Asset finance — covering hire purchase, leasing, and finance leases — and a Creditcorp working-capital facility both put money to work in your business, but they serve quite different purposes and are structured very differently.
What asset finance is for
If your company needs to acquire a specific piece of equipment, machinery, or vehicles, asset finance is often the most efficient route. The asset itself typically secures the facility, which allows lenders to offer longer terms and lower rates than unsecured finance. Hire purchase builds ownership over time; an operating lease keeps the asset off your balance sheet. The facility is tied directly to that one asset acquisition.
What Creditcorp is for
Creditcorp's Business Loan and Flex facility are working-capital products — they fund the business operation rather than a specific asset purchase. Common uses include bridging a gap between invoicing and payment, covering a VAT or PAYE bill, funding a stock purchase before a busy period, or smoothing seasonal revenue dips. No asset is pledged as collateral. There is no restriction on how you deploy the funds within normal business use.
Can you use both?
Yes, and many companies do. A company might use hire purchase to fund a new van and simultaneously use Creditcorp Flex to manage day-to-day working capital. The two facilities are independent of each other and do not cross-default. Neither carries a director personal guarantee with Creditcorp — the lending is to the company.
We lend only to UK limited companies and LLPs, and the loan is to the company with no director personal guarantee. As business finance outside the consumer-credit regime, it is not covered by the Financial Ombudsman Service or FSCS.
See also: Creditcorp vs invoice finance, Should I use a broker or apply directly?.