Are Equipment Replacement and Improvement Loans Fixed Capital

Yes. Equipment Renovation Loan is a type of fixed asset loan. Fixed assets refers to the enterprise for the production of products, the provision of labor services, rental or business management and held, the use of more than 12 months, the value of a certain standard of non-monetary assets. Equipment renovation loan is a loan issued by the bank to the enterprise to carry out technological transformation of fixed assets, equipment renewal of the capital needs, with depreciation fund advances and increase the dual nature of the investment. Therefore, it is fixed assets.