Excavator Financing with Bad Credit Malaysia: High Approval Rate

You’ve worked hard to build your construction business. You know that owning an excavator—instead of renting one—could save you thousands and help you win more projects. But there’s a problem: your credit history isn’t perfect.

Maybe you had late payments during the 2020 pandemic. Maybe a business deal went wrong. Maybe you’re just starting out and don’t have much credit history at all.

Here’s the truth: You are not alone. Most Malaysian contractors have faced credit challenges at some point. And more importantly, bad credit does NOT mean you can’t get excavator financing.

At Ing Heng Credit & Leasing, we’ve helped hundreds of contractors with credit issues get the equipment they need. Our approval rate is high—including applicants with CCRIS records, CTOS flags, and past payment problems.

In this guide, you’ll learn:

• Why banks reject bad credit (and why we don’t)
• How credit companies evaluate applications differently
• What “bad credit” really means in Malaysia
• How to strengthen your application
• Real interest rates and terms you can expect
• How to apply and get approved

Let’s help you get that excavator.

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Why Banks Reject Bad Credit Applications

Traditional banks have strict rules. They use automated systems that look at one thing: your credit score.

Here’s what banks do:

1. Check CCRIS/CTOS - If score below 700, automatic rejection
2. Count late payments - Even 1-2 late payments = rejection
3. Look at bankruptcy history - Any record = instant no
4. Require collateral - Need property or fixed deposit
5. Take 2-4 weeks - Slow approval process

Why banks are so strict: Banks lend depositors’ money. They need to follow strict regulations set by Bank Negara Malaysia. They prefer low-risk customers who fit into neat boxes.

The result: 60-70% of SME applications get rejected by banks.

But here’s the good news: Credit companies work differently.

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How Credit Companies Evaluate Bad Credit Differently

Credit companies like Ing Heng Credit use a business-first approach. We understand that past credit issues don’t define your current ability to repay.

What We Actually Look At

1. Current Business Performance

• Do you have active projects?
• Are you generating revenue?
• Can you show recent bank statements?

2. Equipment as Collateral

• The excavator itself is collateral
• We can repo the equipment if needed
• Lower risk for us = easier approval for you

3. Industry Understanding

• We know construction has seasonal slowdowns (monsoon Nov-Feb)
• We understand project-based cash flow (clients pay in 60-90 days)
• We work with contractors daily

4. Down Payment Ability

• Can you put down 15-25%?
• Shows commitment and financial capacity

5. Business Potential

• Are you bidding on government projects?
• Do you have CIDB registration?
• What’s your future revenue potential?

Why This Approach Works Better

Example: Ahmad’s Story

Ahmad is a Class F contractor in Klang. In 2020, he had late payments on a personal loan (CCRIS score: 620). Bank Rakyat rejected his excavator loan application.

He came to Ing Heng Credit with:

• ✅ 3 active construction projects (RM 800K total)
• ✅ RM 35,000 cash for down payment
• ✅ 8 years in business
• ✅ Recent bank statements showing steady income

We approved his RM 180,000 excavator financing in just 2 days.

Why? Because we saw what the bank didn’t: a successful contractor with temporary past issues but strong current business.

Ahmad now owns his excavator and has saved over RM 60,000 in rental costs.

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What “Bad Credit” Really Means in Malaysia

Let’s break down the credit system so you understand what lenders see.

CCRIS (Credit Bureau Malaysia)

What it is: Central Credit Reference Information System managed by Bank Negara Malaysia

What it tracks:

• All your loans and credit facilities
• Payment history (on-time vs late)
• Outstanding balances
• Credit applications

Score Range: 300-850

• 750+: Excellent (bank will love you)
• 650-749: Good (most banks will approve)
• 580-649: Fair (banks might reject, credit companies might approve)
• Below 580: Poor (banks will reject, credit companies evaluate case-by-case)

CTOS (Credit Tip-Off Service)

What it is: Private credit reporting agency

What it tracks:

• Legal actions (summons, judgments)
• Bankruptcy records
• Trade bureau reports (supplier credit)
• Employer/landlord checks

Score Range: 300-850 (similar to CCRIS)

Types of Credit Issues We Work With

1. Late Payment History

• Had 3-5 late payments in past 2 years
• Missed payments during pandemic/business slowdown
• Catch-up payments made, but record remains

Why we might still approve: One-time circumstances don’t predict future behavior. If you have active projects now, we focus on that.

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2. High Debt-to-Income Ratio

• Already have business loans, personal loans, car loans
• Monthly obligations high relative to income
• Banks say you’re “over-leveraged”

Why we might still approve: Equipment financing generates income (new projects). We evaluate total business cash flow, not just debt ratio.

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3. CCRIS Score 580-650

• Below bank’s minimum threshold (usually 700)
• Past credit issues pulling score down
• Current payments on-time but history lingers

Why we might still approve: CCRIS score is backward-looking. We focus on forward potential. If excavator helps you win RM 500K project, that’s what matters.

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4. CTOS Legal Record

• Past summons from supplier dispute
• Legal action settled but record remains
• Small claims court judgment (under RM 10,000)

Why we might still approve: We review the nature of the legal issue. Business disputes happen. If resolved and not bankruptcy-related, we consider the full context.

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5. No Credit History (New Business)

• Started business 1-2 years ago
• No significant loans or credit history
• Banks want 3+ years trading history

Why we might still approve: New doesn’t mean risky. If you have active projects and down payment, we can work with you.

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6. Bankruptcy (Discharged)

• Past bankruptcy, now discharged
• Clean payment history since discharge (6+ months)
• Rebuilding credit

Why we might still approve: Discharged bankruptcy means you’ve cleared your debts and gotten a fresh start. If business is performing well post-discharge, we evaluate current situation.

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Our Approval Process for Bad Credit Applications

Here’s exactly how we review applications from contractors with credit challenges.

Step 1: Initial Inquiry (WhatsApp: +60 17-570 0889)

What to send:

• Type of excavator you need (brand, model, tonnage)
• New or used? (If used, how old?)
• Your business type (Class F contractor? Independent?)
• Brief explanation of credit issue (optional but helps)

What we do:

• Review your inquiry
• Provide initial assessment
• Answer questions
• Send application form

Timeline: Response within 4 hours

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Step 2: Submit Basic Documents

Required documents:

1. IC copy (front and back)
2. Business registration (SSM, CIDB if applicable)
3. Bank statements (3 months)
4. Project documents (LOAs, contracts)
5. Down payment proof (bank statement showing funds)

Optional but helpful: 6. Payment receipts (showing current obligations paid on-time) 7. Project photos (completed work) 8. Customer references

Timeline: Submit within 24 hours of receiving form

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Step 3: Credit Review

What we check:

• CCRIS/CTOS reports (yes, we check, but it’s not pass/fail)
• Current business performance
• Cash flow analysis
• Down payment verification
• Equipment value assessment

What we DON’T do:

• Automatic rejection based on score
• Disqualify due to single issue
• Require property collateral

Timeline: Review completed in 1-2 business days

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Step 4: Approval Decision

Possible outcomes:

✅ APPROVED (high approval rate of cases)

• Standard terms (if credit decent)
• Adjusted terms (if credit challenged)
• Higher down payment option (if needed to strengthen)

⏸️ CONDITIONAL APPROVAL

• Approved pending additional documents
• Approved with co-signer requirement
• Approved with larger down payment

❌ DECLINED (5% of cases)

• Active bankruptcy (not yet discharged)
• No verifiable business income
• Fraudulent documents

Timeline: Decision in 1-2 business days

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Step 5: Equipment Inspection & Finalization

If buying used equipment:

• We inspect the excavator
• Verify condition matches price
• Confirm ownership and transfer documents

Final steps:

1. Sign hire purchase agreement
2. Submit down payment
3. We pay seller
4. Equipment transferred to your name
5. Start monthly payments

Timeline: 1-3 days after approval

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Documents Needed for Bad Credit Applications

The better your documentation, the easier the approval.

Essential Documents (Must Have)

1. Identification

• IC copy (individual)
• SSM certificate (if Sdn Bhd)
• CIDB certificate (if Class F, G, etc.)

2. Business Proof

• Business registration
• Recent projects (LOAs, contracts)
• Bank statements (3 months minimum)

3. Down Payment Proof

• Bank statement showing available funds
• OR proof of savings/FD

Supporting Documents (Strengthen Application)

4. Payment History (Past 6 Months)

• Utility bills (showing paid on-time)
• Rental payments (if renting office/yard)
• Existing loan statements (showing current payments)

Why this helps: Shows you’re currently managing money well, even if past had issues

5. Project Pipeline

• Tender submissions (pending projects)
• Client LOIs (Letter of Intent)
• Quotations issued

Why this helps: Demonstrates future income potential

6. Equipment Rental Invoices

• Past 6 months of excavator rental receipts
• Proves you’re already using equipment (rental → purchase is common path)

Why this helps: Shows equipment is essential to your business, not a speculative purchase

7. Customer Testimonials/References

• Letters from clients confirming projects
• Developer references
• Subcontractor agreements

Why this helps: Third-party validation of your business reputation

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How to Strengthen Your Application

Even with credit challenges, you can improve approval odds.

1. Increase Your Down Payment

Standard down payment: 10-20% With credit issues: 15-25%

Why it helps:

• Shows commitment
• Reduces lender risk
• May improve interest rate

Example:

• Excavator price: RM 200,000
• Down payment 20%: RM 40,000
• Finance amount: RM 160,000

Lower finance amount = easier approval + lower monthly payment

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2. Choose Used Equipment (Strategically)

New excavator: RM 250,000-400,000 Used excavator (5-7 years): RM 120,000-180,000

Benefits:

• Lower total loan amount
• Easier approval
• Proven equipment condition
• Better ROI (excavators last 15-20 years)

We finance excavators up to 10 years old (banks typically limit to 5 years).

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3. Show Strong Current Cash Flow

What we want to see:

• Consistent monthly deposits (project payments)
• Healthy balance (not always near zero)
• Minimal overdrafts/bounced checks

Tips:

• Provide 6 months of statements (not just 3)
• Highlight project deposits
• Explain any large withdrawals (equipment purchases, subcontractor payments)

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4. Get a Co-Signer (If Needed)

Who can co-sign:

• Business partner with good credit
• Family member in business
• Fellow contractor (co-owner scenario)

What co-signer does:

• Guarantees loan if you can’t pay
• Adds their creditworthiness to application

When it helps:

• CCRIS below 600
• Very new business (under 1 year)
• Past bankruptcy (recently discharged)

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5. Start with Smaller Equipment

Strategy: Build credit history with us first

Example path:

1. Year 1: Finance RM 80K mini excavator (easier approval)
2. Pay on-time for 12 months
3. Year 2: Finance RM 200K larger excavator (easier approval based on payment history)

Why this works: Proven payment history with us matters more than CCRIS score

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6. Fix What You Can Fix

Before applying:

✅ Settle small outstanding debts

• Pay off outstanding utility bills
• Clear small credit card balances
• Settle supplier invoices

✅ Update CCRIS/CTOS records

• If debt is settled, ensure it’s reflected
• Contact Bank Negara/CTOS to update

✅ Prepare explanation letter

• Brief explanation of credit issue
• What caused it (pandemic, project delay, medical emergency)
• How it’s resolved now
• Why it won’t happen again

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Interest Rates & Terms (Real Numbers)

Let’s be transparent about costs.

Interest Rates

Excellent Credit (CCRIS 700+):

• Rate: 7.5% - 9% annually
• Monthly rate: ~0.625% - 0.75%

Fair Credit (CCRIS 600-699):

• Rate: 9% - 11% annually
• Monthly rate: ~0.75% - 0.92%

Poor Credit (CCRIS 580-599):

• Rate: 10% - 12% annually
• Monthly rate: ~0.83% - 1.0%

Why higher rates for lower credit?

• Higher risk = higher rate (standard practice)
• Compensates for occasional defaults
• Still competitive vs alternatives (rental costs, loan sharks)

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Loan Terms

Standard tenure: 36-60 months (3-5 years)

Example 1: New Excavator (Good Credit)

• Equipment: New Caterpillar 320, RM 350,000
• Down payment: 15% (RM 52,500)
• Finance amount: RM 297,500
• Interest rate: 8.5% annually
• Tenure: 60 months
• Monthly payment: RM 6,082

Example 2: Used Excavator (Fair Credit)

• Equipment: Used Komatsu PC200 (6 years old), RM 180,000
• Down payment: 20% (RM 36,000)
• Finance amount: RM 144,000
• Interest rate: 10% annually
• Tenure: 48 months
• Monthly payment: RM 3,660

Example 3: Used Mini Excavator (Poor Credit)

• Equipment: Used Kubota U30 mini (5 years old), RM 80,000
• Down payment: 25% (RM 20,000)
• Finance amount: RM 60,000
• Interest rate: 11.5% annually
• Tenure: 36 months
• Monthly payment: RM 1,969

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Total Cost Comparison

Example 2 above (Used Komatsu, Fair Credit):

Financing:

• Monthly: RM 3,660 x 48 months = RM 175,680
• Down payment: RM 36,000
• Total paid: RM 211,680
• Interest paid: RM 31,680

Rental Alternative:

• Rental: RM 5,000/month x 48 months = RM 240,000
• Total paid: RM 240,000

Savings by financing: RM 28,320

Plus: You own the excavator after 48 months (asset worth RM 100K-120K)

Verdict: Even with higher interest rate due to credit issues, financing is MUCH better than renting long-term.

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Real Success Stories (Anonymized)

Story 1: From CCRIS 610 to Excavator Owner

Client: Class F contractor, Selangor Equipment: Used Hitachi ZX200 (7 years old), RM 165,000 Credit Issue: CCRIS score 610, late payments during pandemic

What helped:

• Strong project portfolio (3 active projects totaling RM 1.2M)
• Down payment 20% (RM 33,000)
• Payment history clean for past 12 months

Outcome:

• Approved at 10.5% interest, 48 months
• Monthly payment: RM 4,195
• Now completing year 2 of payments, never late

Quote: “Banks rejected me 3 times. Ing Heng looked at my current business, not my past problems. I own my excavator now.”

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Story 2: Bankruptcy Discharged, Business Rebuilt

Client: Independent contractor, Johor Equipment: Used CAT 312 mini excavator, RM 95,000 Credit Issue: Bankruptcy discharged 18 months ago (from failed business in 2019)

What helped:

• New CIDB registration (Class G, recent)
• Clean payment history since discharge
• Active project (shopping complex earthworks, RM 380K)
• Down payment 25% (RM 23,750)

Outcome:

• Approved at 11.8% interest, 36 months
• Monthly payment: RM 2,343
• Equipment paid off in full last month (early settlement!)

Quote: “I thought bankruptcy meant I could never get financing again. Ing Heng gave me a second chance. My business is thriving now.”

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Story 3: High Debt-to-Income, But Strong Projects

Client: Sdn Bhd contractor, Klang Equipment: New Komatsu PC210, RM 380,000 Credit Issue: Already had RM 600K in business loans (high debt ratio)

What helped:

• RM 3.2M in active projects (government subcontracts)
• Healthy monthly cash flow (RM 120K-150K)
• Down payment 18% (RM 68,400)
• Co-director co-signed

Outcome:

• Approved at 9.2% interest, 60 months
• Monthly payment: RM 6,470
• Excavator enabled them to handle multiple simultaneous projects

Quote: “Banks said I had too much debt. But Ing Heng understood that equipment financing is an investment, not just more debt. This excavator has already earned back its cost.”

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Frequently Asked Questions (FAQ)

1. Can I get excavator financing with bad credit?

Yes! Credit companies like Ing Heng Credit evaluate each case individually. We approve high approval rate of applications including those with credit issues. We focus on current business performance and equipment as collateral, not just credit scores.

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2. Will my CCRIS record disqualify me?

No. We look at your CCRIS report, but it’s not an automatic disqualification. We review:

• Current financial situation
• Business potential
• Project pipeline
• Down payment capacity

Many contractors with CCRIS scores 600-650 get approved.

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3. How long does approval take with bad credit?

We provide fast approval, typically 1-2 business days. This is much faster than traditional banks which take 2-4 weeks. Having credit challenges doesn’t slow down our process.

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4. What interest rate can I expect with bad credit?

Interest rates for applicants with credit challenges typically range from 10-12% annually, compared to 7.5-9% for those with excellent credit.

Why higher? Higher risk = higher rate. This is standard across all lenders.

Is it worth it? Yes. Even at 12%, financing is much cheaper than renting long-term (RM 5,000-6,000/month).

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5. Do I need a higher down payment with bad credit?

Down payment typically ranges from 15-25% for applicants with credit challenges, compared to 10-20% for those with strong credit.

Why? Larger down payment reduces risk and may improve your interest rate.

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6. Can I finance used excavators with bad credit?

Yes! We finance excavators up to 10 years old. Used equipment is often easier to approve because:

• Lower total loan amount
• Lower monthly payments
• Lower risk for us
• Better ROI for you

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7. What if I was bankrupt but now discharged?

We can work with you if:

• Bankruptcy is discharged (not active)
• Clean payment history for 6-12 months post-discharge
• Active business with verifiable income
• Adequate down payment

Your fresh start matters to us.

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8. Will you check my CCRIS/CTOS?

Yes, we do check. But unlike banks:

• It’s not automatic pass/fail
• We review the full context
• We focus on current situation
• high approval rate (including credit issues)

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9. Can I apply if I have other business loans?

Yes. We evaluate total cash flow, not just debt-to-income ratio. If your business generates sufficient revenue to cover all obligations plus the excavator payment, we can approve.

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10. What if my bank rejected me?

Apply with us. Bank rejection doesn’t mean credit company rejection. We use different criteria. Many of our customers were rejected by banks first.

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11. Can I use a co-signer to improve approval?

Yes. A co-signer with good credit can strengthen your application and may:

• Increase approval odds
• Lower interest rate
• Reduce down payment requirement

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12. Do you finance for new contractors?

Yes. Even if you’ve been in business 1-2 years (banks want 3+). We look at:

• Active projects
• CIDB registration
• Business pipeline
• Down payment

New doesn’t mean risky.

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Apply Now: Get Your Excavator This Week

You’ve read the facts. You understand the process. Now take action.

Here’s what to do:

Step 1: Contact Us on WhatsApp

WhatsApp: +60 17-570 0889

Send us:

• Your name
• Type of excavator needed (brand, model, tonnage)
• New or used?
• Brief description of your business
• Mention “bad credit application” (so we provide appropriate guidance)

Response time: Within 4 hours

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Step 2: Prepare Your Documents

While waiting for our response, gather:

• IC copy
• Business registration (SSM, CIDB)
• Bank statements (3-6 months)
• Project documents (LOAs, contracts)
• Down payment proof

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Step 3: Complete Application

We’ll send you:

• Application form
• Document checklist
• Timeline expectations

Complete and return within 24 hours for fastest processing.

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Step 4: Get Approval

Timeline: 1-2 business days Outcome: high approval rate

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Step 5: Get Your Excavator

Timeline: 1-3 days after approval

You’ll be operating your own excavator by next week.

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Why Contractors Choose Ing Heng Credit

✅ high approval rate Approval Rate

We approve almost all applications, including those with credit challenges.

✅ Fast Approval Process

Much faster than banks’ 2-4 week process. We understand contractors need quick decisions.

✅ Industry Understanding

40 years in equipment financing. We know construction, logistics, and industrial businesses.

✅ Flexible Terms

• Seasonal payment options
• Used equipment financing (up to 10 years old)
• Minimal documentation requirements

✅ Transparent Pricing

No hidden fees. Clear interest rates. Honest about costs.

✅ Klang Location

Based in Klang, near Port Klang. Easy access for Klang Valley contractors.

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The Bottom Line

Bad credit doesn’t mean no excavator.

At Ing Heng Credit & Leasing, we understand that credit scores don’t tell the full story. We focus on what matters:

• Your current business
• Your project pipeline
• Your commitment (down payment)
• Equipment as collateral

high approval rate of contractors with credit challenges get approved. The excavator you need is within reach.

Stop renting. Start owning.

Contact us today: WhatsApp +60 17-570 0889

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Ing Heng Credit & Leasing Sdn Bhd 40 Years in Equipment Financing Licensed by KPKT (Ministry of Housing and Local Government) Based in Klang, Selangor Serving Malaysian contractors since 1985

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Disclaimer: Approval subject to document verification and credit review. Interest rates and terms mentioned are indicative ranges and may vary based on individual circumstances. All applications evaluated on case-by-case basis.