Asset Finance Loans

An Asset Finance Loan is an ideal facility when you need to acquire high-value assets like motor vehicles, machinery, or specialist equipment . The primary purpose of this loan is the purchase of assets such as vehicles, computers, and machinery . This facility allows you to obtain the use of an asset even without acquiring it outright, and you conserve capital that would have been tied up in the asset if bought with cash .

The repayment term depends on whether the asset is brand new or second-hand. For brand new assets, you can access a term of up to 60 months, which is five years . For second-hand assets, the maximum term is 36 months, which is three years . For motor vehicles specifically, the vehicle year of make plus the repayment period should not exceed 12 years .

The interest rate is calculated as the Base Rate plus a Risk-Based margin . The specific margin is determined based on your risk profile as assessed by the Bank. For vehicle asset finance, a processing fee of 2.5 percent applies, along with other legal fees . For current Base Rate information, customers are advised to contact NBS Bank directly or visit any NBS Bank Service Centre.

Normally, the asset being purchased serves as the primary security for the loan . However, in some cases the Bank may require additional security, such as residential property covering not less than 50 percent of the facility amount . This flexible security structure helps make asset finance accessible while protecting the Bank's interest.

Asset Finance Loans offer several important benefits for customers. You obtain the use of an asset even without acquiring it outright, meaning you can start using the vehicle or machinery immediately while paying over time . You conserve capital that would have been tied up in the asset if bought with cash, freeing up funds for other business needs . Additionally, the facility offers a flexible repayment structure that is convenient to your cash flow pattern, allowing you to align payments with your income cycles .

To apply for an Asset Finance Loan, you must have maintained an active NBS Bank account for at least six months . You will need to provide a quotation of the asset from the supplier, a copy of the latest audited accounts, management accounts for the current financial year, and cash flow projections for the next 12 months . For vehicle asset finance specifically, additional requirements include three recent payslips for salaried customers, a letter of undertaking from your employer, a valid ID, copies of vehicle documents, and a clean Credit Reference Bureau (CRB) report . For corporate customers, a Memorandum and Articles of Association along with Board minutes approving the borrowing are required .