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Term loan |
Leasing |
Industrial hire-purchase |
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Usage |
To acquire fixed assets such as land and buildings as well as commercial vehicles |
To acquire capital assets such as equipment and machineries
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To acquire capital assets such as equipment and machineries
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Features |
A loan granted for predetermined length of time with repayments by instalments |
Enable SMEs to have access to the equipment without having to purchase the equipment in return for regular lease payments over a specified period. |
Asset is purchased by the financial institution and hired to SMEs with ownership being retained by the financial institution until loan is repaid. |
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Benefits |
Facilitate management of funds as repayment amount is predetermined |
Facilitate management of funds as leasing instalments amount is predetermined |
Allow SMEs to own equipment without paying the full amount upfront |
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Instalments paid are eligible for full tax relief |
Facilitate management of funds as repayment amount is predetermined |
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Free up available funds for other purposes |
