Asset utility and life
Useful life, residual value, maintenance responsibilities and the ability to redeploy an asset are relevant to financing and leasing decisions. Equipment should be understood as a productive system, not simply as collateral.
AFII / Industry Perspective
Industrial Assets & Equipment
Asset-backed and equipment funding considered in the context of operating businesses.
A Closer Perspective
Financing equipment is ultimately a question about the business that will put it to work.
Industrial businesses invest in plant and machinery to create capacity, improve efficiency or enter new markets. That investment often arrives before the additional cash flow does. Financing decisions should therefore be made with a clear view of how the equipment will be procured, installed, used and paid for.
Plant and machinery, specialised industrial equipment, production assets and selected lease-based arrangements may call for structured funding. AFII's experience in equipment and project finance brings attention to the underlying assets as well as the borrower.
Commercial Considerations
What Makes This
Sector Different.
Good advice begins with understanding the constraints and choices specific to the underlying business or asset.
Procurement and delivery
Supplier contracts, warranties, imported components, delivery schedules and commissioning create practical obligations that can shape drawdowns and financing milestones.
Operating capacity
The financial case depends on production demand, operating costs and cash-generation capacity. Financing that looks affordable in a forecast must also withstand a reasonable period of underperformance.
Our Advisory PerspectiveStructure Should
Structure Should
Follow Substance.
A useful financing arrangement should help an industrial asset become productive without placing a disproportionate burden on the business using it.
Explore Our ExpertiseConnect procurement to funding
AFII considers how the acquisition contract, equipment delivery and intended funding source fit together. International procurement may also raise questions about export-credit agency participation.
Consider ownership and lease options
Where appropriate, a mandate may compare direct acquisition, secured borrowing and leasing arrangements, including dry or wet lease concepts where commercially relevant.
Structure around operating reality
Advice addresses tenor, repayment capacity, security expectations and the effect of the proposed funding arrangement on the wider business.
AFII
Every mandate has its own commercial reality. The best starting point is to understand that reality properly.
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In This Sector?
Share the commercial context and the kind of advisory support you are looking for. We can begin with a focused conversation.