Leasing can put essential equipment to work in days without a heavy cash outlay. But approvals aren’t just about a single number. Canadian lessors look at a blend of score, cash flow, time-in-business, equipment type/age, and down payment. This guide explains credit score bands, what they usually qualify for, and practical ways to win approvals even if your score isn’t perfect.

The short answer

Most mainstream Canadian programs approve strongest and fastest at 680+. Scores 650–679 are commonly workable with clean bank statements and good equipment. 600–649 can still be approved with compensating strengths (newer collateral, more upfront, co-signer, proof of contracts). Below 600, approvals become case-by-case and typically require stronger mitigants.

Approvals are never score-only. Lenders triangulate ability to pay (bank statements, cash flow), willingness to pay (credit history), and secondary market strength (how well the equipment holds value).

What different scores usually mean in practice

Score Band	Typical Path	Common Conditions	Good-Fit Assets
700+	Prime approvals, faster decisions	Standard upfronts; competitive pricing	Most new/used mainstream equipment
660–699	Broad approval options	May ask for bank statements and proof of insurance	Liquid assets (tractors, trailers, excavators, forklifts, CNC)
620–659	Workable with compensating strengths	Modest down or first/last; newer equipment preferred	Popular models with strong resale
580–619	Case-by-case, subprime or structured deals	Higher upfront, GPS/kill switch, shorter terms or fixed residuals	Very liquid gear; avoid specialty units
<580	Challenging but not impossible	Larger down, co-signer/guarantee, or equity in other assets	Late-model, strong-secondary-market equipment only

What lenders actually underwrite beyond score

Cash flow and bank statements. Underwriters review 90–180 days of activity for NSFs, average balances, and seasonality. Clean, well-funded statements can offset a mid-600s score.

Time-in-business and industry. 2+ years helps. New companies can still qualify (especially with newer collateral and a modest upfront). If you’re a startup, consider In-House Financing.

Equipment age and resale strength. Assets with deep secondary markets price and approve better. See sector pages:

Down payment and structure. First/last or a small down payment reduces lender risk. A fixed or percentage residual can lower the monthly while preserving an ownership path. Learn more on Equipment Leases.

Documentation quality. Clear invoice/specs, proof of insurance, and any contracts/POs supporting revenue from the asset all help.

Structures that help approvals at different score levels

Scenario	Structure to Consider	Why It Helps	Where to Learn More
Score 680+ and stable cash flow	FMV lease or fixed residual at 48–60 months	Best pricing and flexibility or predictable buyout	Leases
Score 620–679 with good bank statements	Fixed or % residual; taxes upfront	Known exit; lowers lender risk	CSC
Score 580–619	Shorter term, larger upfront, GPS, highly liquid assets	Mitigates risk and protects collateral	Asset-Based Lending
Startup or thin file	Newer equipment + modest upfront; consider in-house program	Balances risk while preserving cash	In-House Financing
Own equipment but need cash to qualify	Refinance or sale-leaseback	Unlocks equity; improves working capital	Refinancing & Sale-Leaseback

How to boost approval odds in the next 30 days

Stabilize bank statements. Keep balances above payroll/vendor needs, avoid NSFs, and reduce same-day large transfers.

Choose newer, liquid equipment. Mainstream tractors and trailers, popular excavators/skid steers, forklifts, racking, and CNC machines tend to approve smoother.

Show the revenue story. Include signed work orders, letters of intent, or contracts the equipment will fulfill.

Offer modest upfronts. First/last or 10–15% down can be decisive for mid-600s files.

Pre-plan insurance and delivery. Fast confirmations reduce perceived execution risk and can speed funding to 24–48 hours once your file is complete.

Run scenarios quickly in the calculator (48 vs 60 months, FMV vs fixed residual) and compare against a purchase with Equipment Loans.

Case study: Approval at 624 with compensating strengths

Situation: An Ontario contractor with a 624 score needed a late-model skid steer to take on municipal snow work and spring landscaping. The business had 14 months in operation, clean statements for the last 90 days, and signed purchase orders for the next quarter.

Structure: 60-month fixed 12% residual lease; taxes paid upfront; first/last due at signing. Unit was late-model with strong resale.

Outcome: Approved within 48 hours. The residual kept payments manageable through winter. The operator set a reminder to refinance the buyout using an equipment loan if cash is tight at term end. The new jobs stabilized deposits, and the score improved over the next six months.

Lease vs loan when score is borderline

Leases can be easier to approve than loans when the collateral is strong and you’re open to a residual/buyout. If you know you’ll keep the asset long-term, a loan or CSC can deliver lower lifetime cost, provided you qualify. For liquidity while you wait on payments, pair gear financing with Working Capital to avoid overdrafts during onboarding.

Common misconceptions about credit scores and leasing

“If I’m under 650, I can’t lease.”
Not true. It’s harder—but with newer assets, a modest upfront, and clean statements, many 600–649 files get done.

“Rates are the only thing that matters.”
Payment structure matters just as much. A fixed or % residual might lower monthly cost without pushing term beyond the asset’s useful life.

“Used equipment always means a decline.”
Late-model, liquid used equipment with verifiable hours/mileage can be a plus—especially if it matches your work profile.

“I should stretch to 72 months to qualify.”
Long terms lower the monthly but can raise total paid and downtime risk. Match term to warranty and utilization.

FAQ: Credit score for equipment leasing in Canada

What credit score do I need to lease equipment?
680+ sees the widest approval options; 650–679 is workable; 600–649 needs compensating strengths; below 600 is case-by-case with stronger mitigants.

Will a co-signer help?
Yes—especially in the 600–649 band or for startups. A stronger guarantor can open better programs.

Do startups qualify without a score?
Often, with newer equipment, a modest upfront, and bank statements showing deposits. See In-House Financing.

Does the equipment type matter for my approval?
Absolutely. Liquid assets with strong resale support both approval and pricing. Check Eligible Equipment.

How fast can I get a decision?
With a complete file (ID, void cheque, bank statements, quote/specs, insurance), we typically provide clear answers in 24–48 hours once your file is complete. Start here: Contact Us.

If you’d like your score band mapped to FMV vs fixed residual vs loan with real payments and a plan for the buyout, run a quick pass in our Equipment Financing Calculator and feel free to contact our credit analysts. We’ll structure an approval path that protects cash today and ownership options tomorrow.