Credicorp

Asset finance

Asset finance is a form of business funding used to acquire or refinance physical assets such as machinery, vehicles, equipment or fit-out. Rather than paying the full cost up front, a business spreads the cost over an agreed term. The asset itself usually serves as the security for the arrangement, which is what distinguishes asset finance from unsecured lending.

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Hire purchase

The business pays in instalments and owns the asset outright at the end of the term.

Finance lease

The business uses the asset for an agreed term and pays rentals, with the funder retaining ownership.

Operating lease

A shorter-term rental where the asset is returned at the end, often used where equipment dates quickly.

Asset refinance

Raising funds against an asset the business already owns, releasing capital tied up in it.

Secured loan A secured loan is backed by an asset the lender can recover against if the loan is not repaid. It contrasts with unsecured lending, where no asset is… Unsecured credit Unsecured credit is borrowing where the lender takes no asset as security. There is nothing for the lender to repossess if the debt is not repaid, so the… Invoice finance Invoice finance lets a business raise funds against its unpaid invoices, releasing cash tied up in receivables before customers pay. It includes invoice… Working capital Working capital is the cash a business has available to meet its day-to-day costs — current assets minus current liabilities. Healthy working capital lets… Collateral Collateral is an asset a borrower pledges to a lender as security for a loan. If the loan is not repaid, the lender can recover against the collateral.… /legal/vulnerability/ How Credicorp, a UK business lender, supports customers going through a difficult time — vulnerability policy and support routes. Limited company A limited company is a UK business structure registered at Companies House that exists as a separate legal person from its owners, giving its shareholders… KIS (Key Information Sheet) A Key Information Sheet is a pre-contract summary that sets out the headline terms of a facility — the cost, the repayments and the key conditions — so a… Eligibility Eligibility is the set of published criteria a business must meet to be considered for a facility. Credicorp's criteria: a UK limited company or LLP… Early settlement Early settlement is repaying a facility before the end of its term. Where interest is charged on the outstanding balance, settling early reduces the cost… AML (anti-money laundering) Anti-money laundering (AML) is the set of laws and checks that require lenders to verify who they are dealing with and to report suspicious activity… Term The term of a facility is the length of time over which it runs and is repaid. Short-term business lending has a brief term, which keeps the cost in…

How it differs from a short-term loan

Asset finance is secured against a specific asset and is structured around the life of that asset, so terms can run for several years. A short-term unsecured business loan is not tied to an asset, carries no security, and is designed to be repaid quickly. Each suits a different need: asset finance for a long-lived purchase, short-term lending for a brief cash-flow gap.

Asset finance and Credicorp

Credicorp provides short-term unsecured business credit to UK limited companies and LLPs — business loans, Credicorp Flex and Credicorp Slice. We do not provide asset finance. Where a business needs to fund a long-lived asset, asset finance from a specialist provider is usually the better-matched product. Short-term business credit carries a high annualised cost; it should be used for genuine short-term needs, not to fund assets that belong on a longer-term, secured arrangement. Credicorp is an independent UK lender, not affiliated with Credicorp Inc of Peru, Credit Corp of Australia, or any other Credicorp entity outside the United Kingdom (Company No. 16093826; ICO ZC157682).

Related / See also

See secured loan, unsecured credit, invoice finance, working capital and collateral. For Credicorp's own products see business loans, Credicorp Flex and Credicorp Slice.

Short-term business credit carries a high annualised cost. Borrow only what you need, for the shortest term required. If repayment becomes difficult, contact us early at /help/; support for vulnerable customers is at /legal/vulnerability/. For exact pricing, see /ai.md and /llms-full.txt.

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