How Long Can I Finance Equipment?

See typical 12–96+ month equipment financing terms in Canada. Compare loans, leases, and lines of credit by asset, credit, and cash-flow needs.

Written by

Alec Whitten

Published on

August 31, 2025

When owners ask “How long can I finance equipment?”, they’re really asking how to match the term to the asset’s useful life and their cash flow. In Canada, most equipment facilities run 24–84 months, with common outliers as short as 12 months (repairs, small tickets) and as long as 96+ months for heavier, long-life assets. The exact term depends on the asset, credit profile, age/condition, structure (loan vs. lease vs. line), and cash-flow strategy.

Use our calculator to model terms side-by-side, then choose among equipment loans, leases, equipment lines of credit, or refinancing / sale-leaseback.

Typical term ranges by asset (directional)

Asset Category	Typical Term Range	Notes
Heavy-duty trucks & trailers	48–84 mo (occasionally 96+)	Long-life assets; mileage, year, and maintenance history drive term. See Heavy-Duty Truck and Trailer expertise.
Construction equipment (excavators, loaders, lifts)	48–84 mo	Hours/condition matter; attachments may amortize shorter.
Manufacturing & CNC / warehouse equipment	36–84 mo	Ticket size and modernization cycles influence term.
Medical / dental devices	36–72 mo	Revenue tie-in supports mid/long terms; tech pace may limit.
Hospitality / kitchen / POS	24–60 mo	Faster tech turnover; leases with residual common.
Agriculture (tractors, harvesters)	48–84 mo	Seasonal cash flows; consider seasonal/skip payments.
Repairs & overhauls (engines, transmissions)	12–36 mo	Shorter terms align with repair life. See Truck Repair Financing.

Explore sector specifics:

Structure matters: loan vs. lease vs. line

Structure	Typical Term	Cash-Flow Traits	End of Term	Best For
Equipment Loan	24–84 mo (longer for prime/long-life)	Fixed amortization; builds equity	Own free & clear	Assets you’ll keep long-term
Equipment Lease	24–72 mo (sometimes 84)	Lower monthly via residual/buyout	$10, 10%, or FMV buyout/return/upgrade	Cash-flow priority or fast-changing tech
Equipment Line of Credit	Ongoing; draw-to-term 12–60 mo	Pay interest on draws; reusable limit	Convert to term or pay down	Contractors with rolling purchases

Compare options: Loans, Leases, Equipment Line of Credit.
Need flexibility or liquidity? Consider asset-based lending or refinancing & sale-leaseback.
For repairs, explore Truck Repair Financing.

How term length changes your payment (simple illustration)

Use the calculator to run your exact numbers. Here’s a directional example for the same ticket under different terms (payment only; taxes/fees excluded):

Ticket	Term	Effect on Cash Flow	Trade-Off
$100,000 equipment	36 months	Highest monthly; fastest equity	Lowest total financing cost
$100,000 equipment	60 months	Balanced monthly	Moderate total cost
$100,000 equipment	72–84 months	Lowest monthly	Higher total interest; match to useful life

Term decisions most lenders look for

Useful life alignment: Your term should not outlast the asset’s productive life.
Asset age/condition: Older or high-hour units may cap terms shorter.
Credit & time in business: Stronger files qualify for longer terms.
Down payment & residuals: More equity or a lease residual supports longer or cheaper payments.
Seasonality: Agriculture, construction, and transport can benefit from seasonal/skip payments or step-up/step-down schedules.
Program fit: Government-backed options like the Canada Small Business Financing Program can extend terms for eligible borrowers.

If cash is tight while you scale, combine your equipment facility with Working Capital Loan or Invoice/Freight Factoring for startup costs and slow receivables.

Case study: same machine, better term fit

Profile: Alberta contractor upgrading to a late-model excavator.
Constraint: Needed the lowest possible monthly to add a second crew for a 10-month project window.
Solution: Modeled 60 vs. 72 months and a lease with 10% residual in the calculator. Chose the lease with residual to reduce monthly outlay ~12% versus 60-month loan, while keeping an ownership path at term end. Liquidity for payroll and fuel came from a Working Capital Loan.
Result: Project staffed on time; contract extended; residual scheduled for refinance at end-of-term.

What to do next

List the asset (year, hours/km, price) and your target monthly.
Run 36/48/60/72-month versions (and a lease with residual) in the calculator.
If you own gear, consider refinancing / sale-leaseback to strengthen the file.
Feel free to contact our credit analysts to lock terms and documents via Contact Us.

Are you looking for a truck? Look at our used inventory. We sell equipment directly.

FAQ

How long can I finance used equipment?
Often 36–72 months depending on age/condition. Newer used units with strong resale can sometimes qualify longer.

Can startups get longer terms?
Yes—if supported by down payment, guarantor, or strong projections. In-House Financing may help.

What if I need to upgrade mid-term?
Leases allow returns, upgrades, or buyouts. Loans can be refinanced or paid out (check prepayment terms).

Can I include repairs or rebuilds?
Yes—typically 12–36 months via Truck Repair Financing.

Is there a maximum term?
Programs vary; long-life assets with prime credit may see 84–96+ months. Lenders cap terms to the asset’s remaining life.

Will seasonal payments affect term?
They can. Seasonal or skip structures may extend amortization slightly but smooth cash flow, common in Farming & Agriculture and Construction.

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