Sizing the spares package
| Category | Examples | Hold on site? |
|---|---|---|
| Insurance spares | Main gearbox, large motor, control cabinet | Yes if lead time > 8 weeks and failure stops the plant |
| Critical wear parts | Knives, screens, dies, seals, belts | Yes — 6–12 months' consumption |
| Consumables | Filters, lubricants, gaskets | Yes — 3 months |
| Electronic components | PLC cards, drives, sensors | Selective — one of each critical type |
| Structural / rarely failing | Frames, tanks, housings | No |
As a planning figure, a two-year critical spares package costs 3–6% of equipment value for a standard line and 6–10% where the destination has poor logistics or long customs clearance. That number belongs in the capex request, not in an operating budget discovered in month four.
Negotiate service before award, never after
Service terms to fix during the RFQ
- Spare parts price list valid for 24–36 months with a capped escalation formula
- Guaranteed parts availability period — 10 years is a reasonable ask
- Response time SLA for remote support and for on-site attendance
- Day rates for service engineers, fixed for the warranty period and beyond
- Remote diagnostics access and the data the buyer owns
- Training scope, refresher training and documentation in local language
- Option pricing for a full-service or preventive maintenance contract
- Obsolescence notice period for control components
Leverage disappears at contract signature
Spare parts margins are where equipment suppliers earn their real return. Every service term negotiated before award is priced competitively; every one negotiated afterwards is priced as a sole-source.
Maintenance regime that holds availability
- Criticality analysis: rank every asset by production impact, then match the strategy to the rank
- Preventive schedules from the OEM manual, adjusted with actual failure data after year one
- Condition monitoring — vibration, thermography, oil analysis — on rotating critical assets
- A CMMS holding asset register, schedules, spare parts and work order history
- Planned shutdown windows scheduled around commercial demand, not around failures
- Root cause analysis on every stoppage longer than one hour
Questions & answers
Frequently asked questions
How much should we budget annually for maintenance?
Three to six percent of equipment replacement value per year for a conventional processing plant, including labour, parts and contracted services. High-wear industries such as feed milling and recycling sit at the top of that range.
Is a full-service contract worth it?
Usually yes for the first two years in markets without local technical depth, and for complex automation at any time. Beyond that, in-house capability is generally cheaper if the skills can be retained.
What availability should a well-maintained plant achieve?
Ninety-two to ninety-six percent availability is a realistic target for a mature single-line plant with structured preventive maintenance and correct spares holding.
Do you include spares and service in quotation comparisons?
Yes. Two-year spares and five-year service cost are standard lines in our levelled bid comparison, because they often change which supplier is genuinely cheapest.
Industrial financing
Financing routes for operations & roi
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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