6 Logging & Forestry Equipment Loans in Canada

As in any business, specialized equipment is essential in the logging and forestry industry. Whether you are looking to expand operations, replace aging machinery, or simply maintain your competitive edge, investing in your business’ equipment is a decision that impacts your day-to-day operations. And, while it is essential, specialized machinery such as skidders, harvesters, and forwarders doesn’t come cheap. Without proper financing, you may encounter difficulties trying to acquire or upgrade equipment. Ultimately, this could impact your ability to meet market demand.

While it makes sense for many businesses, securing financing for logging equipment can be a challenge as there are varying terms and conditions. Business owners must navigate interest rates, repayment terms, and eligibility requirements to find the right lender for their company. Fortunately, there are numerous financing options available in Canada – from traditional bank loans to alternative lenders there is a solution for every business.

This article will explore different forestry equipment loan options. We will compare lenders and offer assistance on how to qualify for better financing. We will also discuss how to manage debt effectively to ensure long-term business stability.

Lender	Ideal For	Key Features	Interest Rates	Repayment Terms
The “Big 5” Canadian Banks & Credit Unions	Businesses with a sound credit history	Relatively lower borrowing rates and longer loan terms. Credit unions offer more flexible terms.	Comparatively lower interest rates	Repayment over an extended period with more manageable terms
Swoop Funding	Businesses of any size	Fast approvals on tailored solutions. Simplified application process with a transparent fee structure	Comparatively higher interest rates	Flexible
Merchant Growth	Businesses that have a poor credit score	Simpler cash flow management and more flexible repayment options	Comparatively higher interest rates	Varies depending on the borrower
Driven.ca	Borrowers in need of quick funding	Simplified approvals and flexible financing options	Comparatively higher interest rates	Varies depending on the borrower
SharpShooter Funding	Businesses that are on the small to medium size	Simplified application process with quick approvals	Comparatively higher interest rates	Repayment is flexible, though it comes at a higher cost
Journey Capital	Businesses with poor (or no) credit	Accessible funding, even for those businesses with bad credit	Comparatively higher interest rates	Relatively shorter repayment period

Forestry Equipment Loans in Canada

Finding the right equipment can make a difference for your business – and so can financing it. But who are the top forestry lenders in Canada? Below, we go into detail, discussing both traditional lenders like banks and credit unions as well as alternative lenders. Each one is unique, catering their offering to different business needs. The best way to make an informed decision is to evaluate these options and determine which fits best with your business’ goals and financial situation.

1.     “Big 5” Canadian Banks & Credit Unions

Major Canadian banks and credit unions offer reliable financing options for logging and forestry equipment. Banks in Canada provide the most competitive interest rates. These include the “Big 5” banks of RBC, TD, CIBC, Scotiabank and BMO. They also offer longer repayment terms, making them ideal for businesses that qualify. These institutions typically offer structured loan programs specifically for heavy equipment, ensuring business owners have access to the capital they need. In return, though, they require strong financials.

Credit unions are another option for financing as they offer personalized services and competitive rates. They are often (much more) flexible than larger banks, with a community-driven approach beneficial for smaller businesses. Prominent credit unions across Canada provide tailored loan products designed to meet the needs of forestry operators, helping them secure equipment while maintaining manageable repayment schedules.

2.     Swoop Funding

Swoop Funding helps businesses find customized financing solutions, offering access to asset-based loans. Catering to companies of various scales, Swoop is well-regarded for its transparent fee structure and adaptable repayment options.

3.    Merchant Growth

Merchant Growth provides flexible financing options tailored to small and medium-sized businesses. They offer speedy approvals and short-term funding solutions that can help cover equipment costs in the forestry industry. Their focus on convenience makes them a suitable option for businesses needing fast access to capital.

Read our review of Merchant Growth.

4.    Driven.ca

Driven.ca offers financing solutions designed for small businesses that need access to quick funding. With a straightforward application process and flexible repayment options, Driven.ca is a convenient choice for forestry businesses requiring immediate financial support.

See our review of Driven.ca here.

5.    SharpShooter Funding

SharpShooter Funding specializes in providing loans for heavy equipment, including logging and forestry machinery. Their quick approval process and flexible repayment terms make them a practical option for businesses needing speedy access to funds. SharpShooter’s focus on tailored equipment financing helps support the unique needs of forestry operators.

6.    Journey Capital

Journey Capital offers flexible financing solutions for businesses in the forestry sector. Their loan products help accommodate various business needs, allowing easier equipment funding (yes, even for those with a poor or nonexistent credit history). With a straightforward application process and customizable terms, Journey Capital aims to support the growth of logging operations across Canada.

Check out our review of Journey Capital.

Comparing banks, credit unions, and alternative lenders

Banks, credit unions, and alternative lenders have their own financing attributes. Individual lenders each have advantages and drawbacks. Banks offer businesses lower interest rates and more flexible repayment options. This provides a significant benefit compared to other lenders. In return, banks have more stringent requirements and a much slower approval process. Credit unions, on the other hand, provide competitive rates and more personalized service, with a focus on community-oriented support. These institutions may be more flexible than banks, BUT it can still be difficult for some businesses to meet their eligibility requirements.

Alternative lenders such as Merchant Growth and SharpShooter Funding offer quick approvals and a simpler application process, though convenience often comes at a (hidden!) cost. Loans from alternative lenders may come with additional fees AND elevated interest rates, especially when compared to traditional banking loans. But, these lenders are still ideal for businesses that need fast access to funds or those that may not qualify for conventional loans. Choosing the right lender depends on balancing cost, flexibility, and the speed of funding required.

What to consider with alternative lenders

Alternative lenders often have elevated fees and less favorable terms compared to traditional financing options. Although these lenders, including Merchant Growth, Driven.ca, and SharpShooter Funding, are CLA-certified and have great reviews, the convenience they offer comes at a premium. Higher interest rates and added fees can significantly increase your business’s borrowing costs, adding financial strain. Weigh your options carefully! Your company can benefit if you consider both the costs and the benefits of working with alternative lenders. At times, the extra expense IS worth it!

Qualifying for better financing

Does your business currently have a low credit rating? Don’t panic – there are ways to enhance it. But how? Start by keeping up-to-date financial statements and track debt carefully. Ensure you demonstrate a track record of timely payments on any outstanding debts and consolidate them where possible.

When applying for a business loan, lenders will need to review your company’s business plan. Often, they also request a detailed cash flow projection showing your ability to repay the loan.

Finally, lenders appreciate transparency, so be honest with them and provide all requested information promptly. Looking to increase your likelihood of getting favourable loan conditions? Build a strong relationship with your lender. Trust and a clear financial picture go a long way to improving your credit score and getting better financing options.

Dealing with bad debt in the logging industry

Managing debt in the forestry sector (or any industry) can be difficult. The high costs of logging equipment and fluctuating market prices can make it tough to stay afloat. For businesses struggling with bad debt, exploring debt relief options is crucial. But “what options do I have?” you may wonder. Consider if the following could help manage financial strain:

• Debt consolidation combines multiple debts into one, often with lower interest rates.
• Credit counseling offers professional guidance to create a structured plan for repayment.
• Consumer proposals provide an alternative to bankruptcy, allowing businesses to negotiate partial debt repayment with creditors. It also offers the benefit of more manageable payments.

These options help reduce your debt burden, improve cash flow, and provide a structured way to regain financial stability.

For more information about debt relief programs in Canada, visit our list of the 14 Best Debt Consolidation and Relief Programs Companies 2024.         

The bottom line

Finding the right financing is a key driver behind the growth and sustainability of any business. The same is true for logging and forestry companies. AND there are many potential options. From traditional banks and credit unions to alternative lenders, there is likely a solution that is most appropriate for your company’s situation and business goals. Also, don’t underestimate the impact of enhancing your creditworthiness – it can open doors to better financing terms.

If you’re operating in specific provinces – such as Alberta, British Columbia, or Ontario – working with local lenders and credit unions might provide you with additional solutions that address your area’s needs. And yes, every province is unique. Managing debt effectively is also key; exploring options like debt consolidation or credit counseling can preserve your business’s financials.

The right lender can make a difference in your operations, allowing you to acquire essential equipment without compromising your financial stability. Just be sure to consider your options and choose a financial backer that understands the unique challenges of the logging industry.