9 Equipment Loans For Startup Businesses in Canada (2026)

If you’re building out an assembly line, kitting out a job site, or acquiring the machinery a young company runs on, equipment financing is one of the most practical ways to grow without draining your cash. Because the equipment itself serves as collateral, these loans are often easier to land than unsecured credit — which makes them a genuine option even for startups with thin or bruised credit files. This guide covers where to get equipment loans in Canada in 2026 across banks, a key government-backed program, and nine specialist lenders and brokers, whatever your credit looks like.

Where to Start: The Quick Answer

Before the full list, here’s how I’d triage it:

• Banks and credit unions first (RBC, BMO, TD, Scotiabank, CIBC). They offer the best rates and longest terms, but approve mainly strong credit and move slowly.
• The CSBFP — the government-backed program below — should be your next call, because it’s built to get startups approved when a plain bank loan won’t.
• Alternative lenders and brokers (Swoop, Merchant Growth, Driven, and the specialists further down) approve faster and accept weaker credit, at higher cost.

Whatever you do, get quotes from at least two or three sources before committing — equipment-financing rates vary widely, and a broker’s first offer is rarely the best you can do.

What Are Equipment Loans?

Like a mortgage, an equipment loan is secured financing: the asset you’re buying backs the loan, so if you default, the lender can repossess and sell it to recover what’s owed. That collateral is exactly why these loans are more attainable than unsecured credit. They generally come in three shapes:

• Traditional loan — you own the equipment from day one, with the title in your name.
• Lease-to-own — you make payments and take title once the balance is cleared.
• Rental — you pay to use the equipment over a term, then return it.

Which structure wins depends on how long you’ll use the asset and whether you want to own it. Capital-intensive businesses — from gym owners to trades running dump trucks — lean on this financing precisely because the upfront costs are otherwise prohibitive.

How Much Does Your Credit Score Matter?

A lot — it’s the single biggest lever on your rate. Lenders price weak credit as higher risk, so a better score directly lowers what you pay. If your score is holding you back, it’s often worth a few months of repair before applying. My guide to improving your Canadian credit score covers the fastest levers, and the Financial Consumer Agency of Canada notes it takes 30 to 90 days for updates to appear on your report — so momentum builds quicker than most people expect, even if the big jumps take longer.

A free monitoring tool helps you track progress and catch errors; my Borrowell review covers one of the main options. And if you’re actively rebuilding, my KOHO Credit Building review explains how a small secured line reported to Equifax and TransUnion can move the needle for a monthly fee.

Don’t Overlook the CSBFP

Before the specialist lenders, one government-backed option deserves top billing — and surveys suggest only about 16% of Canadian small businesses know it exists. The Canada Small Business Financing Program (CSBFP) has your bank or credit union make the loan while Innovation, Science and Economic Development Canada guarantees up to 85% of the lender’s losses on default. That guarantee is what flips a “no” into a “yes” for a young company.

For equipment specifically, a borrower can access up to $1.15 million total — up to $1 million in term loans, of which up to $500,000 can go toward equipment and leasehold improvements — plus a $150,000 line of credit. Rates are capped at your lender’s prime plus up to 3%, with a one-time 2% registration fee and a 1.25% annual administration fee. You need gross annual revenue of $10 million or less, and farming operations aren’t eligible. You apply through a participating lender, not the government, so ask your account manager about it by name.

The 9 Equipment Lenders

1. Swoop Funding

Swoop is a funding marketplace rather than a single lender: it connects you with hundreds of lenders, investors, and grant and tax-credit programs, then matches you to what fits. For equipment and asset-based needs it’s an efficient first stop, accepting almost any credit profile and generally moving faster than a bank. Rates depend on your profile, so treat its matches as a shortlist to compare, not a final answer.

2. Merchant Growth

A Vancouver-based alternative lender operating since 2009, Merchant Growth has funded over $150 million to more than 1,700 Canadian businesses and is a member of the Canadian Lenders Association. Term financing runs $5,000 to $800,000 with funding in as little as 6 to 24 hours, and it accepts lower credit scores than a bank. Repayments are daily or weekly over roughly 6 to 24 months — fast, but match the cadence to your cash flow. My full Merchant Growth review has the details.

3. Driven

Driven — the rebranded Thinking Capital and one of Canada’s larger non-bank small-business lenders — offers fast, simple approvals from $10,000 to $500,000, with terms typically 3 to 18 months and a soft credit check at the application stage. It’s a CLA member and competitive with Merchant Growth on speed. See my Driven review for more.

4. First Financial Canadian Leasing

First Financial Canadian Leasing provides secured lease solutions across construction and heavy equipment, healthcare, IT, materials handling and automation, and renewable energy. The equipment acts as collateral and you own it once the lease is repaid. Now part of the global JA Mitsui Leasing group, it’s a serious operator — but it’s oriented to larger deals (generally $100K and up), so it suits a well-capitalized startup or expansion more than a first small purchase.

5. Armada Credit Group

Armada Credit Group is a broker that builds relationships across banks, independent finance companies, and non-traditional lenders to source equipment financing, occasionally funding directly. It’s a strong fit for startups and small-to-mid-sized firms, with loan-to-value ratios that can reach 100%, deferred and seasonal payment options, and repayment schedules the firm tries to match to the cash flow the equipment generates.

6. Prime Capital

Prime Capital markets its product as a lease, but it functions as lease-to-own: Prime holds title until you repay, then transfers ownership to your company. It works with businesses of every size — “from mom-and-pop shops to multinationals” — which means there are usually structures available for startups. Common categories include construction, medical, manufacturing, and transportation equipment.

7. Meridian Credit Union

Meridian Credit Union, through Meridian OneCap, offers customized equipment financing (including heavy equipment) with loan-to-value up to 100%, terms matched to your budget and seasonal revenue, and competitive fixed-payment structures. As one of Ontario’s largest credit unions and a CFLA member, it pairs credit-union service with real scale.

8. QuickFi

QuickFi is digital, point-of-sale equipment financing you complete from your phone — often in about three minutes — for amounts up to roughly $500,000. The catch worth understanding: QuickFi works through partner equipment manufacturers (OEMs) and banks, so it’s available when you’re buying from a participating brand rather than as a general-purpose lender. Where it applies, the speed and transparency are hard to beat, and its Trustpilot rating sits near 4.8.

9. Vendor Lender

Vendor Lender is a business-to-business broker connecting you with dealers and financing partners, with three structures: lease-to-own ($1,000 to $2,000,000+), traditional loans (up to $300,000, secured or unsecured), and rental. Your business needs to be operating for at least three months to apply, making it accessible to genuinely young companies.

Comparison Table

Conclusion: Where Should You Start?

Start with your bank or credit union, and in the same breath ask about the CSBFP — that combination is your cheapest realistic path. If you’re turned down, use the rejection as information: work on the credit factors that triggered it, and consider a period of credit repair before reapplying. Meanwhile, the alternative lenders and brokers above can get equipment into your hands faster and with looser credit requirements, so long as you compare at least two or three offers and read the full cost of each.

One clarification, since the industry often blurs it: several of these lenders belong to the Canadian Lenders Association, but that’s membership in an industry body promoting responsible lending — not a government certification or a guarantee of the best rate. It’s a reasonable signal, not a substitute for reading the terms. If your startup is in construction, resources, manufacturing, or another equipment-heavy field, financing done well can be the difference between stalling and scaling — just make the numbers, not the marketing, drive the decision.

FAQ

Can a brand-new startup get an equipment loan?

Often yes, because the equipment secures the loan. Some lenders (like Vendor Lender) require as little as three months in operation, and the CSBFP is specifically designed to help newer businesses that banks would otherwise decline.

Is leasing or buying better for equipment?

It depends on the asset. Leasing lowers upfront cost and simplifies upgrades for fast-aging equipment; buying (or lease-to-own) builds ownership in assets with a long useful life. Compare the total cost of each over the full term.

What’s the cheapest way to finance equipment?

Generally a bank or credit union loan, or the CSBFP, if your credit qualifies — the CSBFP’s prime-plus-up-to-3% cap is hard for alternative lenders to beat, even accounting for its fees.

Does the equipment count as collateral?

Yes. Equipment loans are secured by the asset itself, which is why they’re more accessible than unsecured credit — but it also means the lender can repossess the equipment if you default.

How fast can I get funded?

Alternative lenders can fund in as little as 6 to 24 hours (Merchant Growth) or minutes at point of sale (QuickFi). Banks and the CSBFP typically take a few weeks.