Asset finance is a way of funding the things a business needs to operate, such as equipment, machinery or vehicles, by spreading the cost over time rather than paying for everything upfront. The funding is linked to a specific asset.
Why businesses use it
Buying essential equipment outright can tie up a large amount of cash in one go. Asset finance lets a company get the asset working for the business now while spreading the cost across a period that suits its cash flow.
- Preserves working capital for day-to-day needs.
- Matches the cost of an asset to the period it is used.
- Helps businesses access equipment they might otherwise delay.
Things to consider
As with any finance, the key questions are whether the asset will genuinely earn its keep and whether the repayments fit the company's cash flow. It works best when the asset supports the business over its useful life.
Credicorp lends only to UK limited companies and LLPs for business purposes. While our Credicorp Flex and Credicorp Slice facilities are general business finance rather than asset-specific products, companies sometimes use them to fund equipment needs. We assess affordability first, and the terms that apply are set out in your offer.
See also: Asset finance vs a business loan: how to compare them, What does unsecured mean?, Funding an urgent equipment repair or replacement.