FAQ General

What's the difference between "leasing" and "financing"? 
The concept of leasing is widely accepted as a means of acquiring tangible assets such as computer hardware, construction equipment, vehicles etc. A leased asset belongs to the lending company until you reach end of term. The lease holder makes monthly lease payments and at the end of the term, may purchase the asset or lease a brand new asset.
What is the range of deal size you will finance? 
We will finance opportunities that range from $5,000 to $5,000,000. Our typical deal size is in the $50,000 to $750,000 range.
Who can finance or lease? 
Any company, organization or association can lease.
What equipment does Canadian Dominion Leasing finance? 
Virtually any equipment utilized by a business can be leased, new or used, including soft costs such as freight, installation and training. For a brief list of the types of equipment that we finance click here.
What are Canadian Dominion Leasing' credit requirements? 
Generally, Canadian Dominion Leasing prefers to lease equipment to lessees that have been in business at least 24 months. Our credit criteria requires us to review your customer's time in business, references (from bank and trades), credit rating (from D&B or other credit bureaus) and their personal credit profile.
If my company is new, can I still lease? 
Canadian Dominion Leasing deals with a select group of funding partners that specialize in relatively new businesses and start-ups, and as such, we are often able to approve companies that have been in business for less than two years. Since the company is newer you may have a higher rate because your company is a higher risk investment than an established company. Additionally, you will be required to provide a personal guarantee. Please contact us for complete details.
Why do I have to give a personal guarantee?
We make fast, accurate credit decisions based on the limited information requested on our convenient credit application. We check publicly available information and have found that credit bureaus are typically very accurate and reliable and allow us to provide you with a quick credit decision. We've also found that payment patterns of privately held businesses mirror that of their principals.
What type of information will I be asked to provide for on my lease application?
It's basic and simple. There are only seven steps to complete your application:
  • Basic Company Information
  • Owner Principal Information
  • Equipment Information
  • Equipment Location
  • Banking Relationships
  • Trade, credit references
  • Your Signature and/or authorization
How is the monthly payment calculated?
Monthly payment is determined by a Lease Rate Factor; a periodic rental payment to a lessor for the use of assets. Lease rate factor x equipment cost = your monthly payment.
How is a financing rate determined?
The key considerations in determining the financing rate are:
  • Number of years in business
  • Strength of corporate balance sheet
  • Cash flow - both current and future/forecast
  • Commercial and personal credit bureaus
Credit Worthiness. The most important consideration is the credit worthiness of the business that is purchasing the equipment. Standard industry practice is to assign an "AAA", "AA", "A", "B" or "C" credit rating. Factors such as years in business, size of the business and outside credit rating are considered in calculating credit worthiness. The lower the credit risk, the lower the rate that a Canadian business would expect to pay.
What is the interest rate when leasing equipment?
Lease Rates are differ from bank interest rates because you are leasing and not taking out a bank loan to finance your purchase, there is no interest rate. With leasing equipment, you are paying to rent the equipment and the fixed monthly payment is based on the type of lease, term of the lease, cost of the equipment, time in business, financial repayment ability and your business and personal credit history.
Are lease rates fixed or variable?
Lease rate factors & terms are fixed or floating, as determined at the inception of the lease.
How much does leasing cost?
We're thrilled to tell you that leasing is a very affordable option when it comes to equipment acquisitions. Your monthly payment is determined by the options you choose and can be tailored to fit your cash flow needs. If you want to know how leasing effects your bottom line when compared to other options, consider the benefits of Leasing vs. Borrowing, Credit and Cash.
How do I, the lessee, account for the lease in my company financials?
The lease options you choose up front may have tax and accounting implications. Talk to one of our expert leasing consultants, as well as your accountant, to determine the best options for you and your business
What effect does leasing have on my, the lessee's, bank line of credit?
No money is borrowed when leasing, and as such, your bank line of credit is unaffected.
Can I finance 100% of the purchase price?
Yes. Leasing equipment only requires your first & last payment due at lease signing. Banks typically require 10-30% down.
Who should sign the lease?
The lease should be signed by the owner of a sole proprietorship, an authorized officer(s) of a corporation, or by the duly authorized partners of a partnership.
When does the lease start?
Your lease will begin upon signing of the lease agreement or when the equipment is installed.
When do payments start?
Typically, regular lease payments start 30 days after the lease documentation is completed. To meet the unique needs of larger customers, we can tailor invoice formats and payment schedules.
How will I be billed?
There are a number of billing and payment options, including an automatic debit to your bank account for each payment.
Will I be charged tax on my lease?
The applicable taxes are added to the monthly lease payment over the term of the lease.
What taxes am I responsible for?
Closing costs, documentation fees and commitment fees may be required, depending on the transaction.
Are Capital Leases tax deductible?
For tax purposes, lease payments are a tax-deductible expense for the lessee and the lessor, as it is the owner of the asset who claims the Capital Cost Allowance (CCA). However, Canada Customs and Revenue Agency deem a lease to be a sale if any of the following conditions is present:
  • Title to the equipment passes to the user automatically by the end of the lease;
  • The lessee is required to purchase the asset; and
  • The lessee has the option, during or at the expiry of the lease, to acquire the asset on terms that a reasonable person would exercise.
If any of the above holds, the lease is a sale for tax purposes and the user of the asset claims CCA as a deduction, but not the lease payments.
What are my options at end of lease?
There are several options for lessees at the end of the lease term:
  • You can renew the lease for a specified period of time
  • Purchase the equipment
  • Return the equipment to the leasing company

Should you choose to purchase the equipment; the following options exist for the purchase price:

  • Price based on fair market value (FMV)
  • $1.00 buy-out price, where you pay just $1.00 to purchase the equipment
The end of term options are decided by you, the customer, and structured into the lease prior to execution.
What if the equipment I receive has problems?
When your shipment arrives, you will be contacted to ensure that you receive exactly what you have ordered and in proper condition. After your initial receipt of the equipment, your vendor will work with you to troubleshoot problems or replace equipment as defined in your warranty. As the lessee, you will receive the benefits of all "buyer" warranties, as well as the responsibility for maintenance.
Who owns leased equipment?
The Leasing Company, as the lessor, is the owner of leased equipment until you choose to purchase the equipment at end of lease.
Who services/maintains equipment?
The lessee is responsible for maintenance and receives the benefits of all "buyer" warranties. Your vendor or supplier will service and maintain the leased equipment.
Is insurance required on the leased equipment?
In order to protect both the leasing company and lessee, insurance is required on all leased equipment. Insurance protection can be included with your lease for a nominal fee.
If I have questions during the term of my lease or loan, whom do I contact?
We can answer your questions during regular business hours at (289) 337-4639.
You can also contact us via email click here.
Can I upgrade or add on to my leased equipment?
In most cases, yes. This is one of the key benefits of leasing. Our goal is to provide the solution you need, when you need it.
Can the leased equipment be moved?
Yes, if your equipment is in a secured environment you require with written notice.
What is the documentation fee?
During the lease process there has been incurring expenses such as credit reporting fees, lien searches, overnight delivery, administrative fees, PPSA filings and papers required to be processed. A documentation fee is charged to help offset the expenses for your transaction.
What financing alternatives are available?
We can customize your leasing plan to fit your business requirements, deferred payments, seasonal payments, and no down payments.
What vendor can I order from?
The vendor of your Choice! A benefit of leasing with Canadian Dominion Leasing is that you can purchase equipment from any reputable vendor of your choice. Select your equipment and options, negotiate your best price and let us do the rest!
How long can I lease?
Most leases are written for 24 to 84 months, depending upon the type of equipment. Leases for items that depreciate rapidly (such as computers) are usually shorter terms.
Can I still lease equipment if I have already purchased it?
Yes. This is a great advantage and financing tool for your business to put your cash flow back where you need it most…in your business. Typically, you can do a Sales-leaseback for equipment that has been purchased in the last 30 days. The Sales-leaseback is a type of lease in which an asset that is owned by the lessee (you) is sold to the Lessor and then leased back to the lessee.

You still have the equipment producing revenue to pay for itself and you gain working capital which can be better re-invested in the business whether it is expansion, growth, or even payroll.

What are my options at end of lease?
There are several options for lessees at the end of the lease term:
  • You can renew the lease for a specified period of time
  • Purchase the equipment
  • Return the equipment to the leasing company

Should you choose to purchase the equipment; the following options exist for the purchase price:

  • Price based on fair market value (FMV)
  • $1.00 buy-out price, where you pay just $1.00 to purchase the equipment
The end of term options are decided by you, the customer, and structured into the lease prior to execution.
What if the equipment I receive has problems?
When your shipment arrives, you will be contacted to ensure that you receive exactly what you have ordered and in proper condition. After your initial receipt of the equipment, your vendor will work with you to troubleshoot problems or replace equipment as defined in your warranty. As the lessee, you will receive the benefits of all "buyer" warranties, as well as the responsibility for maintenance.
Who owns leased equipment?
The Leasing Company, as the lessor, is the owner of leased equipment until you choose to purchase the equipment at end of lease.
Who services/maintains equipment?
The lessee is responsible for maintenance and receives the benefits of all "buyer" warranties. Your vendor or supplier will service and maintain the leased equipment.
Is insurance required on the leased equipment?
In order to protect both the leasing company and lessee, insurance is required on all leased equipment. Insurance protection can be included with your lease for a nominal fee.
If I have questions during the term of my lease or loan, whom do I contact?
We can answer your questions during regular business hours at (289) 337-4639.
You can also contact us via email click here.
Can I upgrade or add on to my leased equipment?
In most cases, yes. This is one of the key benefits of leasing. Our goal is to provide the solution you need, when you need it.
Can the leased equipment be moved?
Yes, if your equipment is in a secured environment you require with written notice.
What is the documentation fee?
During the lease process there has been incurring expenses such as credit reporting fees, lien searches, overnight delivery, administrative fees, PPSA filings and papers required to be processed. A documentation fee is charged to help offset the expenses for your transaction.
What financing alternatives are available?
We can customize your leasing plan to fit your business requirements, deferred payments, seasonal payments, and no down payments.
What vendor can I order from?
The vendor of your Choice! A benefit of leasing with Canadian Dominion Leasing is that you can purchase equipment from any reputable vendor of your choice. Select your equipment and options, negotiate your best price and let us do the rest!
How long can I lease?
Most leases are written for 24 to 84 months, depending upon the type of equipment. Leases for items that depreciate rapidly (such as computers) are usually shorter terms.
Can I still lease equipment if I have already purchased it?
Yes. This is a great advantage and financing tool for your business to put your cash flow back where you need it most…in your business. Typically, you can do a Sales-leaseback for equipment that has been purchased in the last 30 days. The Sales-leaseback is a type of lease in which an asset that is owned by the lessee (you) is sold to the Lessor and then leased back to the lessee.

You still have the equipment producing revenue to pay for itself and you gain working capital which can be better re-invested in the business whether it is expansion, growth, or even payroll.

 How do I get started Leasing Equipment at CDL? - Follow this link for the basic, easy steps for you to follow: Click Here for Details