When this service may fit
A useful starting point for these transactions
- Businesses prioritizing cash-flow planning
- Assets with a defined productive life
- New or used equipment purchases
- Companies comparing lease and ownership structures
- Seasonal structures where available
- Documented equipment packages
Lease equipment that earns revenue for your business
The equipment and the job it performs are central to the review. Merrit Capital works across Canadian commercial industries, including landscaping and snow removal, towing, dump trucks, site preparation, road building, drilling, mining, forestry, dental and medical practices.
A landscaping operator might need a skid steer, trailer and attachments as one documented package. A road contractor may be adding a grader or excavator for a new contract. A dental practice may be replacing treatment equipment. Supply the full equipment list, itemized prices and delivery requirements so each component can be reviewed.
How much will an equipment lease cost?
There is no single lease payment or rate that applies to every Canadian business. The equipment price and age, term, credit profile, initial payment, purchase option and lender conditions all affect the quote. Tell us the price and desired term to start a review.
Compare the cash due at signing, all scheduled payments, fees and any amount needed to buy the equipment at the end. Include insurance, maintenance and delivery in your operating budget. A payment that looks manageable during peak season must also work when collections slow down.
What happens at the end of an equipment lease?
Read the purchase option or residual amount and any notice deadline before you sign. Depending on the agreement, the next step may be a purchase, renewal or return. Do not assume that the final regular payment transfers ownership or that you can return equipment early without further obligations.
If your main goal is to own a durable asset, compare the proposed lease with a conditional sales contract. If you already own the equipment and want to release eligible equity, ask about a sale-leaseback.
Review the complete lease structure
Leasing may offer lower initial cash requirements or different end-of-term choices than a conventional purchase loan, but the details matter. Payment timing, term, residual, purchase option, tax treatment and early-payout provisions can materially change the result.
Merrit Capital presents the available structure in plain language so the business can make an informed decision with its accountant and advisors.
Match the term to the equipment
A productive-life mismatch can create pressure—for example, paying for an asset long after it is obsolete, or compressing payments for durable equipment into an unnecessarily short period. Lenders consider asset type, age, expected use and marketability when setting terms.
Seasonal or deferred structures may be available for certain transactions, but they are not automatic. The borrower, asset and timing all need to support the request.
Lease versus finance
A lease generally gives the lessor legal ownership during the term, with rights and options defined by the agreement. A financing contract is typically designed around the borrower acquiring ownership, subject to the lender’s security interest.
Tax and accounting treatment depends on the agreement and the business. Merrit Capital does not provide tax or legal advice; review the final structure with qualified advisors.
For Canadian businesses across the country
Merrit Capital serves Canadian companies only. We work with businesses in Northern and Southern Ontario, Atlantic Canada, Manitoba including Winnipeg, Saskatchewan, Alberta, British Columbia, Quebec, Yukon, the Northwest Territories and Nunavut. We do not offer financing to businesses in the United States. Explore our Canadian service areas.