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The Recovery Loan Scheme- what are the changes?

February 7, 2022/in Blog/by Jess Wells-Flint

What is the Recovery Loan Scheme?

The Recovery Loan Scheme (RLS) essentially provides financial support to UK businesses as they recover after being impacted by the pandemic, and now has some new changes. The scheme came into force on the 6th of April 2021, and was meant to run until the 31st of December 2021. This has now been extended, which will be mentioned later on in the blog as one of the major changes of the scheme. It was expected to be extended when it was first launched. The funding itself is used for allowing businesses to access loans or other types of finance.

There is a limit of £10 million available per business. However, the amount that is actually offered depends on the terms which are provided at the hands of the discretion of all participating lenders. As it’s a government scheme, the government guarantees 80% of the finance to the lender. However as the borrower, you will be 100% liable for the debt.

Are you eligible?

Only UK businesses (those who are trading in the UK) are eligible to apply for the Recovery Loan Scheme. There are some criteria laid out by the government website which include needing to show:

  1. your business would be possible and feasible if it wasn’t for the pandemic and it’s impacts
  2. that your business has been badly negatively impacted by the pandemic
  3. your business is not involved in collective insolvency proceedings

What are the changes from the 1st of January 2022?

The main change that came into force was that the scheme will be extended until the 30th of June 2022. This was announced in the Autumn 2021 budget.

There was also a handful of other changes as seen below:

  • The scheme will only be open to SME’s
  • The maximum amount of finance available is lowered from £10 million to £2 million per business
  • The guarantee coverage provided to lenders will be reduced to 70%

All these changes to the Recovery Loan Scheme will apply from the 1st of January 2022.

Contact Us

If you would like any more information on what we can offer you and your business 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 visit our contact page for additional ways to find or contact us.

https://westwon.co.uk/wp-content/uploads/2022/01/RLS-1-scaled.jpg 770 1500 Jess Wells-Flint https://westwon.co.uk/wp-content/uploads/2016/06/WestWon-Colour-300x94.png Jess Wells-Flint2022-02-07 09:00:132022-01-21 14:15:33The Recovery Loan Scheme- what are the changes?

WestWon Furniture becomes Fit Out Finance!

February 1, 2022/in Blog, News, Office Furniture & Fit Out Leasing, Press Release/by Jess Wells-Flint

WestWon are proud to announce that WestWon’s Furniture division has become Fit Out Finance!

Fit Out Finance is a new UK based business focusing solely on fit outs within the leasing sector. As the furniture and fit out sector is such a large part of leasing, we thought it was only right for there to be a separate division and company in order to give our undivided attention to the amount of business there is.

Introducing Fit Out Finance

Fit Out Finance is one of the first leasing and finance companies in the UK focusing purely on the fitout sector.

Having extensive knowledge in the sector and combining that with the friendly and professional team. We are confident that they will provide an excellent service for you and your business.

Their main focus is in the office refurbishments sector. However, they also provide finance for any business in the restaurant, warehouse and retail sector. Nonetheless, with their broad knowledge, they can provide finance for most businesses in a range of different sectors. Here at Fit Out Finance, we can help you finance your fit out project from a seeding idea all the way through to successful completion and handover.

How are we related?

Fit Out Finance is a trading name of WestWon Limited. We know this will be a positive change and we are excited to expand further into the furniture and fit out sector under the name Fit Out Finance!

The sales team

One of the business development managers, Tracey, has worked in the asset finance and leasing sector for more than a decade. She is a specialist in the sector and joined WestWon in 2016. Since then,  she has dealt with a number of reputable UK fit out companies as well as hundreds of businesses financing their furniture and fit out projects.

On the other hand, business development manager Freya is fairly new to the industry. She joined WestWon in 2021 before moving over to Fit Out Finance at the start of this year. However, despite being new to the industry, she has already built strong relationships with many UK fit out companies. And we can assure you that she would be happy to help you with whatever business project you may need support with.

Why fix on Fit Out Finance?

Here is just a handful of the perks:

  • Fit Out Finance can give you a decision within 24 hours.
  • Industry leading rates starting from 2.5%.
  • With a 95% acceptance rate, they are more likely to take you in under their wing even if others have refused you.
  • They will deliver your fit out requirement with a 5* customer service.
  • They will administer you with a dedicated account manager, who will be able to provide you with a fast, professional and excellent service.

What does this mean for existing furniture and fit out customers of ours?

Most of you will probably be more familiar with WestWon. And don’t worry, with the launch of Fit Out Finance we will continue to provide you with a matched high level of professional and outstanding customer service. The only difference being our brand is now tailored to your furniture and fit out needs. In sum, besides the rebranding, there is no decisive change that will impact your relationship with us. We know this will be a positive change and we cannot wait to expand further into the furniture and fit out sector under Fit Out Finance!

Take me to the website!
https://westwon.co.uk/wp-content/uploads/2022/02/office-interior-2-scaled.jpg 1000 1500 Jess Wells-Flint https://westwon.co.uk/wp-content/uploads/2016/06/WestWon-Colour-300x94.png Jess Wells-Flint2022-02-01 09:00:142022-01-13 10:39:25WestWon Furniture becomes Fit Out Finance!

Our tree planting trip!

January 31, 2022/in Blog, Sustainability/by Jess Wells-Flint

As you may already know, in the latter part of 2021 we teamed up with Ecologi, and now we have already been on our first of many tree planting trips! Ecologi are a company dedicated to tackling our current climate crisis. They do this by arranging the planting of an abundance of trees across the world, in an effort to offset the planet’s surging carbon levels. So, through them, we made ourselves a climate positive company. Whilst also putting a scheme in place where we will plant trees through them for each month of a finance agreement made through us.  

Protect Earth

So, we thought it would only make sense to offer some helping hands towards this vital cause. Hence, last Thursday, our marketing department took a trip to one of Ecologi’s many tree planting partners- Protect Earth. Protect Earth have several planting locations across England & Wales. On Thursday we visited their reforestation location in Hawling, Cheltenham. Their objective is to plant trees across the UK in efforts to remove carbon from our atmosphere, reduce flood risk and by doing all of this they will inevitably enhance our air quality. 

They were founded in 2020, an eye-opening year for us all, especially with regards to our climate crisis. They are a transparent registered charity and every penny donated to them goes towards the restoration of our planet. Protect Earth are solely UK based at present; however, they have ambitions to grow their charity internationally. 

What did we do?

So, our marketing team took it upon themselves to volunteer to muck in and actively help plant these trees themselves.  So, with their wellies on, and shovels to hand,  amongst larger group of  13 other volunteers, they planted 500 bare root saplings throughout the day! And these mere twig looking things will eventually flourish into abundant leafy beauties.

saplings

Tree planting process

  • With shovels in hand, our first job was to dig a deep hole. It had to be deep enough for the roots to be placed underground and covered with enough soil.
  • Next was to heel the soil around it into the ground so that the plant couldn’t be ripped up by animals.

planting

  • Then we had to use a mallet to place a stake into the ground next to the plant in order for it to grow straight, and again keep off predators.

 

  • Then we placed a guard over the top of the stake, which was secured by either zip ties or staples.
  • We then placed a small stick into the ground with the name of the tree. This is arguably the most important step as it allows Protect Earth to show to Ecologi the trees that they have planted.
  • Last but not least, we went round every tree once more and did some mulching. This is a layer of material placed over the soil. This would allow the tree to have the best chance of surviving. 

We are extremely excited to see how this scheme will benefit the environment. As of currently we have managed to plant 730 trees and reduce our carbon emissions by 52.98 tonnes. This will continue to rise in the future. With a goal to plant 10,000 trees in the next 5 years, we hope that our contribution makes a difference to the world we live in. If you would like the visit Ecologi’s website and see all the amazing work they do, then click here. Alternatively, you can visit our virtual woodland, or our WestWon Woodland page, which will give you more insight into what the scheme entails. 

Contact Us

If you would like any information on anything above, then please call us on 01494 611 456. We will be happy to provide any information on our green scheme (or tree planting trip). You can alternatively email us on [email protected].  

https://westwon.co.uk/wp-content/uploads/2022/01/Picture2-1-scaled.jpg 806 1500 Jess Wells-Flint https://westwon.co.uk/wp-content/uploads/2016/06/WestWon-Colour-300x94.png Jess Wells-Flint2022-01-31 09:00:352022-02-01 16:08:15Our tree planting trip!

How does Super Deduction Tax work with leasing?

January 24, 2022/in Blog, Leasing Guides, News/by Jess Wells-Flint

How does the Super Tax Deduction work with leasing?

From the 1st April until 31st March 2023, companies investing in new plant and machinery assets are able to claim the 130% super tax deduction. For further information visit here.

We are used to speaking about the tax benefits of asset finance. However, these conversations have been taking in a new meaning since the announcement of the new super tax deduction.

In this article, we explore how does the super deduction work with finance?

Can I take out a finance agreement and still claim super deduction tax relief?

The simple answer is YES. From a tax planning perspective, a hire purchase agreement has the same tax allowances as if you are paying cash for an asset. This enables the qualified asset to take advantage of the 130% tax breaks.

Can you claim super deduction relief on a lease rental or hire agreement?

No, when leasing you do not have title of the equipment as it is a lease rental. As such you will not be able to claim the super deduction tax relief. However, you are able to offset all the rental payments against profits using the annual capital allowances to reduce your tax bill. For further information visit here.

What is the impact on investment in the UK?

The super deduction relief is expected to increase UK capital equipment investment by about 10% this year. Some of this investment will just be companies bringing forward investments from future years. However, at WestWon we have already seen a huge increase by clients looking to take advantage of this tax break.

Will the use of finance increase due to super deductions?

Yes. Financing in the UK is still the main way companies raise money to finance equipment purchases. It is expected that the use of finance will increase in 2022. There is also a high expectation companies will move from lease rental, to hire purchase agreements.

What is the situation regarding leasing and the financing of non-qualifying assets?

Certain asset types do not qualify for the Super Deduction tax scheme. An example is office fit outs. Some of this expenditure does qualify, however, where the asset is part of the fabric of the building, the tax position is very different.

For non-qualifying assets, there are still available tax breaks to companies wishing to use the option of either a lease rental or commercial loan. In addition, we can support you by splitting a project up to look to take out a lease purchase agreement on the qualifying assets and a business loan on the non-qualifying assets.

The super deduction – a boost in the arm for UK finance companies

Finance companies thrive on investment. The more companies look to invest in capital equipment, the more business a UK leasing company will do. We thank the Chancellor for the introduction of the enhanced tax breaks, it is a real boost for all UK finance companies.

Want to know what the saving looks like?

Use our super deductions calculator to give you a guide on the savings you can make.

Contact Us

If you would like more information on how we can support you and your business in regards to the super deduction scheme then head over to our contact page on our website to speak to a member of our team.

Furthermore, if you would like to contact us about any of your finance needs then please don’t hesitate to call us on 01494 611 456 or email [email protected].

https://westwon.co.uk/wp-content/uploads/2021/08/photo-1479920252409-6e3d8e8d4866-e1629372459665.jpg 543 845 Jess Wells-Flint https://westwon.co.uk/wp-content/uploads/2016/06/WestWon-Colour-300x94.png Jess Wells-Flint2022-01-24 09:00:352023-02-21 17:28:55How does Super Deduction Tax work with leasing?

Happy 2022 from all at WestWon!

January 10, 2022/in Blog, General/by Jess Wells-Flint

Happy New Year!

From all of us at WestWon we would like to wish everyone a very Happy New Year for 2022! We hope 2022 will be an amazing year for all. Here at WestWon we are getting ready to launch a number of new initiatives. These include business opportunities that we are extremely excited about. We must also take time to reflect on 2021 and appreciate that despite the setbacks, it was still an amazing year for so many, including WestWon. Just some of the exciting things we accomplished last year were:

  • The launch of our new green initiative, ‘WestWon Woodland’. Read more about this in it’s dedicated blog.
  • The introduction of new employees to the business, who you can read more about in it’s own dedicated blog.
  • The introduction of our new rewards scheme ‘WestWon Rewards’. You can read more and learn about our new scheme here.
  • The launch of our sister company, Scaffold Finance. You can visit their website here.
  • Our Dental Divisional Director Richard Porter’s win at the dental industry awards! Read more about his win and commendation here.
  • The new look and feel of the WestWon website, including two new pages, clients and family.

Things to look forward to at WestWon

Here at WestWon we are always looking to grow and develop. In light of this we are very excited of what’s to come and what 2022 has in store for us all.

Our normal hours have now resumed. This means we will be in the office from 9am-5:30pm every day to help you with your financing needs. We hope you all had a very merry Christmas and wish you all a Happy New Year. We cannot wait to see what’s in store and would like to thank everyone for their continued support throughout 2021 and into 2022.

Contact Us

If you would like more information on what we can offer you and your business then head over to our contact page on our website to speak to a member of our team. Furthermore, if you would like to contact us about any of your finance needs then please don’t hesitate to call us on 01494 611 456 or email [email protected]. Lastly, we hope that you all had a happy and healthy Christmas and new year, and Happy 2022 from all of us at WestWon once again.

https://westwon.co.uk/wp-content/uploads/2022/01/photo-1499233983070-99a5f004e720.jpg 980 1470 Jess Wells-Flint https://westwon.co.uk/wp-content/uploads/2016/06/WestWon-Colour-300x94.png Jess Wells-Flint2022-01-10 09:00:342022-01-05 15:30:41Happy 2022 from all at WestWon!

Cut down on your company’s carbon footprint

December 27, 2021/in Blog, Sustainability/by Jess Wells-Flint

How big is your company carbon footprint?

Carbon footprint is calculated by both direct and indirect sources of emissions. Direct emissions include an individual’s actions over a period of time that contribute to the world’s carbon pollution. Indirect sources of emissions include the carbon dioxide that is released into the atmosphere. This is because of manufacturing, transportation, or fuel extraction. The burning of fossil fuels is the main source of human produced carbon dioxide emissions. This is why energy sourced by renewables is the new and revered approach to powering your facilities.

Where to start?

Firstly, you need to identify your company’s material sources of carbon pollution. These include indirect emission sources. These include the fossil fuels that you use to power your facilities. The burning of fossil fuels is the main source of carbon pollution caused by humans. You may think that this is something that can be caused directly, and so you are not a part of it. However, companies have a large part to play. For example, here at WestWon, our lease deals contribute to the burning of fossil fuels. This includes when completing lease agreements for vehicles that are non-electric. Companies need to start working to amend this. This is also why in the COP26 meeting in November 2021, businesses pledged to do more for the environment. Read more about this on our blog on the COP26 meeting.

How to reduce my carbon footprint?

There are several ways that you can reduce your carbon footprint. These include making small or big changes to aspects of your lifestyle, including food, clothing, transport and energy and waste. You could limit and recycle your waste at work or turn down the heating, even if by just 1 degree. Furthermore, you could take public transport and buy from sustainable clothing brands. You could also limit your meat intake, whilst shopping from local businesses, as well as avoiding products with too much plastic packaging. You can also make larger changes such as installing renewable sources of energy. These include wind turbines and solar panels.

WestWon’s new initiative

WestWon has launched our new initiative, the biggest step we have taken yet to help the environment. It will not only reduce our carbon footprint but help to offset parts of our lease deals. This is a major step in the world of leasing. We hope that you and your company will also make the step to become more sustainable and environmentally friendly. Join us on our journey and take a look at our WestWon Woodland page now.

Contact Us

If you would like more information on anything seen above, do not hesitate to contact us. A member of our team will be more than happy to assist. Alternatively, you can call us on 01494 611 456 or email [email protected]. You can also see more over on our LinkedIn page.

https://westwon.co.uk/wp-content/uploads/2021/11/photo-1554769945-af468c934022-scaled.jpg 844 1500 Jess Wells-Flint https://westwon.co.uk/wp-content/uploads/2016/06/WestWon-Colour-300x94.png Jess Wells-Flint2021-12-27 09:00:472022-06-20 13:46:15Cut down on your company’s carbon footprint

Merry Christmas and a Happy New Year!

December 20, 2021/in Blog, General, News/by Jess Wells-Flint

Merry Christmas and a Happy New Year!

From all of us at WestWon we wanted to wish all existing clients a merry Christmas and a happy new year! We hope that you take the time over the holidays to rest and recuperate and spend time with your loved ones. We would like to thank you for all your continued support this year as we have continued to grow and expand, even in such a difficult climate. There are many exciting things to come for us in 2022, which we cannot wait to share with you all! We are also looking forward to greeting a number of new clients in the new year, and continuing to grow come January.

Opening times

We hope you understand that over the festive period, some of our working hours may differ. These times are listed below. You can send us an email or call the office should you need to reach out to one of us outside of these allocated times. We will aim to respond as soon as we can. We pride ourselves on quality service, and this will not change over the holiday season! We’re looking forward to working with new and existing clients in the new year.

Christmas Eve – Open 9am – 3pm

Christmas Day – 28th of December – Closed

29th of December – Open 9am – 5:30pm

30th of December – Open 9am – 5:30pm

31st of December- Open 9am – 3pm

New Year’s Day – 3rd of January – Closed

4th of January – Open 9am – 5:30pm (Normal hours resume)

Contact Us

If you would like more information on what we can offer you and your business then head over to our Contact Us page on our website to speak to a member of our team. Furthermore, if you would like to talk to us about over the festive period during our opening times then please don’t hesitate to call us on 01494 611 456 or email [email protected]. Lastly, Merry Christmas and a Happy New Year from all of us at WestWon, see you in the new year!

https://westwon.co.uk/wp-content/uploads/2021/12/Blue-Grey-Merry-Christmas-Happy-New-Year-Facebook-Post.png 788 940 Jess Wells-Flint https://westwon.co.uk/wp-content/uploads/2016/06/WestWon-Colour-300x94.png Jess Wells-Flint2021-12-20 09:00:142021-12-17 09:25:19Merry Christmas and a Happy New Year!

Our green agenda – WestWon Woodland

December 15, 2021/in Blog, Press Release/by Jeremy Hall

WestWon’s green agenda

Here at WestWon we are continuing to cultivate and expand our green agenda and promise to help fight climate change. From today we are launching our new scheme, WestWon Woodland.

We have teamed up with a company called Ecologi. They work with organisations like us to make it easy for businesses to contribute positively to the environment. Our scheme involves planting a tree for every month of a lease deal. Additionally, they provide a carbon offsetting service. This means Ecologi invest money into projects that remove more greenhouse gasses than our business produces. This is done through calculating their customers’ carbon emissions and planting the trees needed to neutralise those emissions. Ecologi will therefore help WestWon on our way to achieve the aim of becoming a carbon neutral company.

When starting our research to become a more sustainable company, we were doubtful as to how trustworthy some companies are. Ensuring that as a business your money is going to the right places, especially when it concerns the environment, is critical. After undertaking extensive research and speaking with their team directly, as a company we fully trust Ecologi. We appreciate their dedication to their transparency as a company. We were impressed by their paper trail of the impact they make up on their website. And we cannot wait to start our journey towards carbon neutrality with them.

Our goals

We have two goals to hit here at WestWon. Within the next five years we will have:

  • planted 100,000 trees in the WestWon Forest
  • reduced 7,500 tonnes of CO2 from the atmosphere

The benefits

Planting a tree for every month of a lease deal will indubitably create several benefits to the environment. Both around us and beyond. In an article by EarthShare, they provide 10 benefits that planting trees can produce for the economy. These include carbon sequestration, flood control and improvements in clean air. Every 100 trees contribute to around 7.5 tonnes of CO2 being removed from the atmosphere.

WestWon and its employees are becoming more eco-friendly and striving to one day grow into a carbon neutral company. It’s now your turn to do your bit for the environment.

There are a few ways in which we are doing our bit: we have recently implemented recycling bins on each floor of our offices. Meaning that now we are reducing WestWon’s overall general waste output. Additionally, as mentioned in a previous blog, we have been a paperless office for over a decade now. Also listed in this blog are ways in which you and your business can contribute to a healthier environment for us all.

How will it work?

  1. Once you have completed a lease deal with WestWon, you will be sent an email regarding the next steps of the tree planting process, which Ecologi and ourselves take care of.
  2. Once you have been sent an email, it’s time to start planting your trees in the WestWon Woodland. You can also be given updates about your trees, should you wish to receive them.
  3. And it’s as simple as that! We thank you for doing business with us. In doing so, you have helped us on our journey to becoming a business better equipped to helping the environment. We also hope you feel better about doing your bit. We hope you understand what positive impacts it will have on the climate.
  4. As an extra thank you we will be sending out certificates later on in the new year.
  5. On LinkedIn we will also be offering an incentive, so that for each post and tag you do when having received your certificate, we will be planting an extra 10 trees on your behalf!

Contact Us

If you would like more information on our green agenda then head over to our Contact Us page on our website to speak to a member of our team. Furthermore, if you would like to talk to us about getting involved then please call 01494 611 456 or email [email protected].

https://westwon.co.uk/wp-content/uploads/2021/11/photo-1457530378978-8bac673b8062.jpg 980 1470 Jeremy Hall https://westwon.co.uk/wp-content/uploads/2016/06/WestWon-Colour-300x94.png Jeremy Hall2021-12-15 09:15:142022-01-12 09:35:16Our green agenda – WestWon Woodland

Deforestation – why is it so harmful?

December 6, 2021/in Blog, Sustainability/by Jess Wells-Flint

What is deforestation?

Deforestation is the process of removing parts of a forest or a large expanse of trees. The forest clearance is then converted to non-forest use land. Either by making it an urbanised area for buildings, or in some cases, making it grazing land for animals such as cows. Both are bad for their own reasons, some of which are covered later in this blog. According to studies, around 31% of the earth’s land surface is covered by forests. It’s imperative that we keep this number the same, if not grow it.

Current news about deforestation

The summit of COP26 is now over.  Here are some of the key outcomes of the conference with regards to deforestation.

The COP26 agreement has been signed by 141 world leaders to stop deforestation by 2030. The pledge led to around £14 billion of private and public funds being promised to help fund the scheme. However, the same pledge was committed to in 2014 and this failed. This is leading many experts to believe that this will end the same way. A portion of the funding will go to developing countries in order to “restore damaged land, tackle wildfires and support indigenous communities” according to a report by the BBC. 28 countries have also pledged to “remove deforestation from the global trade of…agricultural products such as palm oil, soya and cocoa.”

According to ukcop.org, the United Nations state that they are committed to working together to stop and reverse deforestation by 2030. If successful, the restoration of our forests will heavily contribute to the main goal of the conference. That being, to keep the average global temperature increase to well below 2°C- ideally to 1.5°C.

What are the disadvantages?

There are several disadvantages to deforestation. These include larger issues such as carbon dioxide release. This is when the trees that are cut down release all the carbon dioxide they originally stored. It also decreases the amount of oxygen in the atmosphere because there aren’t as many trees available to produce it. Releasing the greenhouse gas such as CO2 can have a damaging impact on the world, as it contributes to global warming. The next disadvantage comes from cutting down the trees to use it for grazing land for animals, like cows. The amount of methane that cows produce is a significant addition to the greenhouse effect. Decreasing the amount of oxygen in the atmosphere and replacing it with methane is a huge negative impact. Other major disadvantages include soil erosion, the destruction of habitats for all wildlife as well as a loss of biological diversity.

What can we do to stop deforestation?

There are several things that we can do as a society and in the workplace to help combat climate change. The first, more obvious way, is to plant more trees. This may seem impossible however there are companies that you can go to to help you do this. Just make sure you do your research first. You can also go paperless. Here at WestWon we have been a paperless office for over a decade, due to our highly advanced CRM system. Other ways to stop deforestation include recycling all products where possible and buying from companies who commit to reduce deforestation. As well as not buying certain harmful products such as palm oil and raising awareness in your community. Also installing LED lights (like we have) can make a significant impact.

WestWon’s new initiative

Here at WestWon we are planning on launching our new initiative on the 15th of December 2021. We will be releasing more information closer to the time. However, we are excited to start our journey and become a positive climate workforce. In the mean time, you can contact us if you would like any further information.

Contact Us

If you would like more information on deforestation or what we are doing to stop this, then please call 01494 611 456 or email [email protected].

https://westwon.co.uk/wp-content/uploads/2021/11/photo-1602484894924-75eddc89d32b.jpg 980 1470 Jess Wells-Flint https://westwon.co.uk/wp-content/uploads/2016/06/WestWon-Colour-300x94.png Jess Wells-Flint2021-12-06 09:00:302023-11-28 15:39:24Deforestation – why is it so harmful?

How To Build Your Business’ Credit Quickly

November 24, 2021/in Blog, Leasing Insights/by Jess Wells-Flint

Want to build your business’ credit quickly and efficiently? Follow the steps below and you’ll be enabled to a range of funding.

Throughout this blog, we will be sharing our tips and tricks that if followed, will enable your business to funding and the best interest rates from lenders.

Building your business’ credit plays a crucial role in your company’s funding ability. Whether you operate as a sole trader, LLP or incorporated company, your business has the capability to establish a credit file separate from you as an individual person.

If you operate as a sole trader, it’s important to understand there is no legal or financial separation between you and your business. If that’s the case, when you apply for funding, all activity will be solely tied to you as an individual and reflected on your personal credit reports.

Covid credit score care

There is now extra pressure, now more than ever, to keep on top of maintaining a healthy credit score for your business. Many businesses of recent years have found themselves in need of loans due to the knock-on-effects from multiple lockdowns. So, should your business be put in the position of requiring a loan, in order to keep your business afloat, it is key to care for your credit score.  Not to mention- checking your company’s credit score should be a standard procedure to identify any potential fraudulent activities made to your business’ accounts. Further to this, unfortunately, according to statistics, fraudulent activity has propelled significantly during the pandemic. So catching this any signs of this early can make all the difference before too much injury is made.

5 simple steps

To keep your business and personal finances separate, the first step is to start building credit in your company’s name. If you want to build business credit quickly here are five simple steps:

Step 1 – Choose the Right Business Structure

Making your business a distinct legal entity requires you to select a business structure such as a Limited (incorporated) company, for example.

Once you form your business entity, the next step is to register your business with companies house. This particular step is dependent on your structure and where your business is located. Like many new businesses, your primary address might be in the name of your accountants address. As a first step towards healthy credit, this address will need to be moved to the premises of the business.

Step 2 – Obtain a business registration number.

When setting up the new business as a Limited company you will receive a company registration number from Companies House. This is an eight-digit number assigned to your company. This you will use for things such as filing company tax returns, opening a business bank account, applying for licenses and permits, and applying for business credit.

Step 3 – Open a Business Bank Account

Once you have your registration number, you’ll want to open a business bank account for your company. This is a mandatory step in creating a clear separation between your business and personal expenses.

Your banking relationships plays an important role in your company’s funding potential. Not only does your business bank account serve as a bank reference on credit applications, but it also provides key data that lenders use during any funding review.

Step 4 – Establish Credit with Vendors/Suppliers Who Report

One of the easiest ways to build business credit score is to apply for net terms with vendors and suppliers. As you buy supplies, inventory, or other materials on credit, those purchases and payments get reported to business credit reporting agencies such as Experian or Dun & Bradstreet.

This activity creates your company credit profile and business credit report. After your company has several credit lines reporting, a business credit rating (score) is generated.

Remember, it’s important to select vendors and suppliers that report to a business credit reporting agency. Each relationship you have also serves as a trade reference that can be used on future credit applications.

 

Step 5 – Monitor Your Business Credit Reports

There are a few business credit reporting agencies so it’s important to monitor each of your company credit files. Each agency collects data from various sources and may have different information about your company.

The good news is each of the business credit agencies provide a way for you to update basic information about your business. If you uncover any outdated or incorrect information, you’ll want to contact the agency to make the appropriate change.

With an established business credit report, it is probable that you will get higher credit approvals. Not only this, but better interest rates and repayment terms on loans and lines of credit.

It’s equally important to establish a diversity of accounts. This can be done with other types of business credit such as a business credit card or line of credit. Let these five simple steps serve as a starting point to building business credit for your company.

WestWon offers leasing arrangements for all types of businesses, from new starts to well established businesses. To find out how we can help you, please give us a call on 01494 611 456 or email [email protected].

https://westwon.co.uk/wp-content/uploads/2018/10/growing-plant-on-coins-money-investment-concept-picture-id907280674.jpg 430 1500 Jess Wells-Flint https://westwon.co.uk/wp-content/uploads/2016/06/WestWon-Colour-300x94.png Jess Wells-Flint2021-11-24 10:07:302023-11-28 15:39:52How To Build Your Business’ Credit Quickly
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