SME companies

Can you lease equipment under £1,000 in value?

Can you lease equipment under £1,000 + VAT in value?

The short answer is yes, however, you may struggle to find a leasing company that will lease equipment under £1,000 in value.

What is the minimum value at which you can lease equipment in the UK?

There are hundreds of equipment leasing companies in the UK and they all have different policies on whom they lend to, the assets they will finance, and the minimum lease value.

Speaking recently to the leasing division of ABN AMRO Bank in the UK, they are looking for lease transactions with a value in excess of £10m. A number of other leasing companies have since COVID changed their lending policy from a minimum value of £5,000 to £15,000.

Others have a minimum deal value of either £2,000 or £3,000.

Some leasing companies – like ours – can finance values in excess of £500.

Why do leasing companies not like leasing equipment under £3,000?

There are a few reasons. In simple terms, leasing companies have to lend money to stay in business. They would have to write 250 £1,000 lease deals to lend the same as a £250,000 deal. For some leasing companies it is a lot easier to find and focus on larger value transactions.

Even though lease rates are more expensive for small deals, there is a cost of underwriting, processing, and managing a lease deal over its life. Often asset finance and leasing companies will divide their cost base by the number of deals they write every year to get a “cost of loading a new lease deal.” This cost – often around £150- £250 – will mean the leasing company will lose money on small lease transactions.

Why will a leasing company arrange a lease for £1,000 if they lose money?

Leasing companies offer a service to their end user customers, suppliers and brokers. They will make the profit up elsewhere in their lease portfolio with the introducer. It also helps to keep competition out of their account.

Why do WestWon offer leasing for capital equipment values under £1,000?

Two reasons:

  1. Creating and building a relationship with a supplier offering leasing from £1,000 up to £10m. We do not wish a competitor to handle the smaller deals
  2. We are interested in the end user customer base. Those small micro- ease customers can grow and will come back to us for larger transactions later in their business journey.

So how does WestWon make profit on lease transactions under £1,000?

  1. We use echo sign documentation for speed of processing
  2. We collect the rentals via direct debit
  3. We have DORIS, our own inhouse CRM and lease deal processing system that automates as much as possible, from data loading to invoicing and API links for cash collection
  4. We internally underwrite and lend our own money

Who can arrange leasing for capital values under £1,000 UK?

If you are a supplier and looking for a leasing company to arrange leases for capital values under £1,000 in the UK, please call WestWon on 01494 611 456 or email hello@westwon.co.uk.

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The Financial Conduct Authority (FCA) regulates financial services in the UK and you can check this on the Consumer Credit Register by visiting the FCA’s website here or by contacting the FCA on 0800 111 6768. WestWon Limited is a credit broker and not a lender. WestWon companies deals with a range of lenders. All WestWon companies hold a current Data Protection Licence and are registered for VAT. These details, together with our policy on Treating Customers Fairly, Complaints Policy and address details are held under our Get in Touch page.
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