Leasing BIM Software What is BIM Software? BIM software has taken the market by storm over the past two years and it is fantastic to see it benefiting a range of professional firms. But what is BMI, what are the benefits and how can WestWon help with implementing this software into your business? Firstly, BIM […]
With an ever growing pressure on cash flow and bank lending figures still falling, equipment leasing is becoming an increasingly important way for businesses of all sizes in a variety of industries to finance the new technology and equipment they require.
With highly competitive interest rates and flexible agreements, there is no doubt that leasing can offer an advantageous alternative to buying as many companies have discovered.
A wide range of equipment, from computers and iPads to furniture and recycling equipment, can and is being leased by businesses across the UK. In fact, almost any type of tangible equipment can be considered for leasing along with maintenance agreements and software.
For more advice on leasing equipment for your business, download your free Essential Guide to Leasing for Business.
In recent times business owners have sometimes tended to put investment in plant and machinery on the back burner because of economic instability.
It is in response to this that the Chancellor announced in the March 2014 Budget that there would be a temporary increase in the AIA limit will from £250,000 to £500,000 per annum with effect from 1 April 2014 for companies and from 6 April 2014 for sole traders/partnerships.
The objective behind this initiative is to enable more businesses to undertake capital investment with a significantly reduced level of financial exposure.
However, although no announcement has yet been made, it is expected that the AIA limit will revert to £25,000 per annum with effect from 1 January 2016. It may therefore be important that businesses planning to invest in the near future do so before 2016 whilst the higher temporary increase in the AIA limit is in place.
A key advantage of AIA is that it accelerates the timing of tax relief on qualifying capital expenditure. Depending on the timing of the investment, the temporary increase in AIA means that businesses may be able to bring forward the tax relief on more of their capital expenditure. However it is worth businesses considering advancing or deferring investments in order to maximise their AIA over the period it is available.
The AIA was first introduced in April 2008, providing 100% allowance on the first £50,000 investment in qualifying capital expenditure. The maximum allowance was doubled to £100,000 for qualifying expenditure incurred from 1 April 2010 (6 April 2010 for unincorporated businesses), and was reduced to £25,000 with effect from 1 April 2012 (06 April 2012 for unincorporated businesses). In the Chancellor’s 5 December 2012 Autumn Statement the AIA limit was temporarily increased from £25,000 to £250,000 for a two-year period from 1 January 2013 to 31 December 2014, before being temporarily raised to £500,000 in the recent budget.
• Office furniture and equipment
• Vans, lorries and equipment
• Building fixtures e.g. shop fittings, kitchen or bathroom fittings
• Business machines e.g. printing press,lathes, tooling machines
• Tractors, combine harvesters and other agricultural machinery
• Gaming machines, amusement rides
• Computer hardware and qualifying software
• Computerised/computer aided machinery including robotic machines
• Wind turbines and fibre optic cabling
• Driving school cars (adapted with dual control mechanisms)
• Land, buildings or cars
• Expenditure incurred in the accounting period when trade ceased permanently
• Existing plant and machinery
• Plant and machinery that was gifted
• Plant and machinery used by a person for leasing under a long funding lease and
subsequently brought into use by that person for the purpose of a qualifying activity
• Change in the nature/conduct of the trade carried out by a person other than the person incurring the capital expenditure.
Download the AIA 2104 Changes Fact Sheet for much more information about the AIA opportunity for business and answers to your AIA queries.
Alternatively call us now on Tel: 01494 611 456 to discuss AIA, your capital equipment requirements and leasing options.
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:
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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UK Finance & Leasing Association members report that new asset finance business grew by 9% to almost £1.7 billion in January 2014, compared with the same month last year.
Geraldine Kilkelly, head of research and chief economist at the FLA said that key asset sectors reported double digit growth – with commercial vehicle finance, business equipment finance and plant and machinery finance up by 25%, 21% and 13% respectively.
IT equipment finance reported modest new business growth of 3% compared with the same month in 2013.
Kilkelly added: “The positive start to 2014 follows exceptionally strong growth of more than a third in December 2013 and reflects growing confidence in the sector.
“The FLA’s Asset Finance Confidence Survey for Q1 2014 showed respondents expect asset finance new business to grow by up to 10% over the next 12 months.”
Jan 2014 | % change on Jan 13 | 3 mths to Jan 14 | % change on prev yr | 12 mths to Jan 14 | % change on prev yr | |
| Total FLA asset finance (£m) | 1,694 | +9 | 5,705 | +14 | 22,535 | +4 |
| Total leasing and hire purchase excluding high value (£m) | 1,672 | +7 | 5,603 | +13 | 21,843 | +4 |
| Data Extracts: | ||||||
| Plant and machinery finance (£m) | 343 | +13 | 1,069 | +9 | 4,513 | +5 |
| Commercial vehicle finance (£m) | 420 | +25 | 1,504 | +38 | 5,285 | +11 |
| IT equipment finance (£m) | 68 | +3 | 412 | +13 | 1,544 | +14 |
| Business equipment finance (£m) | 159 | +21 | 493 | +12 | 1,961 | +3 |
| Car finance (£m) | 505 | -8 | 1,599 | +1 | 6,707 | -1 |
| Aircraft, ships and rolling stock finance (£m) | 6 | -62 | 115 | +42 | 297 | -40 |
For more information visit the fla.org.uk
For more information about leasing equipment, machinery, IT resources or office furniture and fit out leasing please call WestWon on Tel: 01494 611 456.
A major cost benefit of leasing is that it allows businesses to spread the cost of new equipment over its useful life. Payments for equipment finance can be made on a monthly, quarterly or even annual basis over a number of years, typically 2-5 years. But how much does it actually cost?
Well, it is now easier than ever to compare lease versus buy costs using WestWon’s instant online leasing calculator.
If you know how much the equipment you require costs, you can calculate the rental payments over your preferred rental period within seconds. Simply enter the capital cost and your chosen lease rental term, and hit the calculate button for an immediate answer.
You can also have a copy of the quote emailed to you or another person for easy reference.
Leasing versus buying? It’s certainly food for thought and so much easier to decide when you have the figures to hand. For more information about any aspect of leasing, please contact WestWon on Tel: 01494 611 456.
You can also download Financing Your Business Plans – a guide to equipment leasing.
Figures released at the end of 2013 by the Finance & Leasing Association (FLA) show that new business provided to fund investment in construction equipment grew in October by 41% (to £134 million), and by 13% over the last twelve months (to £1.2 billion).
It was also a good month for the commercial vehicle and IT equipment finance sectors, with double digit growth in new business of 13% and 12% respectively.
Overall, the asset finance market reported growth of 4% to £1.9 billion in October for new business deals of up to £20 million. This market has grown each month since April 2013, with new business up in the first ten months of the year by 2% to almost £17.7 billion compared with the same period in 2012.
Commenting, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA said:
“The asset finance industry is in a unique position to support businesses as the recovery takes hold. It funds investment in the key equipment that businesses need if they are to expand to meet stronger domestic demand.
“The FLA’s Q4 2013 Asset Finance Confidence Survey suggests that the industry’s senior executives are cautiously optimistic about economic prospects and market conditions over the next year, with a majority expecting growth of up to 10% in each of the main channels for new business.”
Oct 2013 | % change on Oct 2012 | 3 months to Oct 2013 | % change on prev. year | 12 months to Oct 2013 | % change on prev. year | |
| Total FLA asset finance (£m) | 2,137 | +11 | 5,687 | +3 | 21,667 | -2 |
| Total leasing and hire purchase excluding high value (£m) | 1,926 | +4 | 5,372 | +3 | 21,053 | 0 |
| Data Extracts: | ||||||
| Plant and machinery finance (£m)Of which: Construction equipment finance (£m) | 398 134 | +14 +41 | 1,158 365 | +10 +48% | 4,416 1,209 | +3 +13 |
| Commercial vehicle finance (£m) | 474 | +13 | 1,309 | +10 | 4,795 | +2 |
| IT equipment finance (£m) | 112 | +12 | 338 | +11 | 1,495 | +9 |
| Business equipment finance (£m) | 150 | -3 | 439 | -4 | 1,860 | -7 |
| Car finance (£m) | 627 | -4 | 1,618 | -2 | 6,676 | +1 |
| Aircraft, ships and rolling stock finance (£m) | 3 | -96 | 35 | -83 | 264 | -50 |
For more information see the FLA website. You can also download the WestWon Guide To Equipment Leasing here.
WestWon has seen extremely positive trends in leasing demand over the past few months and this experience is born out by figures released on 7th February 2014 by the Finance & Leasing Association (FLA) showing that asset finance new business grew by 34% in December 2013 to £2.2 billion, the strongest monthly rate of growth for almost 6 years.
The full year figures for 2013 show that new business for asset finance deals of up to £20 million grew by 4%, making it the fourth consecutive year of growth in the sector. There were positive figures across the market, with growth of 14% in IT equipment finance and 9% in commercial vehicle finance, compared with 2012. Modest growth was also reported in business car finance, plant and machinery finance, and business equipment finance with increases of 1%, 4% and 1% respectively.
Commenting, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA said:
“The asset finance market reported its highest level of new business for three years in December, suggesting the long-awaited recovery in business investment may well have begun.
“The recovery in the UK economy so far has been driven by the services sector and supported by almost £15 billion of asset finance provided to businesses in that sector last year.”
In 2013 FLA members provided £84.7 billion of new finance to UK businesses and households. £22.4 billion of finance was provided to businesses and the public sector, representing around 29% of all fixed capital investment (excluding real property and own-account software) in the UK last year.
For more information see www.fla.org.uk
To discuss leasing options and get an instant quote for equipment, machinery, furniture and fit outs,, call WestWon on Tel: 01494 611 456 or email [email protected]
Leasing now helps to fund 27% of all fixed capital investments in the UK. So it’s hardly surprising that more and more resellers are offering their customers a lease v purchase option.
Even if your chosen supplier doesn’t already offer leasing for capital equipment, you can ask them to contact a leasing company such as WestWon. Or if you prefer contact us directly to discuss a highly competitive leasing deal.
Why Do Many Resellers Already Offer Customers A Leasing Option?
Simply because it helps their customers and there is no reason not too from a supplier standpoint as they still get paid for their goods andor services upfront – but by the leasing company rather than the customer.
Leasing enables customers to:
Download the FREE ESSENTIAL GUIDE TO LEASING for more information.
WestWon provides a range of support options for resellers who wish to offer their customers a finance option. And if you haven’t already chosen your supplier, we can also recommend suppliers that can meet both your product and finance needs.
Offering a great leasing deal has benefits for both suppliers and customers. For more information about the type of leasing deals you can consider (or offer, if you are a supplier) simply email [email protected] or Tel: 01494 611 456. We’d love to help.
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