Mechanics For Cross Border Equipment Financing
If you want to purchase equipment in the states and then get equipment financing from a Canadian based leasing company, here are some basic steps you will need to follow.
First, the equipment will be purchased by the Canadian leasing n company in the U.S., so you will have to use the leasing company’s brokerage account at the border. This will also allow the leasing company to pay the gst and any duty on entry.
Second, before the transaction can be completed, you will have to sign a currency exchange agreement to protect the leasing company from any negative currency movements during the transaction.