Capital Equipment Leasing For A New Start Business Explained

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Opening your first restaurant? Launching a gardening business, a hairdressing salon or an interior design store? No doubt about it, setting up a new start company is for many a dream come true. But as any SME entrepreneur will verify, it takes a huge amount of time planning and thought – not forgetting that all-important upfront capital to fund the dream…

Tracking down premises, staff and equipment suppliers is often the first hurdle you have to jump over. And then that big question, how do you finance the equipment and machinery you need? Whilst a friendly bank manager may lend a helping hand, many new start business owners turn to a leasing company for equipment finance.  For those new in business, the whole process can seem daunting.

How Can A New Start-Up Company Find The Best Leasing Options?

There are over 1,000 leasing companies in the UK alone, and many of them are specialists or simply just do not work with new start companies. The reasons are simple – research over many years has illustrated that the majority of new start companies do not make it to their third anniversary.

A quick search on the internet will turn up a list of names, some claiming to offer 98% acceptance rates and other purporting to be experts in new start business finance. But in truth, most asset finance companies and leasing companies will turn down a new start company without asking even the most basic of questions.

WestWon does however have a long track record in helping new start companies and takes pride in helping budding entrepreneurs get off the launchpad and into business orbit. There is nothing more rewarding than providing a lease for a person or team setting out on the road of self-employment and becoming that company’s preferred supplier of lease finance over the years to come.

Obtaining Your New Business Lease Deal

One of the first questions we ask is “are you a home owner?” Most banks will expect you to be a property owner and will turn you down if you are not.  Other things to think about are:

  • Do you have a business plan?
  • Why do you need the equipment, does it have a good resale value, have you received a discount on the RRP?
  • What investment have you made into the business?
  • What is your personal background?

Obtaining a credit acceptance for a new start company is not always easy – contrary to what some leasing companies may claim. However, by asking the right questions we are often able to present your new start business in a very positive light – an important step in securing funding.

Case Studies: Lease Deal For A new Start Restaurant and Leasing For Gym Equipment

In August 2012, WestWon organised a lease facility for over £250,000 for a new start restaurant at one end of the scale and, at the other, running machines for someone setting up a new gym. Over the years, we have financed everything from a computer to a warehouse fit out for new start companies.

What Lease Rates Can A New Start Company Get?

Rates will depend on the asset you wish to finance and the support you can offer, such as a personal guarantee or deposit. The rates will also be reliant on the term of the lease and how much you are borrowing. Typically, the more you borrow, the cheaper it is.

Some companies on the internet advertise headline offer rates from 3%. New start SMEs should not expect for one minute to get these rates. Even large, well-established companies buying assets with excellent resale values usually do not get these rates. For smaller lease deals under £10,000, typically over three years, lease rates will typically start at around 12%. It sounds a lot when you think base rates are at 0.5%, but these rates are based on risk profiles of new start companies.

Our job as a leasing company is to find you the cheapest lease price and an agreement that is appropriate for your business. We do this by listening to you and your plans. Hopefully, we will be there with you on what will be an exciting journey of business growth.

For further advice and information, please call WestWon on Tel: 01494 611 456. We’re here to help.

Should You Move or Refurbish Your Shop, Hotel, Warehouse, Factory or Office With Leasing?

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There is no better feeling in business than that of success. The order book is full and there are new, enticing prospects on the horizon. But soon you realise that you simply don’t have the space or equipment that you need to maintain business momentum going forward.  So should you stay where you are and refurbish your premises? Or should you move premises and relocate your business?

Better To Move Business Premises or Refit and Refurbish?

First of all, you may well look at the cost of moving … and come to the conclusion that is it just not worth relocating.  When you take into account the inevitable disruption to staff and customers as well as the issues around terminating your existing office or shop lease (not forgetting dilapidations) or perhaps even selling up (if your business owns the current premises), it can seem like a step too far.

Your thoughts then turn to refitting and refurbishing your existing premises and facilities, and extending your current lease.

The ‘do I stay or do I go’ dilemma is the reality that many business owners face today even though across the UK there is a general abundance of spare commercial space available.

Leasing Refurbishments, Fit Outs and Refits Can Save Time and Money

Although refurbishing your existing premises can be a time consuming and expensive project that will invariably cause some form of disruption, it can still be a much cheaper and simpler solution than moving.

Whether you are upgrading your office, shop, warehouse, restaurant or factory, using lease finance to cover the refit and refurbishment costs including related services,  avoids one of the major obstacles to change for many companies… that is having the financial resources to pay for the improvement work upfront.

Even where companies are in the fortunate position of having spare capital, the owners would often prefer to keep this money to fund the general working capital requirements of the business.  Using asset finance and a lease agreement to fund the refurbishment costs is a logical solution that means you don’t have to approach your current bank or tie up existing lines of funding.  And you can, of course, pay for the works over their useful life rather than all upfront, for example over a three, four or five year lease period.

If you are looking to refurbish your shop, warehouse, hotel, factory or office and would like an indication of what it would cost per month, why not use our online lease calculator for an instant quote. Alternatively, please give our Leasing Refits team a call on Tel: 01494 611 456.

All About Leasing Capital Equipment For New Start-Up Businesses

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It’s a harsh reality, but unfortunately, many banks and mainstream leasing companies simply don’t provide lease finance for a new start businesses.

Why is it typically harder for a new start-up business to obtain a leasing deal?  Well, given that statistically four out of five new start companies do not make their 5th anniversary, the reasons start to become clear.

However leasing is a great way for new businesses to obtain the capital equipment, the IT or even the office or shop fit out they need without tying up cash and using up other lines of credit.  So if you are an SME and a new start-up that would like to secure a leasing deal, here are some golden rules to follow:

7 Golden Rules for New Start-Ups That Want To Lease Capital Equipment
  1. First and foremost, even if you are a limited company, personal guarantees will invariably be required for new start companies. The leasing company will need you to be a home owner. However, if you are not, it is possible to offer a third party guarantee, for example, from a family member.
  2. A leasing company will ask your permission to carry out a personal credit search to establish how good your credit rating is. So verify your personal credit check is clean and that you have no missed payments or County Court Judgements against your name. If this is not the case, you will need to be prepared to answer questions about it.
  3. You should be able to provide the leasing company with either business and/or personal bank statements showing that your account(s) are well managed.
  4. It is always useful, if possible, to show the leasing company that you are putting funds into the business or you have other financial banking, for example, from your bank.
  5. Do you have a business plan? Even if this is just a fairly basic outline, it will help your cause by showing the lender that you have thought about your business.
  6. Can you explain with conviction why you are looking to buy a particular asset and what the financial benefits your business expects from it?
  7. Can you offer a deposit? Asking to lease an asset with a capital value of £10,000, but with only £250 deposit available to put down obviously presents a much higher risk (for the leasing company) than providing a deposit of £2,500. So always think about how much deposit you can offer in advance.

As a leading UK leasing company, WestWon is keen to support leasing for new start companies. We applaud the ‘entrepreneurial spirit’, which has a vital role to play in driving the wider economy forward.

For more information about our best leasing deals for new start companies, please call WestWon on Tel: 01494 611 456 or email [email protected]

Planning and Designing Your Office Fit Out? Think Leasing…

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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.

Planning an office revamp or fit out can contain many elements, not just – although very important – furniture and office equipment, but also fittings, flooring, partitions, lighting, IT technology, computers, photocopiers, telephony;  in fact, everything – including the staff room kitchen sink – you need in place to ensure good employee morale and increased productivity.

Of course, planning and designing an office fit out or refit can be expensive and it makes complete sense to review your funding options fully before committing to a large upfront capital payment.  Tools such as WestWon’s instant Lease Calculator can provide an instant quotation to compare the cost of leasing office furniture and related project items and services versus buying them outright. Spreading the cost of office refits and fit outs over time is just one of the benefits of leasing:

Advantages of leasing office furniture and fit outs
  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.

Call us now on Tel: 01494 611 456 for further details and an illustration of how office fit out leasing can benefit your business and support planned office design projects.

What Next For ING Lease Customers Requiring New Leasing Deals in 2013?

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It is a year since ING Lease UK, based in Redhill, Surrey stopped writing new lease business and began running down its asset finance portfolio.

A wholly owned subsidiary of ING Group, a global financial institution of Dutch origin, ING Lease UK is one of a number of ING Group owned European asset finance businesses and forms part of ING Commercial Banking.

ING Lease UK had been pumping around £1bn a year into the British economy to the benefit of companies that have been turning to leasing contracts as bank loans and overdrafts have become harder to obtain.

ING Lease Customer Service For Existing Customers

Since shutting their door to new business introductions in 2012, ING has significantly reduced the size of their workforce in the UK. Although the workforce is now just a third of its former size, the ING office in Redhill, Surrey still employs almost 100 employees dealing with customer services, defaults and end-of-lease enquiries.

If you need to speak to ING Leasing UK directly about an existing lease agreement, you can call their customer service number via the main switchboard, 0870 998 6100.

Alternatively, you can write direct to ING Lease UK at the following address:

ING Lease (UK) Limited

60 High Street

Redhill

Surrey

RH1 1NY

ING Lease Customer Service For Existing Customers

If, however, you are an ING Lease customer and are looking to fund new equipment, you now need to find a new leasing company to assist you with your growth plans.

As one of the UK’s leading asset finance and leasing companies, WestWon helps all types of organisations to strengthen and grow their operations with the best leasing options available. Whether for leasing office furniture, business equipment or machinery, WestWon is number one for asset-based finance in terms of reputation, rates and reliability.

We use the latest online technology to source and administer contracts, helping thousands of companies to fund capital equipment purchases in a tax-efficient way that maximises cash flow and protects existing lines of credit. What’s more, we offer quick quotes, rapid ‘decisions in principle’ and fast access to finance at great rates.

You can obtain a lease quote online now or simply call us on Tel: 01494 611 456 with any leasing questions you may have – we’re here to help you  better understand your leasing options and find the best leasing deals.

Everything You Need to Know About Interest Free Leasing Deals

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Is there such a thing as an interest free leasing deal?

The simple answer is no. After all, thinking about it logically, why would a leasing company provide you with money for free?  Yet some do appear to be offering interest free equipment leasing options. How can this be?

More About Interest Free Leasing Deals

Firstly, most interest free deals are subsidised by either the equipment manufacturer or the equipment reseller. They use this ‘marketing twist’ to entice the customer to buy their stock and are, in effect, offering the customer a blind discount. For this reason, an interest free leasing agreement can – and often does – represent excellent value for customers. And WestWon has run numerous interest free leasing offers on behalf of suppliers, who are looking for a new, modern way to promote their products.

How Does Interest Free Business Equipment Leasing Work?

In simple terms, if a supplier or manufacturer wishes to sell equipment with a capital value of £12,000.00+VAT on an interest free lease finance basis over three years, the lease payment would typically be £1,000.00+VAT per quarter. That equates to £12,000.00+VAT over the course of the whole lease.  So apparently interest free….

However, not quite so … the supplier invoices the leasing company upfront for the equipment as per the normal process, but, in our example, for the reduced amount of £10,500.00+VAT rather than the full capital cost of £12,000+VAT.  The leasing company then bases the lease payments due on the discounted figure of £10,500+VAT, and thus still makes circa £1,500.00+VAT in interest on the deal.  As customers only see the lease agreements they make with the leasing company and not the invoice from the supplier to the leasing company, they are typically unaware of the underlying supplier discount that enables the leasing deal to work.

Is This Type Of Lease Agreement a Good Deal For Customers?

There is absolutely nothing wrong in this type of offer and, in fact, it usually represents excellent value for the customer, who obtains the benefit of the equipment immediately while paying for it over its useful life. The supplier gains a new customer and the leasing company receives interest on the deal as normal.

One thing worthy of note is that technically with an interest free lease agreement, title (ownership) of the equipment should pass to the customer at the end of the lease, so interest free deals are often put together on a lease purchase as opposed to a lease rental basis.

For more information about the best leasing options for customers, manufacturers and resellers please contact WestWon on Tel: 01494 611 456.

New WestWon Asset Finance and Leasing Website Designed with Customers in Mind.

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Leading asset finance and leasing company WestWon has today launched its innovative new asset finance options website. Offering a free downloadable guide to Planning Your Finances with Leasing, and with an online Equipment Leasing Calculator and up-to-the-minute live leasing deals feed, www.WestWon.co.uk makes it easy for all types of companies to find out more about leasing and compare lease v. buy costs of capital equipment.

This latest Investment in online leasing resources follows the opening of WestWon’s new Midlands office, located in Glenfield, Leicester, on 1st September 2013. WestWon CEO Jeremy Hall believes that demand in the Asset Finance marketplace is set to rise further, and that WestWon is at the forefront of delivering the type of quality service that businesses deserve.

“WestWon is committed to providing competitive, easy-to-arrange lease finance for new equipment and related services,” commented Hall. “WestWon is a leasing company that prides itself on offering the best leasing options at great rates, and using the latest online technology to deliver unbeatable pre-sales and post-sales customer service.”

“Not every business that could benefit from lease finance is necessarily up to speed with leasing terminology or the cost benefits of leasing v buying equipment, which is why we have invested in our new multi-faceted website.”
WestWon specialises in Office Equipment Leasing and IT and computer leasing as well as asset-based finance for a wide range of business needs, for example: Engineering Equipment Lease Finance, Scientific & Medical Equipment Lease Finance, Processing and Packaging Equipment Lease Finance, Waste & Recycling Equipment Lease Finance, Catering Equipment Lease Finance and Leisure Equipment Lease Finance.
With its Headquarters in Beaconsfield, Buckinghamshire, WestWon is a well-established provider of equipment asset finance and leasing to all types of companies in the UK. As a member of the Finance and Leasing Association and National Association of Commercial Finance Brokers, WestWon is committed to the principles of transparency and adherence to industry best practice in all transactions.
For more information see www.WestWon.co.uk, email [email protected] or Tel: 01494 611 456

 

 

 

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

What Funding Choices Do Businesses Have? Bank Lending v Leasing

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It seems that companies still can’t rely on bank lending to fund business growth. Meantime, asset finance and leasing is going from strength to strength and continues to help breech the widening gap between business equipment funding requirements and bank lending.

In June 2013 UK bank lending fell again, despite government attempts to reverse the trend through its Funding for Lending Scheme (FLS). Bank of England data showed that net lending fell £300m in the first quarter of 2013 and that while lending to individuals was up, crucially loans to businesses were down.

Earlier this week, the British Bankers’ Association published key lending data by postcode for England and Wales. It showed that of 120 postcode areas, only 22 showed an increase in borrowing by small and medium sized businesses last year.

In order to try and boost lending, Chief Secretary to the Treasury Danny Alexander has today (24th July 2013) announced that major UK banks will reveal details from January of their lending in thousands of local areas.

He hopes publishing lending data across 10,000 postcode areas will boost credit to homeowners and small businesses and encourage competition by helping smaller lenders to identify gaps in the market.

Whether or not this initiative bears fruit, companies and SMEs in particular are well advised to protect existing cash flow and lines of credit by considering leasing for their new business equipment, IT technology and other essential assets.

Leasing Business Equipment Solves Cash Flow Issues

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In 2013 raising finance for new business equipment and assets has continued to be a thorny issue for companies, particularly SMEs and start ups. Bank lending figures are still falling and many businesses are turning to alternative sources of funding such as asset finance and leasing.

You can lease almost any type of business equipment from tablets to boardroom tables and IT services to complete office refits. WestWon is an independent asset finance and leasing broker (and a member of the Finance and Leasing Association and National Association of Commercial Finance Brokers) which means you can choose any combination of equipment, technology and maintenance you require for your lease agreement. Sectors that regularly lease equipment include:

  • IT equipment leasing
  • Office Furniture and Refit Lease FInance
  • Engineering Equipment Lease Finance
  • Scientific & Medical Equipment Lease Finance
  • Processing and Packaging Equipment Lease Finance
  • Waste & Recycling Equipment Lease Finance
  • Catering Equipment Lease Finance
  • Leisure Equipment Lease Finance

What else companies lease? See the  WestWon Leasing Video for more ideas. Or call us today on Tel: 01494 611 456.

You can also visit our website to use our Free Instant Lease Calculator to show you how the cost of leasing an asset compares with purchasing your new equipment.

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