UK Continues To Lead European Leasing Growth

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Hard on the heels of the FLA’s recent report stating that new asset finance business grew by 9% to almost £1.7 billion in January 2014, compared with the same month last year,  Richard Ryan, a Partner at Invigors EMEA, part of The Alta Group has recently painted a less rosy picture of the European leasing scene.

According to Ryan, after  shrinking slightly in 2012 in response to the eurozone crisis, GDP in the European Union (EU) was flat last year and is forecast to grow by a rather anaemic 1.5% in 2014 and 2.0% next year, according to the latest data from the European Commission.

And currently the outlook is further clouded by worries over potential deflation in the eurozone together with poor corporate earnings growth which, when combined with a strong euro, does not bode well for either investment or export-driven growth.

The European leasing industry has largely reflected this rather lacklustre performance to date. New businesses volumes for equipment and vehicle finance were flat in 2012 and appeared to have showed little growth last year. Real estate leasing fell by nearly a third in 2012, though this accounts for a relatively small share of the total.

While we wait for full year European figures to be published for 2013, it seems that some major countries have been particularly poor performers. New business shrank by 3.4% in France for the year while, in the first half of 2013, volumes fell by 13% in Italy and 17% in Spain. Even Germany, the economic powerhouse of Europe, has seen no growth in leasing for the past two years. It appears that overall equipment and vehicle leasing volumes in Europe have remained at least 15% below pre-crisis levels.

However Ryan continues to state that while the overall outlook may not appear particularly inspiring, there are however grounds for optimism. Not all countries have seen their local leasing sector perform poorly. Of the more mature markets, Denmark, Sweden and the UK have all seen significant growth, while some of the developing markets in Eastern Europe, which were badly hit by recession, are also recovering strongly.

Of the major countries, the UK has been a relatively strong performer. Data from the UK’s Finance & Leasing Association (FLA) showed that, after a slow recovery from recession in 2010 and 2011, growth in new business volumes accelerated to 4.1% in 2012 and remained at 3.4% last year. Based on GDP forecasts for 2014 ranging from 2.5% (Eurostat) to 3.4% (Bank of England) we would expect equivalent growth in the leasing market of 9-13%, numbers not seen since the heady days of 2006-7 though, in truth, new business growth in the UK has tended to undershoot this trend line recently.

More recent indicators suggest that the recovery is becoming more broadly based at a European level. The most recent Leaseurope/Invigors business confidence survey, undertaken in December last year, shows a sharp improvement in industry sentiment in terms of expectations for the first half of 2014.

Bullish expectations for growth

Expectations of new business growth are particularly bullish. Nearly three-quarters of those surveyed anticipated growth in new business this year, up from 54% in the previous survey last June. This is the biggest jump in sentiment since 2010. The proportion of respondents forecasting no change fell to 16% in December while the number predicting a fall in new business has halved to just 10%.

Those taking part in the survey also expect that this growth will be reflected in the bottom line. Over 60% anticipated that net profit in their organizations would increase over the next six months, an increase from just over 50% previously; while only 15% believed that net profit will be squeezed. Overall, nearly two-thirds of respondents felt more optimistic about the prospects for their business, nearly double the level recorded in the previous survey!

Looking at the latest figures available from Leaseurope, it appears that this optimism is not necessarily misplaced. The Leaseurope Index is a separate survey that tracks key performance indicators covering a sample of 17 European lessors on a quarterly basis. Unlike the confidence survey it is retrospective and tracks actual rather than expected performance. Total new business volumes reported by the sample of leasing companies increased by 13.7% in the Q4/2013 survey, the first significant increase in two years.

You can read Richard Ryan’s full article.  For more information about competitive UK leasing deals, conatct WestWon on Tel:01494 611 456.

 

Business Equipment Leasing In Northern Ireland

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As a nationwide leasing company covering Northern Ireland, WestWon was interested to find out more about nibusinessinfo.co.uk

This free service offered by Invest Northern Ireland, is the official online channel for business advice and guidance in Northern Ireland. It contains essential information, support and services for you and your business – whether you work for a large organisation or are on your way to starting up.

Amongst the useful content on the site is a section on the benefits of leasing. According to NI Business Info asset finance allows businesses to acquire the equipment and assets they need in order to operate that they may otherwise be unable to afford. It can also free up working capital for use in other areas of your business and save you from having to take out a large loan to buy equipment outright.

There are two main forms of asset finance:

  • Leasing – renting it over a period in return for fixed rental payments.
  • Hire purchase arrangements – an initial deposit is paid towards the cost of the asset and the balance is then paid in instalments over a period of time. At the end of the hire purchase period, you would make a final payment and gain ownership of the asset.

You should think about leasing or renting equipment that has high maintenance costs, can quickly become outdated, or is only used occasionally.

There are several advantages of leasing or renting equipment:

  • you don’t have to pay the full cost of the asset up front, so you don’t use up your cash or have to borrow money
  • you have access to a higher standard of equipment, which might be too expensive for you to buy outright
  • you pay for the asset over the fixed period of time that you use it, which helps you budget for the future
  • as interest rates on monthly rental costs are usually fixed, it is easier to forecast cashflow
  • you can spread the cost over a longer period of time and match payments to your income
  • the business can usually deduct the full cost of lease rentals from taxable income
  • if you have not bought the asset outright, you won’t have to worry about any overdraft or other loan taken out to finance the purchase being withdrawn at short notice, forcing early repayment

See more at: https://www.nibusinessinfo.co.uk/content/leasing-or-renting-business-equipment

For more information about leasing deals for Northern Irish businesses or to obtain a quote for equipment leasing, please contact WestWon on Tel: 01494 611 456

New Asset Finance Business Grows By 9% To Almost £1.7 Billion In January 2014

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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.

 

Download Free Guide To Equipment Leasing

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Paying upfront for equipment ties up vital working capital, especially when businesses are expanding. With bank lending figures still falling, it’s not surprising that many businesses are turning to leasing and would benefit from a free guide to leasing.

Asset Finance is now the third most common source of finance for businesses, after bank overdrafts and loans. It is also of growing importance in the public sector. In fact, organisations across every market sector are benefiting from leasing, from new start-up businesses to large established companies.

 

Financing Your Business Plans: The Essential Guide To Leasing

The WestWon Guide to Leasing has been written to help businesses of all sizes in every sector to get up to speed with leasing terminology and to provide a concise overview of the best leasing options.

DOWNLOAD THE GUIDE TO LEASING HERE

This essential guide contains the information that you need to know about the benefits of leasing, the process, the options available, the things to consider and questions to ask when choosing a leasing company.

For more tailored information on your business leasing options, please call WestWon on Tel: 01494 611 456

 

Benefits of Leasing V. Buying Equipment For Your Business

With highly competitive interest rates and agreements, there is no doubt that leasing can offer an advantageous alternative to buying.

Leasing protects your cash flow

Making monthly payments over the duration of a finance agreement allows you to spread the cost of your equipment over its useful life.

Leasing can be tax efficient

Regular, monthly payments can qualify as a  tax deductible trading expense, making the acquisition of essential assets more tax-efficient.

Leasing helps avoid obsolescence

Technology changes rapidly and avoiding obsolescence is a major concern for many. With leasing you can enhance or upgrade your equipment as the need arises.

Leasing can reduce administration

Lease finance agreements can be tailored to suit your particular business requirements and include whatever combination of business equipment and related services you require.

Leasing can protect bank lines

Our financing solutions have no effect on your other borrowing options, ensuring you can stay financially flexible.

 

 

How Much Does It Cost To Lease New Machinery And Equipment?

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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.

 

Leasing VOIP Telephony Equipment As Part Of Your Office Fit Out

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When WestWon moved to its new offices at the Old Rectory in Beaconsfield, Bucks, we undertook a major office fit out – everything from desks, chairs, partitions to boardroom furniture and flooring to laptops and AV equipment. Being a character building, the Old Rectory is full of charm … and also quirks, as we discovered when it came to fitting it out.

Naturally, as a leasing company, leasing the fit out was the obvious solution for us. And as part of our office refit we took the decision to install a new Voice Over IP (VOIP) telephone system – telephony equipment that uses the internet as opposed to a “normal” land line.

Leasing technology as well as furniture

Initially we were slightly dubious about the technology. Will it work? Will the service be secure and reliable? Will the sound quality be OK? Such doubts were unfounded.

Thus far, leasing our telephony has proved a sound business decision. The running costs are not just significantly lower, but the system also offers a number of key benefits.  One example is how well it integrates with our CRM system – simply ‘right click’ on any telephone number in the system and press dial and, within seconds, we’re having a conversation. It is also very easy to set up the system for use from home as long as you have a laptop and an Internet connection.

Integrated telephony leasing

Of course, WestWon has also helped many other companies, large and small, to secure lease finance for their office fit out including telephony systems. In our experience, many sales organisations also choose to install a PBX system on the wall to monitor activity – quite an expensive item and ideal for leasing.  And in general, at around £100 per CISCO handset together with the set up costs, telephony leasing certainly has its attractions for both established and new start up businesses.

For more information about leasing VOIP telephony or any other IT equipment, or indeed any aspect of a planned office move, refurbishment or fit out, please contact WestWon on Tel:01494 611 456.

Scientific and Medical Equipment Leasing Offers Greater Benefits for Patients and Organisations

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Technology continues to advance at a rapid pace, which is particularly evident in the scientific and medical fields. However, keeping up with science can be a drain on the finances for any organisation or medical practice. Scientific and Medical Equipment leasing allows surgeries, hospitals, dental practices, laboratories, pharmacies, opticians, universities and veterinary practices to easily upgrade technology and avoid equipment obsolescence. Indeed, one of the fastest growing and most popular ways for the sector to finance equipment and technology is through a lease agreement.

Benefits of Scientific and Medical equipment leasing

As well as the ability to frequently update specialist equipment without tying up available cash, a leasing scheme can offer 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.

Leasing offers the flexibility to acquire the latest technology required straight away to ensure equipment is up-to-date, reliable and accurate to provide the highest quality of care for patients and optimum results. It prevents having to delay the implementation of plans until sufficient funds become available, enabling new technology to be adopted instantly.

Most types of Scientific and Medical equipment can be leased

From a dentist’s chair or a hospital bed to an entire operating theatre, a wide range of specialist equipment can be leased as well as entire projects. Other lease options include furniture, computers, security systems and even maintenance agreements. You can choose any combination of equipment and technology from multiple suppliers for your lease agreement.

Some of the most common types of scientific and medical equipment that can be leased include:

  • diagnostic equipment
  • surgical instruments
  • decontamination equipment
  • hospital beds and furniture
  • imaging technology
  • pharmacy equipment
  • laboratory equipment
  • surgery fit outs
  • security systems

 

WestWon Limited has a wealth of experience in providing asset finance solutions for the scientific and medical sectors. For more information, download the WestWon Fact Sheet for Scientific Leasing. Tel: 0194 611456 for more information or an instant lease quote.

10 Things Companies Should Know About Leasing Waste Equipment and Recycling Machinery

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Efficient waste management and recycling practices are under the spotlight as never before – both for economic and ‘green’ reasons. Many businesses need new waste equipment – such as balers, recycling machinery, compactors and shredders – but are reluctant to tie up existing capital or lines of credit. That’s why leasing is often a better option than buying. After all, asset finance now helps to fund 27% of all fixed-capital investment in the UK.

Leasing Facts and Options For Waste Equipment and Recycling Machinery

The market for waste compaction equipment has grown significantly over the last ten years and WestWon is extremely active in waste compactor and baler leasing, paper shredder and compactor finance. Here are 10 interesting facts about leasing waste equipment.

  1. Over 50% of companies who buy a waste baler/compactor will rent or lease it
  2. When financed, most balers and compactors agreements are over five years
  3. Suppliers often focus on a weekly cost of ownership
  4. The supplier will normally offer a maintenance agreement with the equipment
  5. There are few cases of customers whom have been mis-sold equipment. We have seen cases of suppliers “up selling,” i.e. selling a machine that is too powerful for the use it is intended
  6. Some suppliers will install equipment for no charge and then remove and sell the waste for a profit
  7. The market is fragmented, with highly professional and successful suppliers at one end of the spectrum and small skip hire/waste disposal companies at the other
  8. There are big differences in the quality of waste equipment. I.e. the thickness of the metal, reliability of the parts etc. We advise all customers to take good care when choosing equipment, and a supplier
  9. Most end user customers who lease or buy a compactor or baler, will ultimately save money via reducing their cost of waste disposal
  10. Waste equipment can range from £1,000 in value to many millions

For more essential information about asset-based finance for waste equipment, download the WestWon Guide to Leasing or call us on Tel: 01494 611 456

Could Equipment Leasing Cater For Your Business Needs?

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Appliance and equipment leasing is providing sustenance for thousands of businesses in the hospitality and catering industry. From small start-up coffee shops to well-established restaurants and food manufacturers, more and more companies are discovering the ease and flexibility of leasing catering equipment.

If you need to urgently replace essential catering equipment such as an oven or fryer, leasing can offer a fast and efficient solution to keep your business going and avoid any loss of revenue. Arranging a lease is usually very straightforward. Once you have found the equipment you wish to lease, you will be able to obtain an instant quote and a decision in principle soon after.

Pay as you use with equipment leasing

Unlike buying, leasing means you can pay as you use. After an initial payment, you can start using 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. Plus, you have the ability to simply upgrade or expand equipment as and when the need arises, so you can always have the latest oven or coffee machine.

The lease itself can be tailored to suit your business. Agreements can be over an agreed period, for example two 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. You can also source equipment from multiple suppliers and can even include maintenance agreements.

Leasing provides businesses with an alternative new credit line separate from banks, which enables banking and overdraft lines to be kept free for any future cash flow issues or unexpected problems. And lease payments can be set against profit, thereby potentially reducing tax bills.

What can my catering business lease?

From a single item to an entire restaurant and kitchen fit out can be included in one lease agreement. Types of equipment that can be leased include:

  • Cooking equipment (e.g. commercial ovens, grills and microwaves)
  • Refrigeration units
  • Coffee machines
  • Food preparation equipment
  • Cold rooms
  • EPOS and cash registers
  • Food display equipment
  • Dishwashers
  • Laundry equipment
  • Vending machines
  • Furniture and counters

For more information on leasing catering equipment, download the WestWon Fact sheet for the Catering Industry.

Why Do Equipment Leasing Companies Ask Business Owners For A Personal Guarantee?

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Congratulations! You have just been offer a leasing deal, but the sting in the tail is that you have to provide a personal guarantee, often referred to as a “PG”

Some company owners just point blank refuse to sign a PG for a whole variety of reasons.  For example, in America, business leaders, company owners and entrepreneurs believe that it is generally acknowledged that they are taking a risk when running a business hence it is the job of a bank or leasing company to take a risk too.

Understanding leasing companies

However, a leasing company is actually paying you a compliment if they ask for a personal guarantee. They are saying they want to lend to you and, in effect,  just seeking a little bit more comfort.  We often see banks asking for personal guarantees from lifestyle companies where individuals take a lot of money in salary and dividends.

One of the key reasons for asking for a personal guarantee is that if a business owner defaults on the lease, he or she will be more motivated to work with the bank to sell the equipment and get the best price for it. The user of the equipment is often the best person to be involved in selling the equipment in question. With no guarantee, an owner could in theory just walk away leaving the bank more often than not with a loss.

Legal aspects of leasing and personal guarantees

Legally, a leasing company could take the equipment back and then under the personal guarantee ask for the difference in the settlement figure and the price they got for the equipment. In practice, if you work with the leasing company and even take out the lease rental in your own name, the leasing company will work with you.  WestWon has many years’ experience in the industry and in our opinion leasing companies generally just want to get their money back: they do not want the hassle of enforcing a guarantee. If you speak to the leasing company and help them, they will be sympathetic.

Lastly, banks ask for a personal guarantee as proof that the business owner really believes in the business. Their thought process is simple, if you know the business and have faith in it, what is the problem of offering a PG as the company will be able to make the repayments anyway.

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