AFO · Head-to-head
The CSBFP equipment stream guarantees up to $500,000 of equipment debt at Prime+3%. Private equipment finance (from manufacturer captive lenders, independent equipment lenders, and bank equipment groups) runs $50,000 to $10,000,000 at 75 to 90% LTV. The two overlap in the $50,000 to $500,000 band where most owner-operator equipment purchases sit.
Side by side
The matrix below pulls directly from the catalog. Each row shows the same data point across both programs so you can spot the differences at a glance.
| Attribute | CSBFP: Canada Small Business Financing Program | Equipment Finance / Leasing |
|---|---|---|
| Capital type | Government-backed debt | Equipment-secured debt |
| Family | Debt | Debt |
| Size range | No floor, $1,150,000 | $50,000, $10,000,000 |
| Typical cost | Prime + 3% (variable) or Residential mortgage rate + 3% (fixed). 2% one-time registration fee. | Rate varies by equipment class and term. Typically Prime + 2 to 5%, no personal guarantee on larger deals. |
| Speed to close | Weeks to a few months | Days to weeks |
| Eligibility | For-profit Canadian business with revenue under $10,000,000. Excludes farming, charities, and a short list of restricted industries. | Profitable operating business buying specific equipment, vehicles, or production lines. Equipment itself secures the facility. |
| Use of proceeds | Equipment, Real estate, Expansion | Equipment |
| Status | Live, self-serve | Live, self-serve |
Choosing between them
Each side describes the scenarios where the program is the stronger fit. Most real-world deals end up in the “in common” section below, neither/nor.
When to choose
Pick CSBFP equipment when the business qualifies (under $10,000,000 revenue, eligible sector), the equipment is new or recently used, and the timeline can absorb the standard underwriting cycle (4 to 8 weeks). The all-in rate including the 2% registration fee usually beats private alternatives for sub-$500,000 purchases.
When to choose
Pick private equipment finance when the purchase is over $500,000 (the CSBFP equipment ceiling), the timeline is tight (private equipment lenders can close in days), the equipment class is unusual or used, or the business is in a CSBFP-excluded sector. Higher rate but faster close and more flexibility on the underlying asset.
The CPA can look at your specific situation and tell you in one twenty-minute call which program (or stack) is the right structure, and what providers will want to see before the first conversation.
