How To Calculate the APR on a Leasing Deal?

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If you are considering leasing v buying your business equipment, the next step is usually to look at your available leasing options in some detail. At this stage, it is very helpful to know how to calculate the APR (Annual Percentage Rate) on a leasing deal.

How Much Interest Am I paying On My Leasing Deal?

In order to calculate the APR on a leasing agreement, you need to know:

  1. The capital value of the equipment
  2. The Term over which you wish to lease and lease profile
  3. The lease rental payment
Sample Lease Cost Calculation

Let’s look at a typical equipment leasing example:

  • The equipment you wish to acquire is a computer system with a Capital Cost of £10,000.00
  • The lease rental agreement is based on 36 monthly repayments with one month payable on delivery
  • The quoted lease rental payment is £320.00 per month

In this example, the total rental repayments come to £11,520.00, comprising of the Capital Cost of £10,000 plus total interest of £1,520.

Working out the Leasing Deal APR

The next step is to work out what the flat rate interest is on your deal. To do this you simply divide the total interest payable by the number of years. In our example:

  • Interest of £1,520.00 over three years equals £506.70 per year.
  • Divide this annual figure of £506.70 by the Capital Cost of your equipment; in this case £10,000. This gives you a flat interest rate of just over 5%.
  • The APR is roughly twice the flat rate, hence the APR in our  example is 10%

As a first step, why not try the WestWon lease calculator to work out a sample lease rental cost for your required business equipment, or call WestWon asset finance experts on Tel:01494 611 456 for more information.

Even The Office Kitchen Sink Can Be Leased For Business

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What can you lease for business? Did you know that organisations both large and small – well-established and even new start SMEs too – can lease almost any type of business equipment, hardware, software, office furniture and fit outs, not to mention moving premises and machinery? In fact, if you can name it, you can probably find a food lease option for it too … yes, including the staff room kitchen sink! You simply chose the equipment you need to grow your business and the leasing company – like WestWon leasing –  provides the asset funding.

5 Key benefits of leasing for business
  1. Lease payments can be set against profit, thereby potentially reducing tax bills.
  2. Flexibility and cash flow boost: you can obtain the business equipment and technology you need without tying up available cash and lines of credit.
  3. 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.
  4. Flexible repayments: lease payments 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.
  5. Avoidance of equipment obsolescence and easier upgrades in the future: increasingly vital as more and more businesses are becoming technology-driven.
Which Business Sectors Use Lease Finance?

Most if not all business sectors use asset-based finance as part of their financial planning. We regularly arrange lease finance agreements for organisations requiring:

 

WestWon is a leading UK leasing company completely independent of any supplier or manufacturer, you can choose any combination of equipment and technology you require for your lease agreement. WestWon is also happy to help recommend suppliers if you don’t have one in mind.

For more information about how leasing versus buying can work hard for your business, contact WestWon on Tel: 01494 611 456.

 

Can I Get Out Of A Business Computer Lease Agreement?

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You choose your supplier of computer equipment; you agree a price and then acquire the kit via a leasing company under a lease agreement, typically over a term of between two and five years.  But then, circumstances change, and you are suddenly left with a lease for IT equipment that you no longer need with months of outstanding payments to make.

In this scenario, you may wish to terminate your lease agreement and send the leased computer equipment back, but this is not always easy to do without settling the agreement.

All lease agreements contain clauses that say you can cancel the agreement, but you must still pay the outstanding lease rentals. This is only fair and reasonable – after all, if you bought a house and after a few months decided you wish to move again, you would not expect to be able to hand the keys back to the mortgage company without honouring the terms of your mortgage agreement.

Early settlement of a lease agreement

Ask for a settlement figure

The first thing to do is to speak to the leasing company and ask for a settlement figure. This is the amount of money that the company will accept to terminate the agreement.  If you have signed a lease rental agreement, you will then have to hand the equipment back to the leasing company.

Negotiate the purchase of the leased equipment

Alternatively, you can try and negotiate purchase of the equipment from the leasing company.  Leasing companies, banks, lessors, finance companies, underwriters – (they all are exactly the same) do not like bad debts. They may say you have to return the equipment as they are the legal owner of the equipment, but the chances are they will not want to take it back. Secondly, if they fear you may not be in business much longer then again, they may be more inclined to negotiate with you.

Transfer the equipment lease

Another idea is to pass the lease onto another company. Transferring a lease to a third party is possible subject to a small charge, assuming the credit profile of the third party is either equal or better than yours. But, you must tell the leasing company first as they have to agree to the transfer. Some companies get around this by sub-letting the equipment, but under the terms of many leases, this is not normally allowed.

What if the leased equipment is defective?

If the equipment does not work or there are serious quality issues with it, you should take this up with the computer supplier direct. If the equipment is defective, you could still obtain a settlement figure and ask the supplier to pay for it.

For more information about IT leasing, computer leasing and software leasing contact WestWon on Tel: 01494 611 456

New Year, New Office Furniture And Fit Out?

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Whether refurbishing your existing office premises or launching a new start-up, companies today are rightly turning to lease finance to fund their new and improved working environments. And furniture is a key element in any office fit out project plan.

Furniture can be stylish to reflect your brand image and it certainly must be practical and withstand wear and tear. Whatever you brand and range you choose, leasing office furniture and office equipment as part of your office fit out project makes perfect sense as it allows you to spread the cost over the useful life of these items.

When it comes to selecting office furniture as part of your office fit out, there are few limits on what can be included in a lease agreement: Typical items of furniture that companies lease include:

  • Office desks
  • Office chairs
  • Office pedestals
  • Office boardroom tables
  • Office boardroom chairs
  • Meeting room tables and chairs
  • Office reception desks
  • Office receptions tables, chairs and sofas
  • Office AV systems
  • Appliances for office canteens and kitchens
  • Office canteen tables and desks
  • Office staff room furniture
  • Office gym equipment

Furniture leasing is flexible and cost-efficient

The workplace environment has a major impact on employee productivity and morale as well as company image. Leasing allows our customers to acquire the type of furniture they need, when they need it, without upfront capital outlay. Companies simply choose the items they require now and pay for it through regular tax deductible payments over the useful lifecycle of the investment – normally 2 to 5 years.

Staged lease payments for office furniture

You can arrange for the lease payments for your furniture to start as and when it is delivered, regardless of when you receive funding for other parts of your office fit out project.

For more information about including office furniture and office furniture packages within an office fit out lease agreement, please contact WestWon on Tel: 01494 611 456 or email [email protected]

Seasons Greetings From WestWon Leasing

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2013 has been a challenging year for some, but with the current outlook on the UK economy brightening and unemployment figures falling, the forecast is one of growth and business dreams that come true for many more in 2014.

This year WestWon has experienced unprecedented demand for leasing deals that meet companies’ needs for fast, hassle-free finance. Having continued to invest strongly in people, online technology and infrastructure throughout the year, we are ready and waiting to help many more businesses with lease funding for assets. technology and related services in 2014.

And, in the meantime, we would like to wish all our customers, suppliers and partners a very happy holiday season and, of course, a prosperous New Year.

Best wishes from all at WestWon

 

SMEs Borrow Less From Banks As Asset Finance Grows

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Almost two thirds of SMEs have not sought any extra finance over the past two years from banks or any other form of lender according to a recent YouGov report, ‘SME 2013 Banking’.

Bank Lending Falling

At the same time, lending to UK firms by foreign banks is reported to have plummeted nearly 40 percent since the credit crunch began.  Figures show that the value of loans has dropped by from £221 billion in 2008 to just £137 billion today. (In contrast, lending by UK banks has fallen by around half this rate, from 21% from £380 billion in 2008 to £302 billion.)

Experts say that the sharp fall is largely due to overseas lenders focusing on domestic markets. European banks that have cut their exposure to UK firms include ING, which has withdrawn from asset finance in the UK.

Syscap, the firm that carried out the research, pointed out that European lenders have come under political pressure to support their own economies first.

Asset Finance Growing

Meantime , UK Finance & Leasing Association (FLA) members report that new business provided to fund investment in construction equipment grew this October by 41% (to £134m), and by 13% over the last twelve months (to £1.2bn). Overall, the UK asset finance market reported growth of 4% to £1.9bn in October for new business deals of up to £20m. This market has grown each month since April 2013, with new business up in the first 10 months of the year by 2% to almost £17.7bn compared with the same period in 2012.

For more information about the benefits of leasing and best leasing deals available,  please call WestWon on Tel: 01494 611 456. Alternatively you can download the free WestWon Guide To Leasing.

UK Asset Finance Market Reports Growth Of 4% To £1.9bn In October 2013

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UK Finance & Leasing Association (FLA) members report that new business provided to fund investment in construction equipment grew this October by 41% (to £134m), and by 13% over the last twelve months (to £1.2bn).

They report that 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 UK asset finance market reported growth of 4% to £1.9bn in October for new business deals of up to £20m. This market has grown each month since April 2013, with new business up in the first 10 months of the year by 2% to almost £17.7bn compared with the same period in 2012.

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.”

See the full article here.

For more information about the benefits of leasing and best leasing deals available,  please call WestWon on Tel: 01494 611 456. Alternatively you can download the free WestWon Guide To Leasing.

Low Interest Equipment Leasing Deals Are Ideal For Pre-Christmas Sales Promotions

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Low interest lease finance is a great way for suppliers and resellers to promote selected product lines and, at the same time, help their customers to fund new equipment more easily.

Special leasing deals are in fact ideal solution all year round, and especially towards year end: resellers receive full payment upfront while customers can pay for the equipment they need at a great rate and over a time span that suits them, typically 2-5 years.

Low Interest Equipment Leasing with WestWon

WestWon  is already successfully working with 100s of suppliers and resellers through the WestWon Partner Finance Programme.

As well as providing a dedicated WestWon account manager to help provide customers with the best low interest leasing offers possible in each scenario, we can also set suppliers and resellers up with a branded Partner Portal to ensure their business benefits from the ability to instantly estimate the cost of attractive leasing deals on an on-going basis.

WestWon Partners in Growth

Working in partnership with WestWon enables suppliers to offer a range of flexible, tailored finance solutions so that customers can invest in the equipment and technology they need right away. With access to over twenty providers of leasing and asset finance, WestWon offers high acceptance rates compared to industry standards and fast turnaround on agreements.

We provide our partners with training and support to help them maximise leasing opportunities within their business, and to enhance the customer experience and range of options available to their clientele.

As a member of the National Association of Commercial Finance Brokers (NACFB) and an Associate Member of the Finance and Leasing Association (FLA), WestWon adheres to industry best practice. We pride ourselves on providing an excellent level of service and complete transparency on all agreements.

To find out more and discuss the most suitable options for your business, simply call us now on Tel: 01494 611 456 or email [email protected].  You can also download our FREE comprehensive Guide to Leasing. 

UK Office Furniture Leasing Is Growing Fast in 2013

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October 2008 is a date that many companies in the office furniture leasing sector remember well.  It was the time when a lot of UK business owners suddenly found themselves facing the stark realities of what they were being told was going to be a nasty and prolonged recession.  The term “credit crunch” was being widely used in the press and, being an office furniture leasing company, we knew only too well how serious the implications might be.

As a leasing company, WestWon has historically dealt with a wide range of suppliers of capital equipment spanning computers, hardware and software through to waste and scientific equipment.  We have always been specialists in office furniture leasing and office fit out leasing, which includes the ‘soft’ costs that a company incurs when refurbishing or moving premises, such as decoration, lighting and flooring.

Office furniture leasing and the credit crunch

Thus, in 2008, when the credit crunch hit, office equipment leasing was an important part of our business and although we saw an immediate and significant downturn in business across the board, the sector that was hardest hit was the office furniture leasing side. It seemed that overnight companies simply put their plans to move offices on hold.

As a result, over the past five years, many office furniture companies have closed their doors. However, those, including WestWon, that were able to weather the storm are starting to see strong signs of recovery.

Office furniture rental and leasing remains a strategic part of our business and in 2013, WestWon has witnessed first-hand the way in which companies are investing again in new office space. Many of these companies are choosing to fund their investment in office furniture and fit outs by taking out a lease agreement with WestWon.

Whether you are an organisation that supplies office furniture or a business that is planning an office move or refurbish its premises and would like to find an attractive lease finance option, please call WestWon on Tel: 01494 611 456  or email [email protected] to discuss the possibilities. You may be surprised to here how many benefits to leasing there are for your business.

Leasing IT, Computers, Hardware and Software Makes Business Sense…

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Whether you are a new start business or a long established company, leasing IT technology such as computers, tablets, servers and telecoms makes perfect business sense. First and foremost, it allows you to acquire the technology you need when you need it – without tying up capital or existing lines of credit. And  it also safeguards against future obsolescence – a major issue for IT and computing equipment. New equipment can become out-of-date very quickly and leasing you IT equipment, software and services makes life much easier when it comes to acquiring new and improved models and upgrades.

Key Benefits of IT Leasing

WestWon provides finance for hardware leasing, software leasing, infrastructure leasing, telephony leasing and services leasing, allowing your business to:

  • Stay up-to-date – Given the rapid pace of technology change it clearly makes sense to lease rather than buy depreciating IT assets so you can upgrade easily in the future.
  • Keep your cash flowing – You have immediate access to the latest resources without having to tie up large sums of capital, while spreading the cost of your investment over the useful life of your equipment.
  • No crossed lines – Lease rental agreements do not impact your other borrowing options or lines of credit.
  • Multiple items, one agreement – Effective IT is about so much more than just hardware. You can easily include items such as software, networking and support under one monthly payment for simpler budgeting.
  • Check out the pros and cons of leasing v buying – WestWon offers a state-of-the-art online quotations system, providing instant quotations and highly competitive rates. There is no easier way to assess your options.

To find out more about leasing for all your technology needs, contact the WestWon IT experts on Tel: 01494 611 456 or email [email protected] for an instant quote and best leasing rates. You can also download the WestWon Asset Finance  for IT Equipment and Projects Leasing Fact Sheet from our Leasing Fact Sheet Page. Or produce an instant quote with our online calculator now.

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