# Equipment No Collateral 2026 - Income-Based Loan Need equipment but no property collateral? Income-based equipment financing available in 2026. ## What is No Collateral Equipment Financing? No Collateral means: - No property required - No house/building security - Equipment acts as security - Approval based on income ## 2026 Bank vs No Collateral | Requirement | Banks | Ing Heng | |-------------|-------|----------| | **Property Collateral** | Required | Not required | | **Equipment Security** | Insufficient alone | Sufficient | | **Guarantor** | Often needed | Case-by-case | | **Approval Focus** | Asset backing | Income capacity | ## Why Banks Require Collateral? **Bank Requirements:** 1. **Property Security** - House/land title - Building ownership - Additional asset backing 2. **Strong Guarantors** - Directors with property - Multiple guarantors - Joint liability 3. **High Down Payment** - 20-30% deposit - Reduce bank risk - Lower loan-to-value ## No Collateral with Ing Heng **How We Approve:** **Primary Security: Equipment Itself** - Equipment is main collateral - Hypothecation on equipment - Insurance coverage - JPJ registration (for vehicles) **Secondary: Business Viability** - Strong repayment income - Regular cash flow - Project contracts - Business operations ## Real No Collateral Approvals **Case 1: Contractor - No Property** **Situation:** - 3-year construction business - Revenue: RM 50k/month - Assets: 1 old lorry - Need: Komatsu excavator (RM 180k) - **Property: None** **Bank Response:** "Need property collateral" **Ing Heng Approved:** - No collateral required - Equipment as security - Income-based approval - 0% down payment **Result:** Excavator operational, repayments on schedule **Case 2: Logistics - Renting Premises** **Situation:** - 2-year logistics company - Revenue: RM 80k/month - Premises: Rented - Need: 2 lorries (RM 240k total) - **Property: None** **Bank Response:** "Need building ownership" **Ing Heng Approved:** - Equipment as collateral - Business income focus - 100% financing - 48-hour approval **Result:** Fleet expanded, business growing **Case 3: Warehouse - Startup** **Situation:** - 1-year warehouse business - Revenue: RM 35k/month - Premises: Rented - Need: 3 forklifts (RM 105k) - **Property: None** **Bank Response:** "Need guarantor with property" **Ing Heng Approved:** - No guarantor needed - Equipment secured - Cash flow based - Fast approval **Result:** Operations efficient, repaying well ## No Collateral vs With Collateral | Feature | With Collateral | No Collateral | |---------|-----------------|---------------| | **Property Required** | Yes | No | | **Approval Time** | 2-3 weeks | 48-72 hours | | **Documentation** | Complex | Simple | | **Risk to Business** | High (lose property) | Low (equipment only) | | **Down Payment** | 10-20% | 0-20% | | **Interest Rate** | Lower (4.5-5.5%) | Competitive (5-6%) | ## 2026 No Collateral Requirements **What We Need:** 1. **Strong Income Evidence** - 6-12 months bank statements - Regular deposits visible - Growing trend - Consistent income 2. **Business Viability** - SSM registration - Valid business license - Current operations - Future contracts 3. **Equipment Details** - Clear specification - Fair market price - Good brand - Resale value 4. **Repayment Capacity** - Monthly payment ability - Budget planning - Emergency backup - Realistic proposal ## Equipment as Collateral **How Equipment Secures Loan:** 1. **Hypothecation** - Legal charge on equipment - Registered with authorities - Cannot sell without clearance - Protects lender 2. **Insurance** - Equipment insured - Lender named beneficiary - Covers damage/loss - Reduces risk 3. **JPJ Registration** (for vehicles) - Registration with JPJ - Lender interest noted - Cannot transfer ownership - Legal protection ## Income-Based Approval Criteria **We Assess:** 1. **Monthly Revenue** (40%) - Average monthly income - Consistency of deposits - Growth trend - Seasonal patterns 2. **Repayment Ratio** (30%) - Payment vs income ratio - Under 40% preferred - Up to 50% considered - Case-by-case 3. **Business Stability** (20%) - Operation duration - Market presence - Client base - Future pipeline 4. **Management** (10%) - Owner experience - Industry knowledge - Track record - Reputation ## No Collateral Equipment Eligibility **Best Equipment Types:** **High Approval:** - Komatsu, CAT excavators - ISUZU, FUSO lorries - Toyota forklifts - Popular brands with good resale **Good Approval:** - Hitachi, Hitachi excavators - HINO lorries - TCM forklifts - Prime movers **Case-by-Case:** - Specialized equipment - Older machines - Multiple units - Difficult brands ## Documentation for No Collateral **Required Documents:** 1. **Business Proof** - SSM registration - Business license - Premises rental agreement 2. **Income Evidence** - 6 months bank statements - Latest invoices (3 months) - Contracts (if available) - Client references 3. **Equipment Info** - Quotation/invoice - Equipment details - Seller information - Price justification 4. **Director Details** - NRIC copies - Basic information - Contact details - Resume (helpful) ## 2026 No Collateral Benefits **Advantages:** 1. **No Property Risk** - Don't lose house/building - Equipment only at risk - Sleep better at night - Safer for family 2. **Faster Approval** - No property valuation - No legal search - 48-72 hour decision - Quick documentation 3. **Lower Cost** - No legal fees on property - No valuation fees - No insurance on property - Minimal upfront cost 4. **Flexible Terms** - 0% down payment - 3-7 year term - Early settlement OK - Competitive interest ## No Collateral vs Guarantor **Guarantor Option:** - May improve terms - Lower interest possible - Higher loan amount - But obligates others **No Guarantor (Preferred):** - Independent approval - Based on your business - No external liability - Clean arrangement **Best:** No guarantor, income-based approval ## Real No Collateral Examples **Example 1: Excavator No Collateral** **Situation:** - Contractor with no property - Monthly income: RM 60k - Equipment: Komatsu PC200 (RM 180k) - Monthly payment: RM 3,600 - **Ratio: 6% of income** **Approval:** Easy (ratio under 40%) **Collateral:** Equipment only **Result:** Approved 48 hours **Example 2: Forklift Fleet No Collateral** **Situation:** - Warehouse business, rented premises - Monthly income: RM 40k - Equipment: 3 forklifts (RM 105k) - Monthly payment: RM 2,100 - **Ratio: 5.25% of income** **Approval:** Strong (ratio under 10%) **Collateral:** Forklifts only **Result:** Approved 24 hours ## Bad Credit No Collateral **Challenge:** - No property - CCRIS issues - Bank rejected **Ing Heng Solution:** - Equipment as collateral - Income-based focus - Bad credit considered - Still possible approval ## No Collateral for Startups **Challenge:** - New business (under 1 year) - No assets yet - Rented premises - Need equipment **Banks:** Require property collateral **Ing Heng:** Equipment + income-based **Result:** Startup equipment financing possible ## 2026 No Collateral Success Tips **Tip 1: Show Strong Income** - Regular bank deposits - Consistent monthly revenue - Growth trend visible - Future contracts secured **Tip 2: Choose Popular Equipment** - Komatsu, CAT brands - Good resale value - Easy to sell if needed - Lower lender risk **Tip 3: Keep Payment Ratio Low** - Under 30% of monthly income - Shows comfortable repayment - Easy approval - Better terms **Tip 4: Be Transparent** - Honest about situation - Show business viability - Demonstrate management - Build trust ## Get No Collateral Approval Need equipment but no property collateral? Contact Ing Heng for income-based equipment financing. --- **Have property?** See [100% Equipment Financing](/blog/100-percent-equipment-financing-2026-full-amount-malaysia).