As Canadian businesses plan capital investments in 2025, securing favorable financing terms for equipment, vehicles, and machinery is essential. With stabilized interest rates and evolving lender programs, understanding the financial landscape is key to maximizing your purchasing power.
How Equipment Financing Rates Are Set
Interest rates in 2025 are shaped by several national and business-specific factors:
- Bank of Canada Policy: The overnight rate has held steady, reflecting cautious optimism.
- Inflation Trends: If inflation rises, lenders may increase margins to preserve yields.
- Economic Growth: A strong GDP outlook typically lowers risk premiums for borrowers.
Most lenders calculate your rate as:
Prime Rate + Risk Margin, where the margin depends on:
- Your business credit score
- Time in operation
- Cash flow and revenue consistency
- The type and resale value of the equipment
What Lenders Look For
To determine risk, lenders review:
- Credit History: Strong credit equals better terms.
- Asset Type: Hard assets like trucks or forklifts are favored due to their resale value.
- Industry Sector: Riskier industries may face higher rates.
- Collateral: The equipment usually secures the loan, reducing lender risk.
Key Trends in 2025
1. Growth of Digital Lenders
Online lenders and fintech platforms are offering faster approvals and fixed-rate terms, increasing competition in the market.
2. Green Financing Incentives
Businesses investing in energy-efficient or low-emission equipment may qualify for government-backed rate reductions.
3. More Flexible Loan Structures
To support cash flow in an uncertain economy, lenders are providing:
- Deferred and seasonal payments
- Lease-to-own options
How the Equipment Financing Experts from Fincap Financial Group Can Help
Navigating lenders on your own can be overwhelming. That’s where we come in.
Why Choose Us
- Trusted by Canadian SMEs: We’ve funded up to $5 million within 48 hours across industries like construction, transport, and food service.
- Flexible Terms: Leasing, refinancing, and structured payment options tailored to your needs.
- Lender Network: With over 30 lending partners, we help you access competitive offers quickly.
➡️ See your financing options today →
Tips to Secure the Best Rates
1. Improve Credit
Keep utilization below 30%, stay current on all payments, and resolve any outstanding items.
2. Prepare Documents
Have bank statements, business registration, cash flow projections, and equipment quotes ready.
3. Time Your Application
Apply during periods of lower prime rates or special lender promotions.
4. Shop Around
Don’t settle for one offer—compare rates through brokers like Fincap Financial Group.
FAQs
- What are average rates in 2025? Between 7%–14%, depending on risk factors.
- Can I finance used equipment? Yes, though rates may be slightly higher.
- Is leasing cheaper than buying? Leasing has lower payments; financing leads to ownership—choose based on your goals.
- Is a down payment required? Some lenders offer 0-down options; a deposit can lower your rate.
- Can I get approved with bad credit? Yes, especially with collateral, strong income, or a co-signer.
Take Action in 2025
The right financing can fuel growth. The Equipment Financing Experts from Fincap Financial Group are ready to help you secure the capital needed—quickly, competitively, and with confidence.
