Machinery Loan Malaysia: Complete Financing Guide 2026

Need machinery for your business but struggling to get financing? You’re not alone. Whether banks rejected your application, you can’t afford the down payment, or your machinery is too old for traditional lenders, this guide shows you ALL your options in Malaysia.

What you’ll learn:

How to get machinery loans from banks (requirements, process)
What to do if banks reject you (alternative lenders)
0% down payment options
Financing for old machinery (5-15+ years)
Real examples with specific costs and ROI

What is a Machinery Loan?

A machinery loan (also called equipment financing) is funding specifically for purchasing business machinery:

Construction: Excavators, bulldozers, cranes, backhoes
Manufacturing: CNC machines, injection molding, lathes, presses
Logistics: Forklifts, lorries, refrigerated trucks
Warehouse: Reach stackers, pallet jacks, conveyors
Agriculture: Tractors, harvesters, planters

Unlike general business loans, machinery loans use the equipment itself as collateral. This often means better rates and terms—if you qualify.

Why Machinery Loans Matter for Malaysian SMEs

Cash flow preservation: Instead of paying RM200,000 upfront for an excavator, spread it over 3-5 years while the equipment generates revenue.

Tax benefits: Equipment financing may qualify for capital allowances under Malaysian tax law.

Business growth: Don’t let equipment costs delay projects. Finance now, earn now.

Example: A Johor contractor needs a used Komatsu excavator (RM180,000). Paying cash wipes out his operating capital. Financing at 0% down means he keeps RM180,000 for payroll, fuel, and emergencies while the excavator earns RM40,000/month on projects.

Types of Machinery Financing in Malaysia

1. Bank Term Loans

Down payment: 10-30% (RM20k-60k for RM200k equipment)
Interest rates: 4-8% typically
Equipment age: Usually max 5 years
Approval time: 2-4 weeks
Credit requirements: CTOS score 650+
Best for: New equipment, established businesses, perfect credit

2. Hire Purchase (Financing Companies)

Down payment: 0-20%
Interest rates: 6-10%
Equipment age: More flexible (5-15 years)
Approval time: 1-2 weeks
Credit requirements: Flexible
Best for: Used equipment, newer businesses, moderate credit

3. Leasing

Down payment: 0-10%
Structure: Rent equipment with option to buy
Equipment age: Flexible
Approval time: Fast
Best for: Testing equipment before committing to purchase

4. Alternative Lenders (ING Heng)

Down payment: 0% (100% financing)
Interest rates: Competitive
Equipment age: No age limit
Approval time: Fast approval
Credit requirements: Flexible (business viability focus)
Best for: Bank rejects, old equipment, tight cash flow

Bank Machinery Loans: Requirements & Process

Step 1: Check Eligibility

Banks typically require:

Business registration: SSM registered, min 2 years operating
Financial statements: Audited accounts or 12-24 months bank statements
Credit score: CTOS score above 650
Down payment: 10-30% of equipment value
Equipment age: Under 5 years old
Collateral: Sometimes require additional security

Step 2: Prepare Documentation

SSM registration certificate
Latest financial statements
Directors’ IC and personal bank statements
Business premises proof (utility bills, tenancy agreement)
Equipment quotation with full specifications
Purchase agreement or dealer invoice

Step 3: Submit Application

Visit bank branch (most banks don’t offer online for equipment financing)
Submit full documentation
Pay processing fees (RM500-2000)
Wait 2-4 weeks for assessment

Step 4: Equipment Valuation & Approval

Bank conducts equipment appraisal
Evaluates business cash flow and creditworthiness
Decision: Approved, conditional, or rejected

Timeline: 2-4 weeks minimum, often longer

What If Banks Reject You?

Bank rejections are common. Main reasons:

Equipment too old (over 5 years)
Insufficient down payment saved
Credit score below threshold (CTOS issues, late payments)
Limited business track record (under 2 years)
Industry perceived as high-risk

You have alternatives. Don’t give up.

Alternative: ING Heng Equipment Financing

How It’s Different from Banks

Factor	Banks	ING Heng
Down Payment	10-30% (RM20k-60k)	0% (RM0)
Equipment Age	Max 5 years	No age limit
Credit Check	Strict (CTOS 650+)	Flexible
Approval Time	2-4 weeks	Fast approval
Bank Rejects	No alternative	We specialize
Focus	Credit score	Business viability

Who Should Consider ING Heng?

✅ Banks rejected you due to equipment age
✅ Can’t afford 20-30% down payment
✅ Need fast approval (project starting soon)
✅ Bad credit or limited business history
✅ Equipment is 5-15+ years old but functional
✅ Want to preserve cash flow for operations

The ING Heng Process

Step 1: WhatsApp +60175700889 with:

Machinery details (type, brand, year, price)
Brief business overview
Why you need financing

Step 2: Submit basic documents:

SSM registration
6 months bank statements
Business contracts or proof of work

Step 3: Equipment assessment:

We evaluate based on condition, not just age
Is it functional? Well-maintained?
Will your business succeed with this equipment?

Step 4: Approval & terms:

0% down payment option available
Flexible payment terms
Approval even if banks said no

Timeline: Fast approval process

Real Success Stories

Case 1: Penang Contractor - 8-Year-Old Excavator

Background:
Lim runs a small excavation business in Butterworth. Needed Komatsu PC200-8 (2016 model, 8 years old, RM180,000).

Bank Route:

Applied to 2 banks
Both rejected: “Equipment exceeds age policy”
Had RM25,000 saved (far from 30% = RM54,000)

ING Heng Route:

Approved with 0% down payment
100% financing: RM180,000
Equipment inspected: Good engine, functional hydraulics, 60% undercarriage life
Contracts showed RM400,000 work pipeline

Result:

Got excavator immediately
Completed 3 major projects in year 1
Excavator still running reliably 2 years later
Returned to finance 2nd machine

ROI: Excavator earned RM40,000/month. Loan payment RM5,000/month. Net RM35,000/month positive cash flow.

Case 2: Selangor Manufacturer - CNC Machine

Background:
Factory needed used CNC machine (10 years old, RM120,000) to fulfill RM500,000 contract.

Challenge:

Bank rejected (equipment too old)
Limited cash (only RM30,000 available)
Needed equipment within 2 weeks (contract deadline)

ING Heng Solution:

Fast approval in 1 week
0% down payment
Machine inspected: Well-maintained, precision within specs

Result:

Secured and completed RM500,000 contract
Machine generated RM180,000 profit in year 1
Paid off RM50,000 of principal first year

Machinery Types & Typical Costs

Construction Equipment

Excavators: RM80,000-500,000
Bulldozers: RM150,000-800,000
Cranes: RM200,000-2,000,000
Backhoes: RM100,000-300,000

Manufacturing Equipment

CNC Machines: RM80,000-400,000
Injection Molding: RM100,000-600,000
Lathes: RM50,000-250,000
Industrial Ovens: RM40,000-200,000

Logistics & Warehouse

Forklifts: RM30,000-150,000
Reach Stackers: RM200,000-800,000
Refrigerated Trucks: RM150,000-400,000
Lorries: RM80,000-300,000

How to Choose: Bank vs ING Heng

Choose Bank Financing If:

Equipment is brand new or under 3 years old
You have 20-30% down payment ready
Perfect credit (CTOS 700+)
Established business (3+ years)
Can wait 3-4 weeks for approval

Choose ING Heng If:

Equipment is 5+ years old
Can’t afford down payment
Banks rejected you
Bad credit or new business
Need fast approval
Want to keep cash for operations

Most SMEs choose alternative lenders because:

Cash flow matters more than lowest rate
Equipment age shouldn’t disqualify functional machinery
Business success depends on getting equipment NOW, not in 4 weeks

Malaysian Regulations to Know

CIDB (Construction Industry Development Board)

Construction equipment must meet safety standards
Operators need CIDB certification for certain machinery
Affects financing for construction equipment

DOSH (Department of Occupational Safety & Health)

Equipment safety inspections required
Proper maintenance records required
Lenders may verify DOSH compliance

SME Corp Programs

Government provides subsidized financing for certain sectors
Check eligibility: www.smecorp.gov.my

Common Mistakes to Avoid

❌ Mistake 1: Assuming old equipment can’t be financed
✅ Alternative lenders finance based on condition and business viability, not age.

❌ Mistake 2: Not shopping around
✅ Banks, hire purchase companies, and alternative lenders have different criteria. Try multiple options.

❌ Mistake 3: Waiting to save full down payment
✅ 0% down options exist. Don’t lose projects waiting 6-12 months to save RM50k-100k.

❌ Mistake 4: Ignoring total cost of ownership
✅ Consider monthly payment + maintenance + insurance + operator costs.

❌ Mistake 5: Not calculating ROI
✅ How much will this machinery earn? Is the loan payment 20-30% of monthly revenue? That’s sustainable.

FAQ

Q: Can I get a machinery loan if my equipment is 10+ years old?

A: Yes. Alternative lenders like ING Heng have no age limit. We assess equipment condition and your business viability, not manufacture year. A well-maintained 10-year-old Komatsu or Hitachi is absolutely financeable.

Q: What if banks already rejected me?

A: Bank rejection is common—often due to equipment age, down payment, or credit score. Alternative lenders evaluate differently. We’ve financed 4,000+ businesses over 40 years, many initially rejected by banks.

Q: Is 0% down payment real or a marketing trick?

A: It’s genuine 100% financing. No hidden down payment. We still assess your business viability—need confidence you can repay based on contracts and cash flow—but if approved, you finance the full equipment cost.

Conclusion: Get Your Machinery Financed

Bottom line:

If you qualify for banks (new equipment, perfect credit, have down payment): Start there for potentially lowest rates
If banks reject you OR you have old equipment OR need 0% down: Alternative lenders like ING Heng are the solution

Don’t let equipment costs stop your business growth.

Ready to Finance Your Machinery?

📞 Contact ING Heng Today

WhatsApp: +60175700889
Phone: 03-3324 8899

Ing Heng Credit & Leasing Sdn Bhd

✅ 40+ years experience (since 1985)
✅ 4,000+ businesses financed
✅ Up to RM10,000,000 available
✅ 0% down payment | No age limit
✅ Fast approval | We accept bank rejects

Finance your machinery. Start your projects. Grow your business.