Who uses equipment financing
Who uses it? Almost every business that owns physical assets. Our files cover twelve equipment categories, from transportation and construction to laboratory, optical, catering, manufacturing, computer and office automation equipment. A trucking company adding a tractor, a clinic outfitting a treatment room and a machine shop replacing a CNC centre all go through the same process. Origin Finances represents the largest Canadian banks and several other leasing institutions, so one application reaches multiple funding sources and we structure around variables like credit profile, transaction size, asset type, industry and location. Whether the file is a single machine or a business equipment finance program covering a whole operation, the routing is the same.
How the application works
The application runs in three steps: identification, owner information, then the equipment itself. Smaller transactions are usually decided on the application alone; above the $250,000 threshold we ask for financial statements so the credit file supports the larger exposure. Once approved, we pay the vendor directly, you take delivery, and payments begin on the agreed schedule. Businesses with predictable or seasonal cycles can shape that schedule with seasonal or flexible payments rather than a flat monthly amount.
Lease structures: accounting and tax
Structure matters for accounting and tax. A $1-buyout lease puts the asset on your balance sheet, and you claim capital cost allowance plus the financing cost. A lease can keep payments fully deductible as an operating cost, with sales tax paid on each payment instead of the full price up front. The security interest is registered under provincial personal property legislation (PPSA outside Quebec, RDPRM within it), and it is discharged when the contract ends. Your accountant confirms which treatment fits; we structure to match.
Other ways to pay for equipment
Alternatives worth weighing: paying cash preserves nothing but interest and costs you liquidity; a bank line of credit is better kept for short-term needs than pinned to a long-lived asset; a straight equipment lease or an equipment leasing, both described on their own pages, are the two main structures underneath this service. If you are comparing canadian equipment finance options, send the application. It costs nothing to find out what your business qualifies for, and larger files, including our international division’s projects, follow the same disciplined review.
