2 min read
How it works
Under hire purchase you pay in instalments and own the asset at the end; under leasing you effectively rent it. Either way you get the equipment now and pay over time, usually with the asset serving as security. See the asset finance guide.
When it beats a loan
Asset finance suits buying specific, identifiable equipment, because the asset supports the borrowing and the cost is matched to its useful life. For general working capital, a loan or facility fits better. Use the asset finance calculator.
What it means for you
Match the finance to the asset.
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.
Frequently asked questions
Do I own the asset with asset finance?
Under hire purchase, you own it once the payments are complete. Under a lease, you use it for a term without owning it. The right choice depends on whether you want to keep the asset long term.
Is asset finance cheaper than a loan?
It can be, because the asset provides security, and it matches cost to the asset's life. For equipment purchases it is often efficient; for general cash flow a loan or facility is usually better.
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Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.