Leasing Helps Buckinghamshire Businesses Boom

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Sometimes referred to as the entrepreneurial heart of Britain, Buckinghamshire boasts a high rate of start-up enterprises. Many of which are turning to leasing to help finance their plans without compromising cash flow, according to leading finance company WestWon.

Situated only 45 mins from London and Heathrow Airport, Buckinghamshire provides the perfect location for globally focused businesses with its excellent motorway links and an accelerated deployment programme of superfast broadband. Aylesbury, High Wycombe and Milton Keynes are particularly thriving. In High Wycombe, for example, there has been an increase in retailers flocking to open in the Eden Centre (e.g. Poundland, Anytime Fitness gym and shoe retailer Deichmann). John Lewis has also seen a boom in business since it revamped its High Wycombe store.

Indeed, the entire county has seen a significant fall in unemployment figures. In the last year, the number of people unemployed in the region has fallen by 32.6% – making it the third lowest among council areas and LEPs.

Cash flow, however, remains a concern among the local business community. This is where leasing is offering companies, particularly SMEs, a flexible and tax efficient solution. With highly competitive interest rates and agreements, there is no doubt that leasing is an advantageous alternative to buying new equipment and assets. What is more, almost any type of equipment can be considered for leasing, from IT equipment and office furniture to manufacturing equipment and medical technology.

Leasing enables the cost of equipment to be spread over a fixed period of time – typically two to five years through a series of contractual, tax deductible payments. This leaves funds available to reinvest elsewhere in the business or to cover unexpected costs that may arise. In addition, leasing offers the flexibility to acquire the latest equipment a business requires straight away or quickly respond to an opportunity in the market. Businesses can upgrade or expand their resources easily, as and when the need arises.

As a well-established and highly respected leasing company, WestWon Limited has a strong presence in Buckinghamshire and has recently successfully arranged more than 70 Buckinghamshire leasing deals for a variety of businesses in the area. With nearly 400 leasing partners and suppliers across the county – including 32 leasing suppliers in Aylesbury, over 40 leasing suppliers in Beaconsfield and Marlow, and over 200 leasing suppliers in High Wycombe and Milton Keynes in as well as a regional presence in Aylesbury – WestWon offers businesses a tailored local service as well as highly competitive rates. Westwon also offers leasing and parental donation solutions for iPads and tablets in the classroom for 368 schools in the county of Buckinghamshire.

For more information and advice on leasing options in Buckinghamshire, call us now on Tel: 01494 611 456 or download your Free Essential Guide to Leasing for Business.

Why Has My Equipment Leasing Company Turned Me Down For Credit?

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If you are an SME or start up business that needs to find smart ways of financing your business plans, you may well be hoping to set up a lease agreement to fund the acquisition of essential equipment. Or perhaps leasing to fit out your office or upgrade your IT systems.

So what can you do if you find out you have been turned down for leasing by a particular leasing company?

The first thing to do is find out why.  Leasing companies are under no obligation to provide an explanation as to why a leasing application has been refused, and they made refuse to do so for commercial reasons. Reasons why include:

  • They are fully committed, i.e. they have some leases with you already and do not want to extend the facility
  • You have missed some payments with them
  • You have not been trading long enough
  • Your accounts are showing a downward trend
  • Poor liquidity on your accounts
  • Accounts not filed on time
  • They do not ‘like’ the sector – retail, construction and recruitment companies inparticular suffered due to this in the recent recession
  • They do not ‘like’ the equipment – photocopiers, telecommunication equipment or construction equipment
  • The supplier is not strong enough
  • Your credit rating is poor
  • You have bankrupt companies against your name
  • Your location
  • The amount to be financed is too high compared to the company balance sheet
  • And many more reasons…
Next steps if turned down for credit by a leasing company

Sometimes, if you have been turned down for credit, you can appeal the decision and/or provide more information. More often than not, the finance company will stick to its original decision: while a Credit Manager does not get fired for rejecting your credit application, he or she may get in trouble for an acceptance that goes wrong!

Try, however,  to find out what the key reason(s) are. They may be simple to fix. For example, if the finance company is fully committed you can simply approach another leasing company. If the leasing company does not like your chosen supplier, you can, of course, change the supplier.  Should your accounts show a downward trend it may be that you can offer management accounts and bank statements that indicate a recent improvement?  If you have not been trading long enough, are you in a position to offer a personal guarantee, or maybe provide a larger deposit?

It is always better to provide as much data as you can. Credit analysts have to look through many deals every day and they tend to make decisions quickly, especially where there is limited information.  A well written proposal will make your credit application stand out.

This is where your leasing broker comes in. A good leasing company can package up information in a way that the funder finds most acceptable.  Where the job of finding a credit facility falls on the shoulders of the supplier, especially in sectors such as photocopiers, you may find that they do not have the technical expertise to package a lease deal up and send it to a leasing company.

So in summary, if you find yourself turned down for leasing…

  1. If possible, find out why you have been declined
  2. Provide as much positive information as you can
  3. Change your proposal to make it more interesting
  4. Contact  another leasing company

For more information about obtaining a leasing deal please contact WestWon on Tel: 01494 611 456. Alternatively, you can download our free Guide To Leasing.

2014 Changes To The Annual Investment Allowance For Capital Equipment Could Benefit Your Business

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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.

 

Window of opportunity for businesses to acquire capital equipment

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.

 

Benefit of AIA  for business

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.

 

More about AIA

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.

 

Qualifying expenditure covers most assets purchased for use by businesses

• 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)

 

The following items of capital expenditure do not qualify.

• 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 changes 2014 Fact Sheet

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.

 

Choose WestWon As Your Office Leasing Partner

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Leasing allows your customers to acquire the office furniture and fit out services they need now … and pay for them over time.

And, of course, your business receives full payment straight away.

Why choose WestWon as your Office Leasing Partner….

  1. We SPECIALISE in the Office Furniture and Fit Out sector – download our DREAM OFFICE furniture brochure for more information. Or call Tel: 01494 611 456 to request a hard copy.
  2. We INVEST in generating business.  We consistently rank in Google searches for office furniture and fit out leasing.  If customers haven’t found a supplier yet, we pass leads to our leasing partners – businesses like yours!
  3. We fully ADMINISTER leasing deals on your behalf – from producing great rate instant quotes to paying out your invoices fast.
  4. We INNOVATE so you can be first on board with exciting new concepts such as our Online Furniture Leasing Shop.
  5. Many more benefits – just ask!

Call us now on Tel: 01494 611 456. We’d love to hear from you.

 

More about WestWon

WestWon is a leading furniture leasing company, providing asset-based finance for all types of organisations throughout the UK and N. Ireland.

Using the latest online technology our goal is to help our partners to grow their businesses through the provision of leasing services.

As a member of the NACFB and FLA, WestWon we fully endorse the principles of transparency in all our transactions, adherence to industry best practices and service excellence.

 

Business Leasing Grows As Bank Lending Dips Again in 2014

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Lending to businesses is down again according to the latest Bank of England report which indicates that lending to companies of all sizes fallen in the 3 months to February 2014, despite continuing pressure on banks to boost growth by investing more.  Net lending to UK firms fell by £500million over the quarter despite a small increase in February.

In total, lending was down by 2.1% in February year on year. Economists pointed to firms paying down debt and tapping into alternative sources of funding but expect businesses to take advantage increasingly of improving credit conditions to fund growth.

Small business groups raised concerns about the latest findings, while banks put the negative lending figures down to firms using large cash reserves to pay down their debts.

The Bank’s report said survey evidence indicates that pricing on loans to small and medium-sized businesses has remained “broadly unchanged” in recent months.

John Allan, national chairman of the Federation of Small Businesses (FSB), said this ” underlines the ongoing challenges small businesses face in accessing finance to meet their growth ambitions”.

He continued: “As the economy continues to gain momentum, ensuring small firms have access to finance is critical.”

At the same time, the Finance & Leasing Association (FLA) has pointed to the fact that new asset finance business has grown at the beginning of the year by 9% to almost £1.7 billion over the previous year. Expectations of new business growth in 2014 are particularly bullish. Nearly three-quarters of FLA members surveyed anticipated growth in new business this year, up from 54% in the previous survey last June.

Jeremy Hall, CEO of leading asset finance and leasing company WestWon, commented, “Asset finance continues to provide a lifeline for many businesses that wish to invest in business growth. As well as the tax, budgeting and flexibility advantages offered by leasing, businesses are also able to benefit from rapid decisions in principle and quick access to the funding they need compared to the typical process of securing a bank loan.”

The Bank of England quarterly publication presents the Bank’s assessment of the latest trends in lending to the UK economy. This report draws mainly on long-established official data sources, such as the existing monetary and financial statistics collected by the Bank that cover all monetary financial institutions, and other data collections established since the start of the financial crisis.

For more information about leasing for business please call WestWon on Tel: 01494 611 456 or download the essential guide to leasing – Financing Your Business Plans.

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

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