AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Equipment finance in Nigeria lets a business buy machinery, generators, vehicles or tools and repay over time, with the equipment itself usually serving as the collateral. Bank of Industry's Light Manufacturing product, for example, lends up to ₦10 million secured by an asset debenture over the equipment, and banks such as Stanbic IBTC finance brand-new assets with a 10% equity contribution (as at Oct 2026). You will normally need a pro forma invoice, an equity contribution and evidence the business can meet the repayments.
Why the equipment is the security
A machine has a resale value and a serial number, so a lender can take a charge over it rather than asking for land or a house. If repayments stop, the lender can repossess and sell it. That makes equipment finance more accessible than general business loans for firms without property, though the lender will still check that the business can repay. BOI's SME products show the pattern clearly: its Light Manufacturing loan is secured by an asset debenture over the equipment, and its Graduate Entrepreneurship Fund takes a specific charge over the equipment, present and future.
Charges over movable assets such as machines can be registered on the National Collateral Registry, which records security interests in movable property and lets anyone search by business name, BVN or the asset's serial number. A search before you buy second-hand equipment tells you whether someone else's lender already has a claim on it.
The main routes
Bank of Industry
BOI primarily finances manufacturing, production and agro-processing. Its SME loans run for three to five years with a 3 to 12-month moratorium, at what BOI describes as below-market rates, for registered businesses. Sector funds include a Solar Energy Fund. Applications can be made through the MyBOI portal, live since 2 October 2026.
Banks and asset finance
Banks finance equipment through asset-finance or lease products. Stanbic IBTC's page, as at October 2026, lists generators over up to 36 months and inverters and solar systems over 24 months, with 10% equity, for brand-new items only. Sterling Bank's asset finance asks for 20% equity on new and 30% on used assets, with a 1% management fee and insurance (as at Oct 2026). Most banks finance against a pro forma invoice from an approved vendor and pay the vendor directly.
DBN through your bank
The Development Bank of Nigeria's long tenors, up to 10 years with up to 18 months' moratorium, suit expensive equipment. You apply through your own bank or microfinance bank, which appraises you and seeks DBN funding.
Leasing companies
Under a lease, the lessor buys and owns the equipment and you pay rent for its use, often with an option to buy at the end. Leasing can need less upfront cash than a loan, and lease payments may be treated differently for tax; ask your accountant.
Worked example: an ₦8 million machine
This is an example with an illustrative rate. A bakery buys an ₦8,000,000 oven. The lender asks for 20% equity and finances the rest over 36 months at 28% a year, reducing balance.
| Item | Amount |
|---|---|
| Equipment price | ₦8,000,000 |
| Equity contribution (20%) | ₦1,600,000 |
| Amount financed | ₦6,400,000 |
| Monthly repayment | ₦264,727 |
| Total repaid over 36 months | ₦9,530,171 |
| Total interest | ₦3,130,171 |
The test is whether the oven's extra output pays for itself. If it lets the bakery produce more bread worth ₦600,000 a month in extra profit after ingredients, power and labour, the ₦264,727 repayment leaves a clear margin. Add insurance, which most lenders require on financed equipment, and any management fee to the monthly cost.
New or used equipment?
Used machines are cheaper, but lenders find them harder to value and resell, so many will only finance new items or will ask for a larger deposit on used ones. If you buy used, get an independent inspection, check the serial number on the National Collateral Registry for existing charges, and ask the seller for proof of ownership and import documents where relevant. For imported equipment, also allow for duty, clearing and installation costs, which a pro forma invoice from abroad will not include. Lenders usually finance only the invoice amount, so these extras come from your own cash.
What lenders ask for
- Pro forma invoice from the vendor, with model and serial details.
- Equity contribution, commonly 10% to 30% depending on the lender and whether the asset is new.
- CAC documents, bank statements (see bank statements for loan applications) and, for larger sums, management or audited accounts.
- Insurance on the equipment, with the lender noted as having an interest.
- A plan showing how the equipment will generate the repayment.
- Directors' BVN, ID and sometimes a personal guarantee.
What to check first
- Whether the lender finances used equipment; several finance brand-new items only.
- The total cost including fees and insurance, not just the rate.
- Who owns the equipment during the term, and when ownership passes to you.
- What happens if the machine breaks down: warranty, servicing and whether repayments continue.
- Early repayment terms. See also asset finance at Nigerian banks and how a lender repossesses collateral.
Where Pryme fits
Pryme does not provide equipment finance. A Pryme Business Account can pay a foreign or local vendor in the currency they invoice in, with Swap showing the rate and fee before you approve, and verifiable statements through VerifyDoc.ai help a lender check the turnover your application relies on. See also ₦10 million business loans.
Questions people ask
How do I get an equipment loan in Nigeria?
Get a pro forma invoice, prepare your equity contribution and business records, then apply to your bank's asset-finance desk, Bank of Industry if you are in manufacturing or processing, or a leasing company.
Is the equipment used as collateral?
Usually yes. BOI's Light Manufacturing loan, for example, is secured by an asset debenture over the equipment, and banks take a charge over the financed asset.
Can I get a loan for used equipment in Nigeria?
Some lenders finance used assets with a higher equity contribution; others, such as Stanbic IBTC for non-vehicle assets, finance brand-new items only (as at Oct 2026).
What is the difference between equipment lease and loan?
With a loan you own the equipment and the lender holds a charge; with a lease the lessor owns it and you pay for its use, often with an option to buy at the end.
Sources
- Bank of Industry: Small and Medium Enterprises (lending terms and SME products) · accessed Oct 2026
- Bank of Industry: Frequently Asked Questions · accessed Oct 2026
- Stanbic IBTC Bank: Vehicle and Asset Finance · accessed Oct 2026
- Sterling Bank: Loans · accessed Oct 2026
- Development Bank of Nigeria: Get a loan (MSME) · accessed Oct 2026
- National Collateral Registry · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.