What you can use a loan for

Can I use a loan to buy new equipment for my company?

Yes. Buying equipment that your company will use to trade is a clear business purpose, and one of the most straightforward reasons to borrow. Whether it is a piece of machinery, a commercial oven, a workshop tool, or specialist kit, a Credicorp loan lets you put the asset to work now and pay for it as it earns.

Will the equipment pay its way?

The strongest case for financing equipment is when the kit increases what you can produce, sell, or charge for. Before borrowing, estimate the extra revenue or cost saving the equipment brings, then compare that against the cost of the funding over your agreed term at the rate shown in your offer.

Practical points

  • Factor in installation, training, servicing, and any downtime during changeover.
  • Consider the asset's useful life against the length of your repayment term.
  • Check warranty and support so a breakdown does not leave you paying for idle kit.

How we lend

Credicorp lends only to UK limited companies and LLPs for business purposes. The loan is to the company, and we do not take personal guarantees from directors. Credicorp Slice can fund a single equipment purchase as a lump sum, while Credicorp Flex suits ongoing or phased buying.

As an exempt business lender, Credicorp sits outside the FCA consumer-credit regime, so the Financial Ombudsman Service and FSCS protection do not apply.

See also: Funding equipment and plant costs, Funding energy-efficiency upgrades to your premises and Funding expansion into a second site or location.

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