Answer

Should I borrow to buy equipment or keep leasing it?

Buying with asset finance builds ownership and usually costs less over a long-lived asset's life; leasing keeps flexibility for kit that dates fast — match to how long you'll use it.

2 min read

Buy = own itCheaper long-run

Lease = flexibleFor fast-dating kit

How long?Decides it

Ownership versus flexibility

Buying with finance means you own the asset at the end, which usually works out cheaper over a long life. Leasing keeps you flexible and current, which suits kit that dates quickly.

Fund a purchase

Asset finance spreads the cost of buying over the asset's working life, so you own it without a large cash outlay. For durable machinery you'll use for years, that's often the cheaper route.

When leasing still wins

For technology or equipment that becomes obsolete fast, leasing avoids being stuck with dated kit. Weigh the total cost of each over the period you'll realistically use it.

What it means for you

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online when the numbers work.

Frequently asked questions

Is it cheaper to buy or lease business equipment?

Over a long-lived asset's life, buying with asset finance usually costs less and leaves you owning it. Leasing tends to win for equipment that dates quickly and needs regular replacement.

Should I use asset finance to buy equipment?

For durable machinery you'll use for years, yes — it spreads the cost, avoids a big cash hit, and you own the asset at the end. Match the decision to how long the kit stays useful.