Four acceptance gates
| Gate | Location | Proves | Payment link |
|---|---|---|---|
| FAT | Supplier's works | Machine functions to specification, dry or on sample product | 10–15% |
| Mechanical completion | Site | Installed, aligned, connected, safe to energise | 10% |
| SAT | Site | Functions correctly on your product and utilities | 10% |
| Performance test | Site | Guaranteed output, yield and consumption over a test period | Retention release |
The performance test is the one that matters commercially, and it is the one most often left vague. Define the test duration, the raw material specification, the measurement method, who takes the samples and what happens if the machine falls short by 3%, 10% or 25%.
Site readiness checklist
Confirm before the installation team flies in
- Foundations cured, levelled and surveyed against the supplier's drawing
- Power supply energised at correct voltage, frequency and phase, with earthing verified
- Compressed air, steam, water and drainage terminated at the specified interface points
- Building envelope closed, floor finished and clean, lighting operational
- Access route clear for the largest package, with lifting equipment on site
- Operators and maintenance staff released from other duties for training
- Raw material available in commissioning quantities and to specification
- Waste and rework handling agreed for trial production
Supervision days are the most expensive line item to waste
Supplier engineers are typically charged at $900–$1,800 per day plus travel and accommodation. Every day lost to an unready site is pure cost — and it usually pushes the whole commissioning window into the next shipping season.
Questions & answers
Frequently asked questions
How long does commissioning take?
Two to four weeks for a single machine, four to twelve weeks for a complete line including trial production and operator training. Ramp-up to guaranteed output typically takes a further one to three months.
Should we attend the factory acceptance test?
Yes for any significant purchase. Problems found at FAT are the supplier's to fix in their own workshop; the same problems found at site cost weeks and travel budget.
What if the machine misses its guaranteed output?
A well-drafted contract provides a cure period, then liquidated damages scaled to the shortfall, then rejection rights beyond a threshold. Retention held until the performance test is passed is the practical enforcement mechanism.
Who is responsible for operator training?
The supplier, as a defined scope item with a stated number of days and trainees. Insist on training being delivered on your product, in a language your operators read, with documentation left on site.
Industrial financing
Financing routes for project planning
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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