The two ends of the lease spectrum
The two ends of the spectrum are worth understanding before you sign anything. A $1 buyout lease is economically close to a purchase: you make your payments and the equipment becomes yours for one dollar at the end, which is the structure most owners choose when they know they will keep the asset. A fair market value lease sets the end-of-term price at what the equipment is then worth, which lowers the payment during the term and suits technology or vehicles you intend to replace rather than keep. We quote both and let the numbers argue.
Who leases equipment
Who leases? Restaurants outfitting kitchens, clinics adding treatment equipment, printers, gyms, machine shops, IT departments refreshing hardware on a cycle. Leasing is a strong fit whenever the equipment earns revenue immediately but ages quickly, and whenever preserving your bank line of credit matters more than owning a depreciating asset outright. Companies with seasonal revenue can pair an equipment lease canada wide with seasonal payments so the schedule follows the business, not the calendar.
Tax treatment, and why it decides the structure
Accounting and tax treatment differ between the two lease structures, and that difference often decides which one a business chooses. Lease payments can be fully deductible as an operating expense, and GST and provincial sales tax are paid on each payment rather than on the full purchase price at delivery. The funder registers its interest under the PPSA (or the RDPRM in Quebec) for the term. Your accountant should confirm how the current lease accounting standards treat your specific structure; we will provide the contract detail they need.
How the application works
The process mirrors every Origin Finances product: identification, owner information, equipment. Application-only up to a point, financial statements above the $250,000 threshold. If you conclude ownership is the point, a $1-buyout lease ends in title, and our canadian equipment leasing team will tell you honestly which structure fits for your file. Either way you get both structures priced from the same information, so the comparison costs you one application instead of two.
