Equipment leasing lets Manitoba businesses access the machinery they need without paying the full cost upfront. Instead of a large capital outlay, you make regular payments over a set term and use the equipment while the leasing company retains ownership.
For industries that drive Manitoba's economy, from agriculture in the Prairies to construction in Winnipeg and Brandon, leasing offers a practical way to manage cash flow and stay competitive. Whether you need tractors, excavators, trucks, or manufacturing systems, leasing provides flexibility that traditional financing often can't match.
This guide explains how equipment leasing works, the types of agreements available, and what to look for when choosing a leasing partner in Manitoba.
What Is Equipment Leasing?
Equipment leasing is a financing arrangement where a business pays to use an asset for a set period instead of buying it outright. The leasing company (lessor) purchases the equipment and retains ownership. Your business (the lessee) makes fixed monthly payments and uses the asset for the duration of the contract.
1. How it works
- You select the equipment your business needs
- The leasing company purchases it on your behalf
- You make regular payments over an agreed term (typically 24 to 84 months)
- At the end of the lease, you can return the equipment, buy it out, or upgrade
2. How leasing differs from a traditional loan:
With a loan, you borrow money to purchase the asset and own it from day one. You're responsible for its full value, plus interest.
With a lease, you pay only for the use of the equipment during the contract term. This keeps monthly costs lower and preserves your credit lines for other business needs.
Types of Equipment Leasing Agreements
1. Operating Lease
You use the equipment for a fixed term, then return it to the lessor. There's no ownership transfer and no buyout obligation. This works well for assets that become outdated quickly or for short-term project needs.
2. Finance Lease (Capital Lease)
Structured more like a financed purchase. You use the equipment for most of its useful life and typically have the option to buy it at the end for a nominal amount. The asset and liability appear on your balance sheet.
Learn more about the differences between operating and finance leases
3. Sale and Leaseback
Already own equipment? You can sell it to a leasing company and lease it back. This unlocks the equity tied up in your existing assets while you continue using them. A useful option for Manitoba businesses looking to free up working capital without disrupting operations.
What Equipment Can You Lease in Manitoba?
Most types of business equipment qualify for leasing, including:
Agriculture & Farming : Tractors, balers, combines, grain bins, seeding equipment, and sprayers.
Construction & Excavation : Excavators, loaders, cranes, compactors, and hydraulic breakers.
Transport & Trucking : Tractor trailers, dump trucks, box trailers, and tow trucks.
Forestry : Harvesters, skidders, chippers, and grapples.
Manufacturing & Industrial : Compressors, presses, generators, and packaging systems.
Restaurant & Food Service : Commercial ovens, cold rooms, dishwashers, and refrigeration units.
Medical & Dental : Diagnostic equipment, imaging systems, chairs, and lasers.
Whether you operate a farm near Portage la Prairie or a construction company in Winnipeg, leasing gives you access to the equipment you need without tying up capital.
Benefits of Leasing Equipment
Preserve cash flow : Spread costs over monthly payments instead of a large upfront purchase. Keep working capital available for payroll, inventory, and growth.
Tax advantages : Lease payments are typically deductible as a business expense in Canada, reducing your taxable income.
Flexibility to upgrade : Upgrade to newer equipment at the end of your term instead of being stuck with outdated machinery.
Easier approval : Leasing often has more flexible credit requirements than traditional bank loans, making it accessible for startups and growing businesses.
Predictable budgeting : Fixed monthly payments make financial planning straightforward with no surprises.
How to Choose the Right Leasing Company
The leasing company you choose affects more than just your monthly payment. It impacts how fast you get approved, how flexible your terms are, and how smoothly the process runs.
Here's what makes a difference:
- Access to multiple lenders : Working with an independent broker gives you access to a wide network of lenders, so you get the best rates and terms for your situation.
- Industry expertise : A leasing partner familiar with agriculture, construction, or transport understands your equipment needs and cash flow cycles.
- Flexible terms : Seasonal businesses need payment structures that align with revenue. The right partner offers deferred payments, adjusted schedules, and terms that fit your operations.
- Clear end-of-lease options : You should know upfront whether you can buy the equipment, return it, or upgrade.
- Fast approvals : When you need equipment now, waiting weeks isn't an option. Look for approval within 24-48 hours.
Ready to get started? Apply online or contact our team to discuss your equipment leasing needs. Most applications are approved within 24-48 hours.
FAQ
1. How long are typical lease terms in Manitoba?
Lease terms generally range from 24 to 84 months, depending on the equipment type and your business needs. Some lenders offer terms up to 96 months for larger assets.
2. Can I lease used equipment?
Yes. Many leasing companies finance both new and used equipment. This can be a cost-effective option for businesses that don't need the latest models.
3. What credit score do I need to qualify?
There's no universal minimum. Leasing companies typically have more flexible credit requirements than traditional banks. Even businesses with limited credit history or past challenges can qualify with the right lender.
4. Can I get a lease with seasonal payments?
Yes. Many lenders offer seasonal payment structures that align with your revenue cycles. This is common for agriculture, construction, and other industries with fluctuating cash flow.
