If the reason you need money is a specific purchase, such as a van, a machine or new kit, you may be weighing asset finance against a general-purpose business loan. They solve overlapping problems in different ways.
Asset finance
Asset finance is tied to the thing you are buying. The asset itself usually acts as security, and you pay for it over time while using it. It is purpose-built for capital purchases, but the funding is locked to that asset and cannot be redirected to other needs such as stock or payroll.
A general business loan
A business loan or facility gives you funds you can deploy where the business needs them, whether that is equipment, stock, hiring or smoothing a quiet month. The flexibility is the point; you are not limited to one purchase.
Comparing the two
- Buying one big item only? Asset finance may be a clean fit.
- Need funds you can move around? A general facility is more versatile.
- Either way, compare the total you will repay across the term, not just the rate.
How Credicorp fits
Credicorp provides general-purpose business funding through Credicorp Flex and Credicorp Slice to UK limited companies and LLPs. The amount, term and cost that apply appear in your offer. If your need is a single asset, it is worth weighing dedicated asset finance alongside a general facility.
See also: A simple framework for comparing business finance options, What is asset finance?, Flex or Slice for funding an asset purchase?.