Buying an excavator, replacing a production line or equipping a new location starts with a practical question: which financing arrangement fits the equipment and the business’s cash flow? An equipment financing broker helps you prepare the request, approach suitable lenders and understand the proposed terms.
Lease2Grow is an independent equipment financing brokerage serving Canadian businesses. Through its affiliation with Affiliated Financial Services (AFS), Lease2Grow has access to multiple lenders. The team works with you on the financing request; the lender makes the credit decision and sets the approval conditions.
What a broker does · Why use a broker · Compare offers · Application to funding · Prepare your request
What does an equipment financing broker do?
Banks and credit unions, manufacturer finance companies and independent equipment finance companies are possible sources of financing. A broker helps arrange financing with lenders whose criteria may fit your transaction. Access to a network does not mean every lender will consider every application or that every applicant will receive several offers.
Lease2Grow starts with your business, the equipment you want and the cash you can commit. The team can help organize the information lenders need, clarify missing details and explain the payment structure being proposed. You should know which lender or lessor will be party to the agreement before signing.
When comparing equipment leasing companies in Canada, first identify whether you are speaking with a direct lender, a dealer program or a broker. Lease2Grow acts as a broker and coordinates with suitable lenders through AFS. Ask who will be party to the agreement, which lenders are being approached, how they are selected, whether your business pays any fees and how the brokerage is compensated. Compare the complete written terms available to you.
Why use a finance broker for an equipment purchase?
A broker can be useful when the purchase needs more explanation than a standard equipment quote. Used equipment, a private seller or several equipment types can raise questions about eligibility, condition and value. Send the item details and seller information early so the team can identify requirements before you commit to a deposit.
For a new business or an expansion, the request needs to explain how the equipment will support operations and how the payments fit the forecast. An established business replacing a machine may have a different financing profile. Lenders assess these circumstances differently, and eligibility depends on the business and transaction.
If a bank has declined a request, tell Lease2Grow why, if you know. Another lender may use different criteria, but approval is never guaranteed. Discuss the proposed application process and credit-check consent before further submissions; using a broker does not guarantee that credit inquiries will be avoided.
Choose the structure around how you will use the equipment
With an equipment loan, your business generally buys the equipment and repays the lender, which may take security over it. With a lease, the lessor generally owns the equipment during the agreement. Lease-to-own Equipment Financing provides a path to ownership under the payments and purchase conditions written into the contract. Confirm the final purchase amount and any notice requirements.
If a fair market value lease is proposed, ask how the end-of-term price is determined and which purchase, renewal or return options the agreement actually includes. Compare its full obligations with the period you expect to use the equipment. See our equipment financing guide for a broader explanation of financing structures.
If the goal is to release cash from equipment your business already owns, ask about equipment refinancing in Canada. Eligibility, existing liens and equipment value will affect the request. Equipment suppliers looking to offer payment options to customers can explore vendor equipment financing.
Compare the whole offer before choosing a payment
Give each provider the same equipment cash price and ask for a written breakdown. A longer term or a larger final purchase amount can reduce the regular payment while increasing other obligations. Review:
- The amount financed, payment frequency, number of payments and whether the rate or payment can change.
- All cash due upfront, including deposits, advance payments, documentation charges and brokerage fees, if any.
- The required final payment or purchase option, and any renewal or return conditions.
- Insurance, security and personal guarantees, including any obligations beyond the equipment itself.
- Early repayment, cancellation and default terms, plus the conditions that must be met before the supplier is paid.
To compare cash outlays, add the upfront amounts, remaining scheduled payments and required final amount, then include any fees and applicable taxes not already counted. Count first or last payments paid in advance only once. Track a refundable security deposit separately and confirm when and under what conditions it is returned. Use the same tax assumptions across offers.
Ask your accountant to confirm the tax and accounting treatment of the actual agreement. A marketing label or nominal buyout alone is not a reliable tax guide. The Canada Revenue Agency’s leasing-cost guidance explains general deductions and an election available for qualifying leases; your business’s circumstances determine what applies.
What happens between an application and funding?
Start by explaining the purchase, the supplier’s deadline and your preferred upfront commitment. Lease2Grow reviews the information with you and helps prepare the request for suitable lenders. The lender may ask for additional records, clarification or an equipment inspection before deciding.
If financing is approved, review the offer and its conditions before signing. Approval and funding are separate milestones. Completed agreements, required insurance, identification checks, equipment details and delivery or acceptance conditions may still be needed before the lender releases funds. Confirm the payment and delivery sequence with the financing team and supplier.
Tell the team if the equipment, seller, price or delivery date changes. A change can require revised documents or another lender review. Avoid promising the supplier a funding date until the remaining conditions and payment arrangements are confirmed.
What should you prepare for Lease2Grow?
Begin with a description of your business and an itemized equipment quote. Include the make, model, year, seller, price and available serial numbers, hours or mileage. Explain whether the equipment is new or used, what it will do for the business and when you need it.
Depending on the lender and request, supporting documents may include business registration, ownership details, financial statements, bank statements or a cash-flow forecast. New ventures may need a business plan. Ask which records are required for your file and how to submit them securely before sending identification or financial documents.
If you are ready to discuss an equipment purchase, book a call with Lease2Grow or begin a financing application. Bring your quote and the questions you want answered before committing to an agreement.