The terms that matter for capital equipment
| Term | Buyer takes risk from | Buyer pays | Use when |
|---|---|---|---|
| EXW | Supplier's factory door | Everything after loading | You have a strong freight forwarder and want full cost visibility |
| FCA | Named place of handover | Main carriage onward | Standard for containerised equipment |
| FOB | Ship's rail at load port | Ocean freight, insurance, import | Break-bulk and RoRo shipments |
| CIF | Load port (risk) / destination (cost) | Import clearance, inland | You want a single landed-to-port price |
| CIP | Handover to first carrier | Import clearance, inland | Multimodal shipments with insurance included |
| DAP | Named destination | Import duty and clearance | You want equipment at site, duty excluded |
| DDP | Named destination | Nothing further | Rarely advisable — supplier prices your duty risk |
Avoid DDP for cross-border machinery
Suppliers price unfamiliar duty and clearance risk conservatively, and a non-resident supplier often cannot reclaim import VAT. DAP plus your own customs broker is usually 3–8% cheaper on the same shipment.
Shipping checklist
Before the first container leaves
- Packing list with dimensions, weights and centre of gravity per package
- Route survey completed for any package over legal road limits
- HS codes agreed with the customs broker in advance
- Certificate of origin and any preferential trade documentation prepared
- Insurance covering delivery, installation and commissioning, not just transit
- Site access, crane capacity and unloading equipment confirmed
- Storage plan if the building is not ready on arrival
Questions & answers
Frequently asked questions
Which Incoterm is best for buying machinery from Europe or Asia?
FCA or CIP for containerised equipment and DAP when you want the supplier to manage transport to site while you keep control of import clearance and duty.
Who insures machinery during shipping?
It depends on the term: under CIF and CIP the seller arranges insurance, otherwise the buyer must. Always confirm the policy covers installation and commissioning, not just transit.
What happens if the site is not ready when equipment arrives?
Demurrage and storage charges accrue quickly, often $150–$600 per container per week plus port handling. Plan a bonded or covered storage fallback before shipment.
Can freight be included in a financing facility?
Yes, freight and insurance are commonly eligible within export credit and development bank facilities, subject to each institution's local-cost rules.
Industrial financing
Financing routes for logistics & compliance
Financing is scoped alongside the RFQ, not after supplier selection — the funding route changes the optimal supplier, currency, incoterms and delivery schedule. Global B2B Group never lends, never takes a success fee from buyers and is not tied to any institution. Below are the nine routes we actively structure against.
Export Credit Agencies
State-backed cover (Euler Hermes, SACE, EKF, UKEF, Atradius, K-Sure) on equipment exported from the supplier's country, usually combined with a commercial bank loan.
- Tenor
- 5 – 12 years
- Ticket
- $2M – $250M
Best for: Imported production lines and turnkey plants from EU, UK, Korea or Japan
- Eligible country content
- Down payment 15%
- Bankable feasibility study
Development Banks & DFIs
IFC, EBRD, AfDB, ADB, IDB, FMO, Proparco and bilateral development windows funding industrial capex with concessional pricing and long grace periods.
- Tenor
- 7 – 15 years
- Ticket
- $5M – $200M
Best for: Food security, cold chain, energy efficiency and job-creating projects in emerging markets
- ESG / E&S compliance
- Audited financials
- Development impact case
Commercial Lending
Bank term debt and capex facilities secured against project cash flow, equipment and corporate balance sheet, in local or hard currency.
- Tenor
- 3 – 8 years
- Ticket
- $500K – $80M
Best for: Established operators expanding proven capacity
- DSCR ≥ 1.3x
- Security package
- Sponsor equity 25–35%
Equipment Leasing
Operating and finance leases that keep machinery off the balance sheet, preserve working capital and align payments with production ramp-up.
- Tenor
- 2 – 7 years
- Ticket
- $100K – $25M
Best for: Single machines, packaging lines, handling fleets and phased upgrades
- Asset resale value
- Insurance
- Deposit 10–20%
Vendor Financing
Supplier-supported deferred payment and instalment structures negotiated inside the RFQ, before supplier selection narrows your leverage.
- Tenor
- 1 – 5 years
- Ticket
- $250K – $30M
Best for: Buyers who want a single contractual counterparty for supply and payment terms
- Supplier credit appetite
- Bank guarantee or LC
- Milestone schedule
Project Finance
Limited-recourse SPV structures where the facility's own cash flow repays the debt, with independent technical and market due diligence.
- Tenor
- 8 – 18 years
- Ticket
- $20M – $500M
Best for: Greenfield plants, integrated processing complexes and utility-scale infrastructure
- Offtake agreements
- EPC contract
- Independent engineer report
Private Equity
Growth and buy-out capital from industrial and agri-focused funds, typically alongside a debt tranche to lower the blended cost of capital.
- Tenor
- 4 – 7 year hold
- Ticket
- $5M – $150M
Best for: Platform build-outs, consolidation and cross-border expansion
- Governance standards
- Growth thesis
- Exit path
Investment Partners
Strategic co-investors, family offices and regional sponsors who bring local licensing, land, offtake or distribution alongside capital.
- Tenor
- Negotiated
- Ticket
- $1M – $50M
Best for: Projects needing local partnership or market access as much as funding
- Shareholder agreement
- Clear capital structure
- Aligned exit
Government Programmes
Industrial localisation incentives, capex grants, interest subsidies, free-zone benefits and agri-processing schemes that reduce effective project cost.
- Tenor
- Programme specific
- Ticket
- Grants 5% – 40% of capex
Best for: Projects in priority sectors, special economic zones or import-substitution plans
- Local registration
- Job creation targets
- Application windows
How financing is structured
1. Scope & budget
Technical scope and realistic capex band are fixed first — lenders price the project, not the wish list.
2. Route selection
We map which of the nine routes actually fit your country, sector, ticket size and sponsor profile.
3. Bankable package
Feasibility, offtake, DSCR model and equipment quotations assembled into a lender-ready file.
4. Introductions
Independent introductions to ECAs, DFIs, banks, lessors and equity partners — no exclusivity, no success fee to buyers.
Get a funding route assessment
Human-led, supplier-neutral and 100% free for buyers. We return the routes that realistically fit your project, with indicative tenors, equity requirements and documentation checklists.
Next steps
Put this into practice
Request machinery quotes
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