A $12,000 brush cutter or $9,000 hydraulic breaker isn't pocket change for a one- or two-machine operation. Here's how Canadian contractors are actually funding attachment purchases — and what to watch out for.
When you finance a new Bobcat S76 or Case SR270, the lender has a clear asset on the hook. The machine has a serial number, a resale market, and insurance. Attachments are more ambiguous. Many lenders treat them as "soft costs" — auxiliary equipment that loses value faster and is harder to repossess if you default.
This matters because some programs that work beautifully for machine purchases get complicated when you're only buying a $7,500 cold planer attachment. Your bank manager might nod along and then tell you the minimum loan amount is $25,000. Some equipment leasing companies have the same floor. Know this going in.
The good news: there are real options. And in a lot of cases, financing an attachment on a 24–36 month term makes straightforward business sense — especially if the attachment generates billable work that pays for itself in one season.
If you're already buying or refinancing a machine, this is the cleanest move. Most OEM dealer financing programs — Bobcat Finance, Cat Financial, Kubota Credit, John Deere Financial — will bundle attachment purchases into the same loan. You get one payment, one interest rate, and no separate financing friction.
The catch is timing. You typically have to add attachments at the point of sale, or within a short window (sometimes 30–90 days) of the machine purchase. Come back six months later wanting to add a mulching head and the dealer will treat it as a separate transaction.
If you're negotiating a machine purchase right now, ask explicitly about bundling attachments. Dealers have more flexibility than they let on — particularly for multi-attachment deals where the total ticket is meaningful.
A standard commercial equipment loan from TD, RBC, BMO, or a regional credit union will cover attachments, but the bar is higher than you might expect for a small operation. Lenders want to see:
Credit unions tend to be more flexible than the big banks for small contractors in rural areas. If you're in northern BC, Saskatchewan, or rural Ontario and have a relationship with a local credit union, that relationship is worth more than you think. They'll look at your actual situation rather than running you through an automated scoring model.
Interest rates in 2025–2026 for commercial equipment loans have been in the 7–11% range depending on your credit profile and the lender's current cost of funds. Fixed-rate terms of 24–60 months are standard.
The Business Development Bank of Canada (BDC) offers equipment financing specifically designed for small and medium businesses that don't fit neatly into conventional bank criteria. A few things that make BDC worth knowing:
BDC is not a bank, so their rates aren't always the lowest. But for a contractor who got turned down by two banks or who's self-employed with complex income, BDC is often the path through. Apply at bdc.ca or call your regional office — they have advisors in every province.
If your skid steer work touches agriculture in any way — custom farming, seeding, bale handling, livestock operations, acreage prep — FCC is worth a call. Farm Credit Canada finances agricultural equipment including skid steers and attachments, and their programs often have more competitive rates than general commercial lenders.
FCC will finance attachments as part of a broader operation purchase, and they understand seasonality because they work with farmers. If you're doing mixed work — some residential landscaping, some farm work — you may still qualify for FCC financing depending on the primary use of the equipment.
Lease-to-own programs through specialty equipment finance companies are worth understanding, even if they're not always the cheapest route. Companies like Equilease, Western Equipment Finance, Accord Financial, and National Leasing work with contractors who don't fit bank criteria — newer businesses, mixed credit, or equipment purchases that are too small for big bank programs.
The mechanics of a lease-to-own: you make monthly payments, and at the end of the term (typically 24–60 months) you buy the attachment for a residual value — sometimes as low as $1. The effective interest rate is often higher than a straight loan, but the qualification bar is lower and the approval process is faster.
Where leasing genuinely makes sense: if the attachment is going on a newer machine that you're also leasing, consistent off-balance-sheet treatment can be a tax advantage (talk to your accountant). Or if your business is less than 2 years old and you can't show the financials that banks want.
Many attachment dealers — Norm's Equipment, Westcon Attachments, and regional Bobcat or Case dealers across Canada — have financing arrangements with equipment finance companies they work with regularly. These can be surprisingly convenient because the dealer handles the paperwork and you get a quick approval decision.
The rates vary. For a well-qualified buyer, dealer-arranged financing can be competitive. For someone with thin credit, it's often the most expensive route. Always ask for the rate in writing and compare it against at least one other option before signing.
Promotional zero-percent periods do show up from manufacturers periodically — Bobcat and Cat have both run 0% for 12 months on attachment purchases during slow quarters. These are worth waiting for if timing isn't critical and you're buying through an OEM dealer.
For attachments you're not sure about, or for purchases where your cash flow is genuinely tight, rental with a rent-to-own option is worth considering. Some dealers will apply a portion of rental fees toward a purchase price if you decide to buy within a set period. You get to confirm the attachment actually works for your application before committing.
This matters more than people think. A contractor who buys a $14,000 cold planer and then discovers it needs 90+ GPM to perform properly — and their machine delivers 22 GPM standard — has an expensive problem. Rent first, confirm compatibility, then buy.
See our guide on renting vs. buying attachments for a fuller breakdown of the rent-first approach.
For small contractors in Canada, the real financing challenge isn't the rate — it's timing. A landscaper buying a $9,000 power rake in April has high confidence they'll generate revenue through the summer. Buying that same attachment in October means carrying payments through winter before the work picks up.
A few tactics that help:
In Canada, skid steer attachments purchased for business use are depreciable property. Most attachments fall into CCA Class 10 (30% declining balance) or Class 8 (20% declining balance), though your accountant needs to make the final call based on the specific asset and its use.
The Accelerated Investment Incentive (AII) and Immediate Expensing rules that Canada introduced in recent years can allow you to deduct a much larger portion of the cost in the year of purchase. For a $12,000 attachment, being able to deduct $12,000 (or close to it) in year one rather than $3,600 (30% of $12,000) is meaningful — especially if it's a high-income year.
Talk to your accountant before the fiscal year ends, not after. The timing of a purchase — whether it's December 30 or January 2 — can shift the deduction by a full year.
Before you sign anything, do this calculation. If you're buying a $10,000 attachment on a 36-month loan at 9%:
Now ask: how many billable hours per year does this attachment generate? At $150/hour for the attachment (a reasonable rate for specialty work), you need 25 hours a year to break even on financing alone. If you're booking 100+ hours a year with it, the economics are obvious. If you're struggling to imagine 20 hours a year of utilization, you might not need to own it — rent it when the job requires it.
This is the calculation the banks run in their heads. You should run it too, but in your favour — because you know your work pipeline better than any loan officer does.