Question 1

Can I get a machinery loan for used or pre-owned equipment?

Accepted Answer

Yes, absolutely. We finance both new and used equipment. For pre-owned machinery, we conduct a technical valuation to assess condition, remaining useful life, and market value. This helps us determine the loan amount and rate. Provide maintenance records and equipment history to strengthen your application.

Question 2

How long does equipment financing typically take?

Accepted Answer

From application to fund transfer usually takes 5-6 working days. The timeline depends on document completeness, equipment inspection (if required), and your credit profile. For straightforward cases with clear documentation, we can move faster.

Question 3

What if my equipment increases in value over time?

Accepted Answer

Equipment typically depreciates, which is why our loan tenure aligns with the expected useful life of the machinery. However, if your equipment appreciates or you want to refinance at better rates after 2-3 years, you can reapply for better terms based on improved business performance.

Question 4

Can I use the loan for both machinery and working capital?

Accepted Answer

Our machinery loans are specifically for equipment purchase and financing. If you need additional working capital, consider applying for our Business Loan separately, which offers flexibility for multiple uses. We can help structure both loans together if needed.

Question 5

What happens if the equipment breaks down or becomes obsolete?

Accepted Answer

Equipment insurance is recommended (sometimes included in loan terms). If equipment becomes inoperable, we work with you to understand the situation. Regular maintenance and inspections help prevent breakdowns. Discuss insurance options during the loan approval process.

Question 6

Can I get a machinery loan if my equipment is financed under a lease?

Accepted Answer

Typically, we finance equipment you own or will own. If equipment is currently leased, you'd need to purchase the lease or own the asset outright. Our team can discuss lease-to-own options or refinancing existing leases; contact us for specific scenarios.

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