From residual values to maintenance clauses, the details behind an equipment facility matter as much as the rate. Use this checklist with your advisor.
Match term to useful life
If repayment runs well past the asset’s productive life, you can end up paying for capacity you no longer use. Align tenure with depreciation and replacement plans.
Ownership and insurance
Confirm who holds title, who insures the asset, and what happens on early settlement. Clear clauses prevent disputes if the asset is sold, relocated, or upgraded.
Ask about balloon structures versus full amortisation, and whether seasonal businesses can request repayment flexibility tied to cash cycles.