Review existing equipment debt
Compare a replacement facility with the remaining balance, settlement costs and terms of the current agreement.
CANADA & UNITED STATES
Equipment Refinancing & Sale-Leaseback
Review whether equipment you already own can support your next business need.
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How equipment refinancing & sale-leaseback works
Refinancing and sale-leaseback are different ways to arrange financing around existing equipment. Refinancing changes or replaces borrowing secured by the asset. A sale-leaseback involves selling equipment and leasing it back, with continued use governed by the lease.
Refinancing and sale-leaseback, explained
Watch the overview, then use the details on this page to compare the structure, costs and information needed for your request.
Availability and terms depend on the business, equipment, location and application review.
Watch video →
Start with what the business needs.
Assess available asset value
The amount available depends on valuation, condition, existing debt, transaction costs and program requirements; purchase price alone is not the measure.
Support an operating project
Explain the use of funds and how the new payments fit the business. Consider whether another working-capital structure better matches the need.
Compare the agreement, not just the payment.
Net proceeds
Request a breakdown of valuation, existing debt repayment, fees and cash available after the transaction.
Ownership and continued use
Refinancing and sale-leaseback have different ownership consequences. For a sale-leaseback, review lease obligations and any later purchase option.
Total remaining commitment
Compare new payments, term, final amounts, early repayment or termination costs, insurance and maintenance obligations.
Refinancing and sale-leaseback are different transactions
Replacing an existing equipment obligation
Refinancing can replace an existing arrangement with a new one, subject to approval and settlement of the original obligation. The aim might be changing the payment schedule, addressing a final balance or combining eligible equipment obligations. A longer period may reduce individual payments while increasing total cost. Start with current payout figures and the reason for the change rather than assuming a lower payment necessarily improves the overall position.
Selling owned equipment and leasing it back
A sale-leaseback involves transferring ownership to the financing party and leasing the equipment for continued use. That ownership change is central to the transaction. Review the sale proceeds, lease payments, end-of-term options and operating obligations together. A recent cash purchase may require the original invoice and proof of payment; older assets can require a different assessment. There is no universal purchase-age cutoff stated on this page.
Illustrative net-proceeds calculation
Suppose a proposed transaction produces $80,000, while an existing settlement requires $45,000 and assumed transaction costs are $3,000. The remaining proceeds would be $32,000 before any other adjustments. These figures illustrate arithmetic only, not available values or fees. Compare the new payment obligation with the benefit of that $32,000, and confirm every deduction before planning how the funds will be spent.
Prepare the asset and payout information
Ownership and payment history
Provide equipment descriptions, serial numbers, registration where applicable and evidence of ownership. For a recent purchase, keep the original invoice and the business payment record. Explain any purchase made personally or through another entity rather than assuming a simple transfer document resolves ownership, tax or financing requirements. The actual transaction needs to be reviewed before sale proceeds or refinancing amounts are treated as available cash.
Current value and existing claims
An asset’s original price, book value and assessed current value can differ. Age, hours, mileage, condition, maintenance and resale demand can influence the review. Photos or an inspection may be requested. Disclose all known financing against the asset and obtain current payout information. The equity estimate on your own schedule does not establish an approved advance or the net proceeds the business will receive.
Explain the use of released cash
Show whether the intended proceeds support a contract, an operating need or another defined purpose. Prepare a forecast that includes the new payment schedule and existing obligations. Borrowing against essential equipment to cover a continuing operating loss can add risk without resolving the underlying issue. The asset and the business need should be assessed together, including what happens if anticipated revenue or collections are delayed.
Compare the old arrangement with the complete new one
Settlement and remaining cost
Compare keeping the current financing with paying it out and entering the new agreement. Include discharge, documentation, valuation and other applicable costs. Ask whether any interest, minimum charges or end-of-term amounts remain payable under the existing contract. A monthly-payment comparison alone may hide a longer commitment or materially higher overall expenditure. Use written settlement figures rather than an estimated online account balance.
Keep the equipment operational
Identify how insurance, registration and maintenance obligations continue through the transaction. If ownership changes, confirm the steps required before the business relies on the arrangement. Explain where the equipment operates and whether it crosses the Canada–USA border. The ability to keep using an asset depends on meeting the agreement’s conditions; it should not be described as having no operational or ownership consequences.
Plan the final ownership outcome
A refinancing loan and a sale-leaseback can leave different ownership and purchase obligations at the end. Ask what must be paid to retain the equipment and whether any notice is required. If the plan assumes another refinance later, test an alternative repayment source as well. Future financing is not assured, so the current decision should remain understandable without relying entirely on a later approval.
A practical comparison checklist
Review point
Purchase financing
Lease structure
Existing equipment
Ownership
Read purchase and security terms
Check lessor ownership and purchase options
Distinguish refinance from sale-leaseback
Cash at the start
Contribution and eligible project costs
Advance rentals, deposits and charges
Net proceeds after payouts and fees
During the agreement
Payments, maintenance and insurance
Rentals and operating responsibilities
New obligations alongside existing needs
At the end
Any final balance and security release
Buyout, return or renewal conditions
Ownership outcome and remaining payments
Use this checklist to compare actual proposals for the same asset and period of use. It does not establish that a particular structure is available or cheaper. Record the answer to each question, including amounts still payable at the end, so the comparison reflects the complete commitment rather than a selected monthly figure.
Explore equipment examples
Relevant equipment can include Kenworth, Peterbilt, Bobcat, Volvo. These links provide equipment context; brands are examples, not partners or endorsements. Eligibility depends on the specific asset, condition, seller and financing review.
For a dealer quote, ask for a clear equipment specification and itemized extras. For an auction or private seller, clarify ownership, inspection and payment conditions before committing. An equipment page or brand listing is not a pre-approval for a particular purchase. Keep the intended location, currency and operating purpose consistent across the quote and application so the review addresses the real transaction.
What to prepare
These details help frame the review. Additional documents may be requested for your business, location or proposed transaction.
Asset schedule
Make, model, year, serial numbers, condition, hours or mileage and operating location.
Ownership and current debt
Purchase records, current agreements, payout information and any liens or other security interests.
Business purpose and finances
Use of funds, operating information and financial documents requested for review.
Build a complete request
Include the equipment quote, business location, intended use and available financial records. For used or privately sold equipment, ask which ownership, inspection and lien documents are needed.
From enquiry to a considered decision.
01 / Share the request
Describe the business, equipment, location and purpose. Include the quote or asset schedule when available.
02 / Complete the review
Respond to requests for documents and clarify the available structure, costs, conditions and any outstanding checks.
03 / Review before committing
Read the written agreement and confirm obligations, conditions and next steps before signing or committing to the purchase.
Canada and United States: confirm the local requirements.
Tell us where your business is registered, where the equipment will operate and the transaction currency. We serve businesses in Canada and the United States; individual products and transaction structures vary by location.
Canada
Include the province or territory, business registration and equipment location. Confirm applicable taxes, documentation and security requirements in the written proposal.
United States
Include the state, business entity and equipment location. Confirm state-specific availability, documentation, taxes and any security requirements before committing.
Explore your industry
Find guidance for your sector and how your business operates.
9 industries · Swipe, scroll or choose a group below.
Transportation & logistics
Explore financing considerations for carriers, logistics businesses and freight operations.
Explore industry →Construction & contractors
Plan around project costs, contract timing and day-to-day business needs.
Explore industry →Manufacturing & wholesale
Explore financing for production, order cycles and wholesale operations.
Explore industry →Farming & agriculture
Consider seasonal cash flow, operating needs and long-term farm investment.
Explore industry →Restaurants & hospitality
Explore financing for food-service businesses, hospitality operations and growth.
Explore industry →Medical, dental & wellness
Plan financing around practice operations, patient services and business expansion.
Explore industry →Technology & business services
Explore financing considerations for project delivery, hiring and growth.
Explore industry →Forestry, mining & energy
Consider contract cycles, operating requirements and investment in resource businesses.
Explore industry →Aviation & marine
Explore financing considerations for commercial aviation and marine operations.
Explore industry →Frequently asked questions
Can equipment with an existing loan be considered?
It may be considered, but the existing debt, security and settlement arrangements must be assessed. The net proceeds may differ substantially from the asset valuation.
Do I keep ownership in a sale-leaseback?
A sale-leaseback involves a sale and a lease. Continued use and any route to buy the equipment back depend on the agreement.
Is refinancing always a way to lower costs?
No. A lower periodic payment may extend the term or increase total cost. Compare the full remaining obligation and transaction fees.
Can older equipment be considered?
Provide age, condition, maintenance and usage. Acceptance and valuation depend on the asset and available program.
Can I apply before choosing equipment?
You can discuss a planned purchase before selecting the final asset. A discussion or preliminary review is not an approval. A specific quote, seller and equipment details may be needed to complete the assessment.
How long will the review take?
Timing depends on the application, supporting documents, equipment and transaction checks. Ask what remains outstanding and when to expect the next update; no approval or funding timeframe is guaranteed.
Financing guides for your next step.
CANADIAN FINANCING GUIDE
Equipment Sale-Leaseback Valuation — Canada
Understand valuation terminology and the records used to assess an existing asset.
Read article →CANADIAN FINANCING GUIDE
Working Capital: Refinance vs Sale-Leaseback
Compare restructuring an existing obligation with releasing equity from owned equipment.
Read article →Explore related financing options.
Use estimates as a planning aid. Actual costs and conditions depend on the written proposal.
Equipment financing calculator →Tell us what you are planning.
Start with the business location, equipment or assets, and the purpose of your request.
Apply for financingFinancing is subject to application review and approval. Availability, terms, costs and documentation vary by product, business and location. This page provides general information and is not a financing offer. Tax and accounting treatment should be reviewed with your adviser.