Compactor Financing Malaysia: Complete Guide to 0% Deposit Options 2025

Getting compactor financing in Malaysia is essential for road construction, building foundations, and infrastructure projects. Whether you need a road roller for highway work or plate compactors for small projects, our 0% deposit financing options help contractors acquire the right compaction equipment without draining working capital.

With over 40 years of experience financing construction equipment, we understand that compactors are critical for ensuring project quality and meeting specifications. Our flexible financing solutions are designed to get you the equipment you need quickly and affordably.

What is Compactor Financing?

Compactor financing is a specialized loan or hire purchase arrangement that allows contractors to acquire compaction equipment by paying over time instead of full cash upfront. This includes road rollers, plate compactors, rammer compactors, and other soil/asphalt compaction machinery.

Key Benefits:

Finance 70-100% of equipment value
Preserve working capital for operations
Start projects immediately without waiting
Build business credit history
Tax-deductible payments and depreciation
Fixed monthly costs for better budgeting

Financing Structure:

Loan amount: RM50,000 - RM2,000,000+
Interest rates: 7.5-12% p.a.
Loan tenure: 12-60 months
Down payment: 0-30% (0% deposit available)
Equipment age: New to 10 years old

0% Deposit Compactor Financing

Who Qualifies for 0% Deposit?

Established contractors:

2+ years in business with consistent revenue
Strong bank statements showing regular income
CIDB registration with good standing
Current projects or secured contracts

Excellent credit profile:

Clean CCRIS/CTOS credit history
No recent defaults or legal action
Existing loans paid consistently on time
Debt service ratio below 50%

High-value equipment purchases:

New compactors from authorized dealers
Premium brands (Caterpillar, Volvo, Bomag)
Equipment value RM300,000 and above
Strong resale value equipment

0% Deposit Terms and Conditions

Interest rates: 8.5-11.5% p.a. (slightly higher due to no down payment)

Loan tenure by equipment type:

New road rollers: Up to 60 months
Used road rollers (5-7 years): Up to 48 months
Used road rollers (8-10 years): Up to 36 months
Plate compactors (new): Up to 48 months

Payment example - RM500,000 new road roller:

Loan amount: RM500,000 (0% deposit)
Interest rate: 9.5% p.a.
Tenure: 60 months
Monthly payment: RM10,470
Total interest: RM128,200

Enhanced requirements for 0% deposit:

Minimum annual revenue: RM800,000
2+ years business operation
Personal guarantee from directors
Comprehensive insurance with machinery breakdown coverage
Preferably existing customer or strong referral

Alternative Low Deposit Options

5% deposit financing:

RM500,000 compactor = RM25,000 down
Interest rate: 8-10.5% p.a.
Easier qualification requirements
Faster processing time

10% deposit financing:

RM500,000 compactor = RM50,000 down
Interest rate: 7.5-9.5% p.a.
Standard approval process
Best value for most contractors

15% deposit financing:

RM500,000 compactor = RM75,000 down
Interest rate: 7.5-9% p.a.
Premium rates for higher down payment
Strongest approval chances

Types of Compactors We Finance

Road Rollers (Smooth Drum)

Single drum rollers:

Size range: 3-14 tons operating weight
Applications: Asphalt compaction, base course, wearing course
Popular models: Cat CB13, Volvo SD25F, Bomag BW120AD
Price range: RM180,000 - RM650,000

Double drum rollers:

Size range: 1.5-13 tons operating weight
Applications: Asphalt finishing, parking lots, small roads
Popular models: Cat CB22B, Volvo DD25B, Bomag BW80AD
Price range: RM120,000 - RM480,000

Financing terms for road rollers:

Down payment: 0-25%
Interest rate: 7.5-11% p.a.
Loan tenure: 24-60 months
Monthly payment (RM400,000): RM8,350-10,800

Road Rollers (Padfoot/Sheepsfoot)

Padfoot rollers:

Applications: Soil compaction, cohesive soils, clay
Drum options: Single drum with towed pneumatic, combination
Popular models: Cat CS44B, Volvo SD110F, Bomag BW214PDH
Price range: RM250,000 - RM800,000

Sheep’s foot rollers:

Applications: Deep soil compaction, fill material
Compaction depth: 150-300mm lifts
Popular models: Cat CP44B, Volvo SD200F, Bomag BW213D
Price range: RM300,000 - RM900,000

Specialized applications:

Highway construction and widening
Airport runway and taxiway construction
Industrial site preparation
Large building foundation work
Municipal road maintenance

Pneumatic Tire Rollers

Multi-tire rollers:

Tire configuration: 9-wheel, 11-wheel arrangements
Applications: Asphalt intermediate compaction
Popular models: Cat CW16, Volvo PT125R, Bomag BW24RH
Price range: RM380,000 - RM750,000

Benefits:

Uniform pressure distribution
Excellent for asphalt compaction
Good mobility between job sites
Versatile for different materials

Financing advantages:

High utilization equipment
Strong rental income potential
Good resale value
Preferred by highway contractors

Plate Compactors

Forward plate compactors:

Size range: 60-200kg operating weight
Applications: Granular soils, paving stones, small areas
Popular models: Wacker WP1540, Weber SRV590, Bomag BP15/45
Price range: RM8,000 - RM25,000

Reversible plate compactors:

Size range: 100-800kg operating weight
Applications: Cohesive soils, confined spaces, utilities
Popular models: Wacker DPU6555H, Weber SRV620, Bomag BPR35/42D
Price range: RM15,000 - RM60,000

Heavy duty plate compactors:

Size range: 300-1,500kg operating weight
Applications: Deep compaction, structural backfill
Popular models: Wacker DPU8070H, Weber SRV890, Bomag BPR100/80D
Price range: RM35,000 - RM120,000

Financing for plate compactors:

Minimum loan: RM50,000 (may finance multiple units)
Down payment: 10-20%
Interest rate: 8-12% p.a.
Loan tenure: 12-36 months

Rammer Compactors

Jumping jack rammers:

Applications: Trenches, confined spaces, cohesive soils
Weight range: 60-90kg
Popular models: Wacker BS60-2i, Weber SRV590, Bomag BT60
Price range: RM6,000 - RM15,000

Heavy duty rammers:

Applications: Deep trench work, utility installations
Weight range: 70-100kg
Popular models: Wacker BS70-2i, Weber SRV610, Bomag BT65
Price range: RM8,000 - RM18,000

Fleet financing for rammers:

Finance 5-20 units together
Volume discounts available
Simplified documentation
Centralized payment schedule

Vibrating Compactors

Walk-behind vibrating compactors:

Applications: Asphalt patches, small paving jobs
Weight range: 70-150kg
Features: High frequency vibration, water spray system
Price range: RM12,000 - RM35,000

Ride-on vibrating compactors:

Applications: Large area compaction, industrial floors
Weight range: 800-2,500kg
Features: Operator platform, articulated steering
Price range: RM80,000 - RM200,000

New vs Used Compactor Financing

New Compactor Financing

Advantages of new equipment:

Latest technology and fuel efficiency
Full manufacturer warranty (1-3 years)
Lower maintenance costs initially
Higher productivity and reliability
Maximum financing tenure available
0% deposit options

Financing terms for new compactors:

Down payment: 0-20%
Interest rate: 7.5-10% p.a.
Maximum tenure: 60 months
Loan to value: Up to 100%

Popular new models and pricing:

Caterpillar CB13 (13-ton single drum): RM580,000
Volvo DD25B (2.5-ton double drum): RM280,000
Bomag BW177D (17-ton single drum): RM720,000
Wacker DPU6555H (reversible plate): RM45,000

Used Compactor Financing

Advantages of used equipment:

Lower purchase price (40-60% of new)
Immediate availability
Proven performance history
Lower insurance premiums
Established maintenance patterns

Financing by equipment age:

1-3 years old:

Down payment: 10-25%
Interest rate: 8-11% p.a.
Maximum tenure: 60 months
Best value proposition

4-7 years old:

Down payment: 15-30%
Interest rate: 9-12% p.a.
Maximum tenure: 48 months
Still good financing terms

8-10 years old:

Down payment: 20-35%
Interest rate: 10-14% p.a.
Maximum tenure: 36 months
Higher maintenance considerations

Used compactor examples:

2021 Cat CB13 (was RM580,000 new): RM420,000 used
2019 Volvo DD25B (was RM280,000 new): RM195,000 used
2017 Bomag BW177D (was RM720,000 new): RM450,000 used

Compactor Brands We Finance

Premium European Brands

Caterpillar (USA)

Models: CB series, CS series, CW series
Strengths: Reliability, dealer network, resale value
Technology: Advanced vibration control, operator comfort
Financing advantage: Preferred by lenders, easy approval

Volvo (Sweden)

Models: SD series, DD series, PT series
Strengths: Fuel efficiency, low emissions, comfort
Technology: Intelligent compaction systems
Financing advantage: Strong resale value, good terms

Bomag (Germany)

Models: BW series, BPR series, BP series
Strengths: Compaction expertise, German engineering
Technology: ECONOMIZER, VARIOCONTROL systems
Financing advantage: Premium positioning, flexible terms

Dynapac (Sweden)

Models: CA series, CC series, CP series
Strengths: Innovation in compaction technology
Technology: Seismic compaction measurement
Financing advantage: Specialist brand recognition

Established Asian Brands

Sakai (Japan)

Models: SW series, SV series, PC series
Strengths: Japanese quality, proven reliability
Applications: Strong in asphalt compaction
Financing advantage: Good value, reliable performance

Hitachi (Japan)

Models: ZC series compactors
Strengths: Integration with excavator technology
Applications: Versatile construction applications
Financing advantage: Brand recognition, good support

Hamm (Germany, Wirtgen Group)

Models: H series, HD series
Strengths: Oscillation technology, precision
Applications: High-quality asphalt finishing
Financing advantage: Premium technology acceptance

Value-Oriented Brands

XCMG (China)

Models: XS series, XMR series
Strengths: Competitive pricing, improving quality
Technology: Modern control systems
Financing considerations: 15-25% down payment typical

Shantui (China)

Models: SR series compactors
Strengths: Cost effectiveness, basic reliability
Applications: General construction compaction
Financing considerations: Good value for budget-conscious contractors

SANY (China)

Models: SRC series, SSR series
Strengths: Rapid technology advancement
Warranty: 2 years comprehensive coverage
Financing considerations: Growing acceptance, competitive terms

Lonking (China)

Models: LG series compactors
Strengths: Simple operation, affordable parts
Applications: Basic compaction needs
Financing considerations: Entry-level financing available

Application Process for Compactor Financing

Step 1: Equipment Selection and Planning

Define your compaction needs:

Project types: Roads, building foundations, utilities, landscaping
Material types: Asphalt, soil, granular base, cohesive clay
Compaction depth: Surface (50mm) to deep (300mm+)
Site conditions: Confined spaces, open areas, accessibility

Size and type selection:

Road rollers: For large area asphalt and soil compaction
Plate compactors: For confined spaces and finishing work
Rammer compactors: For trenches and cohesive soils
Pneumatic rollers: For asphalt intermediate compaction

Budget planning:

Equipment price: RM50,000 - RM1,000,000+
Down payment: 0-30% depending on qualification
Monthly payment capacity: Based on project income
Operating costs: Fuel, maintenance, operator wages

Step 2: Document Preparation

Personal documents (individuals/sole proprietors):

Malaysian IC or valid work permit (foreigners)
6 months personal and business bank statements
Income documentation:
- Project contracts and work orders
- Payment receipts from clients
- EPF/KWSP contribution statements
- Other income sources
CIDB certificate and relevant trade licenses

Company documents (Sdn Bhd/Enterprise):

SSM company registration certificate (Form 9, 24, or 49)
6 months company bank statements
Company directors’ IC copies
Business profile or company overview
Board resolution for equipment purchase authorization
Financial statements (last 2 years) - flexible for new companies
Current year management accounts

Project and equipment documents:

Equipment quotation with detailed specifications
Supplier/dealer information and reputation
Current project list and contract values
Planned projects requiring compaction equipment
Existing equipment inventory
Insurance quotation for new equipment

Step 3: Application Submission

WhatsApp application (fastest method):

Send to: +60175700889
Initial message: “I need compactor financing”
Attach: IC copy + equipment quotation
Response time: Within 1 hour during business hours
Follow-up: Guided document submission process

Phone application:

Call: +603-3362 1588
Direct consultation with financing specialist
Immediate preliminary assessment
Appointment scheduling if needed
Real-time guidance on requirements

Email application:

Email to: info@inghengcredit.com
Subject: “Compactor Financing Application”
Attach: All required documents in PDF format
Response time: Within 24 hours
Professional email follow-up process

Walk-in consultation:

Address: 47A, Jalan Raya Timur, Taman Rashna, 41200 Klang
Bring: All original documents for verification
Benefit: Face-to-face discussion and instant decisions
Additional service: Equipment evaluation assistance

Step 4: Credit Assessment Process

Day 1 - Initial review:

Document completeness verification
Basic credit and income assessment
Equipment valuation and market research
Preliminary qualification determination

Day 2 - Detailed evaluation:

CCRIS/CTOS credit bureau investigation
Bank statement analysis and cash flow assessment
Business background and industry experience verification
Reference checks with suppliers and clients

Day 3 - Final decision:

Senior management review and approval
Terms and conditions finalization
Interest rate and tenure determination
Approval letter preparation

Assessment criteria:

Ability to pay: Monthly income vs proposed payment
Business stability: Operating history and current projects
Credit worthiness: Payment history and current obligations
Equipment value: Brand, condition, and resale potential
Industry experience: Track record in construction/compaction work

Step 5: Approval and Terms Review

Approval notification:

Phone call with preliminary approval
Email confirmation with detailed terms
Physical approval letter (if required)
Explanation of all conditions

Terms included in approval:

Approved financing amount
Interest rate (fixed or variable)
Loan tenure and monthly payment schedule
Down payment requirement
Processing fees and other charges
Insurance requirements
Guarantor requirements (if applicable)

Types of approval decisions:

Unconditional approval:

Standard documentation satisfied
Ready to proceed immediately
No additional requirements
Fast track to agreement signing

Conditional approval:

Additional requirements specified:
- Higher down payment
- Personal/corporate guarantor
- Updated financial documents
- Equipment inspection required
- Insurance arrangement confirmation

Counter-proposal approval:

Modified terms from original application:
- Different loan amount
- Adjusted interest rate
- Modified tenure
- Changed down payment requirement

Step 6: Agreement Documentation

Main hire purchase agreement:

Equipment details and specifications
Purchase price and loan amount
Interest rate and total interest payable
Monthly payment amount and due dates
Default clauses and remedies
Insurance and maintenance obligations
Ownership transfer conditions

Supporting documents:

Personal guarantee (individuals)
Corporate guarantee (companies)
Director’s guarantee (limited companies)
Equipment delivery and acceptance form
Insurance policy assignment
Direct debit authorization

Important clauses to understand:

Late payment penalties: Typically 8% p.a. on overdue amounts
Early settlement terms: Rebate calculation method
Default consequences: Repossession rights and procedures
Insurance obligations: Coverage requirements and claim procedures
Ownership transfer: Conditions for final ownership

Step 7: Equipment Delivery and Handover

Pre-delivery inspection:

Equipment condition verification
Specifications match quotation confirmation
Serial number and registration details recording
Functionality testing of all systems
Accessory and attachment verification

Delivery coordination:

Transportation arrangement
Site delivery scheduling
Operator training (if included)
Documentation handover
Final acceptance confirmation

Post-delivery requirements:

Insurance activation and confirmation
Equipment registration (if required)
Service schedule establishment
Parts dealer contact information
Emergency service arrangements

Interest Rates and Payment Calculations

Interest Rate Factors

Equipment-related factors:

New equipment: 7.5-9.5% p.a. (lowest rates)
1-3 years old: 8.5-10.5% p.a.
4-7 years old: 9.5-11.5% p.a.
8-10 years old: 10.5-12% p.a. (highest rates)

Credit profile factors:

Excellent credit (CCRIS 1-2): Best rates available
Good credit (CCRIS 3-4): Standard competitive rates
Fair credit (CCRIS 5-6): Slightly higher rates
Poor credit (CCRIS 7+): Higher rates but still considered

Down payment impact:

0% deposit: +1-1.5% to standard rate
5-10% deposit: Standard market rates
15-20% deposit: -0.5% rate reduction
25%+ deposit: -1% rate reduction

Loan tenure considerations:

12-24 months: Lower rates due to shorter risk
36-48 months: Standard rates (most common)
60 months: Slightly higher rates for longer risk

Payment Calculation Examples

Example 1: New Caterpillar CB13 Road Roller

Equipment price: RM580,000
Down payment: 15% (RM87,000)
Loan amount: RM493,000
Interest rate: 8.5% p.a.
Tenure: 60 months
Monthly payment: RM10,200

Example 2: Used Volvo DD25B (3 years old)

Equipment price: RM195,000
Down payment: 20% (RM39,000)
Loan amount: RM156,000
Interest rate: 9.5% p.a.
Tenure: 48 months
Monthly payment: RM3,950

Example 3: New Heavy Plate Compactor Package (3 units)

Total equipment price: RM180,000
Down payment: 10% (RM18,000)
Loan amount: RM162,000
Interest rate: 9% p.a.
Tenure: 36 months
Monthly payment: RM5,150

Example 4: 0% Deposit Road Roller

Equipment price: RM720,000 (Bomag BW177D)
Down payment: 0% (RM0)
Loan amount: RM720,000
Interest rate: 10% p.a.
Tenure: 60 months
Monthly payment: RM15,300

Flexible Payment Structures

Standard equal monthly payments:

Fixed amount every month
Predictable cash flow planning
Most popular option
Auto-debit facility available

Step-up payment scheme:

Lower payments first 12 months
Higher payments in subsequent years
Good for growing businesses
Matches business development cycle

Project-based payments:

Payments aligned with project completion
Higher during active project months
Lower during mobilization periods
Requires documented project schedule

Seasonal payment adjustments:

Payments adjusted for monsoon/dry seasons
Higher during peak construction season
Lower during slow periods
Must demonstrate seasonal business pattern

Benefits of Compactor Financing vs Alternatives

Financing vs Cash Purchase

Cash flow preservation:

Financing: Preserve 70-100% of equipment cost for operations
Cash purchase: Ties up significant working capital
Impact: Financing allows taking on more/larger projects

Business growth acceleration:

Financing: Start earning immediately without waiting
Cash purchase: Delays while saving for full amount
Result: Financing can pay for itself through additional revenue

Tax optimization:

Financing: Interest payments tax deductible + capital allowances
Cash purchase: Only capital allowances available
Benefit: Lower effective cost through tax savings

Risk management:

Financing: Spread payment risk over time
Cash purchase: Large upfront financial commitment
Advantage: Financing provides better financial flexibility

Return on Investment Analysis

Road roller investment example (RM580,000):

Revenue potential:

Hourly rate: RM250-350
Daily utilization: 8 hours
Monthly working days: 22 days
Monthly gross revenue: RM44,000-61,600

Operating costs:

Fuel: RM8,000/month
Operator wages: RM3,500/month
Maintenance: RM2,500/month
Insurance: RM400/month
Total operating costs: RM14,400/month

Net income before financing:

Monthly net: RM29,600-47,200
Annual net: RM355,200-566,400

Financing cost (20% down, 8.5% rate, 60 months):

Monthly payment: RM9,550
Net profit after financing: RM20,050-37,650/month
Annual profit: RM240,600-451,800

Return on investment:

Investment (down payment): RM116,000
Annual profit: RM240,600-451,800
ROI: 207%-389% per year

Equipment Rental vs Purchase Analysis

Short-term comparison (6 months):

Rental cost: RM18,000/month × 6 = RM108,000
Financing cost: RM9,550/month × 6 = RM57,300
Savings with financing: RM50,700

Long-term comparison (3 years):

Rental cost: RM18,000/month × 36 = RM648,000
Financing cost: RM9,550/month × 36 = RM343,800
Equipment equity: Remaining value RM250,000
Total financing advantage: RM554,200

Break-even analysis:

Monthly cost difference: RM8,450
Equipment monthly payment: RM9,550
Break-even utilization: 57% monthly usage
Recommendation: Finance if usage >60% monthly

Tax Benefits and Incentives

Capital Allowances

Initial allowance (first year):

20% of equipment cost
Example: RM500,000 compactor = RM100,000 allowance
Tax saving: RM100,000 × 24% = RM24,000

Annual allowance (subsequent years):

10% per year on reducing balance method
Year 1: RM500,000 × 10% = RM50,000
Year 2: (RM500,000-RM50,000) × 10% = RM45,000
Year 3: (RM450,000-RM45,000) × 10% = RM40,500
Continue until fully written off

Accelerated depreciation benefits:

Compaction equipment qualifies for standard rates
Construction equipment category
Full allowances regardless of financing method

Interest Tax Deductions

Monthly interest deductibility:

All interest payments 100% tax deductible
Example: RM500,000 loan at 9% = RM45,000 first year interest
Tax saving: RM45,000 × 24% = RM10,800

Combined first-year tax benefits:

Initial allowance saving: RM24,000
Interest deduction saving: RM10,800
Total Year 1 tax saving: RM34,800

Multi-year tax planning:

Plan equipment purchases over multiple years
Optimize tax allowances timing
Consider business income fluctuations
Consult tax advisor for optimal structure

Investment Incentives

MSC Malaysia incentives:

MSC status companies may qualify for additional allowances
Pioneer status considerations
Investment tax allowance opportunities

Government construction incentives:

Infrastructure project tax benefits
Green technology incentives for fuel-efficient equipment
Bumiputera contractor additional incentives

Regional development incentives:

East Malaysia additional allowances
Rural area development incentives
Special economic zone benefits

Insurance and Risk Management

Mandatory Insurance Coverage

Comprehensive equipment insurance:

Fire, lightning, and explosion
Theft, burglary, and hijacking
Accidental damage and collision
Natural disasters (flood, landslide, windstorm)
Third-party liability coverage
Breakdown and mechanical failure (optional but recommended)

Policy specifications:

Sum insured: Equipment purchase price or outstanding loan balance
Policy period: Must cover entire loan tenure
Beneficiary: Ing Heng Credit listed as first loss payee
Geographic coverage: Peninsular Malaysia, Sabah, Sarawak

Insurance Premium Calculations

Premium rates by equipment value:

Road rollers: 0.4-0.8% annually
Plate compactors: 0.6-1.0% annually
Specialized compactors: 0.5-0.9% annually

Example premium calculations:

RM500,000 road roller at 0.6%: RM3,000/year (RM250/month)
RM200,000 plate compactor at 0.8%: RM1,600/year (RM133/month)
RM100,000 rammer package at 1.0%: RM1,000/year (RM83/month)

Factors affecting premiums:

Equipment age and condition
Operating environment and risk exposure
Operator experience and training
Security measures and storage
Claims history of policyholder

Risk Mitigation Strategies

Operational risk management:

Regular equipment maintenance and servicing
Proper operator training and certification
Site safety protocols and procedures
Quality control and inspection processes

Financial risk protection:

Adequate insurance coverage limits
Emergency repair fund establishment
Alternative equipment arrangements
Business interruption insurance

Business continuity planning:

Equipment backup and redundancy
Supplier relationship management
Project timeline buffer allowances
Financial reserve maintenance

Frequently Asked Questions

Q: Can I finance multiple different types of compaction equipment together?

A: Yes, we offer comprehensive fleet financing packages that can include:

Mixed equipment packages:

Road roller + plate compactors + rammers
Different sizes of the same equipment type
Compaction equipment + other construction machines
Phased delivery over several months

Fleet financing advantages:

Volume discounts on interest rates (typically 0.5-1% lower)
Simplified documentation for all equipment
Single monthly payment for entire fleet
Centralized equipment management

Example fleet package:

1 × RM500,000 road roller
3 × RM40,000 plate compactors
5 × RM12,000 rammers
Total package: RM740,000
Down payment (15%): RM111,000
Monthly payment (48 months @ 8.5%): RM15,800

Qualification requirements:

Established business with 3+ years operation
Strong financial statements
Multiple current projects or contracts
Higher revenue requirements (RM1.5M+ annually)

Q: Do you finance compaction equipment for specific industries like palm oil or mining?

A: Yes, we finance specialized compaction equipment for various industries:

Palm oil plantation equipment:

Specialized soil compactors for replanting
Road maintenance compactors for estate roads
Lightweight compactors for sensitive areas
Flexible payment terms for seasonal cash flow

Mining and quarry compactors:

Heavy-duty soil compactors for access roads
Landfill compactors for waste management
High-capacity equipment for large sites
Extended warranties for heavy-duty applications

Port and logistics compaction:

Container yard surface compaction
Warehouse floor preparation equipment
Specialized tire rollers for port areas
Quick delivery for operational urgency

Municipal and government projects:

Road maintenance compaction fleets
Utility trenching and backfill equipment
Airport and infrastructure compaction
Special government tender financing

Industry-specific benefits:

Understanding of industry cash flows
Flexible payment schedules
Equipment specifications expertise
Supplier network connections

Q: What happens if the compactor breaks down during the loan period?

A: Equipment breakdown doesn’t stop your payment obligations, but several protections are available:

Insurance coverage options:

Mechanical breakdown insurance: Covers engine, transmission, hydraulics
Business interruption insurance: Covers lost income during repairs
Replacement equipment insurance: Provides temporary replacement

Warranty protections:

New equipment: 1-3 years manufacturer warranty
Extended warranties available for additional coverage
Dealer support for warranty claims and service

Financing support during breakdowns:

Payment holiday options for major repairs (subject to approval)
Additional financing for major overhauls or upgrades
Trade-in considerations for unrepairable equipment
Insurance claim assistance and support

Preventive maintenance financing:

Service contract financing through dealers
Spare parts inventory financing
Operator training program financing
Preventive maintenance schedule financing

Example breakdown scenario:

Equipment: RM400,000 road roller
Breakdown: Engine failure after 2 years
Warranty: Covers 80% of RM80,000 repair
Insurance: Covers remaining 20% + labor
Your cost: Minimal (deductible only)
Financing: Continues as normal
Business impact: Minimized with proper coverage

Q: Can I upgrade to newer compaction equipment before finishing my current loan?

A: Yes, our trade-in and upgrade program allows equipment advancement:

Trade-in process:

Current equipment market valuation
Outstanding loan balance calculation
Equity determination (trade value minus loan balance)
New equipment selection and pricing
New financing application for balance
Seamless equipment transition

Upgrade example:

Current equipment: 2022 Volvo DD25B (bought RM280,000)
Current loan balance: RM180,000
Current trade value: RM220,000
Equity available: RM40,000
New equipment: 2025 Cat CB13 (RM580,000)
New financing needed: RM540,000 (with equity down payment)

Upgrade benefits:

Latest technology and efficiency
Improved productivity and reliability
Better fuel economy and emissions
Enhanced operator comfort and safety
Warranty coverage on new equipment

Qualification requirements:

Current loan at least 12 months old
No payment delays in last 6 months
Good maintenance records
New equipment value higher than current
Ability to service larger monthly payment

Timing considerations:

Best after 2-3 years when depreciation stabilizes
Consider project pipeline and equipment needs
Plan around major maintenance intervals
Coordinate with tax year for optimal benefits

Q: Do you provide financing for imported compaction equipment?

A: Yes, we finance imported equipment with additional considerations:

Acceptable import scenarios:

Direct factory imports for better pricing
Specialized equipment not available locally
Second-hand imports from developed countries
Fleet purchases requiring specific specifications

Additional requirements for imports:

Documentation: Import permits, customs clearance, specifications
Valuation: Independent assessment by approved valuers
Insurance: Marine insurance during shipping + local coverage
Compliance: Malaysian safety and emission standards
Support: Local dealer or service arrangement

Import financing process:

Equipment selection and supplier verification
Import permit and financing pre-approval
Letter of credit arrangement (if required)
Customs clearance and delivery coordination
Final inspection and disbursement

Import considerations:

Longer lead times for delivery
Currency exchange rate risks
Compliance and registration requirements
Parts availability and service support
Warranty terms and coverage

Preferred import sources:

Japan, Germany, USA: Established quality, easier financing
Singapore, Australia: Good condition used equipment
China: New equipment with competitive pricing
Europe: Specialized high-tech compaction equipment

Documentation requirements:

Pro-forma invoice and specifications
Supplier credentials and reputation
Import permit and regulatory approvals
Marine insurance and transport arrangements
Local support and service agreements

Next Steps: Start Your Compactor Financing Journey

Ready to acquire the compaction equipment your business needs? Here’s how to begin:

Quick Start Process

Step 1: Determine Your Needs (10 minutes)

Identify compaction requirements for your projects
Choose appropriate equipment type and size
Set budget parameters and financing preferences
Gather basic business information

Step 2: Initial Contact (5 minutes)

WhatsApp: +60175700889 (fastest response)
Send: “I need compactor financing”
Attach: IC copy + equipment quotation or requirements
Response time: Within 1 hour during business hours

Step 3: Preliminary Assessment (Same day)

We evaluate your basic qualification
Provide estimated terms and requirements
Guide document preparation process
Schedule follow-up consultation if needed

Step 4: Formal Application (1-2 days)

Submit complete documentation package
Application review and credit assessment
Equipment valuation and market verification
Business and project background checks

Step 5: Approval and Terms (Day 3)

Receive detailed approval decision
Review comprehensive terms and conditions
Negotiate any aspects if needed
Accept terms and schedule agreement signing

Step 6: Equipment Acquisition (1 week)

Sign hire purchase agreement
Coordinate equipment delivery and handover
Arrange comprehensive insurance coverage
Begin productive operations immediately!

Contact Information

Ing Heng Credit & Leasing Sdn Bhd Malaysia’s Construction Equipment Financing Specialist Since 1985

Primary Contact Methods:

WhatsApp: +60175700889 (24/7 messaging, business hour responses)
Phone: +603-3362 1588 (direct line to specialists)
Email: info@inghengcredit.com (comprehensive inquiries)

Office Location: 47A, Jalan Raya Timur, Taman Rashna, 41200 Klang, Selangor Darul Ehsan

Business Hours:

Monday - Friday: 9:00 AM - 6:00 PM
Saturday: 9:00 AM - 1:00 PM
Sunday & Public Holidays: Closed
Emergency contact: Available via WhatsApp

What to Expect from Our Service

Professional consultation:

Experienced team with 40+ years in equipment financing
Deep understanding of construction industry needs
Clear communication in English, Bahasa Malaysia, and Mandarin
No-pressure approach focused on your business success

Competitive offerings:

Interest rates from 7.5% p.a. for qualified applicants
Flexible down payment options including 0% deposit
Loan tenure up to 60 months for optimal cash flow
Fast approval decisions within 1-3 business days

Comprehensive support:

End-to-end financing solutions
Insurance arrangement assistance
Dealer network coordination
Ongoing customer relationship management

Why contractors choose us:

Specialized in construction equipment (not general financing)
Understanding of project-based cash flows
Flexible approach to credit assessment
Long-term partnership focus beyond single transactions

Ready to Grow Your Business?

Compaction equipment is essential for quality construction work and meeting project specifications. Whether you need a single plate compactor for small jobs or a fleet of road rollers for major infrastructure projects, we’re here to help you acquire the right equipment with terms that work for your business.

Contact us today for your free consultation:

📱 WhatsApp: +60175700889 (Quick questions and initial inquiries) ☎️ Call: +603-3362 1588 (Detailed discussions and consultations) ✉️ Email: info@inghengcredit.com (Comprehensive proposals and documentation)

This comprehensive guide was prepared by Ing Heng Credit & Leasing Sdn Bhd, Malaysia’s trusted construction equipment financing partner since 1985. We’ve helped over 4,000 contractors and construction companies acquire the equipment they need to build Malaysia’s infrastructure and grow their businesses successfully.

Published: December 21, 2025
Last Updated: December 21, 2025
Reading Time: 12 minutes