Equipment Financing Credit Score in Canada

Learn the credit score needed for equipment financing in Canada, plus ways to qualify with lower scores using leases, residuals, and stronger structures.

Written by

Alec Whitten

Published on

August 31, 2025

Many approvals land at ~650+. Files in the 620–649 range are often financeable with the right structure. 580–619 can still work with more equity, stronger collateral, or a co-signer. Below ~580 typically requires alternative structures and compensating strengths.

How lenders think (score is only one signal)

Lenders price the whole file: time in business, bank cash flow, leverage, equipment age/resale, down payment, guarantees, and industry risk. That’s why two borrowers with the same score can get different outcomes. Model options in the calculator, then compare loans vs leases.

Score Band (Indicative)	Typical Path	Upfront / Structure	Documents That Help
700+	Bank or prime specialty lenders	0%–10% down; 36–84 mo terms	Stable bank statements, clean pay history
650–699	Prime/near-prime programs	5%–15% down; loan or lease with modest residual	YTD financials, contract/backlog proof
620–649	Specialty lenders, brokered solutions	10%–20% down; lease often easier	3–6 months bank statements showing DSCR
580–619	Alternative programs	20%–35% down; higher residual or co-signer	Guarantor, collateral, strong invoices/POs
<580	Case-by-case	Equity + collateral; consider refinance / ABL	Proof of contracts; plan to improve score

Ways to qualify with a lower score (and keep payments stable)

Choose a lease with a sensible residual to lower monthly cost while keeping an ownership path: Equipment Leases.
Add equity or collateral (pair with Asset-Based Lending or a guarantor).
Leverage equipment you already own via Refinancing & Sale-Leaseback to strengthen the file.
Use a revolving approach for multiple buys: Equipment Line of Credit.
Startup or thin file? Explore In-House Financing and the Canada Small Business Financing Program.
Document cash flow clearly and include contracts/POs to evidence future revenue.
Confirm your asset fits program appetite: Eligible Equipment. Mehmi also sells equipment directly—see inventory.

Case study (Ontario contractor, 605 score)

A contractor needed a late-model skid steer from our inventory. Bank declined due to short history. We structured a lease with a 10% residual plus a small sale-leaseback on an owned trailer. Upfront fell under 8% equivalent; approval in 48 hours; payment fit the bid’s cash-flow model.

FAQ

Is 650 enough to finance equipment?
Often, yes—especially with clean bank statements and reasonable equity. Start with loans or a lease.

Can I get approved below 600?
Possible with compensating strengths: higher down, collateral, guarantor, or sale-leaseback.

Do startups need a higher score?
Not necessarily, but lenders will look for equity, contracts, or In-House Financing alternatives.

Will a co-signer help?
Yes—strong guarantors can reduce rate/equity asks.

Does the equipment type matter?
Yes—newer, liquid assets price better and may offset a lower score. Check Eligible Equipment.

What should I do next?
Estimate payments in the calculator, then feel free to contact our credit analysts via Contact Us. If working capital is also tight, consider Working Capital Loan or Invoice/Freight Factoring alongside your equipment facility.

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