Need an excavator, bulldozer, or crane for your next project? Buying isn't your only option.
Heavy equipment leasing lets you access the machinery you need without the massive upfront cost. You pay monthly, stay flexible, and keep your cash flow healthy.
Whether you're a small contractor or a large construction firm, leasing can be a smart financial move.
In this guide, we cover everything: how it works, the different lease types, costs, and how to find the right partner across Canada.
What is Heavy Equipment Leasing?
Heavy equipment leasing is a contract between two parties: the lessor (who owns the equipment) and the lessee (your business).
Instead of buying machinery outright, you rent it for a set period. You make monthly payments and, at the end of the term, you can either return the equipment, renew, or buy it.
It's simple: you get the tools you need today and spread the cost over time.
This option is popular in construction because projects vary. One month you need a crane, the next you don't. Leasing gives you that flexibility without locking up your capital.
Leasing vs. Buying vs. Loan: Which Option is Right for You?
So, which one?
Choose leasing if you want flexibility, predictable payments, and access to the latest machinery without tying up capital.
Choose buying if you have the cash, plan to use the equipment for 10+ years, and want full ownership from day one.
Choose a loan if you want to own the asset but need to spread the cost. Just remember: it adds debt to your balance sheet.
Types of Lease Agreements
Not all leases work the same way. The right structure depends on your goals: flexibility, ownership, or a bit of both.
1. Capital Lease (Finance Lease)
This is a long-term commitment. You use the equipment for most of its useful life, and at the end, it's yours.
You're treated as the owner from day one. That means full control, but also responsibility for maintenance and repairs. On the plus side, you can claim depreciation (CCA) on your taxes.
Best if you know you'll need this machinery for years to come.
Want to dive deeper? Read our full guide on operating lease vs finance lease.
2. Operating Lease
Think of it as a rental. You use the equipment for a set period, make your payments, and return it when you're done.
No ownership, no long-term strings attached. Maintenance is often included, and you can upgrade easily when your needs change.
Best if your projects vary or if the equipment becomes outdated quickly.
3. Lease-to-Own
A middle ground. You make monthly payments like a lease, but at the end of the term, you can purchase the equipment for a residual amount.
It lets you build equity over time without the heavy upfront cost of buying.
Best if you want to own the asset eventually but prefer to spread the investment.
Understanding Lease Terms and Conditions
Equipment details : The contract should clearly identify the machinery: model, serial number, condition. No room for confusion later.
Payment structure : How much, how often, and for how long? Monthly payments are standard, but some agreements offer quarterly or annual options.
Lease duration : Know your start and end dates. Early termination usually comes with penalties, so plan accordingly.
End-of-lease options : What happens when the term ends? Can you return the equipment, renew, or buy it? Get this in writing.
Maintenance and insurance : Who's responsible for upkeep? Who covers insurance? With operating leases, it's often the lessor. With finance leases, it's usually on you.
Penalties : Late payments, damage, early exit: know the costs before they surprise you.
Pro tip: Read the fine print. If something is unclear, ask.
How to Apply for Equipment Leasing (Step-by-Step Guide)
Getting started with Fincap is simple. Three steps and you're on your way.
1. Find the equipment you need
New or used, from a dealer or a private seller. You choose the machinery that fits your project.
2. Fill out the application
Click Apply Now and complete the form. It takes just a few minutes. We'll need some basic info about your business and the equipment you're looking for.
3. Get approved
Our team reviews your application and gets back to you within 24 to 48 hours. Fast, simple, no hassle.
Once approved, we customize the terms to match your cash flow and business needs. You get the equipment, we handle the financing.
Leasing Rates and Terms: What to Expect
1. Typical lease terms
Most agreements run between 24 and 60 months. Shorter terms mean higher monthly payments but more flexibility. Longer terms lower your payments but lock you in.
2. What affects your rate?
- Equipment type and value: A $500,000 crane won't have the same rate as a $50,000 skid steer
- New vs. used: Used machinery often comes with slightly higher rates
- Your credit profile: Stronger financials usually mean better terms
- Lease structure: Operating leases and finance leases are priced differently
- Down payment: Putting money down upfront can reduce your monthly cost
3. Ballpark figures
Rates typically range from 4% to 15%, depending on the factors above. But every deal is different. Want to get an idea of what you'd pay? Use our Equipment Lease Calculator to estimate your monthly payments in seconds.
Equipment Leasing Options Across Canada
Fincap serves businesses from coast to coast. Wherever you operate, we can help you find the right financing solution.
1. Ontario
Canada's largest construction market. From Toronto's high-rises to infrastructure projects across the GTA, we support contractors with flexible financing for excavators, cranes, and heavy machinery.
2. Quebec
Montreal, Quebec City, and beyond. Our team understands the local market and offers tailored solutions for commercial, residential, and civil construction projects.
3. Alberta
Calgary, Edmonton, and the oil & gas sector. Whether you're in energy infrastructure, municipal development, or commercial builds, we help you access the machinery you need.
4. British Columbia
Vancouver's booming property market and resource-based projects across the province. We work with businesses of all sizes to finance their equipment needs.
5. Saskatchewan and Manitoba
Agriculture, mining, and construction. Our financing services support businesses across the Prairies with fast approvals and competitive terms.
6. Atlantic Provinces
Nova Scotia, New Brunswick, Newfoundland, and PEI. Local projects deserve local attention. We provide flexible options for Canadian businesses in the region.
No matter where your business operates, applying is easy and approval is fast. Need help choosing the right solution? Contact our team.
Who Can Benefit from Equipment Leasing?
Leasing isn't just for big companies. It works for businesses of all sizes.
Small contractors : Access the machinery you need without draining your cash flow. Preserve your capital for other expenses.
Growing companies : Scale your operations without taking on heavy debt. Add equipment as your projects grow.
Established firms : Keep your fleet up to date. Upgrade regularly without the hassle of selling old assets.
Seasonal businesses : Match your payments to your revenue cycle. Flexible terms adapt to your reality.
Startups with limited credit history : New to the industry? Leasing can be easier to access than traditional bank loans.
See our complete guide on Equipment Leasing For Startups
Types of Equipment Available for Lease
We finance all types of heavy machinery. Whatever your project requires, we can help.
Excavation: Excavators, backhoes, bulldozers
Demolition: Demolition excavators, wrecking balls, crushers
Foundation work: Pile drivers, drilling rigs, concrete pumps
Earthmoving: Graders, scrapers, loaders
Road construction: Asphalt pavers, rollers, milling machines
Landscaping: Compact excavators, skid steers, trenchers
Material handling: Forklifts, cranes, hoists
Don't see what you need? Contact us. If it's heavy equipment, chances are we can finance it.
FAQ
1. Can I lease used equipment?
Yes. Many financing companies, including Fincap, offer leasing options for used machinery. Rates may vary depending on the equipment's age and condition.
2. What happens at the end of a lease agreement?
It depends on your contract. You can usually return the equipment, renew the lease, or purchase it for a residual value.
3. How fast can I get approved?
With Fincap, most applications receive a response within 24 to 48 hours.
4. Do I need good credit to lease equipment?
Not necessarily. We work with businesses of all credit profiles. Startups and companies with limited credit history can also qualify.
5. Can I buy the equipment at the end of my lease?
Yes, if you have a finance lease or lease-to-own agreement. The purchase price is usually set at the start of the contract.
