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Why not pay up front
Paying cash for equipment drains your buffer for an asset that earns its keep over years. Spreading the cost matches the outlay to the benefit and preserves working capital. See asset finance.
Asset finance vs a loan
Asset finance uses the equipment as security and matches repayments to its life — often the efficient choice for identifiable kit. A loan is more flexible if you want to keep the asset unencumbered. Use the asset finance calculator.
What it means for you
Fund the asset over its working life. Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
Is asset finance better than a loan for equipment?
Often, because the asset provides security and the cost is matched to its life. A loan gives more flexibility and leaves the asset unencumbered. Compare both on total cost.
Should I ever pay cash for equipment?
Only if you have ample reserves beyond a healthy buffer and the cost of finance clearly outweighs the benefit of keeping cash. Preserving liquidity usually favours spreading the cost.
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