In Canada Lessors prefer to do business with established rather than new businesses. Having said that if your business idea makes sense, you are a homeowner and have a clean credit record it isn't hard to get up to $25,000 for a new business. But you will have to provide a Personal Net Worth Statement and will almost certainly have to guarantee. We do have a funder who will entertain new businesses for the "right" assets where the owners have significant experience and apparent "savvy" Businesses with a three year track record or more and again with an active clean credit record can also get up to $125,000 without much questioning.
For amounts over $125,000 at least three years financial statements coverage are a must unless you are a "household name" ie Imperial Oil!. Statements should reflect an equity position greater then the lease exposure (cost of the equipment less what could be recovered in a "fire" sale), positive working capital and cash flow (net profit + depreciation) that is equal to approx 1.3 times the annual debt payments including the proposed transaction.
Some industries do it a little differently (trucking, printing etc) but the above guidelines are about where it is at. Of course if you want to put up your house equity or bonds you can get whatever that is worth etc...but do you really want to go that route (ie a mortgage may make more sense)?
Equipment Operators: Getting a dozer or loader or feller buncher etc approved is not easy as the equipment is expensive and your personal net worth is centred in your home. Construction is cyclical and the logging industry has been having a tough time in the last few years.
If you have experience and favourable financial results for the last couple of years there should be no problem. The larger dealers tied in with manufacturer programmes often have some sort of recourse programme with funders that will stand behind you. If you have experience and own your own home and have decent credit bureau check with us along with some background and we may be able to help you with a funder sympathetic to construction or logging.
Trucking: The trucking industry has had a great run with the leasing industry the last few years. The trucks, tractors and trailers you will want to get financed reflect good collateral for the leasing co. If you are an owner operator and new to a particular leasing co you will probably require 10% - possibly 20% "down". Once they have a good experience with you this is often reduced or waived. Be sure "money down" is documented as a 1st rental so you can claim it as an expense (assuming you are expensing your rentals). If it is treated as a down payment your accountant may be in a quandary how to treat it when doing your books. Worse still if you are asked for a deposit!
If you are an experienced driver switching to an owner operator opportunity you have a better chance if you are a homeowner, married and middle aged! They figure that makes you a stable fellow! Doubtless! However not all leasing cos are so entrenched in their ideas. You are now looking at 10-15% down. The manufacturer finance Cos may go a bit easier on you. The important thing is to be able to generate good cash flow (sufficient profit and depreciation to = 1.3 x's the lease payments for existing equipment and the unit you are applying for). We know which leasing Cos focus on this rather than the homeowner bit.