How to Buy a Leasing Broker

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Leasing is considered beneficial for businesses of all sizes today. In this blog post, we will discuss the essential things you need to consider when buying a leasing broker.

  1. Understand What Leasing Is and How It Works

Before buying a leasing broker, it is important that you understand what leasing is and how it works. Leasing is a way to finance equipment or assets for your business by paying a monthly rental fee instead of purchasing them outright. It is important to understand the different types of leases available. These include operating leases, capital leases, and sale and leaseback agreements. Once you have a clear understanding of leasing, you can then identify what kind of leasing your business requires.

  1. Evaluate the Broker’s Experience and Knowledge

Choosing a leasing broker who understands the specific needs of your business is paramount. A leasing broker needs to have experience and knowledge of the market. Furthermore, they need a good understanding of leasing options, and unique insights into the industry. Take note of the broker’s recommendations and expertise. Also, it is important to know the broker’s market reputation and whether they are recognised in the industry for their expertise.

  1. Check Out the Broker’s Network and Availability

When choosing a leasing broker, it is important to consider their network and availability. The broker’s network should be considered because they will work with several different lending sources to obtain the most favourable leasing terms for your business. An experienced leasing broker can access many leasing sources that offer different leasing options and terms that would cater to your business’s needs.

  1. Review Broker’s Proposal and Services

When choosing a leasing broker, it is important to look at the services they offer and how they propose to provide them. Check the proposals and compare them with others to know what’s included and the level of service before signing the agreement. Request references from the broker, allowing you to contact past clients.

  1. Negotiate Terms and Fees

Like everything else in business, leasing brokers charge a fee for their services. The lease broker’s fee structure would be based on the amount being leased, as well as the length of the lease term. However, the cost of a broker’s services may vary depending on the type of lease you choose and your negotiation skills. Be sure to ask about all fees and costs during negotiations and before signing any agreements. When you’ve decided on the broker, you should ask for a detailed service agreement. Also note all terms to mitigate any potential issues down the road.

Contact Us

Choosing the right leasing broker can be critical to the success of your business. When you come into contact with a broker, make sure to have a list of questions to ask too. Contact us here at WestWon to look at your finance needs and see how best we can help.

WestWon Acquires Associated Commercial Finance Limited

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WestWon Limited, a long established business in the asset finance and leasing industry, is pleased to announce the acquisition of the customer base and intellectual property in Associated Commercial Finance Ltd. (ACF)This represents our first acquisition of 2024 and 20th acquisition since we started trading.

Associated Commercial Finance is run by Simon Rose, a leasing industry veteran who has run ACF for the last 20 years. Prior to ACF, Simon worked at Lombard and Barclays.

Expanding Our Horizons

The integration of ACF into WestWon represents a significant step in our growth journey. Known for its bespoke financial services and strong client relationships, Associated Commercial Finance brings valuable expertise that complements our existing portfolio. This client base acquisition will enable us to provide an even wider range of tailored financial solutions, ensuring our clients benefit from enhanced offerings and expert advice.

Jeremy Hall, CEO of WestWon, expressed his excitement about the acquisition:

“We’re thrilled to welcome Associated Commercial Finance into the WestWon family. This acquisition is a perfect fit for our growth strategy, allowing us to add more value through innovative financial solutions and outstanding client service. Our friendly team will be reaching out to ACF’s customers soon to introduce themselves and to ensure a smooth transition.

Simon Rose has sadly been ill following an accident during the previous year and is no longer fit to continue running ACF. We wish Simon well in his recovery.”

What This Means for Our Clients

Our clients are at the heart of everything we do, and this acquisition is designed with their best interests in mind. Here’s what they can expect:

  • Expanded Product Range: Access to a broader selection of financial products and services tailored to meet diverse needs.
  • Enhanced Expertise: A combined team with deeper knowledge and experience, offering superior advisory services.
  • Wider Reach: An extended geographical presence, making our services accessible to a larger audience.

Looking Ahead

This acquisition is a testament to WestWon’s dedication to growth and excellence. We remain committed to innovation, aiming to set new benchmarks in the industry. Clients can expect a smooth transition and the same high standards of service that both WestWon and Associated Commercial Finance Ltd are renowned for.

For more information about WestWon Limited and our services, visit www.westwon.co.uk.

What is a balloon payment?

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Various terms of financing, such as loans and lines of credit may sound familiar. However, there is another lending option that you might not have heard of: balloon payments. A balloon payment can be a suitable financing option for business owners who require a significant amount of capital upfront and have confidence in their ability to make a large payment at the end of the lease term. In this blog post, we will explain what a balloon payment is, how it works, and some advantages and disadvantages to consider before opting for this type of financing.

What is a Balloon Payment?

Simply put, a balloon payment is a lump sum payment that is typically required at the end of a lease term. Unlike traditional leases, where payments are spread out over the term, balloon payments often cover the remaining principal balance. Essentially, a balloon payment reduces the size of the monthly payments throughout the term. Therefore this reduces the overall cost of the lease agreement, making it more affordable for business owners. A balloon payment is normally applied to vehicle leasing.

How Does a Balloon Payment Work?

Suppose you need an amount of £500,000 for a new project. You apply for a loan that requires a £50,000 down payment and spread the remaining £450,000 over a 5-year term. However, instead of making equal monthly payments for five years to cover the balance, you make significantly smaller monthly payments, with a large balloon payment of £400,000 due at the end of the five years.

Advantages of Balloon Payments

The primary advantage of balloon payments is that they allow businesses to free up capital upfront for investment or growth. By deferring a large payment to the end of the payment period, you can reduce the number of monthly payments and interest rates. This makes repayments more manageable.

Disadvantages of Balloon Payments

Balloon payments come with various risks and disadvantages. Firstly, since the payment is deferred, businesses that may not generate enough profits to meet the payment may have difficulties making the payment. This is because a large lump sum is due at the end of the lease term. Secondly, balloon payments can come with higher interest rates than traditional leases. Finally, it will be your responsibility to keep the asset (for example a vehicle) up to the proper standard.

Contact Us

Balloon payments can be financially advantageous for business owners, but they come with risks and downsides. Before opting for a balloon payment, business owners need to understand the risks involved and how they can mitigate them. To find out more, contact us by calling 01494 611 456.

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