Equipment / Machinery Financing is largely used by businesses to purchase operating equipment. The lender will then hold said equipment as collateral.
This can be a source of financing that allows you to hold on to your working capital, where it can be leveraged to allow for other areas of business expansion.
If you have limited budget for acquiring better tools, this would allow you to upgrade your operations, which would otherwise not be possible without that extra capital.
It is possible to acquire the extra capital without putting forth any collaterals, which is important to many companies that require a steady flow of capital.
Equipment and machinery financing lets a business acquire the tools it needs — production machinery, vehicles, medical or IT equipment, a commercial kitchen fit-out — and spread the cost over time instead of paying the full amount upfront. The equipment itself usually serves as the security, which keeps your working capital free for day-to-day operations. For asset-heavy businesses, it is often the difference between growing on schedule and waiting until cash allows.
There are two broad routes. With a hire-purchase or equipment loan, you finance the purchase and own the asset outright once you have repaid — suited to equipment with a long useful life that you intend to keep. With a lease, you pay to use the asset for a term and may return, renew or buy it at the end — useful for equipment that dates quickly, like technology, or when you would rather not own it. Which is better depends on your cash flow, your tax position and how long the asset stays useful to you.
Because the asset backs the financing, its type and resale value shape the deal — lenders are more comfortable with equipment that holds value and is easy to resell. Some lenders finance the full cost; others ask for a deposit. The tenure is usually matched roughly to the expected life of the asset, so you are not still paying for something long after it has stopped earning its keep.
Beyond the rate, look at the deposit required, whether ownership passes to you at the end, and any charges for settling early or ending a lease. Newer businesses should expect lenders to ask for a director's personal guarantee. And weigh financing against leasing not just on monthly cost but on what you want at the end — ownership, or the flexibility to upgrade.
Fundwise helps you compare loan and lease structures across lenders for the specific equipment you need, so the terms match how long the asset will actually serve you. Tell us what you're buying.
Guiding you at every step — and back again for your next financing need. It's an ongoing cycle, not a one-off transaction.
It is financing used to acquire business equipment or machinery, where the asset itself usually serves as collateral. You spread the cost over time instead of paying upfront, preserving working capital. Fundwise helps you compare options; we are not the lender.
It can be either: a hire-purchase or loan where you own the asset after repaying, or a lease where you use it for a term and may return or buy it at the end. Which is better depends on your cash flow, tax position and whether you want ownership. We help you compare.
The equipment typically acts as collateral, and some lenders finance the full cost while others ask for a deposit. Terms depend on the asset type, its resale value and your credit profile.
Banks and financiers generally require a Singapore-registered business with an operating track record and directors or guarantors meeting their criteria; a personal guarantee is common. We match you to lenders you qualify for.
No. Fundwise is an independent loan advisory and brokerage, not a bank or licensed financial institution, and does not provide financing itself. We connect you with the institutions that do.
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