Finance for plant, machinery and equipment — structured so that repayment matches what the machine actually earns.
A machinery loan is secured by the asset itself, which makes it one of the more straightforward loans to arrange. The bank funds most of the cost, you bring the margin, and the loan is repaid over a period broadly matched to the machine's working life.
The part most borrowers get wrong is the tenure. Take too short a tenure and the EMI outruns the extra production the machine generates, which strains the business exactly when it is trying to grow. The right structure is the one your cash flow can carry.
Machinery finance often sits alongside a working capital enhancement, because more production means more stock and more receivables to fund. We look at both together rather than solving one and creating the other.
We would rather tell you a product is wrong for you than arrange the wrong one.
An incomplete file is the most common cause of delay. This is the usual list — we tell you exactly which apply to your case.
Will the extra output cover the EMI? If not, a longer tenure or a different machine is the honest answer.
Set against real cash flow, not the maximum the bank will allow.
New capacity needs funding to run. Solving one and ignoring the other causes the strain we see most often.
Some lenders are much more comfortable with specific machinery and sectors.
Payment usually goes directly to the supplier against invoice; we coordinate the timing.
Most rejections are avoidable and have nothing to do with whether the business is sound. These are the ones we see most often.
What fixes it: Show the capacity gain and the orders or demand behind it.
What fixes it: Arrange the contribution before applying, and show its source.
What fixes it: Get a proper valuation; many lenders will not fund used assets at all.
What fixes it: Restructure the existing debt first — adding to a strained position rarely gets sanctioned.
What fixes it: Established suppliers with proper invoicing make the file straightforward.
Most of it, with you funding the margin. The exact proportion depends on the machine, whether it is new or used, and the lender. We confirm the figure for your specific case before you commit to a supplier.
Yes. It needs more planning — letters of credit, customs duty and shipping all have to be built into the project cost and the disbursement schedule — but it is routine.
Harder. Some lenders decline used equipment entirely; others fund it against a proper valuation and with a shorter tenure. Clear title and a credible valuation are essential.
Broadly, yes. Repaying much faster than the asset earns puts avoidable strain on cash flow; running far beyond its useful life means paying for something no longer producing.
Depreciation on the asset and interest on the loan are ordinarily allowable business expenses, which improves the effective cost. Your own tax adviser should confirm the treatment for your accounts.
A free first meeting with our loan experts — an honest answer on how much you can borrow and which bank fits you best.