How Higher Interest Rates & Recent Rate Cuts Affect Your Lease — What 2025–2026 Means for Canadian SMEs

How Higher Interest Rates & Recent Rate Cuts Affect Your Lease — What 2025-2026 Means for Canadian SMEs explores how fluctuating interest rates are reshaping leasing decisions for small and medium-sized Canadian businesses. The article explains that past rate hikes increased borrowing costs, leading to higher monthly lease payments, tighter credit approvals, and a reduced appetite for lump-sum equipment purchases, making leasing a more stable financing option during volatile cycles. As the Bank of Canada begins easing rates, new opportunities emerge: lower lease payments on new assets, refinancing of existing leases to improve cash flow, and more accessible approvals for SMEs that struggled during high-rate periods. The blog also highlights why leasing often proves more resilient than traditional loans, offering predictable payments, tax advantages, and flexible structures—even as the market transitions from rate highs to potential declines. Looking ahead to 2025–2026, the piece suggests that strategic leasing will shift from reactive survival financing to proactive growth tools, helping Canadian SMEs preserve capital and support expansion amid ongoing economic change.

https://sandhusranleasing.com/blog/how-higher-interest-rates-recent-rate-cuts-affect-your-lease-what-2025-2026-means-for-canadian-smes/