Quick answer: 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 subject to lender review; 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.
Authoritative references
- Innovation, Science and Economic Development Canada — Canada Small Business Financing Program:
The Canada Small Business Financing Program makes it easier for small businesses to get loans from financial institutions by sharing the risk with lenders.
Eligibility, pricing, tax treatment, and program terms can change. Verify current official guidance and final financing documents before making a decision.
Source perspective
BDC’s equipment-financing guide emphasizes the complete financing structure when comparing offers.
“Don’t focus only on interest rates”
For the equipment decision discussed here, compare the amount financed, payment schedule, collateral and remaining obligations alongside the quoted rate.