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Paving Equipment Financing Options for Builders and Contractors in Nigeria
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Paving Equipment Financing Options for Builders and Contractors in Nigeria

For builders and contractors in Nigeria, having access to the right paving equipment is crucial for completing projects efficiently and to a high standard. However, the cost of purchasing this equipment outright can be prohibitive. Fortunately, there are several financing options available that can help you acquire the necessary machinery without straining your cash flow. This guide provides an overview of paving equipment financing options, detailing the services, prices, and choices available to you.

Why Finance Paving Equipment?

Financing paving equipment offers several advantages:

  • Preserve Cash Flow: Spread the cost over time, allowing you to maintain your cash reserves for other business needs.
  • Access to Advanced Equipment: Acquire the latest technology and equipment, enhancing your productivity and competitiveness.
  • Tax Benefits: Depending on the financing option, you may be able to deduct the interest paid on financing or lease payments as a business expense.
  • Flexible Payment Options: Choose from various financing terms that best suit your financial situation and project timelines.

Types of Paving Equipment Financing

  1. Equipment Loans
  2. Equipment Leasing
  3. Hire Purchase
  4. Vendor Financing
  5. Bank Loans and Lines of Credit

1. Equipment Loans

Overview: Equipment loans are a straightforward way to finance your paving equipment. You borrow money from a lender to purchase the equipment and repay the loan over a fixed period with interest.

Key Features:

  • Ownership: You own the equipment once the loan is fully repaid.
  • Terms: Loan terms typically range from 1 to 5 years.
  • Interest Rates: Vary based on your credit score and the lender but usually range from 8% to 20%.


  • Builds equity in the equipment.
  • Flexible repayment schedules.

2. Equipment Leasing

Overview: Leasing allows you to use the paving equipment for a specified period in exchange for regular payments. There are two main types of leases: operating leases and finance leases.

Key Features:

  • Operating Lease: Short-term lease with lower payments; equipment is returned at the end of the lease term.
  • Finance Lease: Long-term lease where you may have the option to buy the equipment at the end of the term.


  • Lower upfront costs.
  • Flexibility to upgrade equipment.
  • Payments may be tax-deductible.

3. Hire Purchase

Overview: Hire purchase agreements allow you to hire the equipment with an option to buy it at the end of the agreement term.

Key Features:

  • Ownership: You own the equipment after making all payments.
  • Terms: Typically 1 to 5 years.
  • Interest Rates: Generally fixed, making budgeting easier.


  • Ownership at the end of the term.
  • Spread the cost over time.

4. Vendor Financing

Overview: Some equipment manufacturers and dealers offer financing directly to buyers, often at competitive rates.

Key Features:

  • Convenience: Financing and equipment purchase from the same place.
  • Terms and Rates: Often favorable terms and lower interest rates as vendors have a vested interest in selling their equipment.


  • Streamlined process.
  • Potentially lower rates and better terms.

5. Bank Loans and Lines of Credit

Overview: Traditional bank loans and lines of credit can be used to finance paving equipment.

Key Features:

  • Flexibility: Use funds as needed and repay over time.
  • Interest Rates: Can vary widely based on your creditworthiness and relationship with the bank.


  • Flexible use of funds.
  • Potential for competitive rates with strong credit.

Cost Breakdown and Considerations

Upfront Costs:

  • Down Payments: Typically 10%-20% of the equipment cost.
  • Fees: Application fees, processing fees, and insurance.

Monthly Payments:

  • Vary based on the financing option, interest rate, and term length.

Total Cost:

  • Consider the total cost of ownership, including interest and fees, over the financing term.

How Wigmore Trading Can Assist

At Wigmore Trading, we understand the challenges of acquiring high-quality paving equipment. We offer tailored financing solutions to help you get the machinery you need to grow your business. Our services include:

  • Competitive Financing Options: Choose from a range of financing options tailored to your needs.
  • Expert Advice: Our team provides expert advice to help you select the best equipment and financing plan.
  • Comprehensive Support: From application to approval and beyond, we support you throughout the financing process.


Financing paving equipment is a smart way to enhance your business operations without the financial strain of outright purchase. By exploring the various financing options available, you can find a solution that fits your budget and project needs. Contact Wigmore Trading today to learn more about how we can assist you in acquiring the best paving equipment with flexible financing options. Visit our website or call us for a consultation.

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