Finance Lease 2026 - Flexible Terms Malaysia

# Finance Lease 2026 - Flexible Terms Malaysia Finance Lease offers middle ground between operating lease and hire purchase. Here's what you need to know in 2026. ## What is Finance Lease? Finance Lease means: - Lower monthly payments - Balloon payment at end - Ownership option available - Flexible term structure ## Finance Lease vs Other Options 2026 | Feature | Finance Lease | Operating Lease | Hire Purchase | |---------|--------------|----------------|---------------| | **Monthly Payment** | Lower | Lowest | Higher | | **Final Payment** | Balloon | None | None | | **Ownership** | Optional | No | Yes | | **Term** | 3-7 years | 1-5 years | 5-7 years | | **Equipment Age** | Any | New preferred | Any age | ## Real Example: Excavator **Price:** RM 180,000 **Finance Lease (5 years + 20% balloon):** - Monthly: RM 2,400 - Balloon (end): RM 36,000 - Total paid: RM 180,000 - Option: Pay balloon to own OR return **Hire Purchase (5 years, no balloon):** - Monthly: RM 3,000 - Total paid: RM 180,000 - Ownership: Automatic ## Who Should Choose Finance Lease? **Best for:** - Wanting lower monthly payments - Planning to refinance balloon payment - Uncertain about long-term need - Wanting ownership option but not commitment - Cash flow sensitive businesses ## 2026 Finance Lease Structure **Standard Balloon Options:** - 10% balloon = Lower final payment - 20% balloon = Balanced payment - 30% balloon = Lowest monthly **Term Options:** - 3 years + balloon - 5 years + balloon - 7 years + balloon ## Finance Lease End Options At end of term, choose to: 1. **Pay balloon** - Own equipment 2. **Refinance balloon** - Continue using 3. **Return equipment** - Walk away 4. **Extend lease** - Keep using temporarily ## Ing Heng Finance Lease Benefits | Feature | Bank Finance Lease | Ing Heng Finance Lease | |---------|-------------------|------------------------| | **Down Payment** | 10-20% | 0% | | **Equipment Age** | Under 5 years | No limit | | **Balloon %** | Fixed 10-20% | Flexible 10-40% | | **Approval** | 1-2 weeks | 24-48 hours | | **Used Equipment** | Rarely | Accepted | ## Real Example: Lorry Finance Lease **ISUZU Lorry:** RM 120,000 **Bank Terms:** - Down: 20% (RM 24,000) - Loan: RM 96,000 - Monthly: RM 2,100 - Balloon: 10% (RM 12,000) - Equipment: Under 5 years only **Ing Heng Terms:** - Down: 0% - Loan: RM 120,000 - Monthly: RM 2,200 - Balloon: 20% (RM 24,000) - Equipment: Any age accepted ## Equipment for Finance Lease - Excavators (20-50 ton) - Prime movers - Construction fleet - Industrial forklifts - Specialized equipment ## 2026 Finance Lease Requirements 1. Business registration (SSM) 2. 2 years operation preferred 3. 6 months bank statements 4. Equipment quotation 5. Balloon payment plan ## Finance Lease vs Hire Purchase Decision **Choose Finance Lease if:** - Need lower monthly payment - Want ownership flexibility - Planning business expansion - Uncertain about long-term need **Choose Hire Purchase if:** - Want guaranteed ownership - Can afford higher monthly - Keeping equipment long-term - Want to build asset value ## Bad Credit Finance Lease Banks require: - Strong CCRIS score - 2+ years business history - 20% down payment - New equipment only Ing Heng offers: - 0% down payment - Bad credit considered - Used equipment accepted - Fast 48-hour approval ## Balloon Payment Planning **Options to pay balloon:** 1. **Save monthly** - Set aside portion 2. **Refinance** - New loan for balloon 3. **Sell equipment** - Trade-in value 4. **Return equipment** - No balloon needed ## Tax Benefits 2026 - Monthly lease payment tax deductible - Balloon payment deductible when paid - Depreciation claimed by lessor - GST treatment simplified ## Get Finance Lease Quote Need equipment finance lease in 2026? Contact Ing Heng for flexible terms with 0% down payment. --- **Not sure?** Compare with [Operating Lease](/blog/operating-lease-2026-no-ownership-option) or [Hire Purchase](/blog/hire-purchase-2026-complete-equipment-guide-malaysia).