Using the Equipment Financing by DBS bank, you can finance your equipment or commercial vehicles with a very minimum upfront capital required.
A hire purchase differs from the term loan on several parameters. Find below the stark differences between the two -
|Type / Parameters||DBS Hire Purchase||DBS Term Loan|
|Ownership of equipment / commercial vehicle||Starts when the final instalment has been paid in full||Starts from the day you receive your term loan|
|Interest Rate Structure||Usually flat - rate||DBS offers flat rate and floating rate packages pegged to DBS Prime Rate and ABS SIBOR rate|
|Documentation of terms||In a Hire Purchase Agreement governed under the Hire Purchase Act or Hire Purchase Common Law||In a loan agreement and DBS takes a charge over the equipment / commercial vehicle|
|Registration of legal interest||DBS registers as an Hire Purchase owner with the Hire Purchase Association and/or Asset Financing and Leasing Association of Singapore||DBS registers with ACRA|
|Legal fees and stamp duty||NIL / Not Applicable||Stamp duty applies and Legal fees may apply. DBS may / may not provide subsidy on these fees|
You can apply for the DBS Equipment Financing by calling the bank during their business hours. The bank will then arrange for a relationship manager who will then contact you and take the process forward.
The bank offers a maximum loan quantum of 90% financing at competitive interest rate packages for their DBS Equipment Financing.
Yes. As per the Internationalisation Finance Scheme, DBS bank offers financing for machinery located overseas. You can visit the Internationalisation Finance Scheme page available on the official DBS bank, Singapore website for further information.
Yes. If you wish to finance your equipment through DBS Hire Purchase, you will have to take an all – risks insurance policy at the prevailing market value. Consequently, if you wish to finance your commercial vehicle using DBS Hire Purchase, you will be required to take a comprehensive insurance policy at the prevailing market value.
No. DBS allows for full prepayments for the Hire Purchase on equipment and commercial vehicles. The bank does not charge a prepayment fee for early termination of the hire purchase agreement, however, you will be required to submit a written notice one month before the termination of the HP agreement for the equipment purchased. A written notice is not required in case of commercial vehicles.
You can apply for the DBS Equipment Financing by contacting the bank via telephone during their business hours. The bank will then arrange for a relationship manager to speak with you who will then contact you and take the process forward.