Computer Leasing for SME’s

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Here at WestWon, we are experts in providing small businesses with leasing options on all IT equipment including computers. Just like any other business, WestWon has experienced first hand what a simple investment can sometimes turn into. A few years ago, we went through the process of upgrading a number of computers. It was a project that we thought was going to be really simple and cheap.

However…

We started off by speaking to a few computer suppliers and working out what computer manufacturer we should go with. Eventually, quotes began to come in and it came to our attention that it was not going to be as cheap as we thought. Our £400 budget per device had doubled to £800. To make matters worse, we were looking to buy new computers for our operations team, which meant we had to update our marketing personnel. What was going to be a simple and cheap solution started to look to be a £10,000 plus investment!

Furthermore, other employees started to mention that their two-year-old Lenovo laptop were slowing down too. The word went around one of our other offices at the time, meaning we were starting to realise it was going to be a complete IT refresh. After all this, we were looking at a £20,000 investment!

SME’s replacing one computer at a time or a complete IT refresh

Our situation is the same as many SME’s in the UK. What starts off as a modest IT replacement program turns out to be a complete refresh. Our key question at the time was, do we replace a couple of computers every month or just do them all at the same time?

Clearly there are benefits to both options. If you have limited internal IT resources, changing a few every month makes sense. Also, if you’re paying cash, it’s easy to cash flow this out of existing finance. However, it’s often cheaper for an IT company to change all their computers and laptops at the same time. It also stops all issues regarding who gets upgraded first!

One of the key challenges a small business has with regards to buying new computers is how to pay for them. This is where leasing should be at the forefront of your mind, and where WestWon can help.

Leasing enables you to own the equipment without any large initial outlay

We can organise a computer lease for your business. It’s a very quick and simple process as seen below…

  1. You choose the computer manufacture and model
  2. You ask your supplier for a quotation giving the capital cost
  3. We will then provide you with a free no obligation leasing quote
  4. Give us a call when you are ready to proceed
  5. We look to obtain a credit acceptance within the first 24 hours
  6. The agreement is then emailed to you. You can sign and return it to us
  7. Your equipment is ordered and then delivered
  8. Only once you have confirmed the delivery will the monthly payments start

Contact Us

If you would like any more information on computer leasing for SME’s, then please don’t hesitate to get in touch with us. Either give us a call on 01494 611 456 or alternatively email us on [email protected]. You can also see more over on our LinkedIn page.

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

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Can you lease equipment under £1000 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 last year 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 changed their lending policy from a minimum value of £5,000 to £15,000 due to the pandemic last year.

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. Put simply, 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. These bigger deals are what keeps the business running for many companies.

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 may lose money on small lease transactions, which is why some tend to stay away from these smaller deals.

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?

Three reasons:

  1. Here at WestWon we pride ourselves on quality customer service. Making sure the customer is happy is our number one priority, so any finance needs you may have, we will take care of it, no matter how big or small the deal may be!
  2. 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
  3. 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. Also, 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. This includes everything from data loading to invoicing and API links for cash collection
  4. In the future, we hope to be lending our own money out of our own book, which will enable us to make profit more easily

Contact Us

If you would like to find out more information about whether you can lease equipment under £1,000 in value here, or any other finance needs you may have then please call us on 01494 611 456. Alternatively, you can email us on [email protected]. You can also see more over on our LinkedIn page.

Need your floatation tank financed?

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Floatation Tank Finance

Do you need your floatation tank financed? Floatation Tanks are becoming a very popular health trend in the UK. However, some may say it’s a very expensive asset to introduce to your business. Here at WestWon, we are here to support your business and take any financial pressures off.

This blog will discuss how WestWon can help you invest and introduce floatation tanks into your business, alongside the potential profit you can make by offering this fantastic service to your customers. There are also figures below that show how much profit floatation tanks can generate.

How much will it cost to lease?

The tanks cost between £15,000 – £30,000, with the average sale at around £19,000, which is therefore a large upfront investment. However, with WestWon’s finance solution you can pay for the pods whilst it generates you profit. Please see the lease example below to see how a wellness centre used WestWon’s floatation tank finance.

Lease Example:

Floatation Tank price:  £19,000+VAT

Lease term: 5 years

Monthly Rental: £427+VAT

How much profit can floatation tanks generate? 

On average the going rate for a 60-minute float session is £40-£50 in the UK, therefore enabling up to 9 customers throughout the 12-hour day (allowing 15 minutes for other requirements).

There is a massive amount of profit to be made through this health trend. We have therefore produced a rough guide of the profit your business can make from 1 month through to 5 years, whilst utilising WestWon’s finance option.

Example:

This example is based on having just one floatation pod, at £40 a session with 4 customers per day (50% occupancy). However, if you were to start your own business there is a high chance that you could make a lot more profit.

Period of Time1 month1 year5 years
Revenue£4,800£57,600£288,000
Rental Cost (Monthly)£427£5124£25,620
 
Profit£4,373£52,476£262,380

Floatation Tank Finance Process

Interested in obtaining a floatation tank using a finance option? The process is simple yet efficient:

Supplier Quote

  • Choose the most suitable floatation tank and supplier. We can help! Our supplier relationships means we can help you get a great deal on the best tanks in the market.
  • Agree the price and any relevant training and maintenance contract with your chosen supplier.

Be provided with a free no obligation leasing quote

  • WestWon will then provide you with a leasing quote, based on the floatation pod you are looking to finance, alongside the supplier’s price.
  • In addition, a credit check is undertaken and then an arrangement for a lease facility is put in place.

Obtain a credit acceptance

  • This is therefore when the credit will hopefully be accepted (can be as quick as 24 hours and long as three to four days).

Agreement is sent 

  • The lease agreement is then sent to you and requested to be returned, signed.

Goods are delivered

  • Your supplier delivers the floatation tank, then they invoice us directly and we then arrange for the payments to be made.

The rentals begin

  • Finally, you make monthly or quarterly lease repayments directly to us or the funder we have used.

Contact Us

If you would like any more information on floatation tank financing or other assets we can provide finance for here at WestWon, then please don’t hesitate to get in touch with us. However, you can also give us a call on 01494 611 456 or alternatively email us on [email protected].

Sale and Leaseback- get an instant cash injection into your business!

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Sale and Leaseback

In this blog, we will be taking a look at how sale and leaseback could benefit your business.

Sale and leaseback, as known as equipment refinancing, is a great way to get an instant cash injection into your business. It is a fast and effective way to improve your cash flow, and enables the reimbursed cash to go towards other areas in your business.

We have previously organised hundreds of sale and leaseback agreements on a whole range of assets, so we have the experience necessary to support you. We are confident that this service is extremely beneficial for businesses of all sizes.

So, how does it work?

  1. Firstly, contact WestWon and let us know what you’ve purchased in the last 6 months, the purchase price and how long you’d like to spread the cost over.
  2. Once we have this information, we can then give you a free no obligation finance illustration.
  3. Then, once you are ready to proceed, just simply call the team and we can look to obtain a credit acceptance within 24 hours!
  4. We will then send you the agreement to sign, and return back to us.
  5. Once this is finalised, and a copy of the invoice of payment is provided, we’ll process the paperwork and the full capital amount is refunded into your bank account.
  6. Your payments begin as they would for a regular lease agreement.

Key points to consider:

  • The asset needs to have been purchased within the last 6 months.
  • Multiple invoices and a range of assets can be included in the same lease.
  • Original invoice and company bank statement showing the transfer, maybe required.
  • Funds are released directly into your company’s bank account.

The advantages

Let’s take a look at the perks of a sale and leaseback on equipment:

  • A quick and simple way to raise finance

The process is simple, we look to have the approval in place for you within 24 hours.

  • Sensible interest rates

With a sale and leaseback of equipment, the security is within the asset. This is less risk, hence the interest rates are normally lower.

  • 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 rules where they cannot take out other third-party loans. We will lease the equipment back to you, this means it doesn’t fall under any restrictions you might have.

  • You still have full use of the asset

You will still have full use of the equipment with no restrictions.

  • VAT and Tax Benefits 

We pay your invoice in full, including the VAT. Not only this, but all the monthly payments are tax deductible!

Interested?

On our equipment refinancing page, you can get access to our equipment refinancing calculator, FAQs, case studies and more!

Alternatively, simply give us a call on 01494 611 456. Our team would welcome a discussion to provide quotations, advice and additional information on our range of services. Or, send an email to [email protected] outlining your query and a member of our team will get back to you in no time.

WestWon Woodland update!

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As you may know by now, WestWon’s green scheme of planting trees has been running smoothly for the past 4 months! We are so very proud of how far we have come with this initiative. This includes the impact we have made. Below is an update of the WestWon Woodland initiative (in case you missed it) as well as those all important numbers.

A quick recap

At the end of 2021, we teamed up with Ecologi, a UK based social enterprise. They are a company that helps plant trees in the UK and abroad. It works by us sending them the amount of trees we wish to plant. We then hand over payment them and they essentially do the work for us! Ecologi are an amazing company in the way that they work. They allow us as well as our customers to see the species of tree that has been planted, its age and the project it was funded for (e.g. the place they were planted).

So, how does WestWon contribute, and why should we have you to thank? Well, when you complete a lease agreement with us we will plant a tree for every month of the lease term in the WestWon Woodland. This part of the scheme started at the beginning of the year. We are also sending out certificates to those who have taken part, as well as an extra chance to plant 10 more trees in the woodland if it’s reposted. All these chances are just extra ways that you can help us in staying as a climate positive company. As well as aiding the environment in its battle against climate change.

WestWon Woodland update

Our goals:

  • To plant 100,000 trees in the WestWon Woodland within the next 5 years
  • To reduce 7,500 tonnes from the atmosphere within the next 5 years

Our current numbers:

  • So far, we have planted 5,427 trees in the WestWon Woodland
  • Currently, we have reduced 70.64 tonnes of carbon from the atmosphere

Contact Us

If you would like any more information on our green scheme, or any finance options, then please don’t hesitate to get in touch with us. Either give us a call on 01494 611 456 or alternatively email us on [email protected].

Corporation Tax Finance

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Corporation Tax Finance

Running a business comes with a lot of responsibility and one being to pay your tax bill. However, the timing of this bill landing on your desk can be inconvenient. If you are in a position where you are unable to pay for your bill, Corporation Tax funding is the solution for your business. Spread the cost of your bill in 6- or 12-month repayments.

What is Corporation Tax?

Corporation Tax is the amount of income earned through trading – from asset sales and other taxable events throughout the tax year. You will receive a tax bill if your business is:

  • A limited company
  • A member’s only club
  • A trade association
  • Housing association
  • Or a group of individuals operating as a business outside a partnership.

Currently the rate for UK Corporation Tax is 19%, which also applies to any overseas companies who are based in the UK. HM Revenue and Customs calculate your bill, which is usually due 9 months after the businesses accounting year finishes. It will stay at this rate until at least the end of the financial year. This ends in April this year.

It is important to pay your corporation tax as there are some hefty penalties. Some so drastic that if your bill is extremely high your business could be forced to liquidate!

With cash flow constantly increasing and decreasing, it is always best to put a lump sum aside to meet the tax bill requirements. However, there are unexpected costs that incur, so it can be difficult to set some much cash aside.

Corporation Tax finance is a stress-free funding solution, where you apply for a loan that will cover the cost of the bill.

What are the benefits?

  • Cash flow – Control cash flow with manageable monthly payments.
  • Fast Payment – Payment can be made directly to HMRC who will then receive the money on time.
  • Alternative funding lines – No need to use up an existing bank facility.
  • Fixed monthly payments – Easy fixed repayment schedule with fantastic rates.
  • Approval within 24 hours – WestWon prides itself on fast and quality customer service.

Contact Us

If you would like any more information on corporation tax finance or other business loans we can provide finance for here at WestWon, then please don’t hesitate to get in touch with us. Either give us a call on 01494 611 456 or alternatively email us on [email protected].

Our belated year start meeting

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Our overdue year start meeting commenced on the 17th of this month. It was held at the Crowne Plaza in Marlow, and we were given the privilege of a stunning lakeside view.

crowne plaza

We had a combination of physical and virtual attendees, and it was a great opportunity for us to all get together and reflect upon the successes, along with the downfalls of 2021, whilst also looking forward to the rest of 2022 and what lies ahead.

It was enlightening to hear from all branches of the WestWon family tree and their experience with 2021. This outlined their 2021 sales figures, and their longer term visions for 2022.

We are proud to say that we are the minority of leasing companies who actually hold year start meetings. As we believe that year start meetings are fundamental to get our team off to the right start. It is in effect a way to refocus, motivate whilst also allowing time for our team to socialise and in some cases acquaint themselves, especially this year with all our 8 new additions to the team!

2022 motivation

As part of our team motivation objective, we invited former World Champion boxer and motivational speaker, Billy Schwer along, to get our team in the right mindset for the new year. We found him both insightful and inspiring.

billy

After our pep talk from Billy, we made some time for some teambuilding activities, bringing everyone together to refamiliarize.

Later on, we went into Marlow for the evening to give everyone a chance to mingle and celebrate the end of 2021, whilst also welcoming the triumphs of 2022 in. We started off with drinks at the Duke of Clarence, followed by a delicious meal at Côte.

It was an amazing opportunity to recap from 2021. We acknowledge and praise all the team for their efforts, and plan and set out intentions for the year ahead.

WestWon Leasemaster’s transition to Technology Leasing!

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WestWon are proud to announce the transition of WestWon Leasemaster into Technology Leasing! The two companies have joined forces to become one. This is such an exciting opportunity for both companies, and we are very happy for all members of the team. This will combine a worthy range of benefits such as their teams and their client bases. Along with this alliance, they have redesigned their look by introducing a new logo, colour scheme, and overall look and feel of the website. This new website can be found here. This new alliance will be an extremely exciting thing for all those involved.

Background of WestWon Leasemaster and Technology Leasing

WestWon Leasemaster has been under the leadership of Steve Holdstock and his team since 2016. Since then, they have managed to grow their relationships with clients to be bigger than it ever has been. Steve himself has over 30 years experience in sales and leasing. As well as this, he has an expert base of knowledge that allows him to work so well with clients. Through these years of experience, he has been able to provide expert advice in all sectors of leasing whenever needed.

Technology Leasing has been around since 1989 when Brian Burns founded the business. In 2020, Brian officially retired from the company and passed over the reins to Kevin Green. Kevin has successfully guided Technology Leasing through the last 2 years. This is due to him working for most of his life in the leasing and finance sector. He previously worked for a number of large companies such as GE Capital, Apple Financial Services and Dell Financial Services.

In combining these two well respected and highly knowledgeable key people, along with a highly experienced and professional team behind them, we know that Technology Leasing will become a strong contender in the leasing sector.

Steve Holdstock, now the Managing Director of Technology Leasing says “Our name now reflects where our market is and what we can offer to that market. This is a simple yet exciting step forward which opens up a future for the company that we have not seen before. I am thrilled to be working alongside Kevin and our team, and cannot wait for Technology Leasing to grow into a formidable player in the sector.”

WestWon’s involvement

Our relationship with WestWon Leasemaster still remains extremely strong, and where we need to collaborate with them we will. We wish them all the best luck, and cannot wait to see what they achieve in the future.

Contact Us

If you would like to find out more about this transition for WestWon Leasemaster into Technology Leasing then feel free to visit their new website. If you would like any information on what financial services we can offer you here at WestWon then please call us on 01494 611 456. Alternatively you can email us on [email protected].

The Customer Benefits of Leasing

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Leasing Equipment vs Buying – Customer Benefits

Ever considered the customer benefits of leasing? Here’s why it could be better for your business to lease the equipment rather than buy it. Below are 8 key benefits why your business should consider leasing when making your next purchasing decision.

1. Preserve cash flow

This is the key benefit to why most companies lease. You keep your cash or bank overdraft facility for the working capital requirements of your business.

2. Pay for the equipment as you use it

Would you give a new employee three years salary in advance, probably not. Therefore, why would you pay for their laptop, mobile phone, desk or car upfront.

3. No need to pay the VAT up front

With a lease rental agreement, you pay the VAT when the rental is due. There is no need to pay all the VAT upfront. (With lease purchase / HP lease agreements, all the VAT is paid up front).

4. A new source of funding

Leasing companies are often a new source of funding for a company. You do not have to use existing finance contacts.

5. Tax benefits

Many leasing companies will tell you there are tax advantages as all the rental repayments are allowable against tax. With the new £1m AIA limit coming into effect in January 2019, for the vast majority of SME companies, there are no real tax benefits to a lease rental agreement. Lease purchase agreements may be a better option.

6. The benefit of easier budgeting

Paying a monthly rental makes budgeting an easy process. The rental will cover the cost of the interest and the asset depreciation.

7. Using a revenue budget as opposed to a capital budget

Larger companies often have strict capital and revenue budgets. Rental repayments come under a revenue budget, hence no need to get capital budget approval.

8. Avoids obsolescence

With equipment leasing, the rental term is normally the same as the equipment life. Many companies will lease equipment then just upgrade it at the end of the lease term.

Contact Us

If you would like any more information on the customer benefits of leasing and what we can provide finance for here at WestWon, then please don’t hesitate to get in touch with us. Either give us a call on 01494 611 456 or alternatively email us on [email protected]. You can also see more over on our LinkedIn page.

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