5 ways finance can grow your business

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There are many ways in which finance can grow your business. Looking at these 5 is just a quick way to see how your business can benefit. Growing your business, whether you are a start up or an established one, can be tricky. However, with finance options available through WestWon we can help you with whatever your finance needs may be. If you would like more information, then get in touch with us using our contact details below.

5 ways finance can grow your business

Leasing is the new normal

It may seem like we could be biased being a leasing and finance company! However, believe it or not, leasing is becoming the new normal.

Technology especially is now rapidly adapting with the times, which can be seen through things such as “buy now, pay later.” The move into this kind of shopping behaviour for the public has led to an increase in more people using fixed payments as their preferred method of finance. This is just one example of leasing.

People are also discovering that if, for example, you pay your employees’ salaries as you go, why are you not doing the same for your assets? This is one reason why finance and leasing is the better option for you and your business.

Leasing is less risky

With leasing and finance, the money is sent directly to you in a straightforward yet secure way. Working alongside our range of funders and suppliers, we can look to arrange the finance for you in a way that suits you and your business. The usage of up-front payments means there’s also no hidden fees or costs and you aren’t stumped with a large bill to pay for all-in-one go!

Here at WestWon we make sure the payments are made on time and our operations team will work closely with you making sure the process is as easy and seamless as possible. The benefits in terms of not paying as a lump sum are immeasurable, as it allows you to keep funds in the business to be used elsewhere.

Finance supports both your business’s bank account and your customer’s

Normally, before a large project takes place in the business, there is a substantial gap in your cash flow. This is because you are paying for all areas all at once.

However, if you were to pay it in fixed monthly payments, this would look a lot different. You will also know when the right time is to refresh your equipment. By using finance, you implement a recycling kind of system, whereby you are easily able to replace the equipment at the end of each lease agreement. Your bank account will grow, and your customers will feel the full benefits of this as time goes by.

Leasing increases levels of customer service

When introducing leasing to your business, or providing it as an option to your customers, leasing will benefit them. Introducing this recycling strategy within the company can make sure the equipment always stays up to date. It also means you can easily upgrade and improve the equipment without needing to spend a lot more of your business’ precious cash. It also creates a stronger bond between you and your customers because of the constant contact and repeat business.

Finance can expand your customer base

This leads onto the last point that you can create more repeat business, and in some cases better business from these relationships. Obviously, a business cannot grow without the expansion of their customer base. Therefore, there is a high chance that those who have leased before will again from you. This is especially true in the case of business loans such as VAT and Corporation Tax Loans. Both are finance facilities that we can provide here at WestWon. This also in turn improves customer loyalty.

Contact Us

If you would like more information on ways finance can grow your business, or any other finance needs you may have, then please don’t hesitate to contact us. You can email us on [email protected], or alternatively you can call us on 01494 611 456. You can also see more over on our LinkedIn page.

What type of asset finance is right for you?

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Finding the right type of asset finance for you

Trying to find what type of asset finance is right for you can sometimes be tricky, as all the information you are no doubt given can be hard to navigate. Here at WestWon we provide finance for a range of sectors and assets. We offer finance for sectors such as furniture and fit out, dentistry and most types of vehicle finance. We also offer finance for assets such as, IT hardware and software, and audio visual equipment to name just a few. And not to mention our range of business loans.

What are the different types of asset finance?

Hire Purchase

A hire purchase is where an asset is purchased and then paid for in instalments. This means you are able to receive the asset faster than normal. You are also able to spread the cost over a certain amount of time, usually between 1 and 5 years. Only when all the payments have been paid in full will you have complete ownership of the asset. However, depending on the agreement, you are usually responsible for the maintenance of the asset. This is one of the most common agreements we do here at WestWon, especially within vehicle leasing and finance.

Equipment leasing and financing

This mainly involves a lender leasing the equipment to you. You will again pay them in monthly instalments for the arranged time that you use the equipment. This ensures that you don’t pay a large sum upfront, and so no big amount of money is taken out of the business all at once. So, this will inevitably take some pressure off of your cash flow.

However, different to a hire purchase agreement, you most likely won’t have ownership of the equipment at the end of the lease term. But different lenders have different terms, so depending on what you would both like to do, you could reach a different outcome. For example, agreeing to own the equipment at the end.

Finance lease

A finance lease can also be known as a capital lease. It’s usually where the finance company makes the purchase of an asset. They then lease this back to the customer, including interest, in order to make a profit. Again, depending on the finance company, the terms and conditions will differ. You will still get full use of the asset for however long your lease term is. However, you won’t own it at the end of the term.

Operating lease

An operating lease is similar to a finance lease, but the customer will not have ownership rights over the equipment. It’s also usually shorter than a finance lease.

Benefits to asset finance and leasing

  • Cash flow – You will be able to keep funds in your business to be used elsewhere.
  • Alternative funding lines – No need to use up an existing bank facility.
  • The latest equipment – Always have the latest computers in your business by implementing a recycling strategy, whereby you replace equipment at the end of the lease term
  • VAT – On rental agreements VAT is paid in the rental, not in full and upfront.
  • Pay for the equipment as you use it – Companies pay employees over time as they work, so why pay all the cost for computers in advance?
  •  Tax planning – Using a lease rental agreement, 100% of your rental is deductible against your companies Corporation Tax.

Contact Us

If you would like more information on what type of asset finance is right for you, or any other finance needs you may have, then please don’t hesitate to contact us. You can email us on [email protected], or alternatively you can call us on 01494 611 456. You can also see more over on our LinkedIn page.

What is the most popular month end date for UK limited companies?

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Technically, people often refer to a company’s month end date / yearend date, financial year end as “Accounts Reference Date.” Any reference to month end or yearend date does mean a company’s account reference date or financial year end. Below is a bit more information on a company’s most popular month end date.

To accurately get this data, you would have to go to Companies House and download all UK companies and their yearend date. This will be a challenging and time-consuming task.

WestWon has an extensive client base and contact information on UK companies in general. As part of our standard “Know Your Customer” requirements, we keep a record of companies’ yearend date. The following analysis is taken from our data of UK limited, plc and limited liability companies.

What is the most popular month end for UK limited companies?

March, 24.48% of companies have a March yearend date followed closely by December with 24.34%.

What is the least popular yearend date?

November, 3.05% of companies have a November yearend date, followed by February with 3.18%.

UK company yearend dates by month

Month                 % of companies

January               3.86%

February              3.18%

March                 24.48%

April                     6.34%

May                     4.84%

June                    7.28%

July                      4.86%

August                 5.57%

September         7.49%

October              4.71%

November          3.05%

December          24.34%

Can you choose what yearend date to have for your audited accounts?

Yes, you can therefore set your own date.

Can you change a yearend date?

Yes, but there are restrictions on how often this can be done.

Can you extend a yearend date?

Yes, again, there are restrictions on how often this can be done.

What factors should I consider as a business owner when thinking about my yearend date?

Surprisingly, lots of business owners do not give this any thought. In simplistic ways, if they start up a business in April, they have an April or May yearend and never get around to changing it.

March is most popular as it ties in with the HMRC tax year. December is equally popular as companies link their trading and success to a calendar year.

Seasonal variations then account for the other main reason when a business owner will choose their accounts reference date. For companies that experience most of their sales in the summer months, they would choose September as a year end. This is so they start off their accounting year quietly then business grows as opposed to see business just decline on a month by month basis if you choose May or June.

You could decide to have your yearend at a time of the year when business is quiet so there are no major debtors or creditors to show in the accounts.

Often, we would have December as our yearend to match our calendar year targets and objectives, however, getting business in, deals paid out and invoices paid in December is harder work. On the flip side, we have our yearend as June and when people ask us how business was last year, we have to work out if they mean a calendar or financial year.

In summary, the key consideration is what does your business do. What variations – if any – in business do you experience every month? Do you want to be thinking about your yearend when you have broken up for Christmas? It all depends on how you decide to run your business.

What is the most popular VAT quarter end?

March, June, September and December. 63.59% of companies will therefore file their VAT return for the same quarter. (Most UK companies will correlate their VAT quarter end period to their yearend).

Contact Us

If you would like more information on a company’s most popular month end date, or any other finance needs you may have, then please don’t hesitate to contact us. You can email us on [email protected], or alternatively you can call us on 01494 611 456. You can also see more over on our LinkedIn page.

The rising interest rates and the knock-on-effect on leasing

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As you are most likely already aware, interest rates across the country are increasing. This is a result of the country’s efforts to combat the growing inflation worries. This is why you will now see that the cost of borrowing is increasing from historic lows.

How does this effect leasing?

Unfortunately, the asset finance sector is not immune from these interest rate increases. We are seeing nearly all funders increase their rates because of this.

At the time of writing, the Bank of England has raised interest rates six times since December 2021. And as of last week, they announced a 0.5% increase, bringing interest rates to a staggering level of 1.75%. But it is not expected to stop there, further rises have been predicted in the country’s battle against the surging cost of living.

With finance companies’ costs of funds increasing, they have been left with no other option than to increase their own interest rates. So please bear in mind that any finance quotation that you might have received in the past could now be invalid. Historically, these could be valid indefinitely as the market was stable, this is now not the case. Therefore, your finance quotation will be subject to change should interest rates alter.

I am looking to lease now, what should I do?

If you’re looking at financing any equipment purchases, we’d recommend you bringing forward these purchases to lock in interest prices now and avoid higher borrowing costs moving forwards.

Rest-assured, interest rates are fixed throughout the term of the lease agreement. This means you have the comfort of knowing your rental will not change once the agreement has been activated.

However, please note that customers’ pricing is only locked in once the agreement is activated. Some finance companies will honour pricing at the time of acceptance, but some only give 48 hours’ notice before a price increase is implemented.

Contact Us

Should you have any questions on interest rates, or interested in leasing for your business, please get in touch. We have an experienced and friendly team on hand to answer any questions you may have. We can even provide you with a FREE no obligation quote. Call us on 01494 611 456. Or drop an email to [email protected].

WestWon selected as finalists for TWO Buckinghamshire Business Awards

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We are delighted to announce that we have been nominated as finalists for two award categories for the Buckinghamshire Business Awards. Both award categories are causes close to our hearts and we are flattered to have gained recognition for our efforts towards them. Read on to find out what we have been working towards!

Our Ongoing Journey to Net Zero

Here at WestWon we are passionate about restoring the health of our planet. As of the start of this year we implemented our WestWon Woodland initiative. This works by us having a tree planted for every month of a finance agreement made through any of the immediate WestWon family. This includes WestWon, WestWon Dental, Fit Out Finance and VAT Loans. For example, for a 5-year finance agreement that is 60 trees planted in the WestWon Woodland!

So far, the WestWon Woodland consists of 13,815 flourishing trees across the globe! This means that we are on target to reaching our ultimate goal of 100,000 trees by 2026 and thus removing 7,500 tonnes of carbon from our atmosphere!

Watch the WestWon Woodland grow here!

 

In addition to this, we are proud to call ourselves a climate positive company. This means that all WestWon employee emissions are offset through various climate positive projects and tree planting around the world.

Not only this but we also ensure that as a company we act as sustainably as possible. Here are some ways by which we try to do our bit in-house:

  • LED lighting is installed throughout the office
  • WestWon are a paperless office where possible and any paper that we do use is made from 100% recycled material
  • We have insulated ceiling tiles as well as the thickest carpet tiles to reduce our energy consumption
  • Recycling bins are located on every floor of the office encouraging employees to recycle at work as well as at home
  • Introduction of electric company cars
  • No gas is used in the offices
  • Outsourced data centre that is powered by solar to house our IT systems

Kickstarting Careers

We also strongly believe in getting young people on a career path and many of our past and present employees can exemplify this. Did you know that George, our commercial director joined at the age of just 20? Furthermore, our top salesperson Royah, joined at age 23. Both George and Royah are now coming up to their 10-year WestWon anniversary and look forward to their bright future with the company. More recently, in 2021, we welcomed 6 fresh faces to the team onboard, all under the age of 23.

Here at WestWon we believe it to be imperative to equip our employees with the skills needed to elevate their careers. Some have even gone on to use these skills to build their own businesses and we love to see it!

You can see some examples of WestWon employee journeys here.

Consequently, because of our principles above, we have been nominated for Net Zero Buckinghamshire Business of the year, sponsored by Handelsbanken. In addition to the Apprentice & Young Person Employer of the year, sponsored by Buckinghamshire Council. We would like to congratulate all fellow finalists and look forward to meeting at the Awards ceremony in September!

Become part of a company that cares – Get In Touch

Are you an enthusiastic, capable, thoughtful, and energetic individual looking to become a high earner? If so, head over to our careers page to find out more about our current vacancies. If you are interested in joining our dynamic and friendly team, please send your CV to [email protected]. Or just for a private chat regarding the role, feel free to give us a call on 01494 611 456.

Advantages of sale and leaseback on equipment

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Advantages of sale and leaseback

At WestWon, we have written hundreds of sale and leaseback leasing agreements on numerous asset types. If you are looking to carry out a sale and leaseback agreement, please contact us! However, to learn more about the benefits, please read below. Here we take a look at the advantages of sale and leaseback on equipment:

• A quick and simple way to raise finance

The process is simple and the timescale can be anything from 48 hours to one week before your receive the cash.

• Sensible interest rates

With a sale and leaseback of equipment, we take our security in the asset. This is less risk than offering an unsecured loan, hence the interest rates are normally cheaper.

• Does not use up existing lines of credit

No need for you to speak to your Bank. A sale and leaseback does not affect any invoice discounting / factoring arrangements you already have in place.

• It’s a lease, not a bank funding line

Some companies have banking covenants where they cannot take out other third-party loans. We will lease the equipment back to you, hence it does not fall foul to any restrictions like this that you might have.

• You still have full use of the asset

You will still have full use of the equipment and will be matching the benefit you derive to the repayment you make each month. On smaller deals (under £500k) we will not look to take a debenture or a second charge.

What can we use the money for and do you (WestWon) need to know why?

Working capital, management buyouts, deposits, new buildings… the list goes on. If it’s a management buyout or acquisition, you can read more in our article on “Raising funds for a management buyout or acquisition by a sale and leaseback (coming soon).”

We really do need to know the reason why you are looking to undertake a sale and lease back. We often do see companies looking to do a sale and leaseback to raise money as a last resort. Leasing companies do not like to lend in these situations.

How does the money come to you?

The leasing company / finance company will pay you directly by bank transfer.

What assets can you do a sale and leaseback on?

  • Plant and machinery
  • Company cars, lorries, vehicles are a popular asset choice
  • General equipment
  • Warehouse racking, forklift trucks

The list goes on…

Contact Us

If you would like more information on the advantages of sale and leaseback, or any other finance needs you may have, then please don’t hesitate to contact us. You can email us on [email protected], or alternatively you can call us on 01494 611 456. You can also see more over on our LinkedIn page.

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