By Lauren Veit
There are a few different options available to business owners when it comes to financing equipment. This post will outline the three most common types of equipment financing Singapore: lease, loan, and Equipment Finance Agreement (EFA).
Leasing is the most popular option for financing equipment. With a lease agreement, you can finance new or used equipment for a specified duration and then return the assets at any time. Leases are somewhat flexible, with many programs allowing you to purchase the leased asset from your lessor in some circumstances.
An Equipment Finance Agreement (EFA) also allows you to finance new or pre-owned equipment without owning that property. EFAs allow you to pay off the loan over time (typically five years or less), and they can be structured in various ways.
Finally, there are loans for new or used equipment. A loan is a good option if you want to keep the equipment after the loan is paid off, as it allows for full ownership of the asset. With a loan, you can typically borrow up to 80% of the purchase price of new equipment or 100% of the value of used equipment.
In conclusion, this blog post covered three of the most common financing options for equipment. Of course, other types are available, but these are some of the most popular and effective methods.
