Capital Equipment Leasing For A New Start Business Explained

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Opening your first restaurant? Launching a gardening business, a hairdressing salon or an interior design store? No doubt about it, setting up a new start company is for many a dream come true. But as any SME entrepreneur will verify, it takes a huge amount of time planning and thought – not forgetting that all-important upfront capital to fund the dream…

Tracking down premises, staff and equipment suppliers is often the first hurdle you have to jump over. And then that big question, how do you finance the equipment and machinery you need? Whilst a friendly bank manager may lend a helping hand, many new start business owners turn to a leasing company for equipment finance.  For those new in business, the whole process can seem daunting.

How Can A New Start-Up Company Find The Best Leasing Options?

There are over 1,000 leasing companies in the UK alone, and many of them are specialists or simply just do not work with new start companies. The reasons are simple – research over many years has illustrated that the majority of new start companies do not make it to their third anniversary.

A quick search on the internet will turn up a list of names, some claiming to offer 98% acceptance rates and other purporting to be experts in new start business finance. But in truth, most asset finance companies and leasing companies will turn down a new start company without asking even the most basic of questions.

WestWon does however have a long track record in helping new start companies and takes pride in helping budding entrepreneurs get off the launchpad and into business orbit. There is nothing more rewarding than providing a lease for a person or team setting out on the road of self-employment and becoming that company’s preferred supplier of lease finance over the years to come.

Obtaining Your New Business Lease Deal

One of the first questions we ask is “are you a home owner?” Most banks will expect you to be a property owner and will turn you down if you are not.  Other things to think about are:

  • Do you have a business plan?
  • Why do you need the equipment, does it have a good resale value, have you received a discount on the RRP?
  • What investment have you made into the business?
  • What is your personal background?

Obtaining a credit acceptance for a new start company is not always easy – contrary to what some leasing companies may claim. However, by asking the right questions we are often able to present your new start business in a very positive light – an important step in securing funding.

Case Studies: Lease Deal For A new Start Restaurant and Leasing For Gym Equipment

In August 2012, WestWon organised a lease facility for over £250,000 for a new start restaurant at one end of the scale and, at the other, running machines for someone setting up a new gym. Over the years, we have financed everything from a computer to a warehouse fit out for new start companies.

What Lease Rates Can A New Start Company Get?

Rates will depend on the asset you wish to finance and the support you can offer, such as a personal guarantee or deposit. The rates will also be reliant on the term of the lease and how much you are borrowing. Typically, the more you borrow, the cheaper it is.

Some companies on the internet advertise headline offer rates from 3%. New start SMEs should not expect for one minute to get these rates. Even large, well-established companies buying assets with excellent resale values usually do not get these rates. For smaller lease deals under £10,000, typically over three years, lease rates will typically start at around 12%. It sounds a lot when you think base rates are at 0.5%, but these rates are based on risk profiles of new start companies.

Our job as a leasing company is to find you the cheapest lease price and an agreement that is appropriate for your business. We do this by listening to you and your plans. Hopefully, we will be there with you on what will be an exciting journey of business growth.

For further advice and information, please call WestWon on Tel: 01494 611 456. We’re here to help.

Should You Move or Refurbish Your Shop, Hotel, Warehouse, Factory or Office With Leasing?

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There is no better feeling in business than that of success. The order book is full and there are new, enticing prospects on the horizon. But soon you realise that you simply don’t have the space or equipment that you need to maintain business momentum going forward.  So should you stay where you are and refurbish your premises? Or should you move premises and relocate your business?

Better To Move Business Premises or Refit and Refurbish?

First of all, you may well look at the cost of moving … and come to the conclusion that is it just not worth relocating.  When you take into account the inevitable disruption to staff and customers as well as the issues around terminating your existing office or shop lease (not forgetting dilapidations) or perhaps even selling up (if your business owns the current premises), it can seem like a step too far.

Your thoughts then turn to refitting and refurbishing your existing premises and facilities, and extending your current lease.

The ‘do I stay or do I go’ dilemma is the reality that many business owners face today even though across the UK there is a general abundance of spare commercial space available.

Leasing Refurbishments, Fit Outs and Refits Can Save Time and Money

Although refurbishing your existing premises can be a time consuming and expensive project that will invariably cause some form of disruption, it can still be a much cheaper and simpler solution than moving.

Whether you are upgrading your office, shop, warehouse, restaurant or factory, using lease finance to cover the refit and refurbishment costs including related services,  avoids one of the major obstacles to change for many companies… that is having the financial resources to pay for the improvement work upfront.

Even where companies are in the fortunate position of having spare capital, the owners would often prefer to keep this money to fund the general working capital requirements of the business.  Using asset finance and a lease agreement to fund the refurbishment costs is a logical solution that means you don’t have to approach your current bank or tie up existing lines of funding.  And you can, of course, pay for the works over their useful life rather than all upfront, for example over a three, four or five year lease period.

If you are looking to refurbish your shop, warehouse, hotel, factory or office and would like an indication of what it would cost per month, why not use our online lease calculator for an instant quote. Alternatively, please give our Leasing Refits team a call on Tel: 01494 611 456.

All About Leasing Capital Equipment For New Start-Up Businesses

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It’s a harsh reality, but unfortunately, many banks and mainstream leasing companies simply don’t provide lease finance for a new start businesses.

Why is it typically harder for a new start-up business to obtain a leasing deal?  Well, given that statistically four out of five new start companies do not make their 5th anniversary, the reasons start to become clear.

However leasing is a great way for new businesses to obtain the capital equipment, the IT or even the office or shop fit out they need without tying up cash and using up other lines of credit.  So if you are an SME and a new start-up that would like to secure a leasing deal, here are some golden rules to follow:

7 Golden Rules for New Start-Ups That Want To Lease Capital Equipment
  1. First and foremost, even if you are a limited company, personal guarantees will invariably be required for new start companies. The leasing company will need you to be a home owner. However, if you are not, it is possible to offer a third party guarantee, for example, from a family member.
  2. A leasing company will ask your permission to carry out a personal credit search to establish how good your credit rating is. So verify your personal credit check is clean and that you have no missed payments or County Court Judgements against your name. If this is not the case, you will need to be prepared to answer questions about it.
  3. You should be able to provide the leasing company with either business and/or personal bank statements showing that your account(s) are well managed.
  4. It is always useful, if possible, to show the leasing company that you are putting funds into the business or you have other financial banking, for example, from your bank.
  5. Do you have a business plan? Even if this is just a fairly basic outline, it will help your cause by showing the lender that you have thought about your business.
  6. Can you explain with conviction why you are looking to buy a particular asset and what the financial benefits your business expects from it?
  7. Can you offer a deposit? Asking to lease an asset with a capital value of £10,000, but with only £250 deposit available to put down obviously presents a much higher risk (for the leasing company) than providing a deposit of £2,500. So always think about how much deposit you can offer in advance.

As a leading UK leasing company, WestWon is keen to support leasing for new start companies. We applaud the ‘entrepreneurial spirit’, which has a vital role to play in driving the wider economy forward.

For more information about our best leasing deals for new start companies, please call WestWon on Tel: 01494 611 456 or email [email protected]

Equipment: Lease cost £902.30/Monthly

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WestWon provided a company based in Driffield with asset based finance for 1 Tango-R_CS FT NIR Spectrometer via a WestWon Partner in the area.

Capital Cost: £43,216.98 ex. VAT

Lease Rental: £902.30 ex. VAT

Payment Frequency: Monthly
Lease Period: 5 Years

ManufacturerModelDescriptionPart No.Quantity
Tango-R_CS FT NIR Spectrometer1
IN311/F Sample Rotator1
IN311-S Sample Cup2
Aunir Pet Food Calibrations1
DP-R-FFI Demo Product Calibration1

Engineering Equipment: Lease cost £361.23/Monthly

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WestWon provided a company based in Pulborough with asset based finance for engineering equipment via a WestWon Partner in the area.

Capital Cost: £10,380.00 ex. VAT

Lease Rental: £361.23 ex. VAT

Payment Frequency: Monthly
Lease Period: 3 Years

ManufacturerModelDescriptionPart No.Quantity

Lenovo M92p PC CTO – 128GB SSD + Optical Drive Equipment: Lease cost £1,119.14/Monthly

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WestWon provided a company based in Bournemouth with asset based finance for 5 Lenovo M92p PC CTO – 128GB SSD + Optical Drive via a WestWon Partner who supplies Lenovo M92p PC CTO – 128GB SSD + Optical Drive equipment.

Capital Cost: £34,424.43 ex. VAT

Lease Rental: £1,119.14 ex. VAT

Payment Frequency: Monthly
Lease Period: 3 Years

ManufacturerModelDescriptionPart No.Quantity
Lenovo M92p PC CTO – 128GB SSD + Optical Drive5
19 Inch LED Monitor2
Lenovo ThinkPad T430 14Inch LED Notebook29
Lenovo Port Replicator11
Lenovo AC Adapter12
UK Laptop Power Cord Cable10
HP OfficeJet 6700 Inkjet Printer2
Lenovo T413S Laptop2
DP Equip Mini Dock Series 3 with USB1
Lenovo TC M92P Desktop, i5, 4/1281
HP LaserJet Pro P1102 Laser Printer15

NEC SL1100 Equipment: Lease cost £70.83/Monthly

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WestWon provided a company based in Kingston upon Hull with asset based finance for 1 NEC SL1100 Telephone System +14 handsets via a WestWon Partner who supplies NEC SL1100 equipment.

Capital Cost: £3,000.00 ex. VAT

Lease Rental: £70.83 ex. VAT

Payment Frequency: Monthly
Lease Period: 5 Years

ManufacturerModelDescriptionPart No.Quantity
NEC SL1100Telephone System +14 handsets1

Planning and Designing Your Office Fit Out? Think Leasing…

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Whether refurbishing your existing office premises or launching a new start-up, companies today are rightly turning to lease finance to fund their new and improved working environments.

Planning an office revamp or fit out can contain many elements, not just – although very important – furniture and office equipment, but also fittings, flooring, partitions, lighting, IT technology, computers, photocopiers, telephony;  in fact, everything – including the staff room kitchen sink – you need in place to ensure good employee morale and increased productivity.

Of course, planning and designing an office fit out or refit can be expensive and it makes complete sense to review your funding options fully before committing to a large upfront capital payment.  Tools such as WestWon’s instant Lease Calculator can provide an instant quotation to compare the cost of leasing office furniture and related project items and services versus buying them outright. Spreading the cost of office refits and fit outs over time is just one of the benefits of leasing:

Advantages of leasing office furniture and fit outs
  1. Lease payments can be set against profit, thereby potentially reducing tax bills.
  2. Flexibility and cash flow boost: you can obtain the business equipment and technology you need without tying up available cash and lines of credit.
  3. Your business can also get an instant Return on Investment as once you make a set initial payment, you can acquire and start using the asset immediately, while spreading payments over the useful life of the equipment.
  4. Flexible repayments: lease payments can be tailored to match seasonal cash flow. You can also choose a fixed interest rate, which protects against interest rate rises and enables you to plan your budget effectively.
  5. Avoidance of equipment obsolescence and easier upgrades in the future: increasingly vital as more and more businesses are becoming technology-driven.

Call us now on Tel: 01494 611 456 for further details and an illustration of how office fit out leasing can benefit your business and support planned office design projects.

Top Tips For Office Furniture and Fit Out Leasing Options

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Furniture Leasing from WestWon

WestWon has a long-standing heritage in the furniture, office equipment and fit out leasing marketplace and continues to invest heavily in the sector. We focus, in particular, on innovative technology, excellent service, highly competitive rates and tailored lease agreements.

Furniture Leasing and Fit Out Leases are Flexible and Cost-efficient

The workplace environment has a major impact on employee productivity and morale as well as company image. Leasing allows customers to acquire the type of furniture they need, when they need it, without upfront capital outlay. Companies simply choose the items they require now and pay for it through regular tax deductible payments over the useful lifecycle of the investment – normally 2 to 5 years.

Furniture Leasing is Fast

The process of securing a lease agreement is also far quicker and easier than that of obtaining a loan or overdraft extension from a bank to fund furniture purchases. With leasing not only do customers retain all their existing lines of credit, it also makes also makes it easier for them to expand and refresh their requirements and company image in the future.

Choose a Well-established and Reputable Leasing Company

Founded in 2006, WestWon is a member of the National Association of Commercial Finance Brokers (NACFB) and an Associate Member of the Finance and Leasing Association (FLA). WestWon adheres to industry best practice and we pride ourselves on providing an excellent level of service and complete transparency on all agreements.

WestWon Office Furniture Leasing Customer Testimonial

Seco Tools is an example of a WestWon lease finance customer who undertook a complete facility refit  including furniture.

“Working with WestWon was easy, very easy.  I used Furniture 23 for the furniture package. They put me in contact with WestWon and from there it was just ticking boxes and logical steps – and very easy.  The leasing was the easy part of my job!”  Paul Hipkin, Project Manager, Seco Tools.

More about Office Furniture Leasing

What Next For ING Lease Customers Requiring New Leasing Deals in 2013?

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It is a year since ING Lease UK, based in Redhill, Surrey stopped writing new lease business and began running down its asset finance portfolio.

A wholly owned subsidiary of ING Group, a global financial institution of Dutch origin, ING Lease UK is one of a number of ING Group owned European asset finance businesses and forms part of ING Commercial Banking.

ING Lease UK had been pumping around £1bn a year into the British economy to the benefit of companies that have been turning to leasing contracts as bank loans and overdrafts have become harder to obtain.

ING Lease Customer Service For Existing Customers

Since shutting their door to new business introductions in 2012, ING has significantly reduced the size of their workforce in the UK. Although the workforce is now just a third of its former size, the ING office in Redhill, Surrey still employs almost 100 employees dealing with customer services, defaults and end-of-lease enquiries.

If you need to speak to ING Leasing UK directly about an existing lease agreement, you can call their customer service number via the main switchboard, 0870 998 6100.

Alternatively, you can write direct to ING Lease UK at the following address:

ING Lease (UK) Limited

60 High Street

Redhill

Surrey

RH1 1NY

ING Lease Customer Service For Existing Customers

If, however, you are an ING Lease customer and are looking to fund new equipment, you now need to find a new leasing company to assist you with your growth plans.

As one of the UK’s leading asset finance and leasing companies, WestWon helps all types of organisations to strengthen and grow their operations with the best leasing options available. Whether for leasing office furniture, business equipment or machinery, WestWon is number one for asset-based finance in terms of reputation, rates and reliability.

We use the latest online technology to source and administer contracts, helping thousands of companies to fund capital equipment purchases in a tax-efficient way that maximises cash flow and protects existing lines of credit. What’s more, we offer quick quotes, rapid ‘decisions in principle’ and fast access to finance at great rates.

You can obtain a lease quote online now or simply call us on Tel: 01494 611 456 with any leasing questions you may have – we’re here to help you  better understand your leasing options and find the best leasing deals.

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