Equipment Purchase: The Bank will keep a record of the account where the Bank shall create entries for each Sale and each Credit and such other debits and Credits as shall be proper in relation to the equipment purchase facility (the “equipment purchase facility”) as may be required by the customer. The equipment purchase facility is a part of the credit facilities section of the credit agreement. In some cases, the facility is referred to as the “additional facilities.” However, it may also be referred to as the “equipment purchase facility.” this post facility enables a business to purchase necessary equipment to carry on their business.
There are two basic categories of equipment for which there is a facility to purchase equipment. These categories are capital and non-capital assets. Under capital items of equipment, the banks or the Central Banks offer certain credit facilities, such as long term loans, commercial lines of credit, business lines of credit, commercial mortgage, etc., which are available at a purchase price (also known as the Purchase Price). The Purchase Price includes the interest cost and the finance charge.
Under non-capital items of equipment, the banks or the Central Banks offer certain credit facilities, including long-term loans, business lines of credit, commercial mortgage, etc., which are available at a non-lease purchase price. The non-lease purchase price is defined as the amount that is mutually agreed to by both the seller and the buyer at the time of the sale. This price is measured in terms of the depreciated value.
The effective date of an equipment purchase can be determined either in the year ending 31st calendar month after the date of the last sale, or in the year ending 180th calendar month after the effective date. Where the equipment is purchased for the whole year, the equipment purchase date is the effective date for all years. Where equipment is purchased for a portion of one year and the remaining equipment is sold within the year, the effective date is the date of the last sale.
The equipment inventory form also includes the business number of the purchaser, who is generally the bank. The business number is usually on the top sheet of the equipment purchase order sheet that is received from the manufacturer. The equipment inventory form also includes a list of the manufacturers and the model numbers of the equipment that is being purchased. If it is being purchased for your own business, it will generally be on the top sheet as well.
Commercial warranties are included with most equipment purchase orders. However, there are some warranties on appliances that are generally considered to be self-repairable. If your equipment is not covered by warranties, the buyer should obtain separate warranties for his or her specific equipment. There are separate warranties for electrical and for plumbing; both of which are very important to the equipment buyer. When the equipment is under warranty, the buyer is underwritten to bear the additional expense for repairs.
The closeout process includes preparing the buyer’s Invoice, receiving payment from the seller, preparing and signing the Invoice, and delivering the Invoice to the seller. The closeout process also involves collecting and distributing the equipment payment to the named beneficiary or his or her representative. The closeout staff prepares and signs the sales contract, receives and processes the equipment payment, and delivers the signed sales contract to the buyer. The closing staff prepares and signs the final sales contract. The closing procedures include recording of purchase transaction, recording of the seller’s receipt of equipment payment, and delivery of final signed contract.
Closing procedures typically vary from one closing business to another, but the basic outline of the transaction is almost always the same. First, the buyer and the seller must enter into a written contract, including the purchase price, due date, and payment terms. Next, the parties must execute a title policy, which determines the name of the decedent, who becomes the purchaser. Then, the seller must transfer title insurance, and, if applicable, equipment liens, to the new owner. Finally, the buyer, using an escrow account, must obtain equipment financing, either through a local financing company or a national equipment financing organization, from an appropriate lender.
