Alright, let’s clear the air: leases do have interest rates. I know, I know. Some folks out there may try to tell you otherwise, saying, “It’s just a rental! No interest!” But let’s be real—anytime you’re paying to use something, especially expensive equipment for your business, there’s always a cost. So, let’s break this down, because transparency is the name of the game here at Equipment Capital Corp.

It’s All About the Interest Rate

Think of it like this: ever rent a car on vacation? You see that great low price per day, but by the time you add in insurance, taxes, and whatever fee they decided to tack on last minute, the final price is… well, not so great. A lease can feel a bit like that if you’re not careful, but instead of insurance and fees, you’ve got an interest rate attached.

That interest rate is essentially the price you pay to borrow the equipment. But here’s the thing: the rate isn’t pulled out of thin air. It’s based on a number of factors like your company’s financial performance, how reliably you’ve made payments in the past, your credit (both personal and business), and any tricky stuff like previous bankruptcies. The type of equipment you’re leasing and the industry you’re in also play a role—like if you’re in construction and need a shiny new excavator versus something smaller for an office.

Why Transparency is Key

At Equipment Capital Corp, we believe in telling it like it is. We want you to know what interest rate you’re looking at because, trust me, being kept in the dark doesn’t do anyone any good. When a broker or lender doesn’t tell you the rate, that’s a huge red flag. It’s like going to a restaurant and ordering the “market price” lobster without asking how much it costs. It might be delicious, but you could be in for a shock when the bill comes.

If you’re ever in that situation, we’ve got your back. Just use our handy T-Value calculator, and see for yourself what rate you’re actually paying. Knowledge is power, right?

What’s Impacting Your Rate?

Let’s break it down with an example – Say you’re running a construction business in Calgary, and you’re looking to lease a bulldozer because, well, it’s construction season and business is booming. You’ve got a solid credit history, and your business has been on a roll for the past few years. Because of that, your interest rate might be lower than the guy down the road who just started his landscaping business and had a bankruptcy a few years back. It’s not that we don’t like him (hey, everyone’s got a past!), but the risk is different, and so the rate reflects that.

If you’re leasing something more specialized, like mining equipment up in Fort McMurray, your rate might vary based on the asset itself. It’s all about the value, risk, and how lenders view the big picture.

The Bottom Line

The takeaway? Leases aren’t “just rentals”—they come with interest rates, and those rates are based on real-world factors. Here at Equipment Capital Corp, we believe in being upfront about everything, so you’re never left guessing. If someone’s not telling you the rate, do yourself a favour and find another lender (preferably one that’s transparent like us!).

And if you’re ever in doubt, swing by our website, check out our T-Value calculator, and run the numbers yourself. We’re here to help you get the equipment you need without the headache.

In short, leases do have interest rates, but knowing them gives you the upper hand. And at Equipment Capital Corp, we’re all about giving you the upper hand.