Capital Equipment Financing in Malaysia: The Complete 2026 Guide

Capital equipment is the lifeblood of any growing business. Whether you are a manufacturer needing new production lines, a construction firm expanding your fleet, or a medical clinic upgrading diagnostic tools, acquiring these assets requires significant capital.

Capital equipment financing allows Malaysian businesses to acquire these essential assets without draining their cash reserves. Instead of paying 100% upfront, you pay for the equipment over time while it generates revenue for your business.

In this guide, we’ll cover everything you need to know about capital equipment financing in Malaysia for 2026—how it works, what you can finance, and how to get approved fast.

What is Capital Equipment Financing?

Capital equipment financing is a type of business loan or lease specifically designed to purchase long-term physical assets. Unlike a general working capital loan, the loan is secured by the equipment itself.

This means:

Lower Interest Rates: Because the loan is secured, rates are typically lower than unsecured business loans.
Higher Approval Rates: Lenders are more willing to approve loans backed by tangible assets.
Longer Tenures: Repayment terms often match the useful life of the equipment (3 to 7 years).

Why Use Financing Instead of Cash?

Many business owners ask, “If I have the cash, should I just buy it outright?”

In most cases, the answer is no.

Preserve Cash Flow: Cash is king. Using your reserves to buy a RM500,000 machine leaves you vulnerable if you face unexpected expenses or a slow month.
Inflation Hedge: Equipment prices rise over time. Financing locks in your cost now, and you pay it back with future, inflated Ringgit.
Tax Benefits: Interest payments and capital allowances can often be deducted from your taxable income.
Scalability: Financing allows you to buy the right machine for the job, not just the one you can afford with cash today.

Types of Capital Equipment We Finance

At Ing Heng Credit, we finance a wide range of capital assets across various industries in Malaysia.

1. Manufacturing & Industrial Machinery

CNC machines and lathes
Injection molding machines
Production lines and conveyor systems
Packaging and labeling equipment
Robotic automation arms

2. Construction & Heavy Machinery

Excavators and backhoes
Bulldozers and graders
Cranes (Mobile, Tower, Crawler)
Piling rigs and drilling equipment
Concrete pumps and mixers

3. Logistics & Transportation

Prime movers and trailers
Lorries (Box, Bonded, Refrigerated)
Forklifts and reach trucks
Warehouse racking systems

4. Medical & specialized Equipment

MRI and CT scanners
Dental chairs and X-ray machines
Laboratory equipment
Aesthetic laser machines

How Capital Equipment Financing Works in Malaysia

The process typically follows these steps:

Step 1: Identify Your Equipment

Find the supplier and get a formal quotation. We work with both local and international suppliers.

Step 2: Submit Application

Provide the quotation along with your business documents (SSM, Bank Statements, Directors’ IC).

Step 3: Valuation & Approval

For used equipment, a valuation may be required. For new equipment, approval is often based on the invoice value. We offer fast approval—often within 3-5 working days.

Step 4: Documentation & Disbursement

Once approved, you sign the Hire Purchase or Lease agreement. We pay the supplier directly, and the equipment is delivered to you.

Financing Options: Hire Purchase vs. Industrial Hire Purchase

In Malaysia, the most common structure for equipment financing is Industrial Hire Purchase (IHP).

Feature	Hire Purchase (IHP)	Business Term Loan
Ownership	You own it after the final payment	You own it immediately
Security	The equipment itself	Often requires property or FD
Margin	Up to 100% (0% Deposit)	Usually 70-80%
Interest	Flat Rate (Fixed)	Floating Rate (BLR + X%)
Best For	Vehicles, Machinery, Assets	Working Capital, Renovation

Benefits of Choosing Ing Heng Credit

As a licensed credit company under KPKT, we offer advantages that traditional banks often cannot match:

0% Deposit Options: We can finance up to 100% of the equipment value for qualified SMEs.
Bad Credit Accepted: We look at the asset value and business potential, not just your CTOS score.
Older Equipment: Banks often refuse to finance machines older than 5-10 years. We finance used equipment up to 15-20 years old depending on the type.
Fast Speed: We understand that waiting 2 months for a bank loan can cost you a project. We move fast.

FAQ: Capital Equipment Financing

1. What is the interest rate for equipment financing?

Interest rates typically range from 3.5% to 7% flat rate per annum, depending on the equipment type, age, and your company profile.

2. Can I finance imported equipment?

Yes. If you are buying a machine from China, Japan, or Europe, we can arrange financing. You will typically need to pay for the machine first (or use a Letter of Credit), and we refinance it upon arrival in Malaysia.

3. Do I need a guarantor?

For Sdn Bhd companies, the directors usually act as guarantors. For Sole Proprietorships, a third-party guarantor may be required depending on credit strength.

4. How long is the financing tenure?

Standard tenures are 3 to 5 years (36 to 60 months). In some cases, we can extend up to 7 years for heavy machinery with a long lifespan.

Ready to Upgrade Your Business?

Don’t let a lack of capital hold your business back. With Ing Heng Credit, you can get the capital equipment you need today and pay for it as it generates profit.

Get a Free Quote Today Contact us via WhatsApp or call our Klang HQ to discuss your financing needs.

WhatsApp: +60 19-383 6666
Office: +60 3-3342 6666
Location: Klang, Selangor (Serving all of Malaysia)