A Guide to Writing a Comprehensive Business Plan

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For every successful business, a comprehensive business plan is the foundation. It is essential to have a clear road map of the direction you want your business to go, and a well-written business plan can help you achieve that. A business plan is not just a document to secure funds or attract investors, but it is also a tool to help you navigate the daily operations of your business. In this blog post, we will take you through a guide to writing a comprehensive business plan.

  1. Executive Summary

An executive summary is a brief overview of your business plan. It should be no longer than two pages and should summarise all the critical aspects of your business plan. This section should outline your business’s mission statement, target audience, products or services, revenue projections, and funding requirements. Remember, this is typically the first section that people will read, so make sure it is compelling and sets the tone for the rest of the business plan.

  1. Company Overview

The company overview section of your business plan should provide a thorough summary of your business. This section should describe the history of your business, the product or service you offer, your target market, and your competitive advantage. It is essential to be clear and concise when describing your business and its functions.

  1. Market Analysis

The market analysis section provides an overview of the industry in which your business operates. It should include a description of the industry’s size, potential growth, and current trends. This section should also include a detailed analysis of your target market, including demographics, psychographics, and buying behaviours. This key section should help you outline your business’s marketing strategy that outlines your plan to access the market, promote your business, and reach your target audience.

  1. Products and Services

This section provides a detailed description of the products or services that your business offers. It should include information about the price, features, and benefits of your products or services. Make sure that you clearly describe what makes your product or service unique, better than your competitors and how it meets your customer’s needs.

  1. Financial Plan

The financial plan section of your business plan should outline your business’s financial projections. This should include your projected income statement, balance sheet, and cash flow statement for the next three to five years. Additionally, include information about your funding requirements, such as loans. Make sure that your financial projections are realistic and based on your market and industry analysis.

A well-written business plan is critical for every business owner and writing one can sometimes be time-consuming and intimidating. However, the benefits of having a comprehensive business plan outweigh the effort it takes to write one. A great business plan will serve as a road map and help you navigate the daily operations of your business. If you have any further questions on how we can help your business grow, please contact us by calling us on 01494 611 456, or for more information on a guide to writing a comprehensive business plan.

Hire Purchase vs Lease Rental -which is best for you?

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Are you looking to invest into your business without compromising your cash flow? If so, you’ll want to know the differences between hire purchase and lease rental.

Both are financing options available to those who wish to purchase an asset without paying its full value upfront. However, they have different features that make them more suitable for different situations. Let’s take a look at what each of these options offers and how they can benefit you.

Hire Purchase Explained

A hire purchase agreement is when you enter a contract with a third party to pay off the cost of an asset over time. In return, you get the right to use and own the asset while making payments. At the end of the term, ownership is transferred to you once all payments have been made. The length of our hire purchase agreements can range from 1-5 years, depending on your needs and budget.

One advantage of a hire purchase agreement is that it allows you to invest into long-term assets without breaking the bank. It also allows you to keep cash in the business for other projects that you may have in the pipeline.

Another benefit of this agreement type is that the interest paid over the term is tax deductible!

Finally, with a hire purchase agreement you will have fixed monthly or quarterly payments; allowing you to budget better.

Lease Rental Explained

A lease rental agreement is similar to a hire purchase agreement but differs in one key way. Ownership is not transferred at any point during the term of the agreement. Instead, when you enter into a lease rental agreement with a financier, they retain ownership over the asset during your term.

You will then make monthly or quarterly payments over your chosen period. When all payments have been made, you will then be required to return possession of the asset back to the financier.

There are also significant tax benefits to be taken advantage of with this agreement type. Did you know that with a lease rental all rentals are fully deductible against your company’s corporation tax bill? You will also be pleased to know that VAT spread and paid with rentals. As opposed to paying upfront like you would with a hire purchase agreement. Read more about these benefits on the HMRC website.

Both hire purchase and lease rental are viable financing options available if you’re looking to acquire an asset without paying its full cost upfront. But which one should you choose? Ultimately it depends on your needs. If you need permanent possession of a timeless item, then a hire purchase is probably the way to go! Whereas lease rentals are ideal for depreciating assets as you can always renew your equipment at the end of the agreement.

Contact Us

To find out which agreement is best suited to the needs of your business, please don’t hesitate to get in touch. Our expert team will be able to guide you in the right direction and provide you with a FREE no obligation quote. We can finance just about anything for any business ranging from £1,000- £10M+. Give us a call today on 01494 611 456, or send an email to [email protected].

Leasing Jargon Buster Part 2

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Due to the success of our recent blog “Leasing Jargon Buster” we decided to add to the vast vocabulary of the leasing and asset finance world. So, read on to gather a few more leasing terms under your belt…

Personal Guarantees

A personal guarantee is whereby the lessee becomes personally liable should they become unable to make agreed repayments.

Personal Net Worth Statement

This is a snapshot of a person or company’s financial health at particular point in time.

KYC check

KYC stands for “Know Your Customer”. Therefore, these checks entail verifying prospective customers against fraudulent or illegal activity. This is an important check for those who work in the finance sector to conduct.

Residual Value

The value of an asset as the end of its lease period.

Balloon Payment

A balloon payment is a larger payment made at the end of a finance agreement. This is a way of keeping the fixed installments low throughout the lease period to then compensate for that will one larger payment at the end.

Flat rate

A flat rate means that your cost of interest remains the same throughout your agreement term despite how much you have already paid off.

Management accounts

Management accounts are financial reports made for business owners and directors to evaluate their profit and loss. They are usually produced on a monthly or quarterly basis and are similar to year end accounts.

Sale and Leaseback

AKA equipment refinancing. This is a type of finance agreement where you can raise funds against existing equipment. So, you will give ownership of your equipment to a finance company, they will then reimburse you and you will then spread the cost of the asset over an agreed period to use the asset.

So, for example, a dentist outright purchases a CBCT scanner for their business, they then regret this purchase after noticing cash flow problems. They want to keep the equipment because it adds value to the business but could do with some extra cash in the business. The dentist is then enlightened to the benefits of sale and leaseback where he is reimbursed for his purchase and pays affordable monthly repayments to use the equipment.

Read more about Sale and Leaseback here!

Certificate of Acceptance (COA)

A certificate of acceptance is a document signed by the lessee acknowledging that they have received their asset and therefore can now begin repayments.

Contact Us

99 problems? Make sure cash flow isn’t one. Here at WestWon we can finance just about anything for any business. So why not get in touch? Give us a call on 01494 611 456, or drop an email to [email protected]

Follow us on LinkedIn to stay up to date with all the latest leasing insights and guides!

Leasing Jargon Buster

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The world of leasing and asset finance can be overwhelming to those new to it. That is why we thought it best to create a leasing jargon buster guide to simplify some common finance terminology that you may come across when looking to obtain business finance. So, here goes…

Lessee:

AKA the borrower. This is the company looking to secure a form of finance to boost their business.

Funder:

In other words, the lessor. This is the company that lends funds to the lessee.

Here at WestWon, we work alongside a variety of funders to ensure you are getting the best rates for your finance needs. Our myriad of funders also allow us to sustain our 96% acceptance rate. So should you not be accepted by one funder, the likelihood of you being accepted by another is high!

Broker:

A broker is the company who arranges the best finance agreement tailored to the needs of the lessee. They do this by communicating between the lessee and the funders as well as suppliers to sort this. This is what we do here at WestWon.

Supplier:

For equipment leases, this is the company that supplies the equipment to the lessee. As the broker, we then make payment to the supplier to compensate for the equipment.

Acceptance:

This is where the lessee’s finance application has been approved. Keep an eye out for conditions of an acceptance, sometimes an application will be approved providing specific conditions are met, for example a personal guarantee.

Capital cost:

This is the total value of the lease equipment in question.

Activated agreement:

Once your finance agreement is activated, this is when the supplier is paid and the lessee’s repayments begin.

Agreement term:

This is the time span of the lease. For example, a 3-year lease would have a 36-month term.

Equipment refresh cycle:

This is a lease option whereby you renew your existing equipment at the EOL (end of lease). Regular access to the newest kit allows the lessee to remain competitive within their sector.

Fair market value:

This is the price of a product determined by the marketplace at the time.

Tax relief:

By taking out particular lease agreements a lessee can benefit from tax relief. For example, with a lease rental agreement 100% of the lessee’s rental is deductible against their corporation tax. Currently lessee’s taking out a hire purchase agreement benefit from 130% super deduction tax relief for qualifying assets.  Learn more here.

Hire purchase:

This type of finance agreement allows the lessee to own and thus keep the equipment automatically at the end of the lease. This type is agreement is ideal for timeless appreciating assets such a plant and machinery or commercial vehicles.

Rentals:

These are the repayments made by the lessee for the finance that they have taken out. These are usually made either quarterly or monthly, however annual payments can also be arranged.

Profile:

This is the number of repayments that are required during the term of the lease. So, for a 3-year lease with quarterly repayments the profile will show as 1 + 11.

Proposal:

A proposal is a document detailing the information needed from the lessee for credit clearance.

Contact Us

We hope that this guide has provided better understanding on some commonly used leasing and finance jargon. However, should you have any further questions, please don’t hesitate to get in touch. Our friendly team will be happy to answer as questions you may have. So, give us a call on 01494 611 456. Or, send an email to [email protected].

Choosing the right leasing option for you

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In this blog we will be comparing two of our most popular lease agreement types. The information below is to give you a look at how choosing the right option for you is so important. It can have a major impact on your business and knowing what’s right for your company is your job! Our job is to make the process as easy and seamless as possible whilst tailoring the agreement to suit your finance needs. If you would like to see more on how the options differ then please see below.

Lease Rental (Finance Lease)

Term: Typically, 1-5 years (depending on the asset)

Capital Value: £1,000 – £10M+

Repayment Frequency: Annually, Quarterly or Monthly

Fixed or Variable Rates: Fixed

VAT: On each payment

TAX*: Rentals fully deductible

Ownership: Finance company throughout

End of the Agreement: Equipment can be returned or retained for a fee, known as an infinite rental

Lease Purchase (Hire Purchase)

Term: Typically, 1-5 years (depending on the asset)

Capital Value: £1,000 – £10M+

Repayment Frequency: Annually, Quarterly or Monthly

Fixed or Variable Rates: Fixed

VAT: In full with the first payment

TAX*: 130% Super Deduction Applicable (qualifying assets only)

Ownership: Client (subject to full payment)

End of the Agreement: Equipment ownership automatically passes with the final payment for a nominal fee

Other assets we finance:

Here at WestWon we also offer finance for several assets. These therefore include things like computers, software, and laptops. However, it also includes everything from office furniture and fit outs, optical equipment, business loans and audio-visual equipment to CCTV & security, dentistry, general equipment as well as vehicles (including electric vehicles and their charging points).

Contact Us

If you would like more information on choosing the right option for you, or any other finance needs you may have, then please don’t hesitate to contact us. You can email us on [email protected], or alternatively you can call us on 01494 611 456. You can also see more over on our LinkedIn page.

5 ways finance can grow your business

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There are many ways in which finance can grow your business. Looking at these 5 is just a quick way to see how your business can benefit. Growing your business, whether you are a start up or an established one, can be tricky. However, with finance options available through WestWon we can help you with whatever your finance needs may be. If you would like more information, then get in touch with us using our contact details below.

5 ways finance can grow your business

Leasing is the new normal

It may seem like we could be biased being a leasing and finance company! However, believe it or not, leasing is becoming the new normal.

Technology especially is now rapidly adapting with the times, which can be seen through things such as “buy now, pay later.” The move into this kind of shopping behaviour for the public has led to an increase in more people using fixed payments as their preferred method of finance. This is just one example of leasing.

People are also discovering that if, for example, you pay your employees’ salaries as you go, why are you not doing the same for your assets? This is one reason why finance and leasing is the better option for you and your business.

Leasing is less risky

With leasing and finance, the money is sent directly to you in a straightforward yet secure way. Working alongside our range of funders and suppliers, we can look to arrange the finance for you in a way that suits you and your business. The usage of up-front payments means there’s also no hidden fees or costs and you aren’t stumped with a large bill to pay for all-in-one go!

Here at WestWon we make sure the payments are made on time and our operations team will work closely with you making sure the process is as easy and seamless as possible. The benefits in terms of not paying as a lump sum are immeasurable, as it allows you to keep funds in the business to be used elsewhere.

Finance supports both your business’s bank account and your customer’s

Normally, before a large project takes place in the business, there is a substantial gap in your cash flow. This is because you are paying for all areas all at once.

However, if you were to pay it in fixed monthly payments, this would look a lot different. You will also know when the right time is to refresh your equipment. By using finance, you implement a recycling kind of system, whereby you are easily able to replace the equipment at the end of each lease agreement. Your bank account will grow, and your customers will feel the full benefits of this as time goes by.

Leasing increases levels of customer service

When introducing leasing to your business, or providing it as an option to your customers, leasing will benefit them. Introducing this recycling strategy within the company can make sure the equipment always stays up to date. It also means you can easily upgrade and improve the equipment without needing to spend a lot more of your business’ precious cash. It also creates a stronger bond between you and your customers because of the constant contact and repeat business.

Finance can expand your customer base

This leads onto the last point that you can create more repeat business, and in some cases better business from these relationships. Obviously, a business cannot grow without the expansion of their customer base. Therefore, there is a high chance that those who have leased before will again from you. This is especially true in the case of business loans such as VAT and Corporation Tax Loans. Both are finance facilities that we can provide here at WestWon. This also in turn improves customer loyalty.

Contact Us

If you would like more information on ways finance can grow your business, or any other finance needs you may have, then please don’t hesitate to contact us. You can email us on [email protected], or alternatively you can call us on 01494 611 456. You can also see more over on our LinkedIn page.

What type of asset finance is right for you?

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Finding the right type of asset finance for you

Trying to find what type of asset finance is right for you can sometimes be tricky, as all the information you are no doubt given can be hard to navigate. Here at WestWon we provide finance for a range of sectors and assets. We offer finance for sectors such as furniture and fit out, dentistry and most types of vehicle finance. We also offer finance for assets such as, IT hardware and software, and audio visual equipment to name just a few. And not to mention our range of business loans.

What are the different types of asset finance?

Hire Purchase

A hire purchase is where an asset is purchased and then paid for in instalments. This means you are able to receive the asset faster than normal. You are also able to spread the cost over a certain amount of time, usually between 1 and 5 years. Only when all the payments have been paid in full will you have complete ownership of the asset. However, depending on the agreement, you are usually responsible for the maintenance of the asset. This is one of the most common agreements we do here at WestWon, especially within vehicle leasing and finance.

Equipment leasing and financing

This mainly involves a lender leasing the equipment to you. You will again pay them in monthly instalments for the arranged time that you use the equipment. This ensures that you don’t pay a large sum upfront, and so no big amount of money is taken out of the business all at once. So, this will inevitably take some pressure off of your cash flow.

However, different to a hire purchase agreement, you most likely won’t have ownership of the equipment at the end of the lease term. But different lenders have different terms, so depending on what you would both like to do, you could reach a different outcome. For example, agreeing to own the equipment at the end.

Finance lease

A finance lease can also be known as a capital lease. It’s usually where the finance company makes the purchase of an asset. They then lease this back to the customer, including interest, in order to make a profit. Again, depending on the finance company, the terms and conditions will differ. You will still get full use of the asset for however long your lease term is. However, you won’t own it at the end of the term.

Operating lease

An operating lease is similar to a finance lease, but the customer will not have ownership rights over the equipment. It’s also usually shorter than a finance lease.

Benefits to asset finance and leasing

  • Cash flow – You will be able to keep funds in your business to be used elsewhere.
  • Alternative funding lines – No need to use up an existing bank facility.
  • The latest equipment – Always have the latest computers in your business by implementing a recycling strategy, whereby you replace equipment at the end of the lease term
  • VAT – On rental agreements VAT is paid in the rental, not in full and upfront.
  • Pay for the equipment as you use it – Companies pay employees over time as they work, so why pay all the cost for computers in advance?
  •  Tax planning – Using a lease rental agreement, 100% of your rental is deductible against your companies Corporation Tax.

Contact Us

If you would like more information on what type of asset finance is right for you, or any other finance needs you may have, then please don’t hesitate to contact us. You can email us on [email protected], or alternatively you can call us on 01494 611 456. You can also see more over on our LinkedIn page.

Advantages of sale and leaseback on equipment

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Advantages of sale and leaseback

At WestWon, we have written hundreds of sale and leaseback leasing agreements on numerous asset types. If you are looking to carry out a sale and leaseback agreement, please contact us! However, to learn more about the benefits, please read below. Here we take a look at the advantages of sale and leaseback on equipment:

• A quick and simple way to raise finance

The process is simple and the timescale can be anything from 48 hours to one week before your receive the cash.

• Sensible interest rates

With a sale and leaseback of equipment, we take our security in the asset. This is less risk than offering an unsecured loan, hence the interest rates are normally cheaper.

• Does not use up existing lines of credit

No need for you to speak to your Bank. A sale and leaseback does not affect any invoice discounting / factoring arrangements you already have in place.

• It’s a lease, not a bank funding line

Some companies have banking covenants where they cannot take out other third-party loans. We will lease the equipment back to you, hence it does not fall foul to any restrictions like this that you might have.

• You still have full use of the asset

You will still have full use of the equipment and will be matching the benefit you derive to the repayment you make each month. On smaller deals (under £500k) we will not look to take a debenture or a second charge.

What can we use the money for and do you (WestWon) need to know why?

Working capital, management buyouts, deposits, new buildings… the list goes on. If it’s a management buyout or acquisition, you can read more in our article on “Raising funds for a management buyout or acquisition by a sale and leaseback (coming soon).”

We really do need to know the reason why you are looking to undertake a sale and lease back. We often do see companies looking to do a sale and leaseback to raise money as a last resort. Leasing companies do not like to lend in these situations.

How does the money come to you?

The leasing company / finance company will pay you directly by bank transfer.

What assets can you do a sale and leaseback on?

  • Plant and machinery
  • Company cars, lorries, vehicles are a popular asset choice
  • General equipment
  • Warehouse racking, forklift trucks

The list goes on…

Contact Us

If you would like more information on the advantages of sale and leaseback, or any other finance needs you may have, then please don’t hesitate to contact us. You can email us on [email protected], or alternatively you can call us on 01494 611 456. You can also see more over on our LinkedIn page.

How can finance help you manage your business’ vehicles?

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There are a few different options that allow us to help finance to manage your business’ vehicles here at WestWon. These include hire purchase, finance lease and sale & leaseback. If you would like to read more about these then see below. We can also finance electric vehicles (as well as their charging points) as we know that the future of fleet is evolving fast.

How can finance help you manage your business’ vehicles?

Hire Purchase – this involves financing a vehicle over a term (usually 1-5 years) with fixed monthly payments. These fixed rates ensure they stay the same throughout the agreement term. In terms of budget, this is the best option available to you, because you will know throughout the agreement exactly what you will be paying and when. However, it does depend on the cash flow of your business. Once you have paid the final instalment, and the terms and conditions have been met, the vehicle becomes yours.

Finance Lease – this is a tax efficient way to lease your vehicle. It’s a very efficient type of lease due to its flexibility and its benefit of not having to use other capital resources. The rentals are also fully tax deductible. When the lease agreement has ended, you have two options to choose from. You can either extend the agreement, however this will include a nominal secondary rental fee. Or you can profit from most of the net income from the vehicle.

Sale & Leaseback – there’s less risk with a sale & leaseback as well as it not affecting invoice discounts either. However, a sale & leaseback can only be completed on the basis the vehicle is refunded within 3 months of purchase. This is a crucial point to remember. What’s also different with sale & leaseback, we can lease the vehicle back to you. However, you will still have full use of the vehicle. Monthly payments are all tax deductible.

How can WestWon help?

Here at WestWon we offer a range of finance options. Leasing and finance can offer your business several benefits, and at WestWon with our 5* customer service, industry leading rates and dedicated account manager, we hope to be your first port of call.

Leasing and finance allows you to keep funds in your business and protect your cash flow. There is also no need to use up an existing bank facility and you can always have the latest equipment by implementing a recycling strategy.

There are also tax benefits, as when using a lease rental agreement, 100% of your rental is deductible against your company’s corporation tax. VAT is also paid in the rental rather than in full and upfront. There is also the question of why you are paying for the equipment in advance. You wouldn’t do implement this for your employees, so why do it for your vehicles and other business equipment?

Other assets we can finance

Here at WestWon we can offer finance options for several assets. All of which can be found on our assets we finance page. This includes assets like computers, software, furniture and fit outs, business loans, dentistry, and EV charging points.

In fact, not long ago, we wrote a blog on electric vehicle charging points which we now finance. To read that blog, click here. Alternatively, if you would like any more information on the assets we finance above, or any other services we provide, please reach out using our contact details below.

Contact Us

If you would like more information on how finance can help you manage your business’ vehicles, or any other finance needs you may have, then please don’t hesitate to contact us. You can email us on [email protected], or alternatively you can call us on 01494 611 456. You can also see more over on our LinkedIn page.

How does Super Deduction Tax work with leasing?

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How does the Super Tax Deduction work with leasing?

From the 1st April until 31st March 2023, companies investing in new plant and machinery assets are able to claim the 130% super tax deduction. For further information visit here.

We are used to speaking about the tax benefits of asset finance. However, these conversations have been taking in a new meaning since the announcement of the new super tax deduction.

In this article, we explore how does the super deduction work with finance?

Can I take out a finance agreement and still claim super deduction tax relief?

The simple answer is YES. From a tax planning perspective, a hire purchase agreement has the same tax allowances as if you are paying cash for an asset. This enables the qualified asset to take advantage of the 130% tax breaks.

Can you claim super deduction relief on a lease rental or hire agreement?

No, when leasing you do not have title of the equipment as it is a lease rental. As such you will not be able to claim the super deduction tax relief. However, you are able to offset all the rental payments against profits using the annual capital allowances to reduce your tax bill. For further information visit here.

What is the impact on investment in the UK?

The super deduction relief is expected to increase UK capital equipment investment by about 10% this year. Some of this investment will just be companies bringing forward investments from future years. However, at WestWon we have already seen a huge increase by clients looking to take advantage of this tax break.

Will the use of finance increase due to super deductions?

Yes. Financing in the UK is still the main way companies raise money to finance equipment purchases. It is expected that the use of finance will increase in 2022. There is also a high expectation companies will move from lease rental, to hire purchase agreements.

What is the situation regarding leasing and the financing of non-qualifying assets?

Certain asset types do not qualify for the Super Deduction tax scheme. An example is office fit outs. Some of this expenditure does qualify, however, where the asset is part of the fabric of the building, the tax position is very different.

For non-qualifying assets, there are still available tax breaks to companies wishing to use the option of either a lease rental or commercial loan. In addition, we can support you by splitting a project up to look to take out a lease purchase agreement on the qualifying assets and a business loan on the non-qualifying assets.

The super deduction – a boost in the arm for UK finance companies

Finance companies thrive on investment. The more companies look to invest in capital equipment, the more business a UK leasing company will do. We thank the Chancellor for the introduction of the enhanced tax breaks, it is a real boost for all UK finance companies.

Want to know what the saving looks like?

Use our super deductions calculator to give you a guide on the savings you can make.

Contact Us

If you would like more information on how we can support you and your business in regards to the super deduction scheme then head over to our contact page on our website to speak to a member of our team.

Furthermore, if you would like to contact us about any of your finance needs then please don’t hesitate to call us on 01494 611 456 or email [email protected].

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