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Purchase Finance

Bridge the financial gap between companies and their suppliers with offerings from banks, financial institutions, and specialized lenders.

Purchase Finance in India: Empower Your Business Growth

Looking to acquire essential equipment or inventory without draining your working capital? Purchase finance can be a powerful tool for businesses in India to achieve their growth goals.

What is Purchase Finance?

Purchase finance is a specialized financing solution designed to help businesses acquire essential assets like machinery, equipment, or inventory. The financed asset itself acts as collateral for the loan, securing the lender’s position.

How Purchase Finance Works in India

  • Identify Your Needs: Choose the specific equipment or inventory you require to propel your business operations forward.
  • Partner with Bankvallet: We connect you with a network of lenders specializing in purchase finance solutions in India.
  • Loan Approval: Based on your business profile and creditworthiness, you’ll receive loan approval for a specific amount.
  • Direct Seller Payment: The lender pays the seller directly for the equipment or inventory, ensuring a smooth transaction.
  • Flexible Repayment: Repay the loan amount with interest over a predetermined period in manageable instalments.

Benefits of Purchase Finance for Businesses in India

  • Optimized Cash Flow: Preserve your working capital for other strategic business needs, like marketing or hiring.
  • Accelerated Growth: Acquire essential assets quickly without a large upfront investment, allowing for faster business expansion.
  • Potential Tax Advantages: Depreciation benefits on financed assets may help lower your tax burden (consult a tax advisor for specific details).
  • Manageable Payments: Break down the cost of equipment into manageable monthly installments, improving budgeting and cash flow.
  • Enhanced Efficiency: Invest in the latest equipment to improve productivity, operational efficiency, and overall business performance.

Things to Consider Before Opting for Purchase Finance

  • Loan Terms: Carefully evaluate interest rates, repayment terms, and any additional fees associated with the loan.
  • Collateral Requirements: The financed equipment typically serves as collateral, so ensure it retains value throughout the loan term.
  • Business Credit Score Impact: Loan applications and repayments can affect your business credit score. Monitor it closely.

Alternatives to Purchase Finance

  • Working Capital Loan: Provides a lump sum loan for various business needs, with repayment over a fixed term.
  • Line of Credit: Offers flexible access to funds for ongoing operational expenses, providing greater flexibility.

Bankvallet: Your Guide to Purchase Finance in India

While Bankvallet doesn’t directly offer purchase finance, we can be your one-stop guide to securing the right financing solution for your business needs in India. Here’s how we can help:

  • Connect You with Lenders: Our network includes reputable financial institutions specializing in equipment financing options.
  • Streamlined Loan Comparison: We simplify comparing interest rates, terms, and eligibility criteria from different lenders.
  • Application Process Guidance: We’ll assist you in gathering required documents and effectively completing the loan application.
  • Explore Alternative Financing Options: We can advise on other working capital solutions that might be a better fit for your specific needs.

Documents typically required for a Purchase Finance Application (may vary by lender):

  • Business Registration Proofs (GST Certificate, Udyam Registration, etc.)
  • Financial Statements (3 years of IT Returns and 12-24 months of GSTR3B Returns)
  • Bank Statements (Current Account, OD/CC Account, and Saving Account statements for the past 12 months)
  • Loan Purpose Documentation (Invoice & Purchase Agreement)
  • Collateral Proof (if applicable, may vary by lender)

Unlock Your Business Growth Potential with Purchase Finance

Let our financial experts guide you towards the right purchase finance solution in India. We’ll work with you to find the most suitable lender and financing option to acquire the equipment you need and propel your business forward. Contact us today to explore your options!

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