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.

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.