ScotiaConnect Equipment Financing Solutions

Capital Leases

A capital lease through ScotiaConnect gives your business the economic benefits of ownership — including Capital Cost Allowance (CCA) deductions — while spreading the acquisition cost over the useful life of the equipment. At the end of the lease term, you acquire the asset for a nominal purchase option, typically one dollar.

This structure is preferred by businesses that intend to keep equipment for its full productive life. A construction company acquiring a fleet of excavators, for example, wants the depreciation benefits on its tax return and plans to operate the machines for 10+ years. The capital lease satisfies both objectives: immediate use and long-term tax efficiency.

Lease terms range from 24 to 84 months depending on the asset type and expected useful life. Monthly payments are fixed for the entire term, which makes budgeting straightforward and eliminates interest rate risk.

Operating Leases

An operating lease is essentially a long-term rental. ScotiaConnect retains ownership of the equipment, and at the end of the lease term, you return it. There is no purchase obligation, which means the asset does not appear on your balance sheet under most accounting treatment — a significant advantage for companies managing debt-to-equity ratios or financial covenants.

Operating leases are ideal for technology assets that depreciate rapidly. A company leasing servers, medical imaging equipment, or printing presses may prefer to return the equipment every three to five years and upgrade to new technology rather than owning obsolete machinery.

Sale-Leaseback

If your business already owns equipment free and clear, a sale-leaseback arrangement converts that idle equity into working capital. You sell the equipment to Scotiabank's leasing division at its appraised fair market value, receive the cash proceeds immediately, and then lease the same equipment back on a fixed monthly schedule.

The operational impact is zero — your people continue using the same machines in the same locations. The financial impact is immediate: you unlock capital that was previously trapped in depreciating assets and redeploy it toward revenue-generating activities or debt reduction.

Sale-leaseback transactions are commonly used during expansions, acquisitions, or liquidity events when the business needs cash but does not want to take on additional bank debt.

Vendor Finance Programs

ScotiaConnect partners with equipment manufacturers and distributors to offer point-of-sale financing. When your business purchases from a participating vendor, the financing application, credit decision, and documentation can be completed at the point of sale, often within 24 hours.

These programs benefit both parties: you get streamlined access to capital without a separate trip to the bank, and the vendor closes the sale without waiting for traditional bank financing to be arranged. For vendors, ScotiaConnect's pre-approved credit limits allow them to issue conditional approvals on the spot, accelerating the sales cycle.