Best Leasing Deals And What The ‘Cheapest’ Leasing Rates Really Mean

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When browsing for leasing deals, you may find leasing companies advertising the ‘cheapest leasing deal’ or ‘cheap lease rates’.  But what do those Internet ads really mean?  it is worth bearing in mind that the headline in the advert may not always paint the full picture.

There certainly are good leasing deals to be had, particularly for quality covenants and assets. During 2012 WestWon has seen many new banks entering the leasing sector along with a clear change in underwriting policies in that  banks are now lending to companies they would have rejected for credit a few years ago. The obvious impact of this is that the market price for leasing rates is reducing.

The cheapest rates we see start at just under 6% APR. You may well see these rates advertised at 3%, this is the flat rate.  Lombard (owned by Nat West) is one well known leasing company that offers competitive rates. Other high street banks also offer leasing and often some of the most competitive rates.

There are some fantastic manufacturer- subsidised deals out there for equipment, whether for a photocopier from Xerox, a computer from IBM or some specialist plant and machinery. Suppliers will often “blind discount” products to make the leasing deal look like it is interest free.

What is a good lease rate?

For the majority of businesses, lease rates start at around 8% APR and go upwards.  Rates depend on a number of factors such as:

  1. Strength of the covenant
  2. Type of equipment
  3. Deposit and term of the lease
  4. Other profit centres

Point four above is really important: leasing companies now make a lot of their profits from administration fees, yearly admin costs, insurance, upgrades, early settlements and selling equipment at the end of a lease. WestWon could easily offer an interest free agreement – or what looks like an interest free agreement – if we know there is a good resale value in the equipment.

Why do leasing companies charge documentation fees?

Like all companies, leasing companies have to make a profit. They provide a valuable service to UK companies by helping to fund assets and facilitate growth. Paying an interest rate – a fair market rate of say 8% – is often small in comparison to the value and return you get from having the beneficial ownership of the equipment you need without having to pay the full cost upfront.  And after all, it is not just leasing companies that charge documentation fees; for example, many high street banks charge a fee for setting up an overdraft facility.

How much is a leasing documentation fee? The documentation fee for a lease agreement can range from £75.00+VAT to £150.00+VAT.

So in summary, there are good deals to be found, but remember, don’t just look for the cheapest leasing rate, look at the overall cost of the lease with other items such as admin and insurance factored in.

For more information about the best  leasing deals and cheap lease rates, call WestWon on Tel: 01494 611 456

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/

Lease or Buy Waste Equipment and Recycling Machinery?

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These days nearly every company in the UK, from large corporation to SME, requires some form of waste management equipment and/or  recycling machinery be it a humble shredder to large scale compactors and balers. Efficient waste management can prove costly where buying new equipment is concerned. Equipment is also constantly being updated and may businesses understandably look to leasing as a solution that allows them to avoid both obsolescence and the need to tie up existing capital and lines of credit that could be used to safeguard cash flow or purchase other mission-critical equipment.

Should My Business Buy or Lease Waste and Recycling Equipment?

As with every business decision, there can be pros and cons, but, in general, companies find the following benefits of leasing persuasive:

  • Lease payments for waste and recycling equipment can be set against profit, thereby potentially reducing tax bills.
  • Flexibility and cash flow boost: you can obtain the waste equipment and technology you need without tying up available cash and lines of credit.
  • Your business can also get an instant Return on Investment as once you make a set initial payment, you can acquire and start using the asset immediately, while spreading payments over the useful life of the equipment.
  • Flexible repayments: lease payments for costly assets can be tailored to match seasonal cash flow. You can also choose a fixed interest rate, which protects against interest rate rises and enables you to plan your budget effectively.
What Waste and Recycling Equipment Can My Business Lease?
  • Cardboard baler leasing
  • Leased recycling machinery
  • Finance for plastic recycling equipment
  • Horizontal baler leasing
  • Finance for vertical balers
  • Leases for semi-automatic balers
  • Finance for plastic compactors
  • Wood chip shredder leasing
  • Leasing for paper compactors and paper shredders
  • Asset finance for food waste disposal systems
  • Leasing glass crushers and rented drum crushers
  • Lift, tippers and dumper leasing
  • Magnetic separator leasing
  • Power, light and heat equipment leasing

WestWon is a leasing company that specialises in the waste equipment and recycling machinery asset finance and can quickly help you to calculate your best leasing options. For an instant lease finance quote, you can use the WestWon online lease calculator or simply call out leasing experts on Tel: 01494 611 456 for a rapid response to any queries you may have.

Leasing Helps SMEs Access Latest Technology And Other Business Equipment

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Asset-based finance is an ever more attractive way for SMEs to acquire the machinery and equipment they need to run their businesses and invest in up-to-date IT technology to keep their infrastructure working efficiently.  Leasing is also available to cover the cost of office refits, fit outs and refurbishments, which form an essential part of most companies’ business plans.

Leasing allows companies to:

  • Preserve their cash reserves and existing lines of credit
  • Align costs with income over time rather than making a large upfront payment
  • Avoid technology obsolescence and the problem of disposing of old equipment.

 

These leasing benefits are particularly important for SMEs and Start Up businesses too as they enables them to manage the acquisition of equipment and related services as a predictable monthly or quarterly expense rather than a capital cost, offering  clear advantages in terms and tax and budgeting. After all, no business pays three years’ salary for its staff in advance, so why pay for the equipment they use upfront rather than over its useful life.

Whether for new business start-up or an established SME trying to stay competitive, leasing can generally be arranged in a relatively short timescale subject to status, allowing businesses to acquire the equipment they need when they need it.

SMEs looking at their finance options can obtain an instant leasing quote online using the WestWon lease calculator to help with budget planning. You can also email us with any queries at [email protected] or call on Tel: 01494 611 456. We are here to help you grow your business.

WestWon also provides a series of Leasing Fact Sheets for businesses wishing to find out more about leasing for their particular sector – for example, public sector leasing, catering industry leasing and medical and scientific industry leasing as well as general topics such as ‘Leasing Questions Answered’. You can also download the free guide to leasing – Financing Your Business Plans.

Advantages Of Leasing A Lenovo Server

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At the beginning of 2014 China’s Lenovo, the world’s biggest PC maker, announced it was taking over over IBM’s low-end server business for a cool £1,4bn, encompassing IBM’s System x, BladeCenter and Flex System products.IBM has however retained its powerful mainframe and storage business and recently announced that it would invest more than $1bn in a new division based around its Watson supercomputer, and $1.2bn expanding its global cloud computing business.

Lenovo bought IBM’s PC business in 2005, featuring the ThinkPad range. It has since diversified into smartphones and tablets, and overtook Hewlett-Packard as the world’s top PC maker in 2012.

According to the Finance & Leasing Association, IT equipment finance reported year on year business growth of 14% from January 2013 – January 2014. Leasing IT and computer equipment is a trend that shows no sign of diminishing and for good reason. With the rapid pace of technology change, many businesses are asking themselves: “Why purchase hardware such as Lenovo servers and software when it risks becoming obsolete so quickly?”

5 Reasons To Lease Lenovo Servers

Leasing Servers improves cash flow – Leasing removes the need for major upfront capital investment and protects your cash flow and existing lines of credit.

Leasing servers is quicker to arrange – The process for securing a leasing decision in principle is generally less onerous and time-consuming than for securing a bank loan.  

Leasing Servers allows you to keep up to date with technology – Leasing is great if you require cutting-edge technology as it is easier to make on-going changes server capacity and to afford a more sophisticated solution than you might afford if you had to pay for everything upfront.

Leasing could possibly benefit your balance sheet – There can be tax advantages to leasing rather than purchasing IT and server equipment.

Leasing can solve server obsolescence issues – Leasing a server offer built-in protection against obsolescence and a safe way to dispose of old equipment.

For more information about your IT leasing options call WestWon on Tel: 01494 611 456. You can also download a leasing fact sheet about IT technology and server leasing: Asset Finance for IT equipment and projects


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

Should SMEs Lease Versus Buy Their Equipment, Furniture and Machinery?

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For companies in 2014 – and particularly for SMES – cash flow remains key to running a viable business. So when it comes to investing in new business assets, for example manufacturing equipment, kitchen and catering equipment,  office furniture and fit outs and refurbishments, IT infrastructure and computer hardware and software, you name it…, there is always a trade-off to be made.

Should you tie up existing capital and lines of credit to grow your business, or do you wait for better times, but risk losing competitive edge and profits? Or do you look at other options such as leasing…

Why Is Leasing Popular With SMES?

Leasing is a popular solution for SMEs looking to acquire fixed assets such as machinery and equipment.

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

Under a commercial agreement, the leasing company (the lessor) buys and owns the asset. The customer (or lessee) then hires use of the asset, paying rental over a fixed period. At the end of the contract, the customer usually has a choice of extending the lease, buying the asset or simply returning it.

Whether for specialist machinery, recycling equipment, photocopiers or any sector-specific investment, leasing offers the benefit of allowing you to spread the payment cost over the useful life of the asset.

5 Additional Benefits of Leasing v Buying Business Equipment
  1. You can update your equipment more easily in future. Technology changes rapidly and avoiding obsolescence is key to staying ahead. With leasing you can enhance or upgrade your equipment as the need arises.
  2. Lease finance agreements can be tailored to suit your particular business requirements and include whatever combination of business equipment and related services you require under one lease agreement for easier budgeting and administration.
  3. Lease agreements should be transparent so you can see exactly how much interest you are paying. They don’t have to be secured against private property, and agreements cannot be cancelled by the lender unless the company leasing the item falls behind on payments.
  4. Tailored agreements can be over an agreed period, usually 2 to 5 years, and repayments can be made monthly, quarterly or annually by direct debit or invoice, whichever is most convenient. Lease payments can even be tailored to match your seasonal cash flow – a bonus for many small businesses.
  5. Regular, monthly payments can qualify as a trading expense and are therefore tax deductible, making the acquisition of essential assets more cost-effective.

 

Is It Better to Lease Versus Buy New Equipment and Machinery?

Clearly every business should carefully assess their options in this respect and also the types of equipment leases available as well as the best leasing deals around as these can vary.

However in most cases there is a strong argument for making the lease versus purchase comparison before committing funds  either way. You can find out a lot more about the mechanics of leasing by downloading Financing Your Business Plans – the free WestWon guide to leasing.

If you know what equipment you require and how much it costs, you can also get an instant leasing quote online by using the WestWon equipment lease cost calculator. And, of course, you can always call our leasing helpline on Tel: 01494 611 456 and we’ll be happy to answer any queries you may have.

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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