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

Customer Eligibility

Hire Purchase commercial vehicle & equipment is extended to all locally registered business entities. Business entities comprise sole proprietors, partnerships and private limited companies.

Benefits

  • Access to financing for automation, upgrading, equipment hire purchase and property purchase (only JTC Corporation or Housing & Development Board properties)
  • Loan limit of up to S$15 million

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

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.

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
Maxumum 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
Quick Enquiry