Why Leasing Can Give Warehousing And Distribution Companies The Competitive Edge

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The warehouse and distribution sector is a highly competitive market, so it is vital to optimise efficiency and keep costs low in order to deliver the best possible service to customers.

As any business grows, its requirements change and keeping up with the latest equipment or software can be an expensive challenge. As a result, leasing offers an excellent alternative to buying. With leasing, warehousing and distribution centre equipment can be added to or upgraded at any time during the lease period, so you will always have the option of having the most up-to-date and efficient equipment to ensure your business stays ahead of the game.

Unlike buying, leasing means you can pay as you use. After an initial payment, you can start benefiting from the equipment straight away and spread the cost over its useful life, so you can be paying for the asset with the income it generates.

Leasing can help improve your cash flow by keeping your working capital free. This leaves you with funds available to reinvest elsewhere in your business and you can take advantage of considerable tax benefits. With an operating lease, lease ‘rental’ payments are an allowable business expense that can be set against profit – thereby potentially reducing your tax bill. Other methods of equipment acquisition, such as outright purchase, do not have the same level of tax benefit.

What assets can be leased?

From a single item to an entire turnkey solution, almost any combination of tangible asset can be included in one lease agreement. Types of equipment that can be leased include:

  • Conveyor systems
  • Forklift trucks
  • Pallet lifts
  • Storage solutions
  • Warehouse Management Systems
  • Workbenches
  • Pallets and containers
  • Shelving systems
  • IT hardware and software
  • CCTV and security systems
  • Furniture

WestWon Limited has a wealth of experience in providing asset finance solutions for a wide range of equipment and industry sectors. For more information on leasing, download the free Essential Guide to Leasing for Business. Alternatively, please call us on Tel: 01494 611 456.

 

 

Can Refurbishing Your Office Environment Increase Productivity?

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Does your office environment affect productivity? The simple answer is yes. Creating a vibrant and positive office space can improve staff morale and efficiency as well as help you make the right impression on clients. What is more, it doesn’t have to mean a large capital outlay as businesses can finance an entire office fit out or refit as well as furniture through a lease agreement.

A study by the Commission for Architecture & the Built Environment and the British Council for Offices has revealed that even simple things such as good lighting can reduce absenteeism by 15 per cent and increase productivity by between 2.8% and 20%. It also found that an employee’s workplace is responsible for 24% of their job satisfaction and this can affect performance by 5%.

There are a number of elements to consider when refurbishing your work premises. These include:

  • Colour scheme: The use of colour can have a significant positive or negative affect on employees. For example, neutral colours can be calming while the use of a bright colour as an accent can have an invigorating affect.
  • Lighting: Studies show a strong correlation between natural light and employee efficiency. Maximizing natural daylight can create a positive atmosphere and mood, where as a lack of light or dim artificial lighting can be depressing. New lighting including LED lighting can be leased.
  • Layout: Partitions or open plan? The layout of a workplace should aid employees in their work and, if hosting customers, should be welcoming. Consider the work and needs of a department or employee, some may need to be able to interact easily across a space and others may need privacy and quiet.
  • Ergonomic furniture: It is essential that furniture meets the needs of the user, being both comfortable and functional, in order to minimise the risk of injury and maximise performance.
  • Acoustics and temperature: Noise levels and temperature in any office are important factors to ensure a pleasant work environment without unnecessary distraction or irritation.

When moving to new offices or injecting new life into your current premises, it is important that your interior reflects your company’s ethos and values, provides a positive work environment for staff and makes the right first impression with potential clients. Get it right and it can lead to increased productivity, improved staff morale and reduced absenteeism.

Your interior makeover doesn’t have to come at a high price either when you use leasing for your office refurbishment or fit out – from planning and design to interior finishes and installation, through a flexible lease. Lighting, flooring, furnishings, computer equipment and even moving services can be covered under one agreement. This means you only need to pay one monthly or quarterly payment for multiple suppliers.

With leasing, you can choose exactly what you need without compromising your cash flow or existing lines of credit, and spread the cost of the project over a number of years. Plus, lease payments can even be tailored to match seasonal cash flow and be set against profits to potentially reduce your tax bills.

For more information about improving your office environment and productivity with leasing for furniture and interior design you can download the Dream Office brochure and also the WestWon Finance for Interior Projects Factsheet.  Tel: WestWon on 01494 611 456 for details and lease pricing.

How Start-up Businesses Can Lease As They Grow

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Paying upfront for equipment or an asset can be a significant drain on the working capital for most businesses. In 2014, raising finance for business equipment and assets continues to be a challenging issue for companies, particularly new businesses just starting out.

With highly competitive interest rates and agreements, there is no doubt that leasing can offer an advantageous alternative to buying for start-ups. But how easy is it for a new business to get a lease agreement?

Well, obtaining a lease agreement can be more challenging for new businesses than established companies, but it is by no means impossible. In fact, arranging a lease agreement can be less complicated than applying for a loan. Some leasing companies like WestWon are increasingly working with new start-up companies and can provide specialist advice and guidance.

Generally, a new start-up will be required to submit their personal financial statements, personal tax returns, a business plan and details of equipment they wish to lease. Once submitted, the information is reviewed and a business should be able to obtain a quote and a decision in principle soon after.

There are several types of lease agreement, which allow a new company to acquire the assets they need to run their business without upfront capital outlay. What leasing does is enable the equipment to be paid for over a fixed period of time – typically two to five years through a series of contractual, tax deductible payments.

Leasing is great for new start-ups as it can help improve cash flow by preserving their working capital. This leaves funds available to reinvest elsewhere in the business or to cover unexpected costs that may arise. Many businesses also find leasing advantageous from a budgeting standpoint as switching from outright purchase to a lease agreement changes how the equipment is accounted for.

Leasing offers considerable tax benefits for new businesses too. Lease ‘rental’ payments are an allowable business expense that can be set against profit – thereby potentially reducing your tax bill. Other methods of equipment acquisition, such as outright purchase, do not have the same level of tax benefit.

For more advice on leasing and selecting a reputable leasing partner, download your free Essential Guide to Leasing for Business or call us on Tel: 01494 611456 for practical tailored advice.

 

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Everything You Need To Know About The History Of Equipment Leasing

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Equipment Leasing is not a recent invention.  Indeed, historians and economists believe that the first equipment leasing transactions took place in ancient Sumer from c. 2000 BC onwards.

The Sumerians were the first to use a place value numeral system and create multiplication tables. Sumerian writing is also the oldest known example of writing. They used triangular or wedge-shaped reeds to write on moist clay and the clay tablets found in the Sumerian city of Ur contain information about the lease of agricultural implements, land, water sources, cattle and other animals.

More about equipment leasing

Historians have also argued that Aristotle referred to the idea of ​​leasing in a treatise saying “Wealth is in use, not ownership,” written around 350 BC.

In more modern times – in the 1880s – the Bell telephone company introduced the concept of leasing instead of selling telephones, a decision that proved instrumental in the company’s success. But it was not until 1952 that the first industry association was formed; ‘The United States Leasing Company”. In the early 60’s American business practices had spread across the ocean to Europe. The first European leasing company – “Deutsche Leasing GMBH” appeared in 1962 in Dusseldorf. And the mid-60’s leasing transactions in the U.S. already accounted for 1 billion dollars.

In Western Europe the first financial leasing companies emerged in the late 50’s – early 60’s. In England, the “Mercantile Leasing Corporation” was formed in 1960 and following changes to tax legislation and the clarification of the legal status of leasing contracts, the number of leasing agreements began to quickly grow.

WestWon’s leasing heritage dates back to to 1976 with the acquisition of Power Leasing Limited, one of the first leasing intermediaries to incorporate in the UK.

Equipment leasing today

Today, in the 21st century, leasing is widely recognised as one of the most effective ways to purchase costly plant and equipment and to upgrade existing capital assets.  According to the UK Finance and Leasing Association FLA, £21.5 billion of finance was provided to businesses and the public sector, representing around 28% of all fixed capital investment (excluding real property and own-account software) in the UK last year.

As one of the UK’s leading leasing companies WestWon specialises in IT leasing, office furniture and fit out leasing and leasing for many other sectors and public organisations.

The Sumerians certainly knew a good idea when they saw one. Make sure your business takes advantage too! For more information about equipment leasing deals, you can download the essential guide to leasing – Finance Your Business Plans – or call WestWon on Tel: 01494 611 456.

Top 5 Things To Look For In An IT Support Provider

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A good IT support provider is a company that is able to listen to and understand your businesses needs. It is also vital to partner with a company that you will feel comfortable working with on a regular basis. With a large increase in the number of IT companies to choose from, it can make the selection process much more problematic. WestWon Leasing IT partner, Tegen, shares its perspective on how to go about finding the right IT partner and suggests you consider the following 5 points…

How To Find The Right IT Partner

1. Take References

These provide a different point of view and therefore give you something to compare your viewpoints with – they may give also you a glimpse into a company’s work ethics and ‘habits’. This is invaluable information from someone who has already had experience with them.

2. Look at partners

The easiest and quickest way to check potential partners’ credibility is to have a look at their website and search for any certificates, qualifications and/or industry accreditations that back-up their IT knowledge and skills. A company with an array of partners signifies that they have access to the latest solutions.  By forming strong partnerships with big brands, their service quality should excel.

3. Expect clear pricing

It is always good to know how you will be charged, amounts may vary depending on the service that is being provided. Remember to always check what is included in the cost to avoid any hidden or extra charges, and also what IT lease finance options are available.

4. Look for competency proof  

Ask potential suppliers to provide their service level agreements defining response times and resolution targets. Or alternatively, why not personally test the service out yourself. An IT partner who keeps you on hold, or where you have to go through a variety of stages on the phone before you are physically able to speak with a member of the Service Desk team is probably not a partner you want to work with.

5. Book a meeting  

Companies that recruit the best staff will usually be able to deliver the best services. People do business with people, so look out for company/individual awards that may represent a good work ethic where employees are valued by the company.

For more information about IT support, and to see how Tegen could benefit YOUR business see www.tegen.co.uk

Leasing Cements Its Place In The Construction Sector

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The construction and engineering industries are highly competitive, so it is important to stay ahead of the game. Leasing can help you obtain the equipment your business requires to ensure you can keep pace with the latest technology. Investing in new plant equipment and machinery can be a huge outlay, but leasing offers an advantageous alternative for the construction sector to buying with highly competitive interest rates. Indeed, with banks reducing the amount of overdrafts and loans available to businesses, leasing and asset finance is increasingly being considered as the best and most tax efficient way to acquire new equipment or assets for the sector.

With a lease agreement, the asset you require is yours to use straightaway, but you pay for it in installments over a fixed period of time, which helps you spread the cost over the life of the equipment. You can also upgrade or expand your resources easily, as and when the need arises.

Furthermore, with leasing you have a fixed interest rate. This protects you against interest rate rises and enables you to plan your budget effectively. And as inflation rises, because your payments are fixed, the cost of the equipment reduces in real terms.

A wide range of equipment, from milling machines and welding equipment to portacabins and cement mixers, can be leased. Some of the types of equipment that can be leased include:

  • Welding equipment
  • Vehicles (e.g. cement trucks and tractors)
  • Bulldozers
  • Plant equipment
  • Portacabins
  • CNC machining centres
  • Surveying equipment
  • Cranes
  • Diggers
  • Drills
  • Lathes
  • Generators
  • IT hardware and software
  • CAD software

WestWon Limited has a wealth of experience in providing asset finance solutions for the construction and engineering sectors. For more information, download your free Essential Guide covering Construction and Engineering Equipment Leasing for Business. Or call Tel: 01494 611 456 for more information and an instant quote for the equipment you require.

 

 

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Technology Investment Sets Leading Leasing Companies Apart

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The second annual review of the UK asset finance brokers’ and independent lessors’ industry, authored by Asset Finance International and sponsored by Nostrum Group, reveals that UK asset finance brokers are experiencing a surge of new business demand in 2014 and this is coupled with a greater commitment to the benefits of investing in technology.

The soon-to-be-published UK Asset Finance Brokers & Lessors Review 2014  includes a unique host of interviews with broker practitioners as well as industry specialists and senior trade association staff.

It provides a fascinating comprehensive and forward-looking assessment of the market, its current and future drivers and key industry issues. As before, it has been compiled with the assistance and support of the National Association of Commercial Finance Brokers (NACFB), the British Vehicle Rental and Leasing Association (BVRLA) and individual brokers and funders.

Investment in leasing technology

The review reports a surge in interest and investment in technology. Although investing in technology has steadily grown to be an integral component of a broker’s business in recent years – most UK brokers now regard investment in updating technology as vital to efficiency and maintaining a competitive advantage.

Many funders are looking at introducing or improving proposal systems, particularly in the broker space where speed of service is critical. As one senior broker stresses: “A key area for technology has to be in terms of speeding up the time it takes from enquiry to getting a deal agreed. The sooner you can take a deal out of the market the better.”

Another adds: “IT in hand and use of cloud technology for back-up is business critical. As long as IT infrastructure, e.g. fibre optic broadband, across the UK is robust, this will be sufficient for many brokers.”

Another broker told Asset Finance International that investment in IT has been necessary to suit the business set-up, and has reaped rewards: “We have invested heavily in IT over the last five years (£90k) and developed our own systems with the help of our own IT consultants. We have a remote home-based sales force and this investment has allowed them to work faster and smarter with minimal downtime, which in turn has allowed them to do more front-line selling!”

WestWon leasing technology

WestWon has long been at the cutting-edge of technology investment in the leasing sector with the development of state-of-the art web-based technology for its online proposal system. It has also created the highly-successful WestWon Parent Portal for school parental donation schemes for iPads and tablets.

WestWon CEO Jeremy Hall comments, “Just a few years ago, finance and leasing was largely-conducted face-to-face and by phone. Today, these channels of communication remain an essential part of our client services. But we are also very much a technology-driven operation with a state-of-the-art quotation system, which allows us, our clients and our business partners to obtain instant rates for any type of equipment based on their specific requirements and business parameters.”

“Our purpose built lease administration system has been continuously developed over the years and is, without doubt, one of the most advanced client-based asset finance CRM systems in the UK.  This powerful tool lies at the very heart of what we do, underpinning our success to date and future plans for growth, and offering  a smooth and seamless transition from initial quote to final funding for our many clients. We also lay claim to offering one of the industry’s most user-friendly websites at www.westwon.co.uk .”

For more information call WestWon on Tel: 01494 611 456

Leading Heating Ventilation & Air Conditioning Company Partners With WestWon Leasing

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London-based Heating Ventilation & Air Conditioning company Macair has teamed up with WestWon to provide attractive lease finance options for customers that need to upgrade their current systems before 2015 due to industry regulations. As a result, Macair can now offer instant lease quotes for all new air conditioning installations and upgrades, helping customers to acquire the new systems they need before the coming deadline.

Rob McConachie from Macair commented, “Macair sees our relationship with WestWon as a very positive move for our business and for our customers. We are excited to be able to offer highly attractive air conditioning leasing options backed by the expertise and service of a leading leasing company with in-depth experience in our sector.”

According to McConachie, the timing of the tie-up between Macair and WestWon is significant. The Ozone Regulation came into force in 2000 and it has already banned the use of ozone depleting HCFC refrigerants such as R22 in new systems. R22 remains a very common refrigerant in existing systems, but its continued use will be banned completely by 2015.

McConachie continues, “As a result of The Ozone Regulation, which affects all users of R22 and other HCFC systems, we believe that many companies will find themselves having to bear the cost of new air conditioning systems at a time when their budgets are already stretched. Suitable leasing deals should now be quick and easy for us to arrange and will help these businesses to spread the cost of a new system over its useful life, without impacting their cash flow and other lines of credit.”

According to WestWon’s Sales Director Andy McCready, “We are delighted to be working in partnership with Macair and believe that together we can offer heating ventilation and air conditioning customers highly attractive and, in many cases, tax-efficient leasing options to help them acquire the systems they need in the run up to 2015 and beyond.”

WestWon Leasing Partner Benefits

Working in partnership with WestWon enables resellers such as Macair to offer a range of flexible, tailored finance solutions so that customers can invest in the systems they need right away, and crucially, upgrade more easily in future to comply with new regulations.

WestWon provides a range of support options for reseller partners, who wish to offer their customers a finance option, including

  • Instant quotes and highly competitive rates via the WestWon Partner Portal
  • Dedicated WestWon Account Manager to help you grow your business
  •  Branded finance portals for authorised WestWon partners
  •  Finance partner logo and plaque
  • Sales training and marketing support

 

For more information, contact WestWon on Tel: 01494 611 456 or email [email protected] or see http://oldwestwon.wpengine.com/home-page/resellers/

Questions You Should Ask About Leasing IT And Computer Leasing

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Harnessing the latest IT and computer technology is key to enabling business advantages such as fully integrated mobile working. Given the speed at which technology changes, and the onus on companies to keep up with the competition in terms of IT infrastructure efficiency, IT and computer leasing has much to recommend it and is now one of the most popular means of financing technology investments.

However, if you are a business thinking about leasing equipment, you should be prepared to do your homework in order to get the right IT and computer leasing deal for your circumstances.

Questions To Ask About IT & Computer Leasing

  1. With a capital or finance lease, you select the equipment you require and the finance company arranges the finance for it. You make a series of lease rental payments over time, which gives you use of the asset for the duration of the lease and at the end of the lease, you will normally have the option to acquire the asset at an agreed price or return it to the leasing company.
  2. With an operating lease, the equipment is considered a monthly operating expense rather than a depreciating asset, making ‘off-balance sheet’ funding possible.
  3. How long is the lease for? Usually, leases for computer equipment run over 24 to 36 months. The longer your lease, the lower your monthly payments–but you’re also likely to pay more over time with a longer lease.
  4. Does the equipment have to be insured? Some leasing companies require you to insure the leased equipment. If you don’t, fees may be added to your monthly payment to cover insurance.
  5. Can you include software and maintenance services as part of your lease agreement?
  6. Can I add to the lease? Most leasing companies don’t mind if you add equipment to an existing lease. Your lease payment will be recalculated accordingly; lease terms don’t usually change.
  7. Can I terminate the lease early? What if you no longer need the equipment you’re leasing or you want to upgrade to newer technology sooner than you expected? Find out in advance if you can pay off your lease early, and if there’s a prepayment penalty (and if so, how much?).

If you require IT equipment such as computer hardware, software, servers, laptops, routers and cabling for your new company or company expansion, leasing may well be a good option. After all, you wouldn’t pay your employees their wages for 3 years upfront, so why tie up a large amount of cash on computer equipment for them to use – especially when you could earmark that money to establish or grow your business?

For more information about your IT leasing options call WestWon on Tel: 01494 611 456. You can also download Financing Your Business Plans – Guide To leasing

What Does The March 2014 Budget Mean For Business?

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As always when a new budget is unveiled, businesses pay close attention to see how they will benefit from the changes. At a time when the UK economy has started to turn the corner, many were hoping for further stimulus in the budget to cement the move into positive territory. So what Does The March 2014 Budget Mean For Business?

Key points for business in the March 2014 budget

• Doubling the corporate investment allowance to £500,000, to the end of 2015, at a cost of £2bn in the short-term;

• A £7bn package to cut energy bills for British manufacturers, including capping the carbon price floor from 2016/17 until the end of the decade;

• Doubling the UK Export Finance loan scheme to £3bn;

• Raising the rate of the research and development tax credit for loss-making small businesses;

• £500m of finance to small housebuilders and a further £150m to fund the Right to Build scheme:

• The introduction of tax credits for the social investment industry;

• The introduction of a new allowance to support billions of pounds of investment in difficult-to-drill oil fields in the North Sea.

Budget Commentators

Early commentators on the 19th March included John Longworth, director general of the British Chambers of Commerce who said, “Osborne’s focus on investment, exports, house-building and economic resilience passes the business test. By making a better business environment his top priority, the Chancellor has recognised that successful and confident companies are the key to transforming Britain’s growing economic recovery into one that is felt in homes and on high streets.”

Specifically he said about business measures, ““Consistent allowances help companies invest with confidence. Given that business investment remains far below its pre-recession level, it is fantastic that the Chancellor has responded to our call to extend the Annual Investment Allowance, and that he has doubled the amount covered to £500,000 from 2015. That will give many growing and medium-sized companies the confidence to push ahead with investments they’ve long wanted to get off the drawing board.”

Meanwhile John Cridland, director-general of the CBI, said the Budget would put “the wind in the sails of business investment.”

“The doubling and extension of the annual Investment Allowance, together with making the seed enterprise investment scheme permanent, will be a shot in the arm for many medium-sized businesses,” Mr Cridland continued.

For more information about funding for new corporate capital investements, contact WestWon on Tel: 01494 611 456.

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