Machinery Financing Guide 2026 - Equipment Budget Planner

2026 Machinery Financing Guide

Businesses need machinery. Construction, transport, manufacturing. Budget planning is essential. Financing options matter. Smart decisions save money.

This complete guide covers machinery financing. Equipment prices. Bank vs alternative options. Budget planning templates.

Equipment Prices 2026

Excavator Prices

• Komatsu PC200: RM340,000 - RM380,000
• CAT 320: RM450,000 - RM520,000
• Used (5 years): RM180,000 - RM220,000

Lorry Prices

• 5-ton lorry: RM120,000 - RM150,000
• 10-ton lorry: RM180,000 - RM220,000
• Prime mover: RM250,000 - RM320,000

Forklift Prices

• 2.5-ton electric: RM45,000 - RM65,000
• 3-ton diesel: RM55,000 - RM75,000
• Used (5 years): RM25,000 - RM35,000

Bank vs Alternative Financing

Bank Machinery Loans

• Interest rate: 4.6% - 6.0%
• Maximum loan: 90%
• Down payment: 10% - 20%
• Equipment age: 5 years maximum
• Processing: 2 - 4 weeks

Ing Heng Credit Machinery Financing

• Interest rate: Competitive rates
• Maximum loan: 100%
• Down payment: 0%
• Equipment age: No limit
• Processing: 24 - 48 hours

Equipment Budget Planner

Step 1: Identify Equipment Needed

What machinery does your business need?

• Excavator for construction
• Lorry for transport
• Forklift for warehouse
• Generator for backup power

Step 2: Choose New or Used

New Equipment:

• Higher cost
• Full warranty
• Latest technology
• Longer useful life

Used Equipment:

• 40-60% lower cost
• Remaining warranty (if any)
• Proven technology
• Immediate availability

Step 3: Calculate Total Cost

Equipment price + Down payment + Interest + Maintenance

Example: RM100,000 forklift
Bank: RM100,000 + RM10,000 + RM25,000 + RM20,000 = RM155,000
Ing Heng: RM100,000 + RM0 + RM27,000 + RM20,000 = RM147,000

Step 4: Plan Monthly Payments

RM100,000 equipment example:

Bank: RM1,600 - RM1,800/month (10% down)
Ing Heng: RM1,750/month (0% down)

Step 5: Consider Tax Benefits

Capital allowance: 40% Year 1, 20% annually
RM100,000 equipment = RM40,000 Year 1 deduction
Tax savings at 24%: RM9,600

Sample Budget Scenarios

Small Business Budget

Equipment: Used forklift (RM30,000)

• Bank: Rejected (too old)
• Ing Heng: Approved, RM0 down, RM550/month

Medium Business Budget

Equipment: New lorry (RM135,000)

• Bank: RM13,500 - RM27,000 down
• Ing Heng: RM0 down, RM2,200/month

Large Business Budget

Equipment: 5 excavators (RM1,700,000)

• Bank: RM170,000 - RM340,000 down
• Ing Heng: RM0 down, RM26,000/month total

2026 Budget Planning Tips

• Use 0% down payment to preserve cash
• Consider used equipment for savings
• Calculate tax benefits into budget
• Match loan term to equipment life
• Plan maintenance costs annually

Financing Approval Tips

• Prepare complete documentation
• Show business cash flow
• Demonstrate equipment need
• Provide equipment details
• Be realistic about budget