Equipment Financing

EQUIPMENT FINANCING

Equipment Financing in Singapore

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At a Glance

Pros & Cons

Who Can Qualify?

Cost

How It Works

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Equipment financing is a type of financing or loan that uses the equipment that you wish to purchase as collateral.

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[icon_box border=”1″ title=”How Do I Qualify?” image=”2605″]

  1. 6 months in business
  2. 30% local shareholding
  3. Business registered and operating in Singapore

Disclaimer: These are general qualifications. Other information might be considered during your application.

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You can actually purchase an equipment by applying for either one of the different kinds of loans available but for a financing option where the equipment serves as a collateral, there is Equipment financing, you can apply by contacting one of our capable specialists.

Apply Here for Equipment Financing

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Equipment Financing at a Glance

Equipment Financing can be a quick and easy way to attain financing up to 90% of the full value of the equipment you need to run your business such as machinery, computers, vehicles or other supplies.

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Up to 90% of quotation price

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[icon_box border=”0″ title=”Loan Term” image=”2623″]

Up to 5 years

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[icon_box border=”0″ title=”Interest Rates” image=”2624″]

2.8 – 3.2% per annum

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[icon_box border=”0″ title=”Speed” image=”2625″]

2 – 3 weeks

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The Pros and Cons

Fast approvals

Limited paperwork

Equipment is the collateral

Equipment may be out-of-date when the loan is paid off

Equipment depreciation, thus unable to deduct full cost

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"Equipment Financing"
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Compare All Loan Types...

Loan Type

Speed

Interest Rates

Trade Financing

2 – 4 weeks

2.3 – 2.8% per annum

Personal Loan for Business

3 – 7 days

4.4 – 6.88% per annum

Invoice Financing

1 – 2 weeks

6 – 18% per annum

Micro Loan

2 – 3 weeks

3.2 – 4.5% per annum

Business Term Loan

2 – 3 weeks

5 – 7% per annum

Crowdfunding

1 – 3 weeks

12 – 16% per annum

Short-Term Loan

1 – 2 weeks

7.8 – 12% per annum

Who Qualifies for Equipment Financing?

Most businesses can be eligible for an equipment financing.

The amount & interest rates however, is dependant on the valuation of the equipment, the business’s financial records as well as the owner’s credit score.

Equipment financing is an excellent choice if your credit score is not too ideal as the equipment will also serve as a collateral. Financiers are more interested in the equipment purchased than your credit history.

What Documents Do I Need to Apply?

Bank Statements

Profit & Loss Statements

Balance Sheet

Income Tax Returns

Identification Card (NRIC) / Copy of Passport

Equipment quotation or pro-forma invoice

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“Equipment Financing is a great way to raise funds to get the tools you need without a big upfront cost.”

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See What Loans You Qualify For

Why Equipment Financing?

SME owners know that in order to make money, you need more money.

There are times when a business will require a certain equipment or machinery to increase their turnover.

How Do I Afford It?

This is an obstacle where business owners often encounter. This is where Capable Loans comes in to solve that issue.

This is how equipment financing can help you expand your business.

The Pros of Using Equipment as a Collateral

An equipment financing can be a wise choice when your business requires an equipment or machinery to grow.

Business owners can utilize equipment financing to acquire a great variety of business equipment, from office computers to vehicles.

The amount your business qualifies for is largely dependant on the nature of the equipment and whether if that piece of equipment pre-owned or brand new as the equipment acquired is acting as a collateral.

The whole idea behind this is relatively similar to a car loan.

The cost of the equipment generally sets the loan amount and tenure of the business’s equipment financing and there it is not necessary to put up a separate collateral.

Similar to a business loan, equipment financing is set at a fixed interest rate, usually between 5.2- 8% with the same fixed amount paid every month.

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with Capable Loans Today!

What Will Equipment Financing Cost You?

Equipment Financing Tenure

The tenure of the equipment loan is dependant on the equipment as well as its expected lifespan.

Financiers are usually reluctant to extend the tenure of the equipment loan further than the lifespan of the equipment that is being financed.

Sensibly, in the first place the financiers’ objective is to finance an asset that gives value to the business.

Difference Between Equipment Financing and Equipment Leasing

There is another alternative to equipment financing which is Equipment Leasing.

Sometimes, business owners will prefer to get an equipment lease rather than an equipment loan. There are some benefits if you lease, however with an equipment loan, you own the equipment after the loan is repaid.

In comparison with a lease where you get to utilise the equipment only if you are still paying for the lease.

If your business requires the equipment for a long time, it is recommended to take up an equipment financing, and if you just need to use the equipment for a short while then a lease is a more reasonable choice.

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