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.
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 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
Supplier-neutral · Human-led · No cost to buyers
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