The nine financing routes at a glance
| Route | Tenor | Ticket | Best fit |
|---|---|---|---|
| Export credit agencies | 5–12 years | $2M – $250M | Imported equipment from EU, UK, Korea, Japan |
| Development banks / DFIs | 7–15 years | $5M – $200M | Food security, cold chain, energy efficiency |
| Commercial lending | 3–8 years | $500K – $80M | Established operators expanding proven capacity |
| Equipment leasing | 2–7 years | $100K – $25M | Single machines and phased upgrades |
| Vendor financing | 1–5 years | $250K – $30M | Single counterparty for supply and payment |
| Project finance | 8–18 years | $20M – $500M | Greenfield plants with offtake contracts |
| Private equity | 4–7 year hold | $5M – $150M | Platform build-outs and consolidation |
| Investment partners | Negotiated | $1M – $50M | Projects needing local access as well as capital |
| Government programmes | Programme specific | 5–40% of capex | Priority sectors and special economic zones |
What lenders actually assess
Every institution runs a version of the same test: can this project service debt through a downturn, and what happens to the lender if it cannot? Everything in a credit paper reduces to cash-flow resilience, sponsor commitment and security.
- Debt service coverage ratio — most lenders want a base case of 1.3–1.5x and a stressed case above 1.1x
- Sponsor equity — typically 25–35%, with development banks sometimes accepting 20%
- Offtake or demand evidence — contracts, letters of intent, or a defensible market study
- Technical credibility — a named EPC or OEM, realistic ramp-up curve, independent engineer review for larger tickets
- Country and currency risk — revenue currency versus debt currency mismatch is a common decline reason
- Environmental and social compliance — mandatory for DFIs and increasingly for commercial banks
Sequencing: finance and procurement must run together
Financing workstream, in order
- Fix capex band and production model before approaching institutions
- Identify equipment origin — it determines ECA eligibility
- Build a lender-ready financial model with monthly cash flow through ramp-up
- Prepare a feasibility study covering market, technical and E&S dimensions
- Approach three to five institutions in parallel, never sequentially
- Align supplier payment milestones with disbursement schedule
- Confirm security package, guarantees and insurance requirements early
- Keep a fallback route live until financial close
The most expensive mistake in equipment finance
Signing a supply contract before the funding route is confirmed. Payment milestones then dictate the financing structure instead of the other way round, and ECA eligibility can be lost entirely by choosing the wrong country of origin.
Procurement answers
Exploring financing alongside supplier selection
Financing route and supplier shortlist are connected: origin of manufacture, ticket size and delivery country all change which instruments are available.
Can industrial equipment purchases be financed?
Commonly, yes — through leasing, commercial lending, vendor credit, export credit agency cover, development finance or full project finance. The workable routes depend on ticket size, country risk, sponsor balance sheet and where the equipment is manufactured. Global B2B Group is not a bank or lender and does not approve or guarantee financing.
What information is needed to explore project financing?
Typically the project description and location, total capital requirement and equipment split, sponsor and ownership details, intended equipment origin, an operating and revenue case, the equity contribution available, security or collateral, and the required timeline. Lenders then assess eligibility, structure and pricing through their own due diligence process.
Can a supplier and a financing route be explored together?
Yes, and it is usually more efficient. Equipment origin affects export credit eligibility, ticket size affects whether leasing or project finance fits, and lender documentation requirements affect what the RFQ must ask suppliers to provide. Running both tracks in parallel avoids re-tendering after a financing structure is chosen.
Does Global B2B Group guarantee financing?
No. Global B2B Group accepts no paid placement for suppliers or lenders, and is not a bank, lender or broker of credit. Financing opportunities may be explored with suitable external financing partners, subject to project eligibility, due diligence and lender approval. No outcome, rate or approval is promised. Suppliers cannot pay for inclusion, ranking or recommendation. Global B2B Group discloses to buyers its fee from the supplier they select, payable only after the deal or project proceeds; buyers pay nothing. Suppliers are invited against documented selection criteria, not the fee.
Compare export credit, development finance, leasing and project finance routes against your project size, country and equipment origin.
Continue on the platform
- the CAPEX approval process explained
The eight stages from problem definition to post-investment audit.
- feasibility evidence lenders ask for
The technical and commercial pack behind a funding request.
Global B2B Group accepts no paid placement: we do not manufacture equipment or represent a single manufacturer. We are not a bank or lender — financing options may be explored with external financing partners, subject to eligibility, due diligence and lender approval.
Questions & answers
Frequently asked questions
How much equity do we need for an industrial project?
Plan for 25–35% of total project cost. Development banks occasionally accept 20% for high-impact projects, while first-time sponsors in volatile markets may be asked for 40%.
Can financing cover installation and working capital, not just machines?
Often yes. ECA-backed facilities typically cover up to 85% of eligible export contract value plus local costs within limits, and development bank facilities frequently include a working-capital tranche for ramp-up.
How long does it take to arrange equipment financing?
Leasing can close in 2–6 weeks; commercial term debt in 6–16 weeks; ECA-backed and development bank facilities in 4–12 months, largely depending on how complete the documentation is at first submission.
Does Global B2B Group provide financing?
No. We never lend and never take a success fee from buyers. We structure the case, prepare the package and make independent introductions to institutions that fit the project.
Industrial financing
Financing routes for financing & investment
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 7 routes buyers commonly compare; amounts, tenors and eligibility are set by each institution.
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.
Best for: Imported production lines and turnkey plants from EU, UK, Korea or Japan
- Eligible country content
- Equity contribution
- 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.
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.
Best for: Established operators expanding proven capacity
- Debt-service capacity
- Security package
- Sponsor equity
Equipment Leasing
Operating and finance leases that keep machinery off the balance sheet, preserve working capital and align payments with production ramp-up.
Best for: Single machines, packaging lines, handling fleets and phased upgrades
- Asset resale value
- Insurance
- Upfront deposit
Vendor Financing
Supplier-supported deferred payment and instalment structures negotiated inside the RFQ, before supplier selection narrows your leverage.
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.
Best for: Greenfield plants, integrated processing complexes and utility-scale infrastructure
- Offtake agreements
- EPC contract
- Independent engineer report
Government Programmes
Industrial localisation incentives, capex grants, interest subsidies, free-zone benefits and agri-processing schemes that reduce effective project cost.
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 these routes may fit your country, sector, project 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, with no paid placement and 100% free for buyers. We return the routes that realistically fit your project, with the requirements and documentation checklists each institution publishes.
Next steps
Put this into practice
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