Finance your equipment and commercial vehicles with minimal upfront capital
Finance the cost of your equipment and commercial vehicles through DBS Equipment Financing facility. Businesses can borrow as much as 90% financing for up to seven years with a flat-rate loan.
Why choose DBS Equipment Financing?
Hire purchase differs from a term loan in several ways. The table below illustrates the key differences.
Ownership of goods
Starts once the final instalment has been paid
Starts from the day you receive the loan
Documentation of terms
In an HP Agreement governed under HP Act or HP Common Law
In a loan agreement and DBS takes a charge over the goods
Registration of legal interest
DBS registers as an HP owner with the HP Association and/or Asset Financing and Leasing Association of Singapore
DBS registers with ACRA
Legal fees and stamp duty
Stamp duty applies. Legal fees may apply.
We offer both flat and fixed interest rate packages for Equipment Financing loans. However, you may also apply for interest rate that are pegged to DBS Prime Rate or ABS SIBOR.
Full prepayment is allowed and simply constitutes early termination of the hire purchase agreement. We don’t charge a prepayment fee, however we do require written notice one month prior to termination for equipment bought under hire purchase. No written notice is required for commercial vehicles.
Yes, if you finance equipment with hire purchase you are required to take out an all-risks insurance policy up its prevailing market value. Similarly, commercial vehicles bought through hire purchase require a comprehensive insurance policy up to the prevailing market value.
Thinking of overcoming increased labour cost/shortage with automated equipment? You can with our Equipment Financing bundled with Business Loan (up to S$200,000) at attractive rates. Call us at 1800 222 2200 or +65 6222 2200!