As a small business, you know that investing in equipment is probably one of the most important factors for your company to grow and scale. Modern equipment can help businesses to quicken production, automate manual work, improve product quality and reduce the cost of manufacturing.:

Used Equipment Lender	Loan Highlights
Top Banks (BDC, Scotiabank, RBC, TD Bank, BMO)	Offers competitive rates, often 100% financing, customized solutions, and seasonal payment options; best for businesses with strong credit and financial stability.
Swoop Funding	Flexible equipment loans, access to multiple lenders, large loan capacity, transparent fees; ideal for small businesses needing flexible options.
Merchant Growth	Fast funding (24-hour processing), loans up to $800,000, term financing without specific asset focus; suitable for quick cash needs.
Journey Capital	Customized loan packages for small and medium enterprises, flexible terms; requires at least $100,000 in annual revenue.
Driven.ca	Equipment-specific loans using collateral, flexible loan amounts; ideal for businesses with $120,000+ revenue, but customer service can be a drawback.
LoansCanada.ca	Largest lender network in Canada, options for bad credit, varying terms and interest rates; good for finding multiple financing options.
MicroCapital.ca	Offers equipment loans up to $800,000, requires business and personal credit checks; suited for established businesses with $120,000+ in revenue.
Dynamic Capital	Independent equipment financing and leasing options, competitive rates, flexible terms; caters to both new and used equipment needs.
CWB National Leasing	Canada’s largest equipment leasing provider, loans for diverse equipment types, excellent customer service; established reputation for equipment financing.
JLG Financial	Financing for both new and used equipment starting at $3,000, competitive rates, pre-approvals up to 120 days; accessible for startups.

However, investing in equipment or even used equipment is not easy. Why? Because new businesses in Canada are usually capital-starved. In Canada, the business environment is quite favorable for startups. In 2020, Canada was ranked 23 out of 190 countries for the ease of doing business. The number of financing options available for startups in Canada contributes to this ease of doing business.

In this article, we will review the top 10 used equipment loans and financing options available for new businesses and startups in Canada. This list will help budding businesses by providing concise and consolidated information and help them find the right fit for their equipment loan.

Top 10 Used Equipment Financing Options for Startups

Here’s our list of the top 10 used equipment financing options for startups:

1. Traditional Institutions

Although alternative lenders offer great options for businesses, traditional institutions like banks are better for equipment financing for businesses. Banks offer better interest rates most of the time and, therefore, should be the first pick for financing equipment.

Here is a list of the top 5 banks that businesses can approach for equipment financing:

• BDC: BDC’s equipment loan covers up to 125% of the purchase price of new or used equipment to cover shipping, training, and installation costs as well. Plus, businesses can match their payments to their cash flow cycle for peace of mind. However, the business should be in operation for at least two years, have a good track record (credit history), and should be generating revenue.
• Scotiabank: Scotiabank offers 100% financing for loaning or leasing equipment. They also offer flexible terms such as fixed and variable rates, seasonal payment options, and skip payments.
• RBC: RBC offers 100% financing for any equipment including taxes and installation. It also offers an Equipment PurchaseLine for multiple equipment purchases. Plus, businesses can get a customized solution fit for the business’s cash flow.
• TD Bank: TD Equipment Financing offers a fixed payment rate for businesses to manage their cash flow appropriately. Plus, its consultants can guide businesses to get the best tax benefits on equipment purchases, saving up money.
• BMO Commercial Bank: BMO offers 100% equipment leasing and financing for both new and used equipment for businesses in a range of industries. The specialists at BMO can help businesses with customized plans.

2. Swoop Funding

Official Name: Swoop Funding
Website: https://swoopfunding.com/ca/
Location: Toronto, Canada
Phone Number: 1 647-946-3001
Email: canada@swoopfunding.com
Google Reviews: 4.9/5 stars (8 reviews)
Trustpilot: 5/5 stars (370+ reviews)

Swoop Funding specializes in providing equipment and asset-based loans to small businesses. Through the Swoop Funding platform, entrepreneurs and business representatives can apply for asset finance.

What makes Swoop Funding better for new businesses is its flexibility. While other platforms cap equipment loans at $300,000 – $500,000, Swoop Funding can even facilitate larger equipment loans.

To learn more about Swoop Funding’s services, I recommend that you check out this Reddit thread.

3. Merchant Growth

Official Name: Merchant Growth
Website: https://www.merchantgrowth.com/
Headquarters: Vancouver, British Columbia
Phone Number: +1 866-240-3694
Email: clients@merchantgrowth.com
Google Reviews: 4.1/5 stars (100+ reviews)
Trustpilot: 4.8/5 stars (450+ reviews)
BBB Rating: A+

Merchant Growth is one of the top-rated loan platforms for Canadian small businesses. Although Merchant Growth does not have a specific equipment or asset loan, its term financing solution can help small businesses finance the assets and equipment they need.

The best part about picking an alternate lender like Merchant Growth is quick processing. Through Merchant Growth, businesses can get funded as fast as 24 hours. The company offers up to $800,000 in loan amounts. To learn more about Merchant Growth, read the full review here.

4. Journey Capital

Official Name: Journey Capital
Website: https://www.journeycapital.ca/
Headquarters: Montreal, Canada
Phone Number: +1 877-781-0148
Google Reviews: 4.7/5 stars (130+ reviews)
Trustpilot: 4.9/5 stars (93 reviews)

Journey Capital serves small and medium enterprises with a focus on providing flexible, customized loan packages. Journey Capital’s requirements are similar to Merchant Growth. For businesses to avail financing, they need to show at least $100,000 in annual revenue, which might be challenging for small businesses and startups. Businesses applying for the loan should be prepared for a hard pull credit check when they pick one of the credit options given to them. Journey Capital is very similar to Merchant Growth, so we encourage you to compare their offers and get different quotes to ensure you are getting the best deal.

5. Driven.ca

Official Name: Driven
Website: https://www.driven.ca/
Headquarters: Toronto, Ontario
Phone Number: 1-866-889-9412
Email: customerservice@driven.ca
Trustpilot: 4.6/5 stars (860+ reviews)

Driven.ca specializes in business loans for small businesses. However, to qualify for a loan, businesses must have $120,000 in annual revenues.

When businesses apply for equipment loans, they need to present their business plan and details of the equipment that they intend to purchase. The lender will then review the documents and approve or deny the loan based on their criteria. The equipment becomes collateral for the loan which results in a reduced interest rate.

One drawback is the customer service. Some reviews suggest that the quality of customer service is not that impressive.

6. LoansCanada.ca

Official Name: LoansCanada
Website: https://loanscanada.ca/
Headquarters: Toronto, Ontario
Phone Number: 1 (877) 995-6269
Email: info@loanscanada.ca
Google Reviews: 3.9/5 stars (90+ reviews)
BBB Rating: A+

Loans Canada has the largest lender network in Canada, making it one of the best platforms for new businesses. Through LoansCanada, new businesses can apply for equipment financing. The terms of the loan depend on the lender since LoansCanada is just a platform for linking loan seekers to lenders. To learn more about this lender, read our full review here.

In some cases, lenders may require a lien on the equipment to use as collateral. However, the equipment becomes free of lien after the lender has completely paid back the lender. If the equipment is very expensive, some lenders might agree to finance only a percentage of the equipment. The business will then have to finance the remaining percentage. However, with LoansCanada’s huge network of lenders, new businesses can find other lenders that agree to finance their equipment based on their terms. Plus, businesses of any size can apply for equipment financing through LoansCanada even if they have a bad credit score or do not have enough sales to become eligible on other platforms.

7. MicroCapital.ca

Official Name: MicroCapital
Website: https://www.microcapital.ca/financement-dequipement/
Headquarters: Montreal, Canada
Phone Number: +1 866-240-3694
Email: bonjour@microcapital.ca
Trustpilot: 4/5 stars (Limited reviews)

Businesses applying for equipment financing through MicroCapital.ca should have incorporated at least 6 months ago, reported $120,000 in annual revenue, and had 550 personal credit scores and a business credit score of at least 1300. Businesses can get as much as $800,000 for equipment financing through MicroCapital.ca.

8. Dynamic Capital

Official Name: Dynamic Capital
Website: https://dynamiccapital.ca/
Phone Number: +1 888-626-3002
Google Reviews: 4/5 stars (Limited reviews)
Trustpilot: 4.8/5 stars (180+ reviews)

Dynamic Capital is one of Canada’s largest independent equipment financing companies. Through Dynamic Capital, new and small businesses can get Capex loans for replacement and growth, as well as working capital loans/leases. Through Dynamic Capital, businesses can get leases on both new and used equipment. The financial solutions are flexible and tailored to the needs of the business.

9. CWB National Leasing

Official Name: CWB National Leasing
Website: https://cwbnationalleasing.com/en/get-financing
Headquarters: Winnipeg, Manitoba
Phone Number: +1-888-681-3759
Email: customerservice@cwbnationalleasing.com
Trustpilot: 4.7/5 stars (570+ reviews)

CWB National Leasing is Canada’s largest and longest-running equipment financing company. Through the platform, businesses can get loans for almost any type of equipment. CWB has a comprehensive list of equipment that businesses can lease, ranging from agricultural equipment to medical equipment.

A recurring theme in CWB’s customer reviews is that they have excellent customer service.

10. JLG Financial

Official Name: JLG Financial
Website: https://www.jlg.com/en/financing/financing-ca
Phone Number: +1-877-554-5438
JLG Financial offers retail financing to businesses. Startups and businesses can get 100% new or used equipment. Financing deals start at $3,000, with pre-approvals lasting up to 120 days. The company offers competitive interest rates to help you manage cash flow effectively. 

Final Thoughts

Finding the right financing option is essential for startups and small businesses looking to acquire equipment and fuel their growth. Canada offers a wide range of financing solutions, from traditional banks with reliable low rates to alternative lenders like Swoop Funding and Merchant Growth, known for their flexibility and quick approval processes. By exploring these options, new businesses can secure the funding they need without stretching their resources thin. Whether you’re looking for customized payment plans, seasonal options, or fast-track financing, this list provides a solid foundation to help you find the best fit for your equipment financing needs.