Asset finance vs a loan for a single machine

2 min read

Lower secured rateAsset finance

Cash for extrasLoan

Just the machine?The question

One machine, two ways to fund it

Buying a single machine, asset finance is purpose-built: the machine secures the deal, so the rate is usually lower, and specialists can price a common machine keenly. A business loan costs a bit more but gives cash to cover the machine plus the extras — delivery, installation, training, spares — and leaves the machine unencumbered and yours from day one. The question is whether the machine alone is the whole cost, or just part of it. See the full asset finance vs a loan comparison.

Which wins for a single machine

	Asset finance	Business loan
Rate	Lower (secured on the machine)	Higher, but no lien
Covers	Just the machine	Machine plus extras
Ownership	At the end (HP) or return (lease)	From day one
Best when	The machine alone is the cost	There are related costs, or you want it clear

If the machine alone is the whole cost and a specialist prices it keenly, asset finance's lower rate can win. If there are related costs, or you want the machine unencumbered, a loan's flexibility often wins.

The Credicorp view

For a single machine plus its related costs, or to own it outright and clear from day one, a Credicorp business loan gives cash to spend across the purchase with no charge over the kit and no personal guarantee. For the machine alone, a specialist asset financier may price it lower. Register to apply. Educational content, not financial advice.

Frequently asked questions

Asset finance or a loan for a single machine?

If the machine alone is the whole cost and a specialist prices it keenly, asset finance's lower secured rate can win. If there are related costs like delivery, installation and training, or you want the machine unencumbered and yours from day one, a business loan's flexibility often wins despite the higher rate.

Why is asset finance cheaper for a machine?

Because the machine itself secures the deal, lowering the lender's risk and so the rate. Specialists can also price common machines keenly. The trade-off is that the money is restricted to the machine, and on a lease you may never own it — a loan costs more but gives cash and clean ownership.

Does a loan let me buy the extras too?

Yes — a business loan gives cash you can spend on the machine plus delivery, installation, training and spares in one facility, with the machine unencumbered and yours from day one. Asset finance typically restricts the money to the machine alone, which is its main limitation versus a loan.