ORIX Leasing Singapore Limited
Knowledge Centre

Frequently Asked Questions

General


Financing Physical Assets


Converting Assets to Cash Flows

 

Merchant Cash Advance

 


 

 

General

 

What entities qualify for financing from ORIX Leasing Singapore Limited?

ORIX Leasing Singapore provides financial solutions for corporate entities. These include companies and business, including sole proprietors and partnerships.

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What is the tenure of the financing available from ORIX Leasing Singapore Limited?

The length of the financing period can be customised to fit the customer’s need. This can range from a minimum period of 12 months and up to 60 months.

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What documents do I need to submit with my application for financing?

Accounting and Corporate Regulatory Authority (ACRA) Business Profile

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How do I submit my Loan Application Form?

You may submit your form in the following ways:

Fax: +65-6339 3966
or
Mail: 331 North Bridge Road, #19-01/06 Odeon Towers Singapore 188720
or
Email: loanenquiries@ols.com.sg

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How soon would I be able to know the status of my application?

We will start to process your application once we receive it and we can typically get back to applicants with an answer as early as three (3) working days.

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Is there a maximum amount of financing that I can take from ORIX Leasing Singapore Limited?

The amount of financing will vary from application to application and is subject to an evaluation of the purpose of the financing and an assessment of the entity applying for the financing.

Speak with us about your needs and we will be able to advise you further based on your requirements.

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Are there any additional fees that need to be incurred over and above the interest rate charges?

Depending on the financial service, there may be additional fees, such as valuation fees, that may be incurred. Speak with our Relationship Manager on your needs and we will be able to advise you on a suitable solution and whether any additional fees are applicable.

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Are there any cancellation fees if I decide not to continue with the financing with ORIX Leasing Singapore Limited after I have accepted the letter of offer?

A cancellation fee may apply if you have already accepted the letter of offer. Speak with your Relationship Manager who will be able to advise you further.  

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How is asset-based financing different from a traditional bank loan?

Asset-based financing is provided as a medium-term loan for the acquisition of equipment. This differs from traditional bank loans that are generally revolving in nature and serve to augment working capital requirements.

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Financing Physical Assets

 

What is the difference between a Lease and Hire Purchase?

Both a Lease and Hire Purchase arrangements allow you to spread the payments for an asset into the future instead of paying for it at the point of acquisition. This allows you to manage your cash flow and liquidity needs.

In the case of a Lease, the full value of the asset can be financed whereas under a Hire Purchase arrangement, there is a need for the Hirer to make a minimum downpayment of 10% of the asset value. In addition, under a Lease, the asset remains the property of the leasing company, unlike a Hire Purchase, where the asset belongs to the Hirer.

If you have further questions, please contact our Relationship Manager who will be able to advise on the most suitable financial solution based on your requirements.

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Who owns the asset that is being financed under a Hire Purchase?

The leasing company would have a legal charge (lien) over the asset until the full payment for the asset is received. Thereafter, the asset belongs to the Hirer.

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Can I make partial repayments for my Hire Purchase?

Partial repayments are subject to approval and a small administrative fee may apply.

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Do I need to take up insurance for equipment under Hire Purchase?

Yes, insurance cover is mandatory for equipment under Hire Purchase. Our Relationship Manager will be able to advise you further on the insurance requirements.

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Can I take up a Hire Purchase for equipment located out of Singapore?

Yes, it is possible to take up a Hire Purchase for equipment located out of Singapore. This will be subjected to a risk assessment and approval.

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What companies or industries can make use of vendor financing?

Vendor financing allows equipment resellers and vendors to providing financing for their customers. Examples of industries that typically make use of vendor financing include resellers of office equipment such as copiers and IT products.

 

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Converting Assets to Cash Flows

 

How do I know if my company qualifies for Receivables Financing?

Receivables Financing allows you to convert your expected receivables into additional liquidity. This form of financing is most applicable where your company has a constant stream of receivables from reputable clients.

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Will my relationship with my client be affected if I take up Receivables Financing?

You will still continue to manage your relationship with your client even if you take up Receivables Financing.

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Merchant Cash Advance

 

What is a Merchant Cash Advance?

The Merchant Cash Advance (MCA) is a financial solution that provides working capital to companies by providing immediate cash liquidity in exchange for a percentage of future credit or debit card sales.

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What types of businesses qualify for an MCA?

An essential requirement to qualify for an MCA is that the businesses must accept credit or debit card payments. Examples of businesses that can benefit from an MCA include restaurants, bars, retailers, petrol kiosks, clinics and online shops.

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What is the size of the cash advance I can receive under an MCA?

Businesses will be assessed based on their strengths and average card sales to determine the cash advance amount it can qualify for.

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How soon can I find out whether my application for an MCA has been approved?

Once the full set of application forms have been received, we can let you know the status of your MCA application in as quickly as three (3) working days.

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How do I make the payments for the MCA?

An MCA is unlike a typical loan where there are interest payments to be made. Instead, payments for the MCA are based on a fixed percentage of credit or debit card transactions. The payment period is also flexible, allowing the payments to be made without incurring interest or penalty charges.

An agreed upon percentage of the credit card sales will be remitted to ORIX Leasing Singapore Limited. The remittance is done automatically and there is no need to further manage the MCA payments.

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What is the quantum of payments that I will need to make for the MCA?

There is no fixed amount that needs to be paid every month. Under an MCA, a business pays an agreed upon percentage of the credit and/or debit card transactions it has done. In this way, the quantum a business pays increases with higher sales and reduces when transactions are lower.

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Do I need to provide collateral to get the MCA?

Approval for the MCA is based on the strength of the business. There is no need for collateral to be provided, save for exceptions.

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