Canada Has A Wide Range Of Equipment Leasing Providers

Equipment leasing providers in Canada are considerable in number and are spread out over the country, some focusing in on certain regions, types of assets, financing amounts, and credit or risk profiles

The highest concentration of equipment leasing companies in in the province of Ontario where there are head offices for both national and regional entities that provide lease financing.

While there is considerable representation by equipment leasing providers all over the country, Ontario has considerably more leasing options due to the large business population and the concentration in manufacturing and construction which lends to large capital requirements for businesses in these industries.

Regardless of where your business is located in Canada, the equipment leasing providers will be broken down in different classifications to further describe where they fit into the market and the leasing benefits each provides.

For instance, most equipment leasing providers fall into what we call the small ticket financing, where the majority of equipment leases they provide will be under $100,000 with a maximum of around $250,000.

Small ticket leasing companies also tend to be quite diverse in nature as their risk is somewhat restricted to the lower dollar amounts they are dealing with.

For the larger financing requests, there tends to be more concentration in certain types of assets due to the need to manage the risk of default on larger financing facilities.

Equipment Leasing Providers Occupy Many Different Market Niches

In order to be more unique in the market and to develop some degree of competitive advantage, there is also a fair bit of specialization in the market among leasing companies.

For instance, there are certain companies in both the small ticket and larger ticket segments that will focus more on businesses with some combination of distressed cash flow and credit.

These companies are typically closely aligned with auction houses and liquidators in order to be able more effectively deal with the high risk of default that comes with more distressed lending scenarios.

On the other side of the equation are the bank leasing divisions that provide equipment leases at very good rates, and in many cases, better leverage than their own small business financing arms, provided that a given business can qualify.

With all the different potential options to choose from, the best approach a business owner can take towards securing lease financing from an equipment leasing provider is to work with an experienced equipment leasing broker.

If you have an equipment leasing requirement right now, or are just planning ahead, we suggest that you give us a call and we’ll make sure you get all your questions answered right away.