Purchase Finance
Purchase Finance
Purchase order finance is a type of short-term financing that firms can use to cover the costs of making or acquiring items that have already been sold to clients. This finance is intended for expanding small firms and startups with low working cash.
Purchase finance, also known as acquisition finance or purchase loan, refers to a type of financing used by individuals, businesses, or organizations to acquire assets or make purchases. This form of financing helps borrowers secure the capital needed to buy goods or assets, whether for personal or business purposes.
Age Criteria
You must be between 18 and 65 years old.
Income source
You must be a salaried or self-employed individual.
Credit score
You must have a minimum credit score of 650. The credit score can vary from bank to bank.
Employment type
You must be employed with a private, public limited company, or an MNC.
Age at maturity
Banks consider the upper age limit at the time of maturity.
Documents Needed
KYC
- Identity proof PAN or Aadhaar card
- Residence proof
Income Proof
- salary slip, recent income tax returns
- Employment proof
Bank statements
- These could be for the last 6 months
- Property documents
Our Benefits
- Credit score - Flexible contract terms: The interest rate and monthly payments are fixed throughout the agreement.
- Lower monthly payments: Personal contract purchase agreements have relatively low monthly payments.
- Tax advantages: Businesses can claim capital allowances through hire purchase or outright purchase.
- Expanded choice of vehicles: You can buy a new or used vehicle without a large financial outlay up front.
- No mileage restrictions: You own the vehicle at the end of the agreement, so there is no limit on how much you can drive it.
- Ease of payment: Payments are made in installments, which can be beneficial for people with limited income.
- Frees up business cash flow: Financing a vehicle can allow you to afford a more expensive car, which can generate more revenue for your business.