If you are a business manager and your factory equipment needs to be upgraded, but your company has limited liquidity, what would you do? We suggest you try the equipment loan route. If you are not familiar with this term, take a look at this article, you may have your own ideas. First you need to understand the concept, what is an equipment loan? An equipment loan is a RMB loan issued by a lending bank to a borrower for the purchase of small equipment needed in production and business activities. The loan term of the equipment loan is generally in 1~3 years, the longest not more than five years; at the same time need to provide the lending bank recognized property collateral, pledge (some banks can also be purchased vehicles as collateral, and by the manufacturer to provide the whole repurchase guarantee). So what about the expected annualized interest rate on equipment loans? The expected annualized interest rate of the loan is in accordance with the expected annualized interest rate of the same class of loan for the same period as stipulated by the People's Bank of China. The equipment loan shall be subject to interest payments and shall be included in the cost of the equipment. The equipment loan shall be returned with a budget allocation for the following year. The following is an example of how to apply for an equipment loan from China Merchants Bank, and a brief introduction to the following process and method of applying for an equipment loan. China Merchants Bank's equipment mortgage refers to the short-term working capital loan business applied to our bank with the enterprise's own core production equipment as the main form of guarantee.
Features and Advantages of Equipment Loan:
(1)Expanding the scope of collateral pledged, solving the problem of insufficient collateral pledged by production-oriented small and medium-sized enterprises (SMEs). (2) revitalizes the fixed assets of enterprises and broadens their financing channels. (3) Accept a wide range of collateralized equipment, suitable for different types of production-oriented small and medium-sized enterprises. So what kind of business is this type of loan suitable for? It is believed that production and manufacturing type enterprises or equipment leasing enterprises with good business conditions, fast growth in financing needs, and lack of property collateral security can consider applying for equipment loans.
Application steps:
(1) the handling of the sub-centers must have access to the appraisal company with the qualification of asset valuation; (2) according to the general mortgage type of business for investigation and approval; (3) before the release of funds, you must go to the local administrative department for the registration of mortgages; (4) the release of funds and the normal post-loan management. Approval comments may clearly require that the frequency of field post-loan inspection should be higher than other general security mode of business. The above is the China Merchants Bank equipment loan application method, if you want to apply for other banks equipment loan, you can go to their official website to inquire or go to the business office for consultation.