SDLG Equipment Finance Tenors: Choosing 36, 60, 72 or 84 Months
Key Facts at a Glance
| Item | Status |
|---|---|
| Topic | Choosing between 36, 60, 72 and 84 months on SDLG equipment finance in Kenya |
| Best tenor | No universal best — fit the tenor to machine working life, contract length and cash-flow shape |
| Shorter tenors | Higher monthly payments, less total interest, faster equity |
| Longer tenors | Easier monthly cash flow, more total interest, risk of outliving the machine's earning years |
| Illustrative example | Assumed inputs only — every rate and figure below is arithmetic, not an offered term |
| Actual terms | Written lender quotation after the written machine quotation (24 hours per Oct 2026 list) |
The tenor of your equipment finance is the length of the loan in months — and on an SDLG machine purchase in Kenya it is one of the three decisions (with machine choice and deposit) that shapes what the finance actually costs you. The choice looks simple: 36, 60, 72 or 84 months, with shorter meaning bigger monthly payments and longer meaning smaller ones. The real trade is three-sided: monthly cash flow against total interest against the machine's working life. This guide compares the four common tenors on all three axes, with one illustrative calculation whose inputs are assumed and labeled — never offered terms — and with the process for getting your actual figures in writing. The parent process sits in our step-by-step asset finance guide.
The Four Tenors Compared
| Tenor | Payment shape | Total-interest shape | Machine-life fit | Typical fit (structure, not advice) |
|---|---|---|---|---|
| 36 months | Highest monthly | Lowest total | Well inside working life | Strong contract-backed buyers; fast equity builders |
| 60 months | Moderate | Moderate total | Aligned with warranty + early life | The structural middle for full-utilisation machines |
| 72 months | Lower | Higher total | Approaching mid-life | Steady utilisation; moderate hourly cushions |
| 84 months | Lowest monthly | Highest total | Risk of outliving earning years | Thin-margin seasonal work needing cash-flow room |
Read the table as structure, not advice. The pattern is mechanical: every added year of tenor lowers the monthly payment and raises the total interest, and pushes the final instalment closer to — or past — the point where the machine's downtime starts costing earning days. Which side of that trade your file belongs on depends on your utilisation, your contract backing and your upgrade plans, which is why the lender's written terms decide and this guide only frames the question.
An Illustrative Run: Same Machine, Two Tenors
Every input below is assumed for illustration; nothing in it is a rate, a term or an offer. Take the listed B877F backhoe at KSh 8,600,000 as the machine and assume a financed balance of KSh 6,880,000 after an assumed 20% deposit, at an assumed reducing-balance rate of 15% per annum — an assumed figure chosen purely to show arithmetic. At an assumed 36-month tenor, the payment is roughly KSh 238,000 per month; at an assumed 84 months, roughly KSh 122,000. The monthly relief is real. But the total repaid across the 84 months is roughly KSh 1,750,000 higher than across the 36 — the price of that relief. Both numbers move with the real rate and fees your lender states in writing; the shape — relief now, cost later — does not. Ask your lender for total repayment at two tenors on your file and compare those figures, not the monthly ones.
One quick test before the quotes arrive: divide your expected monthly machine earnings by the illustrative payment at each tenor. If the 36-month payment clears at sixty per cent utilisation on your realistic rates, shorter is structurally safe; if only the 84-month figure fits at ninety per cent utilisation, the honest question is not which tenor but whether the machine is right at all.
The Machine-Life Rule
The least discussed rule and the most expensive to break: do not finance a machine past its reliable earning years. If the workload supports a trade-in or replacement at year five, an 84-month loan leaves two more years of instalments on a machine that is accumulating downtime — you pay full price for shrinking output. The discipline is to align three clocks before signing: the tenor, the machine's productive hours plan, and the warranty period (one year or 2,000 hours standard, extendable to two, per the October 2026 list). When the clocks align, the loan retires while the machine is still earning; when they do not, the tail of the loan works against you.
Seasonal Work and the Cash-Flow Shape
Contractors whose earnings follow the weather — rain-dependent earthworks, agricultural windows — should weight the shape of payments over the headline tenor: some structures allow seasonal profiles matched to the working calendar, and hire-before-you-buy can bridge off-seasons without debt at all. The comparison against longer tenors is honest arithmetic either way, and the hire-side numbers sit in our long-term hire versus lease analysis with current hire pricing and the hire cost framework. Used-machine buyers face a related version of the same question, covered in our used-equipment buying guide.
Upgrade Plans, Equity and Exit
Your equity position at any point in the loan decides what a trade-in or upgrade costs. Shorter tenors build equity fast: by year three of a 36-month loan the machine is largely yours, and a trade-in settles cleanly. Longer tenors leave you lighter on equity through the middle years — which is fine if the machine is earning and the plan holds, and expensive if the plan changes and you exit early. Before signing, ask the lender two questions in writing: what is the settlement figure at each year-end, and how does an early trade-in work against the loan? Those two answers, more than the headline tenor, decide how flexible the deal really is.
Getting Your Actual Terms
The sequence is fixed and fast on the dealer side: written machine quotation first — confirmed within 24 hours of inquiry per the October 2026 price list, with loaders, excavators, compactors and the B877F all carrying published anchors to start the arithmetic from — then the lender application, then written terms stating deposit, rate, tenor options and total repayment for each. Approval, rates and tenor rest with the lender on your file; no dealer promises them, and indicative content on this site is never a guaranteed offer. The deposit guide covers the upfront-cash side, the SDLG financing hub holds the full package context, and the cost-estimate calculator gives a project-level budget figure before any lender conversation starts. The wider fleet context sits on the full SDLG equipment hub — excavators, wheel loaders, graders, rollers and the backhoe and compact range — with evidence-based brand comparisons for buyers still choosing machines, let alone tenors.
Get Tenor Scenarios on Your File
Tell us the machine, your budget and your programme length and the SDLG desk will issue the written machine quotation — the document every lender needs first.
Prefer a written trail? Contact the SDLG desk
Frequently Asked Questions
What is a finance tenor?
The tenor is the length of the loan in months — how long you repay the financed machine. On equipment finance in Kenya, tenors are commonly offered in steps such as 36, 60, 72 and 84 months; the lender decides what your file qualifies for, and states it in writing. This guide compares the shapes of the choice: what each tenor does to payments, total cost and machine-life fit.
Which tenor is best for equipment finance?
There is no universal best — there is a best fit. Shorter tenors cost less in total interest and build equity fast, but the monthly payments are heavier. Longer tenors ease monthly cash flow but cost more in total interest and can outlive the machine's strongest earning years. The fit test: match the tenor to the machine's productive life on your workload and to the contract length backing the repayments.
How much does tenor change the total cost?
Structurally, a lot: total interest grows with time. An illustrative worked example is below with every input assumed — it shows the shape of the trade, not a term. On your written lender quotation, ask for total repayment at two tenors and compare those figures directly; the difference is the price of the lower monthly payment.
Should the tenor match the machine's working life?
Yes — this is the least discussed rule and the most expensive to break. A machine financed past its reliable earning years keeps costing instalments while downtime grows: you pay for a machine that is working less. Align the tenor with the productive hours you plan, the warranty period, and your upgrade cycle; if the machine will be traded at year five, a seven-year loan leaves you settling or rolling debt at the trade-in.
Can I settle the loan early or restructure?
Usually yes in structure, but the terms are lender-specific: early-settlement figures, notice periods and any fees belong in the written loan agreement, and restructures are easier arranged before a missed instalment than after. Ask for the early-settlement clause in writing before signing; our asset finance guide lists the documentation to check.
How does seasonal work affect tenor choice?
Seasonal contractors — rain-dependent earthworks, agricultural windows — should weight payment timing over headline tenor: some structures allow seasonal repayment profiles aligned to the working calendar, and hire-before-you-buy can bridge the off-season without debt at all. The hire-side comparison is in our long-term hire versus lease analysis; the lender decides what your file qualifies for.
Does a longer tenor mean easier approval?
Not in the way buyers assume. A longer tenor lowers the monthly payment, which helps the affordability check; but the lender still prices the full file — cash flow, credit history, deposit and contract strength — and a longer exposure is not automatically more attractive to them. Approval, rate and tenor rest with the lender on your specific file; no dealer can promise any of the three.
Where do I get actual tenor terms?
The sequence is fixed: written machine quotation first — confirmed within 24 hours of inquiry per the October 2026 price list — then the lender application, then written terms stating deposit, rate, tenor options and total repayment for each. The dealer packages and introduces; the lender decides. Our step-by-step asset finance guide walks the full sequence, and the deposit guide covers the upfront-cash side.
SDLG Equipment Finance Tenors: Choosing 36, 60, 72 or 84 Months
Key Facts at a Glance
| Item | Status |
|---|---|
| Topic | Choosing between 36, 60, 72 and 84 months on SDLG equipment finance in Kenya |
| Best tenor | No universal best — fit the tenor to machine working life, contract length and cash-flow shape |
| Shorter tenors | Higher monthly payments, less total interest, faster equity |
| Longer tenors | Easier monthly cash flow, more total interest, risk of outliving the machine's earning years |
| Illustrative example | Assumed inputs only — every rate and figure below is arithmetic, not an offered term |
| Actual terms | Written lender quotation after the written machine quotation (24 hours per Oct 2026 list) |
The tenor of your equipment finance is the length of the loan in months — and on an SDLG machine purchase in Kenya it is one of the three decisions (with machine choice and deposit) that shapes what the finance actually costs you. The choice looks simple: 36, 60, 72 or 84 months, with shorter meaning bigger monthly payments and longer meaning smaller ones. The real trade is three-sided: monthly cash flow against total interest against the machine's working life. This guide compares the four common tenors on all three axes, with one illustrative calculation whose inputs are assumed and labeled — never offered terms — and with the process for getting your actual figures in writing. The parent process sits in our step-by-step asset finance guide.
The Four Tenors Compared
| Tenor | Payment shape | Total-interest shape | Machine-life fit | Typical fit (structure, not advice) |
|---|---|---|---|---|
| 36 months | Highest monthly | Lowest total | Well inside working life | Strong contract-backed buyers; fast equity builders |
| 60 months | Moderate | Moderate total | Aligned with warranty + early life | The structural middle for full-utilisation machines |
| 72 months | Lower | Higher total | Approaching mid-life | Steady utilisation; moderate hourly cushions |
| 84 months | Lowest monthly | Highest total | Risk of outliving earning years | Thin-margin seasonal work needing cash-flow room |
Read the table as structure, not advice. The pattern is mechanical: every added year of tenor lowers the monthly payment and raises the total interest, and pushes the final instalment closer to — or past — the point where the machine's downtime starts costing earning days. Which side of that trade your file belongs on depends on your utilisation, your contract backing and your upgrade plans, which is why the lender's written terms decide and this guide only frames the question.
An Illustrative Run: Same Machine, Two Tenors
Every input below is assumed for illustration; nothing in it is a rate, a term or an offer. Take the listed B877F backhoe at KSh 8,600,000 as the machine and assume a financed balance of KSh 6,880,000 after an assumed 20% deposit, at an assumed reducing-balance rate of 15% per annum — an assumed figure chosen purely to show arithmetic. At an assumed 36-month tenor, the payment is roughly KSh 238,000 per month; at an assumed 84 months, roughly KSh 122,000. The monthly relief is real. But the total repaid across the 84 months is roughly KSh 1,750,000 higher than across the 36 — the price of that relief. Both numbers move with the real rate and fees your lender states in writing; the shape — relief now, cost later — does not. Ask your lender for total repayment at two tenors on your file and compare those figures, not the monthly ones.
One quick test before the quotes arrive: divide your expected monthly machine earnings by the illustrative payment at each tenor. If the 36-month payment clears at sixty per cent utilisation on your realistic rates, shorter is structurally safe; if only the 84-month figure fits at ninety per cent utilisation, the honest question is not which tenor but whether the machine is right at all.
The Machine-Life Rule
The least discussed rule and the most expensive to break: do not finance a machine past its reliable earning years. If the workload supports a trade-in or replacement at year five, an 84-month loan leaves two more years of instalments on a machine that is accumulating downtime — you pay full price for shrinking output. The discipline is to align three clocks before signing: the tenor, the machine's productive hours plan, and the warranty period (one year or 2,000 hours standard, extendable to two, per the October 2026 list). When the clocks align, the loan retires while the machine is still earning; when they do not, the tail of the loan works against you.
Seasonal Work and the Cash-Flow Shape
Contractors whose earnings follow the weather — rain-dependent earthworks, agricultural windows — should weight the shape of payments over the headline tenor: some structures allow seasonal profiles matched to the working calendar, and hire-before-you-buy can bridge off-seasons without debt at all. The comparison against longer tenors is honest arithmetic either way, and the hire-side numbers sit in our long-term hire versus lease analysis with current hire pricing and the hire cost framework. Used-machine buyers face a related version of the same question, covered in our used-equipment buying guide.
Upgrade Plans, Equity and Exit
Your equity position at any point in the loan decides what a trade-in or upgrade costs. Shorter tenors build equity fast: by year three of a 36-month loan the machine is largely yours, and a trade-in settles cleanly. Longer tenors leave you lighter on equity through the middle years — which is fine if the machine is earning and the plan holds, and expensive if the plan changes and you exit early. Before signing, ask the lender two questions in writing: what is the settlement figure at each year-end, and how does an early trade-in work against the loan? Those two answers, more than the headline tenor, decide how flexible the deal really is.
Getting Your Actual Terms
The sequence is fixed and fast on the dealer side: written machine quotation first — confirmed within 24 hours of inquiry per the October 2026 price list, with loaders, excavators, compactors and the B877F all carrying published anchors to start the arithmetic from — then the lender application, then written terms stating deposit, rate, tenor options and total repayment for each. Approval, rates and tenor rest with the lender on your file; no dealer promises them, and indicative content on this site is never a guaranteed offer. The deposit guide covers the upfront-cash side, the SDLG financing hub holds the full package context, and the cost-estimate calculator gives a project-level budget figure before any lender conversation starts. The wider fleet context sits on the full SDLG equipment hub — excavators, wheel loaders, graders, rollers and the backhoe and compact range — with evidence-based brand comparisons for buyers still choosing machines, let alone tenors.
Get Tenor Scenarios on Your File
Tell us the machine, your budget and your programme length and the SDLG desk will issue the written machine quotation — the document every lender needs first.
Prefer a written trail? Contact the SDLG desk
Frequently Asked Questions
What is a finance tenor?
The tenor is the length of the loan in months — how long you repay the financed machine. On equipment finance in Kenya, tenors are commonly offered in steps such as 36, 60, 72 and 84 months; the lender decides what your file qualifies for, and states it in writing. This guide compares the shapes of the choice: what each tenor does to payments, total cost and machine-life fit.
Which tenor is best for equipment finance?
There is no universal best — there is a best fit. Shorter tenors cost less in total interest and build equity fast, but the monthly payments are heavier. Longer tenors ease monthly cash flow but cost more in total interest and can outlive the machine's strongest earning years. The fit test: match the tenor to the machine's productive life on your workload and to the contract length backing the repayments.
How much does tenor change the total cost?
Structurally, a lot: total interest grows with time. An illustrative worked example is below with every input assumed — it shows the shape of the trade, not a term. On your written lender quotation, ask for total repayment at two tenors and compare those figures directly; the difference is the price of the lower monthly payment.
Should the tenor match the machine's working life?
Yes — this is the least discussed rule and the most expensive to break. A machine financed past its reliable earning years keeps costing instalments while downtime grows: you pay for a machine that is working less. Align the tenor with the productive hours you plan, the warranty period, and your upgrade cycle; if the machine will be traded at year five, a seven-year loan leaves you settling or rolling debt at the trade-in.
Can I settle the loan early or restructure?
Usually yes in structure, but the terms are lender-specific: early-settlement figures, notice periods and any fees belong in the written loan agreement, and restructures are easier arranged before a missed instalment than after. Ask for the early-settlement clause in writing before signing; our asset finance guide lists the documentation to check.
How does seasonal work affect tenor choice?
Seasonal contractors — rain-dependent earthworks, agricultural windows — should weight payment timing over headline tenor: some structures allow seasonal repayment profiles aligned to the working calendar, and hire-before-you-buy can bridge the off-season without debt at all. The hire-side comparison is in our long-term hire versus lease analysis; the lender decides what your file qualifies for.
Does a longer tenor mean easier approval?
Not in the way buyers assume. A longer tenor lowers the monthly payment, which helps the affordability check; but the lender still prices the full file — cash flow, credit history, deposit and contract strength — and a longer exposure is not automatically more attractive to them. Approval, rate and tenor rest with the lender on your specific file; no dealer can promise any of the three.
Where do I get actual tenor terms?
The sequence is fixed: written machine quotation first — confirmed within 24 hours of inquiry per the October 2026 price list — then the lender application, then written terms stating deposit, rate, tenor options and total repayment for each. The dealer packages and introduces; the lender decides. Our step-by-step asset finance guide walks the full sequence, and the deposit guide covers the upfront-cash side.
