative lenders.
In the Canadian market, equipment lease rates typically range between 6% and 16%, depending on multiple factors. While some providers advertise “flat rates,” it’s important to remember that the actual rate you’ll receive depends on a detailed calculation based on:
| Business Credit | Typical Rate Range |
| Excellent | 6% – 9% |
| Good | 9% – 12% |
| Fair/Challenged | 12% – 16%+ |
Keep in mind that these percentages refer to annualized lease interest rates, and the actual monthly payments may also include other fees or services (like maintenance or insurance). Some leases include a variable rate financing component that adjusts based on changing market interest rates, while others offer fixed monthly payments over the life of the lease.
For an accurate rate, it’s best to request a quote from a provider like SPAR Leasing, which offers customized rates based on your equipment needs and credit profile.
Speak with an equipment finance specialist and explore your options
Lenders typically assess your credit history, credit score, and overall financial statements to determine how much risk your business represents. If you’re a newer company or have bad credit, you may be offered higher lease interest rates or face rejections from traditional banks.
At SPAR Leasing, we work with a wide range of credit profiles, including businesses with limited credit history or past financial challenges. Thanks to our decades of experience and the fact that we underwrite leases in-house, we’re able to offer more flexibility in terms and approvals—even in cases where traditional financial institutions might say no. Our approach puts the focus on your business potential, not just your credit score.
Whether you’re leasing construction equipment, a restaurant oven, or specialized medical machinery, the equipment type influences lease cost. Equipment with a high resale value or slower depreciation rate tends to secure favourable lease terms, while expensive equipment with niche applications can come with higher lease interest rates.
Leasable Equipment at SPAR Leasing
New equipment leases usually offer lower rates, especially when the equipment condition reduces maintenance costs. Used or refurbished equipment can be cheaper upfront, but might increase the total cost of leasing due to servicing requirements and higher depreciation.
Whether you choose a lease-to-own deal or prefer an operating lease, your monthly payments will reflect the overall structure. Be sure to clarify any buyout clauses and understand the purchase price should you wish to own the piece of equipment at lease end.
5 key benefits of equipment leasing every business owner should know
For many Canadian businesses, deciding whether to lease or buy equipment is a major financial choice. Each approach comes with trade-offs, and your decision will affect your cash flow, taxes, and long-term asset management.
Leasing is often the preferred option for businesses that need to manage cash, avoid large upfront costs, or upgrade equipment regularly. You don’t own the asset, but you gain:
Plus, with SPAR Leasing, you benefit from custom lease structures, fast credit approvals, and flexible options designed around your business needs.
Buying equipment means owning the piece of equipment from day one. But it also means:
| Factor | Leasing | Buying |
| Ownership | No (unless lease-to-own) | Yes |
| Upfront Costs | Low | High |
| Depreciation | Handled by lessor | Tracked on your books |
| Flexibility | High – upgrade, return, renew | Low – asset becomes outdated |
| Tax Benefits | Lease payments are often deductible | Depreciation can be claimed |
Leasing equipment is a smart way for Canadian businesses to grow without tying up cash. But to get the most value, you need to plan your lease carefully. Here’s how to boost your return on investment (ROI) with a strong leasing strategy.
There are different types of leases. Some give you the option to buy the equipment at the end (capital leases), while others let you return it (operating leases).
Choosing the right lease helps reduce long-term costs and avoid depreciation losses.
Don’t lease for longer than you’ll use the equipment. If you only need it for 36 months, avoid locking into a 60-month lease. The right term helps you avoid overpaying while keeping payments manageable.
Look at more than just the monthly payment. The total cost of your lease might include:
Ask for a full breakdown and check for prepayment penalties if you might end the lease early.
Lease payments can often be written off as a business expense, which lowers your taxable income. This means leasing could give you tax savings that help improve ROI. Check with your accountant to see how leasing fits your tax strategy under current tax rules.
To truly get the best ROI, you need flexible terms, good support, and clear pricing. At SPAR Leasing, we have been helping Canadian business owners with equipment leasing since 1989. With fast approvals, competitive rates, and custom lease options, we make it easy to get the equipment you need—on terms that make sense for your business.
Enjoy flexible leasing with SPAR
SPAR Leasing is a leading name in Canadian business financing, providing flexible, personalized equipment lease options since 1989. With a proven track record, deep lending experience, and insight into industry-specific needs, we help Canadian business owners access specialized equipment without the heavy burden of traditional financing or ownership.
Here’s how we deliver meaningful value in today’s complex commercial leasing landscape:
We understand that credit history, business age, or economic conditions can limit access to capital. That’s why we process most credit applications in just 24 to 48 hours. Our in-house team evaluates more than your credit score—we assess your full business history, financial position, and growth outlook to deliver favorable lease terms even in challenging conditions. Whether you’re recovering from credit issues or expanding rapidly, we help you make informed decisions without delays.
Every industry has unique equipment needs, financing cycles, and growth dynamics. Here’s how we support businesses across the industries we specialize in:
Leasing helps avoid large capital outlays, preserve savings accounts, and eliminate the need for a capital or cash loan. Our solutions help you:
SPAR partners directly with equipment dealers, suppliers, and lease brokers to deliver embedded payment options and streamlined financing. This reduces administrative overhead and gives you access to:
We’re proud to work alongside our partners to offer business financing solutions that are responsive, transparent, and growth-focused.
Get fast, flexible financing tailored to your industry needs
At SPAR, we help Canadian businesses grow by offering flexible, affordable equipment financing solutions tailored to their needs. With over 30 years of experience, we understand the challenges companies face when managing cash flow and acquiring specialized equipment.
That’s why we offer fast approvals, competitive rates, and personalized lease options that support your business goals—whether you’re in construction, healthcare, hospitality, or senior care. We’re here to simplify the leasing process and help you make confident, informed decisions about your next equipment investment.
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