Public Commentary: FG Capital Advisors outlines its approach to structuring equipment finance for African markets. Provided for informational purposes only.
Equipment Solutions for African Markets
Companies across Africa face high costs and limited access when acquiring heavy machinery, transport fleets or construction equipment. FG Capital Advisors works alongside specialty finance lenders and corporate borrowers to structure asset-based lending, lease financing and sale-leaseback programs that deliver working capital without overburdening balance sheets.
Market Context
- Capital expenditure requirements often exceed traditional bank limits.
- Equipment suppliers demand upfront payment or full collateral.
- Local lenders may lack experience in high-value asset financing.
- Import duties and logistics add to upfront cash needs.
Our Service Offering
- Asset-Based Lending: Advances secured by equipment value, up to 70–80% LTV.
- Operating Leases: Off-balance-sheet rental structures with fixed monthly payments.
- Sale-Leaseback: Release of cash by selling owned assets to a lender, then leasing them back.
- Vendor Finance: Collaboration with OEMs and distributors to extend payment terms.
- Syndication: Co-lending with regional banks and specialty funds to share risk.
Process Workflow
- Needs Assessment: Evaluate asset types, age, and usage patterns.
- Valuation: Independent appraisal of equipment fair market value.
- Structure Design: Select financing type, tenor and repayment profile.
- Lender Matching: Introduce to regional development funds, private-credit investors and local banks.
- Due Diligence: Asset condition checks, registration searches and insurance review.
- Documentation & Closing: Negotiate terms, finalize legal agreements and arrange drawdown.
- Ongoing Management: Asset monitoring, covenant reporting and equipment disposal planning.
Indicative Terms
| Facility Type | Advance Rate | Tenor | Pricing |
|---|---|---|---|
| ABL Term Loan | 70–80% of appraised value | 3–5 years | SOFR + 350–500 bps |
| Operating Lease | Full equipment cost capitalised | 2–7 years | Lease rate factor 0.8–1.2% per month |
| Sale-Leaseback | 75–85% of net present value | 4–6 years | SOFR + 300–450 bps |
Why FG Capital Advisors
- Partner-led engagements with senior finance specialists.
- Proven track record in cross-border equipment transactions.
- Network of regional finance partners and specialty funds.
- Structured approach to risk management and asset control.
- Flexible solutions tailored to sector and usage profile.
Next Step
To explore equipment finance options and arrange a detailed consultation, please schedule a meeting with FG Capital Advisors.
This document is provided for informational purposes only. It does not constitute investment advice or an offer to buy or sell any security or service. Independent professional guidance is recommended before proceeding.
