Mozambique equipment finance: checking down payment, tenor and security

Equipment bought for Mozambique usually enters through Maputo; funding runs either on cash terms or through a local bank or leasing company, and principal, interest and security differ between the two.

Then tenor and residual: a three-year plan lowers the instalment but raises total cost, while five years depends on a liquid local used market or the exit value traps cash.

The usual mistake is treating approval as a post-signature formality: arrival, clearance and insurance all need cash, and a slow approval costs more in storage than in interest.

Where cash is tight, bridge with a short rental and convert to hire purchase once the machine is earning, but put the conversion price and window into the contract. Terms remain subject to local lender approval. When applying this in Mozambique, have the local agent review it before it goes into the offer.