Financing industrial equipment in Canada: leases, loans and CCA

Most Canadian manufacturers pay for a machine with a bank term loan, an equipment lease or a BDC equipment loan, and exporters may add an EDC guarantee to their bank facility. Tax matters too: under Bill C-15, eligible manufacturing and processing machinery acquired after 2024 can be expensed immediately if it is available for use before 2030.

Titan does not offer financing. We supply the formal quote and machine documentation that lenders ask for. This guide summarises official sources as of September 2026 and is not tax or financial advice.

Finance the project, not just the machine

A production machine rarely arrives as a single invoice line. Budget and finance the whole project:

• The machine and its options, tooling, software and first set of consumables.
• Freight, customs duty where it applies and brokerage.
• Site work: slab or foundation, the electrical drop, compressed air, gas and extraction. Our floor preparation guide lists what is usually needed.
• Installation, commissioning and operator training.
• Working capital for the ramp-up period, when output is lower and material is being tested.

Lenders often finance some of these soft costs along with the machine, but not always on the same terms. Ask early.

Loan or lease?

Question	Term loan	Equipment lease
Who owns the machine?	You do, with the lender holding security	The lessor, until any purchase option is exercised
Who claims capital cost allowance?	You, as owner	Usually the lessor; you deduct lease payments, depending on how the lease is structured
Up-front cash	Often a down payment	Often lower, sometimes first and last payments
Flexibility	Sell or trade the machine when you choose	Tied to the lease term and end-of-term options
Best suited to	Long-life machines you will keep, where tax write-offs matter	Equipment you may replace or upgrade, or when preserving credit lines matters

The accounting and tax treatment of a lease depends on its terms, and some leases are treated like a purchase. That is a question for your accountant, and the answer can change which option costs less after tax.

BDC

The Business Development Bank of Canada (BDC) is a federal Crown corporation that lends to Canadian businesses. Its equipment loan is designed to help businesses buy equipment and cover related expenses, and BDC says repayments can be matched to your cash flow cycle. It also offers a technology equipment loan and LIFT, which combines financing with consulting for digital tools and advanced equipment. BDC often works alongside a company's main bank rather than replacing it.

EDC, if you export

Export Development Canada (EDC) does not usually lend directly for equipment. Its Export Guarantee Program gives your bank a guarantee so it can extend more credit to an exporting business. EDC states the program can support general capital expenditures, including term loans for equipment, with a cap of US$25 million in total coverage per applicant, and that it is best suited to more complex export finance structures. Ask your bank whether your facility qualifies.

Capital cost allowance: the 2026 rules

For tax purposes, a machine is not deducted as an expense in one go by default. You claim capital cost allowance (CCA) each year at the rate set for its class. The rules for manufacturing machinery changed recently:

• Class 53 (50 percent). The Canada Revenue Agency describes Class 53 as eligible machinery and equipment acquired after 2015 and before 2026 for use in Canada primarily to manufacture or process goods for sale or lease.
• Class 43 (30 percent). Eligible manufacturing and processing machinery not included in Class 29 or 53 goes into Class 43. For property acquired after 2025, that is the default class.
• Immediate expensing under Bill C-15. Budget 2025 announced a Productivity Super-Deduction, and Bill C-15, the Budget 2025 Implementation Act, No. 1, received royal assent on March 26, 2026. As summarised in EY's tax alert on the bill, it allows a 100 percent first-year deduction for eligible manufacturing and processing machinery and equipment acquired after 2024 and available for use before 2030, falling to 75 percent for 2030 and 2031 and 55 percent for 2032 and 2033.
• Accelerated Investment Incentive. The same bill reinstates the enhanced first-year allowance for most other capital property acquired after 2024 and available for use before 2034, with the enhancement reduced after 2029.
• Manufacturing buildings. Budget 2025 also proposed immediate expensing for eligible manufacturing and processing buildings acquired on or after Budget Day (November 4, 2025) and first used for manufacturing or processing before 2030, where at least 90 percent of the floor space is used for that purpose.

Note that the Canada Revenue Agency's accelerated investment incentive page was last updated in July 2025, before Bill C-15, so it still shows the older phase-out. Rely on the enacted legislation and your accountant, not on older summaries.

Why "available for use" matters

Most of these incentives depend on when the property becomes available for use, not when you sign the order. A machine that arrives in December but is not installed until February may fall into the next tax year. Around the 2030 cut-off, that timing could affect how much you can deduct in the first year. Plan delivery, installation and commissioning dates with your accountant as well as with your supplier.

Timing payments to your supplier

• Deposits and milestones. Machinery is often paid in stages, for example on order, before shipment and after acceptance. Make sure your financing releases money on the same schedule.
• Currency. Machines priced in euros, US dollars or yuan expose you to exchange rate changes between order and payment. Ask your bank about hedging if the amounts are large.
• Acceptance. Link the final payment to a clear acceptance test: parts cut, cups formed, bags made at the agreed speed.
• Border costs. On an imported machine, any duty, surtax and GST are due before release unless you post security with the CBSA, so keep cash or credit available for them.

Insurance and security

Most lenders take security over the machine and require it to be insured for its replacement value, with the lender named on the policy. Tell your insurer about the new machine before it arrives, because transit, rigging and commissioning can be covered differently from normal operation. Check when the risk passes to you: the delivery terms and the contract decide it, and your cover should start from that point, not from the first production shift.

What lenders ask for

• A formal quote with the machine model, options, delivery terms and installation.
• Machine literature, so the lender can judge its resale value and useful life.
• Your financial statements and a short business case: the work the machine will take on, and the capacity or cost savings it brings.
• For leases, insurance certificates and where the machine will be located.

A machine from a recognised manufacturer with a clear quote is easier to finance. Browse our machine catalog and manufacturers, and if you are importing directly, read our guide to importing industrial machinery into Canada before you budget. When you are ready, request a quote to take to your lender.