Equipment financing is basically a type of loan that is offered to businesses and it allows them to purchase the office system furniture and machinery required for their operation. And this includes everything from small items like electronics to large manufacturing machinery. Actually, there are several different types of equipment financing and the most common ones normally have fixed interest rates with set monthly payments.
Equipment financing is usually offered through many traditional and online business lenders, with loan amounts ranging widely based on the cost of the items being financed. Similarly, loan repayment terms generally reflect the usable life of the equipment which is normally between three and ten years. Interests are also lender specific but can range anywhere from 2 to 20 percent or even lower if you either qualify for dealer or manufacturer financing.
After applying for equipment financing in Singapore, funding can certainly be received in as few as two business days though this also varies by your lender as well as the loan type. Typically, equipment financing is secured by the equipment being purchased and so if the borrower evades on the loan, the lender can possibly reclaim the collateral and resell it to recoup its losses. The process of applying for this loan varies by financial institution, yet there are some general guidelines you can follow to apply.
Before you get equipment financing in Singapore and have your office system furniture fully set up, be sure to evaluate how much you need to borrow and if it’s a necessary expense. You should also calculate whether the new piece of equipment or machinery will possibly increase the efficiency of the business’ operations or rather improve profitability and the company’s competitive edge.
It’s also crucial to shop around to get the best deal before applying for an equipment financing loan. Lenders offer a wide range of financing options, interest rates and repayment terms and it’s for this reason that some financial institutions may be a better fit than others. Of course, there are several types of equipment financing available.
Consequently, it’s indeed necessary to identify your business needs as well as each lender’s eligibility requirements and costs too. When looking for a financial equipment lender, you’ll first need to determine how vital the equipment is to the business’ ability to operate. Equally, also check if the loan is necessary to replace the existing equipment or perhaps build on current operations.