Features

  • Flexibility

    Spread the purchase into monthly installments

  • Long Loan tenure

    Up to 5 years for HP and up to 4 years for Equipment Term Loan

  • High Financing Quantum

    Up to 90% of the purchase price of equipment under HP

  • Less Initial Cash Outlay

    Less initial cash outlay upon the purchase of equipment

Details

Depending on your needs you may choose either of the following
  1. Equipment Hire Purchase

    Hire Purchase is a term facility that your business can use to finance up to 90% of the purchase price of equipment.

  2. Equipment Term Loan

    With our Equipment Term Loan, you can get access to additional working capital by using your equipment as collateral.

    Details
      New Equipment Used Equipment Unencumbered Equipment
    Type of financing Hire Purchase Refinancing Term Loan
    Feature Allows you to purchase either new or used equipment from a third party supplier using an instalment scheme Allows you to realise value on your unecumbered equipment for your working capital needs
    High Financing Quantum Up to 90% of purchase price or market value whichever lower Up to 80% of purchase price or market value whichever is lower Up to 80% of equipment value
    Long Loan Tenure Up to 5 years Up to 4 years Up to 4 years or remaining useful life of equipment, whichever is lower
    Interest Calculation Calculated on fixed rate based on reducing balance Calculated on fixed rate based on reducing balance Calculated on floating rate or fixed rate based on reducing balance

Documents Required

    For Hire purchase

    • Past 3 years financial statements
    • Past 6 months active bank account statements
    • Equipment Quotation or Pro-forma Invoice
    • SPRING LEFS Application Form (If applicable)
    • Internationalisation Finance Scheme Form (If applicable)

    For Term Loan

    • Past 3 years financial statements
    • Past 6 months active bank account statements
    • Equipment Invoice and Delivery Order
    • Proof of full payment of equipment
      • Full settlement statement from ex-financier OR
      • Declaration letter from customer's auditor that equipment to be refinanced has been fully repaid
    • Internationalisation Finance Scheme Form (If applicable)

FAQs

    1. What types of equipment can I finance under Hire Purchase?

      We finance most types of industrial equipment used in various industries, including:

      • Construction
      • Electronics
      • Food and Beverage
      • Information/Tech/Computer-related
      • Medical and Dental
      • Metalworking
      • Printing/Packaging
    2. What is the minimum quantum that I can finance under Hire Purchase and Term Loan?

      The Bank's minimum finance quantum per equipment is S$150,000.

    3. Does the Bank finance used equipment under Hire Purchase?

      Yes, we are able to finance both new and used equipment where different quantum and tenure of financing will apply accordingly.

    4. What is the quantum of financing and the tenure that that the Bank can offer?
        Finance quantum Loan tenure
      New Equipment Up to 90% Up to 5 years
      Used equipment Up to 80% Up to 4 years
    5. What is the interest rate that the bank charges for Hire Purchase and Term Loan?
      • For Equipment Hire Purchase:

        We are a Participating Financial Institution (PFI) of SPRING Singapore’s Local Enterprise Finance Scheme (LEFS). Thus we are able to offer Hire Purchase with the interest as specified under the scheme.

        The rate is determined by SPRING Singapore and is subject to your business fulfilling criteria as specified by the agency. For more information, please visit www.spring.gov.sg or speak to your Relationship Managers today

      • For Equipment Term Loan:

        LEFS does not support Term Loan, but the interest rate offered will be on competitive commercial terms.

    6. Can I apply for an Equipment Term Loan if my equipment is still under financing by another Bank?

      As the Bank will be taking a charge over your equipment as security for the Equipment Term Loan granted, the equipment charged to the Bank has to be free from encumbrances

      If the equipment to be pledged to the Bank is encumbered, we may be able to structure the Term Loan such that part of the Term Loan amount can be used to redeem the equipment from your existing financier, prior to disbursing the remaining portion of the Term Loan to your business

    7. What additional security do I have to pledge to the Bank for an Equipment Term Loan facility?

      Your business has to provide the bank with a deed of charge of the equipment. The deed of charge will be prepared and executed by the Bank’s appointed law firm.

    8. Can I take up Equipment Hire Purchase to be used in other regional office?

      As one of the Participating Financial Institutions (PFIs) of IE Singapore’s Internationalisation Finance Scheme (“IFS”), we may finance the equipment under the Scheme. The IFS, administered by IE Singapore, is designed to help Singapore-based companies expand their operations overseas and internationalize successfully.

      For more information, please visit www.iesingapore.gov.sg or speak to your Relationship Managers today.

    9. Can I move the equipment currently under the Bank’s Hire Purchase to a different domestic location or to other regional offices?
      • Hire Purchase:

        Under a Hire Purchase agreement, the hirer acquires ownership title to the equipment only after the final instalment is settled.

        Hence, you must obtain prior approval from the Bank to relocate the equipment to another premise within the same country or to another country.

      • Term Loan:

        Under a Term Loan agreement, the borrower has ownership title to the equipment at the onset of the loan agreement. However, although title to the equipment resides with you, you must inform the Bank should you need to relocate the equipment to another premise within the same country or to another country, as the equipment is assigned to the Bank as a collateral.

    10. Do I have to insure the equipment placed under Hire Purchase?

      Yes, you have to take up an all-risk machinery insurance cover for the price of the equipment. For ease of administration, the bank prefers the use of our appointed insurer

    11. How do I make monthly repayments for the Hire Purchase?

      Installment payments have to be paid electronically from your Standard Chartered current account. If you do not have an account with the Bank, we would be glad to assist you in this.

    12. Can I request for an early redemption on my Hire Purchase facility?

      Yes, you may request for an early redemption on your hire purchase facility. However, do note that you would have to make full loan redemption as partial loan redemption is not allowed.

      Request for loan redemption can be made either in writing, to the bank or you may contact your Relationship Manager for further assistance.

    13. I am interested in applying for an equipment loan with Standard Chartered Bank (Singapore) Limited. What should I do?

      Please call us at our SME hotline no. at 1800 743 7000 and we will be pleased to refer a Relationship Manager to further assist you.

      • For Equipment Hire Purchase

        The following documents are required for application of a Hire Purchase:

        1. Past 3 years audited financial statements
        2. Latest management accounts
        3. Past 6 months bank statements of active current accounts
        4. Equipment Pro-forma invoice, Sales Quotation or equivalent

        A formal equipment appraisal report may be required for financing of used equipment.

      • Equipment Term Loan:

        Items (i) – (iii) apply. In addition, details of the equipment & proof of ownership of the equipment and or that the equipment is free from encumbrances, are required. A formal equipment appraisal report may be required, depending on the loan quantum and age of the equipment.

    14. What should I expect after my Hire Purchase application is approved?

      Upon approval, you will receive a Facility Letter from the Bank.

      The Facility Letter and Hire Purchase Agreement will indicate the full terms and conditions of the loan.

      The loan will be disbursed to the equipment supplier only after the Facility Letter, Hire Purchase Agreement and all other relevant documents relating to the Hire Purchase, are duly signed and returned to the Bank.

      An inspection of the equipment by an officer of the Bank may also be required, prior to disbursement of the loan.

      Please speak to your Relationship Manager or call SME Banking at 1800 743 3000 for further assistance.

      The information in this FAQ is accurate at point of print.

    15. What should I expect after my Term Loan application is approved?

      Upon approval, you will receive a Facility Letter from the Bank.

      The Facility Letter indicates the full terms and conditions of the loan.

      The loan will be disbursed to you only after the Facility Letter and all other relevant documents relating to the Term Loan are duly signed and returned to the Bank. An inspection of the equipment by an officer of the Bank may be required.

      Please speak to your Relationship Manager or call SME Banking at 1800 743 3000 for further assistance.

    16. The information in this FAQ is for information only and does not constitute as an offer, and is correct at point of print.

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