Hire Purchase​
Hire Purchase​

What is Hire Purchase financing?​

Hire Purchase (HP) commercial vehicle & equipment is a financing arrangement whereby the bank finances your purchase of equipment and commercial vehicles used for business operations.

Unlike a term loan in which the borrower holds legal title to the goods from the onset, the bank retains legal title to the asset financed under Hire Purchase until the final installment is fully repaid. With competitive rates and flexible repayment terms, you can look forward towards enhanced business capability and productivity without worrying about straining your cash flow.

We are able to assist you to get hire purchase financing for a wide range of equipment and machinery as well as commercial vehicles.The types of loans available under LEFS are:

  • Factory loan
  • Machinery term loan/Machinery hire purchase
Hire Purchase Financing or not?

The thing about financing for equipment is that it is mostly ideal for only certain types of businesses.

To elaborate further, it would make sense to get an equipment loan only IF there was a real need for a particular equipment that will be utilized for a long time. Otherwise, there is a risk that the equipment could become obsolete before the loan tenure is up.

Typically, the only caveat when applying for an equipment loan is that you should have sufficient funds ready to make down payment of between 10% – 20% of the equipment cost, depending on how much your lending institution is willing to loan you.

It is important to note that if an equipment is going to be outdated and obsolete before the end of your loan term, then a loan with your equipment as collateral may not be the best option for you.

Loan up to SGD$15M

Access to financing for automation, upgrading, equipment hire purchase and property purchase (only JTC Corporation or Housing & Development Board properties)

No collateral required

There is no requirement to pledge any property or deposit as collateral to apply for this loan. Personal guarantee(s) may be required.

Fast repsonse

Get in touch with us along with the required documents and we will provide a response within 24 hours

Commercial Vehicle Financing

  • Financing of up to 100% of the market valuation or purchase price of new commercial vehicle
  • Facility installment of up to 7 years
  • Hire Purchase financing available for commercial vehicle and commercial vehicle with renewed COE
  • Obtain ownership of the asset upon fulfilling payment of loan installment

Machinery & Equipment Financing

  • Financing of up to 80% of the market valuation or purchase price of the machinery and equipment
  • Loan instalment of up to 5 years
  • Option to tap on the Government Assistance Scheme offered through Local Enterprise Finance Scheme (LEFS)
  • Obtain ownership of the asset upon fulfilling payment of loan installment

Benefits for your Business

Hire Purchase is offered on a flat rate basis. With fixed monthly installment, you can pay for your purchase over a pre-determined period and better manage your cash flow.

  • Immediate use of equipment with small capital outlay
  • Loan repayment terms to match your cashflow requirements

Fees, Rates and Charges

Interest rates can vary, depending on the lending institution along with various other factors.

We are able to assist you to get hire purchase financing for a wide range of equipment and machinery as well as commercial vehicles.

Financing Period

New Equipment Used Equipment
Maximum Financing Period Up to 7 Years Up to 4 Years
Maximum Financing Quantum Up to 90% of purchase price or valuation Up to 80% of purchase price or valuation

Interest Rates

Commercial Varies Varies
LEFS up to 4 years 4.75% p.a. fixed on monthly rest 4.75% p.a. fixed on monthly rest
LEFS up to 7 years 5.25% p.a. fixed on monthly rest 5.25% p.a. fixed on monthly rest

Eligibility

Hire Purchase commercial vehicle & equipment is extended to all locally registered business entities.

Business entities comprises of:

  • Sole proprietors
  • Partnerships
  • Private Limited companies
Enquiries? Questions?

Send us an email, and our team of friendly consultants will get back to you at the earliest possible time.

Alternatively, you may wish to give us a call at +65 8815 7966 or visit us at our offices at 334 Kreta Ayer Road, #01-05, Singapore 080334 between our opening hours of  9am to 5pm.