Loan vs. Lease
Loan vs. Lease, which is right for you?
Both options get you equipment. But they work very differently — and the difference matters for your cash flow, your taxes, and your relationship with your bank.
Comparison table Loan vs. Lease
Collateral
Bank Loan
Banks often require real estate, inventory, receivables — or a blanket lien on all company assets.
Clear Capital Lease
Only the leased equipment is required as collateral.
Speed
Bank Loan
Can take weeks to prepare and present to a credit committee.
Clear Capital Lease
Most approvals issued the same day or next business day.
Application
Bank Loan
Full financial package typically required regardless of amount.
Clear Capital Lease
Up to $200,000 without financials — just a simple one-page application.
Rates
Bank Loan
Usually floating, tied to Prime Rate. Payments rise when rates rise.
Clear Capital Lease
Fixed for the full lease term — predictable payments, no rate exposure.
Extra costs
Bank Loan
Application, origination, commitment, and funding fees are common.
Clear Capital Lease
Fixed payments — no hidden fees.
Tax treatment
Bank Loan
Depreciation and loan interest only.
Clear Capital Lease
Lease payments may be 100% tax deductible as an operating expense.
Decision maker
Bank Loan
Bank credit committee or automated system.
Clear Capital Lease
Our team, locally, in Canada — people who know your industry.
Covenants
Bank Loan
May require minimum financial ratios and restrict future borrowings.
Clear Capital Lease
No restrictive covenants.
The bottom line
For most Canadian medical professionals, leasing is the smarter choice. It preserves your capital, protects your bank relationship, and gives you a predictable payment structure that works with your cash flow — not against it.
Leasing wins:
- Leasing keeps your balance sheet clean and credit lines available
- Fixed payments protect you from interest rate fluctuations
- No blanket liens on your business assets
- Same day approvals vs. weeks at a bank
When a loan may suit you:
- Equipment you plan to own long term with no technology risk
See the difference for yourself.
Apply in minutes and get a decision the same day.