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Get the best financing
options for your equipment

Leasing vs. lending

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You've reached a decisive turning point in your company's growth: the acquisition of equipment. Now you're wondering which financing method best suits your needs: leasing or lending? 

Each of these options offers unique benefits, but also different financial implications.

Use our exclusive comparison table to explore the nuances of these different financing options.

Criteria Leasing Loan
Impact on financing
Lease payments are either rentals or repayments with interest, depending on the type of contract.
Payments reduce the principal amount borrowed, including interest.
Equipment ownership The leasing company retains ownership of the equipment for the duration of the contract, with an option to purchase at the end. The company becomes the owner of the equipment as soon as the loan is acquired.
Deposit required Usually, no deposit is required. A deposit may be required to secure the loan.
Payment frequency Payments can be structured according to various frequencies (monthly, seasonal, etc.) to suit the company's cash flow. Payments are generally monthly but can be flexible depending on the terms of the financial agreement.
Additional warranties Leasing generally requires no additional collateral, with the leased equipment serving as collateral. Additional guarantees may be required to secure financing, depending on the company's creditworthiness.
Depreciation and tax implications Lease payments are often tax-deductible as operating expenses, offering a degree of tax flexibility. Interest paid is tax deductible, while amortization is calculated according to Canada Revenue Agency rules.
Equipment obsolescence Leasing offers the possibility of exchanging or renewing equipment at the end of the contract, protecting against obsolescence. The company assumes the risk of equipment obsolescence but retains the freedom to replace or upgrade as required.
Impact on line of credit Leasing leaves the company's line of credit intact for other financial needs. Obtaining it can increase credit risk and affect the company's ability to use its line of credit for other needs.

Tax implications


Leasing offers distinct tax advantages for companies. In addition to the possibility of deducting leasing payments as operating expenses, this option provides additional tax flexibility. 

For example, companies can tailor the structure of lease payments to better meet their obligations, and adjust their charge in line with their cash flow.


They also offer tax advantages for businesses. In addition to the deduction of interest paid as interest expense, companies can benefit from tax deductions linked to the depreciation of equipment financed by this means. 

However, unlike leasing, companies opting for this solution assume full responsibility for equipment ownership from the outset of financing.

Should your company opt for a lease or a loan?

If your equipment requires regular upgrades

If your company operates in a sector where equipment needs to be regularly updated to remain competitive, leasing can be an attractive solution. 

The possibility of exchanging or renewing equipment at the end of the contract also gives you the flexibility to adapt to your company's changing needs.

If you prefer long-term tax deductions

If you're looking to optimize long-term tax benefits, a loan may be more advantageous. Interest paid is generally tax deductible, as is equipment depreciation, which can provide tax savings over the life of the equipment.

If you prefer to preserve your line of credit for other needs

If you prefer to preserve your line of credit for other financial needs, leasing may be a better option. 

Unlike a loan, which can affect your ability to use your line of credit for other financing needs, leasing leaves your line of credit intact for other opportunities or financial emergencies.

Ultimately, the choice between these two means of financing can be determined by your company's specific needs and financial situation.

Get the best equipment financing conditions for your business needs

Explore our fast, easy and straightforward options to help your business grow.