# Refinancing Equipment 2026 - Unlock Equity Guide Own equipment but need cash? Refinancing lets you unlock equity without selling. Here's the 2026 guide. ## What is Equipment Refinancing? Refinancing means: - Borrow against owned equipment - Get cash for business use - Keep using equipment - Flexible repayment terms ## Why Refinance Equipment in 2026? **Common Reasons:** - Business expansion - Working capital needs - Emergency expenses - Debt consolidation - New equipment purchase - Contract opportunities ## Refinancing vs New Financing | Feature | Refinancing | New Financing | |---------|-------------|---------------| | **Equipment Status** | Already owned | New purchase | | **Cash Received** | Up to 80% value | 100% of price | | **Interest Rate** | Lower (secured) | Standard rate | | **Approval** | Faster | Standard process | | **Equipment Age** | Important factor | Less important | ## How Much Can You Refinance? **Equipment Value Factors:** 1. **Current market value** - Not original price 2. **Age and condition** - Newer = higher % 3. **Type of equipment** - Excavators = higher value 4. **Maintenance records** - Well-maintained = better terms **Typical Loan-to-Value (LTV):** - New equipment (1-2 years): 70-80% - Mid-life (3-5 years): 60-70% - Older (6-10 years): 40-60% ## Real Example: Excavator Refinancing **Owned Excavator:** - Original price: RM 200,000 (2 years ago) - Current value: RM 150,000 - Refinance amount: RM 105,000 (70%) - Monthly (5 years): ~RM 2,100 **Use cash for:** - New forklift purchase - Working capital - Hire 2 more workers - Take on bigger contracts ## Bank Refinancing Requirements 2026 | Requirement | Bank | Ing Heng | |-------------|-------|----------| | **Ownership Period** | Minimum 2 years | 6 months OK | | **Equipment Age** | Under 7 years | Up to 10 years | | **LTV Ratio** | 50-60% | Up to 80% | | **Documentation** | Valuation required | Simple assessment | | **Approval Time** | 2-3 weeks | 48-72 hours | ## Equipment We Refinance **High LTV (70-80%):** - Komatsu excavators (PC200, PC300) - CAT excavators (320, 336) - Prime movers (Volvo, Scania) **Medium LTV (50-70%):** - ISUZU, FUSO, HINO lorries - Toyota forklifts - TCM forklifts **Lower LTV (40-60%):** - Older equipment (7-10 years) - Small machinery - Specialized equipment ## 2026 Refinancing Benefits 1. **Keep Equipment** - No disruption to operations 2. **Lower Interest** - Secured loan rates 3. **Flexible Terms** - 1-7 year options 4. **Fast Cash** - Money in 48-72 hours 5. **Tax Deductible** - Interest expenses ## Refinancing Process **Step 1: Assessment (24 hours)** - Equipment details - Current photos - Usage information **Step 2: Valuation (24 hours)** - Market value check - Condition assessment - LTV calculation **Step 3: Approval (24 hours)** - Documentation review - Offer confirmation - Agreement signing **Step 4: Payout (24 hours)** - Cash to bank account - Equipment continues use - Monthly payments start ## Documentation Required 1. **Equipment proof** - Purchase invoice - Registration grant (JPJ) - Insurance policy 2. **Business documents** - SSM registration - 6 months bank statements - Latest audited accounts 3. **Equipment condition** - Current photos - Service records - Hours used (if applicable) ## Bad Credit Refinancing Banks may reject if: - Poor CCRIS score - Late payments visible - High debt service ratio Ing Heng considers: - Equipment value primary - Income secondary - Bad credit possible - Bank rejection cases welcome ## Refinancing vs Selling **Why Refinance Instead of Sell?** | Factor | Refinancing | Selling | |--------|-------------|---------| | **Keep Equipment** | Yes | No | | **Get Cash** | Yes | Yes | | **Business Impact** | None | Major disruption | | **Process Time** | 3-5 days | Weeks/months | | **Future Use** | Continue | Lost | ## Real Example: Fleet Refinancing **Construction Company:** - 3 excavators owned - Total value: RM 450,000 - Refinance 70%: RM 315,000 - Monthly payment: RM 6,300 **Use cash to:** - Purchase 2 new lorries - Hire 5 workers - Expand to new construction sites ## 2026 Refinancing Tips 1. **Check equipment value first** - Get realistic estimate 2. **Compare LTV ratios** - Higher % = more cash 3. **Consider term length** - Longer = lower monthly 4. **Plan use of funds** - Business expansion ideal 5. **Maintain insurance** - Required throughout loan ## Interest Rates 2026 **Refinancing Rates:** - New equipment (1-3 years): 4.5-5.5% - Mid-life (4-6 years): 5.0-6.0% - Older (7-10 years): 5.5-6.5% **Factors affecting rate:** - Equipment age - LTV ratio - Business financial health - Loan term ## Get Refinancing Quote Own equipment that needs refinancing? Contact Ing Heng for same-day assessment and fast cash payout. --- **Need new equipment?** See [0% Deposit Equipment Financing](/blog/0-percent-deposit-equipment-2026-no-down-payment).