How to Qualify for Equipment Loan?
Most companies can qualify for equipment financing in Singapore.
The real question is, HOW MUCH can you qualify? That will be largely dependent on the type of equipment you want to buy, the cash flow of your company, current financial commitments, your company’s financial history, and your personal credit rating.
If your personal credit rating is less than ideal, there is still a great chance of approval as an equipment loan is a secured loan. On top of that, you could also try to include an extra guarantor in the loan.
The truth is that most lending institutions are mainly involved with the equipment that is securing the loan & your company’s cash flow. If the gear you want to purchase is important to the business, value-retaining & resalable, most financial institutions will be willing to work with you.
How to Apply?
In many industries like construction, engineering, or lumbering, businesses cannot operate without the necessary equipment. Whether your business sells a product or provides a service, you will need to have the proper equipment to keep the business in operation.
Over time, equipment will need to be fixed, maintained, or replaced, which can cost a lot of money and put a strain on your company’s cash flow, especially for specialized equipment that serves a niche industry.
However, with equipment financing, you will be able to get the equipment that your business needs and protect your company’s cash flow at the same time.
An equipment loan is relatively easy to apply for, depending on the financial institution that you are working with. Most financial institutions will request for the standard documents that will reflect the financial health of your business, existing credit exposure and your personal credit rating.
On on of that, you will also need to provide all the information about the equipment that you want to purchase and a quotation from the equipment vendor that reflects the equipment cost.
||The company must be incorporated in Singapore for at least 2 years
||At least 30% Singaporean or PR shareholding
Required Documents for Application
Documents to prepare:
- Bank statements over the last six (6) months
- Financial statements over the last two (2) years
- National Registration Identity Card or Passport
- Income tax documents
- Credit Bureau Report
- Equipment quotation from the vendor