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Equipment Financing

Refinancing Equipment 2026 - Unlock Equity Guide

Equipment refinancing options 2026. Unlock equity from owned equipment for business expansion.

Ing Heng Credit Team • • 4 min read

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 fasts

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 fasts
  5. Tax Deductible - Interest expenses

Refinancing Process

Step 1: Assessment (fasts)

  • Equipment details
  • Current photos
  • Usage information

Step 2: Valuation (fasts)

  • Market value check
  • Condition assessment
  • LTV calculation

Step 3: Approval (fasts)

  • Documentation review
  • Offer confirmation
  • Agreement signing

Step 4: Payout (fasts)

  • 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.

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