Top 5 myths about getting a business loan

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You need perfect credit

One of the most important misconceptions of our top 5 myths about getting a business loan, is that you need perfect credit. This isn’t always the case. Many people assume that if your credit history is not perfect, there is no point in trying to apply for a loan. Being credit accepted is something that can still happen even with non-perfect credit.

Here at WestWon we will never not try for a business to be credit accepted, which is why we have a 95% acceptance rate. We will try several funders if it means getting the right agreement for you and your company. However, if we cannot get you credit cleared, we can provide you with alternative organisations that may be able to help. We are also always on hand to offer financial advice, free of charge!

A loan is for businesses in trouble

Another common myth is that a business only applies for a loan if they are in trouble. This is certainly not the case. There are many businesses out there, especially after Covid that have needed financial help. However, there are also many companies that use a loan as a form of investment and growth. This is what we see it as here at WestWon. It can be used for a range of investment purposes. This includes expanding to hire new people, office refurbishment costs, new equipment or simply to boost your business’ cash flow.

It takes a long time to get a loan

Especially in times before Covid it would be difficult to immediately have documents sent over and signed. However, nowadays that process is much faster. Here at WestWon we operate in the same way a lot of other finance companies may do, in that we will get back to you within a 24-hour period, and it normally doesn’t take longer than 48 hours to get credit approved. The process after this is very simple and straightforward meaning it won’t be long before your agreement is activated.

Banks are the best option

Banks used to be the main source of funding for a lot of companies. However, now it is essential that you do your research. Not every company is the same. Therefore, not all finance facilities will be needed by each UK business. Also remember that if a bank has said no to you, that this is the only option. In fact, one of the main benefits about leasing is that you use an alternative line of funding. This is so that you don’t use up an existing bank facility.

There is tons of interest and hidden fees included

Here at WestWon we are proud to have industry leading rates starting from 2.5%. We make sure there are never any hidden fees or hidden interest included in the agreement you undertake with us. This is not the way most finance companies do business. Transparency between clients, partners and suppliers is essential. Therefore, we will always make sure to be 100% honest and clear with you. If you do have any questions then please get in touch with us using the contact details below.

Contact Us

If you would like more information on our top 5 myths about getting a business loan, 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.

Corporation Tax Finance

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Corporation Tax Finance

Running a business comes with a lot of responsibility and one being to pay your tax bill. However, the timing of this bill landing on your desk can be inconvenient. If you are in a position where you are unable to pay for your bill, Corporation Tax funding is the solution for your business. Spread the cost of your bill in 6- or 12-month repayments.

What is Corporation Tax?

Corporation Tax is the amount of income earned through trading – from asset sales and other taxable events throughout the tax year. You will receive a tax bill if your business is:

  • A limited company
  • A member’s only club
  • A trade association
  • Housing association
  • Or a group of individuals operating as a business outside a partnership.

Currently the rate for UK Corporation Tax is 19%, which also applies to any overseas companies who are based in the UK. HM Revenue and Customs calculate your bill, which is usually due 9 months after the businesses accounting year finishes. It will stay at this rate until at least the end of the financial year. This ends in April this year.

It is important to pay your corporation tax as there are some hefty penalties. Some so drastic that if your bill is extremely high your business could be forced to liquidate!

With cash flow constantly increasing and decreasing, it is always best to put a lump sum aside to meet the tax bill requirements. However, there are unexpected costs that incur, so it can be difficult to set some much cash aside.

Corporation Tax finance is a stress-free funding solution, where you apply for a loan that will cover the cost of the bill.

What are the benefits?

  • Cash flow – Control cash flow with manageable monthly payments.
  • Fast Payment – Payment can be made directly to HMRC who will then receive the money on time.
  • Alternative funding lines – No need to use up an existing bank facility.
  • Fixed monthly payments – Easy fixed repayment schedule with fantastic rates.
  • Approval within 24 hours – WestWon prides itself on fast and quality customer service.

Contact Us

If you would like any more information on corporation tax finance or other business loans we can provide finance for here at WestWon, then please don’t hesitate to get in touch with us. Either give us a call on 01494 611 456 or alternatively email us on [email protected].

How asset finance helps you manage your Optical business?

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Here at WestWon we have several finance options that could help your optical business to grow. Whether it’s to acquire a new practice or purchasing new optical equipment and furnishings for your optician’s practice. At WestWon there are over 50 UK funders that we can work with to provide you with industry leading rates. At the same time, we can work with a supplier of your choice or recommend you with one and source the equipment for you.

Why choose WestWon for your optical business?

  • At WestWon you receive a decision within 24 hours, making the process quicker and efficient.
  • Here at WestWon we have industry leading rates from 2.5%.
  • There’s a 95% acceptance rate, so if your business meets all the necessary requirements, there is a very high chance that you will be accepted.
  • We pride ourselves on our 5* customer service that we provide to all customers.

Types of loans for opticians

Here at WestWon we don’t just finance optical equipment but also help you grow your business by providing you with loans. These include Professional Indemnity, VAT and Corporation Tax loans.

Professional Indemnity loans for opticians:

If you are looking to finance your professional indemnity loans, WestWon offer repayment terms between 3 months and a year. All you, as the client, needs to provide is the quote for the insurance and the loan term, then we can send you back a finance quote. This process will take a couple of days from your initial application through to paying your fees.

VAT and Corporation Tax loans for opticians:

At WestWon we can pay HMRC on your behalf after seeing your liability to pay VAT/Corporation Tax. This leaves you with the option to fund other investments to aid the growth of your business. This is because you know that this cost has been taken care of for you.

Contact Us

If you would like any information on the above details, or about optical finance in general please call 01494 611 456. Alternatively, email [email protected] for a free and quick finance quote.

Business Loan Options at WestWon

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Here at WestWon we provide financing and business loans to a plethora of sectors. We also offer a range of loan options to help businesses with any financial situation they might find themselves in. WestWon provides 5-star customer service with a team that prioritises customer care, industry leading rates, require no deposit, and have a high acceptance rate. Likewise, we will ensure to waste none of your time and give you a decision within 24 hours!

Business loan options that we provide here at WestWon:

VAT Loans

VAT loans can provide financial relief for your business from the large lump sum of quarterly tax bill and instead allows you to pay 3 affordable monthly payments. This enables you to disperse this expense evenly. Additionally, we will take care of all the legal requirements of being VAT registered. Having those checks taken care of takes stress and responsibility off your company’s shoulders.

Corporation tax

Avoid late payment penalties! Our corporation tax loan can help spread the cost of your business’ company tax. Then, this can be paid over a 6- or 12-month period. We can make the process easier for you and pay this directly to HMRC ensuring all checks are in place. Alternatively, we can transfer the money into a bank account of your choice. However this is considering your company has been trading for a minimum of 2 years.

Working capital

With loans starting from £5000 and industry leading rates; you can cash inject your business and boost its growth.

Equipment Refinance

You can raise funds against equipment that you have purchased and get a monthly plan agreement in place. It is an opportunity to gain an immediate cash injection into your business. By financing your existing equipment, it allows you to keep funds in the business that could be used elsewhere.

Equipment Leasing

Equipment leasing is the alternative to asset purchasing. Leasing your equipment provides elasticity, and it is ideal for anyone who needs to step up their operation. In addition to this, leasing is an amenable way to replace old or damaged equipment. As a result, this can instantly make the business more productive and improve yield. By paying monthly instalments over an established period from 1 – 5 years, you can maintain your precious cash.

Here are just some of the many sectors we finance to:

 

In conclusion, here at WestWon we provide various business loan options. If your business is looking for a loan or asset finance, please call a member of our team now on 01494 611 456 or email [email protected]

A £500,000 office furniture and fit out project

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A £500,000 office furniture and fit out project for £1.00 per square foot

We have recently quoted leasing figures on a £1/2 million office furniture and fit out project. The client is looking to sign a lease on a 10,000 square foot building.

We were asked for an indicative leasing quote based on a five-year term, the rental – as a rough guide – comes to £10,000.00+VAT per month.

Together with the office fit out supplier, we have built a sales strategy around £1.00 per square foot per month.

Breaking the capital cost down to the lowest common denominator

This strategy is nothing new, Olivetti (a famous IT manufacturer from many years ago) did exactly the same. They would take the rental cost of their computers and then illustrate this cost as a daily amount, a policy expressed in their saying; “it’s less than the cost of a cup of coffee every day.”

By dividing the £1/2 million cost by the square feet, and then again amortising this on a lease over five years, we have been able to break the capital cost down to the lowest common denominator.

A 20 x 25-foot meeting room becomes £500.00 per month.  Assuming there are fifty meetings in this room every month, and the cost per meeting is £10.00. Likewise, if an employee has equivalent to 100 square feet of space, then you can attribute a £100.00 cost to them every month.

Allocating office furniture and fit out costs to departments

Many years ago, we were looking to arrange a lease for a very well-known airline. They needed to allocate costs per department / division. One of their key criteria was the ease of changing departments costs. For example, the finance department contracts in space and the marketing department expands. When you have a cost per square foot per month, it is much easier to allocate these payments.

You do not have to lease office furniture and fit out to allocate payments and budget effectively

It is true, you do not have to lease to allocate departmental costs. You could just take the capital cost and divide it by the number of square feet. However there is also the cost of finance. Over five years, your internal cost of finance may go up or down.

There also might be a sperate cost for maintenance of these assets, warranty and the most popular cost now, disposal. All these costs can be included into a lease. This gives a true cost of ownership per month or per square foot.

Why do large cash rich companies lease?

If you ask most companies why they lease, they will say for cash flow reasons. It can be that the company does not have the cash currently, that they wish to preserve their cash or do not wish to use an overdraft or loan facility.

For the larger companies who do have cash reserves, budgeting and allocation of the true costs, this does play a major part in decision making when it comes to leasing.

Companies large and small lease office furniture and fit out

Our office furniture and fit out customers are both large and small companies leasing for a whole variety of reasons. Please call our sales team on 01494 611 456 if we can help with your office move, or for any further information email us on [email protected] .

Looking to get a cash injection in your business? Have you heard about the Recovery Loan Scheme?

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Have you heard about the Recovery Loan Scheme (RLS)?

Does your business need a cash injection? Over the course of the past year, Covid-19 has had a considerable impact on all UK businesses. More than 95% of UK businesses are small-medium sized enterprises with less than 250 employees. This means cash flow has been reduced due to the impacts of the pandemic. However, most businesses have had to pause operating. With the latest relaxation of England Covid-19 restrictions on Monday 19th July, and employees being encouraged to go back to the office, businesses are looking for help to get them back to pre-pandemic levels. Looking for certainty during these times can be challenging, but one feature that WestWon can offer support through is the Recovery Loan Scheme.

So how can the RLS help to grow and stabilise your business?

Launched on the 6th of April 2021, the Recovery Loan Scheme (RLS) essentially provides financial support to UK businesses as they recuperate from being impacted by the pandemic. The funding itself can be used for managing your businesses cashflow, growth and investment. The scheme will run until the 31 December 2021, although this is expected to be extended into 2022.

Has your business has previously borrowed from any of the other Covid Loan Schemes such as the Bounce Back Loan Scheme and the CBIL’s scheme? If so, the RLS is still accessible for your business to use.

It works in that all accredited lenders can be found on the British Business Bank website. However, when looking to borrow, you should first approach your own finance provider. A government-backed guarantee is then given to the lender by the RLS. As the borrower, you are then 100% accountable for the debt. There are also conditions on much a company is borrowing. For example, if you are borrowing £250,000 or less, the lender will not take any form of personal guarantee. However, more than £250,000, and the lender can decide whether to take personal guarantees or not.

Hear what Government officials have to say

Rishi Sunak, the current chancellor of the exchequer has said “as we safely reopen parts of our economy, our new Recovery Loan Scheme will ensure that businesses continue to have access to the finance they need as we move out of this crisis.”

Kwasi Kwarteng, the secretary of state for business, added that “the launch of our new Recovery Loan Scheme will provide businesses with a firm foundation on which to plan ahead”. This will in turn “protect jobs and prepare for a safe reopening as we build back better from the pandemic.”

As restrictions ease and businesses return to normal demand it is vital that this support is held in place. This will keep them running and growing during reopening.

Contact Us

Here at WestWon we work with several approved lenders offering funding via the Recovery Loan Scheme. If your business is looking for a Recovery Loan or asset finance, please call a member of our team now on 01494 611 456 or email [email protected]

WestWon authorised to offer finance under the Recovery Loan Scheme

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We’re pleased to announce WestWon are now an accredited broker of the new Recovery Loan Scheme.

A number of the WestWon team have gone through their first training session yesterday with an authorised provider of finance. As a result, this was done under the British Business Bank backed Recovery Loan Scheme.

About the Recovery Loan Scheme

The Recovery Loan Scheme was launched on the 6th April and is seen as the replacement to the CBIL’s & Bounce Back Government backed loan schemes. It will be in place until the end of the year, however, already people in the leasing and finance sector are suggesting it is likely to carry on into 2022. The scheme can provide up to £10m of funding per business with the following facilities are available:

  • Term Loan
  • Overdraft
  • Invoice Finance
  • Asset Finance

No personal guarantee is required for the first £250,000 borrowed, however the borrower is always 100% liable for the debt. Interest and fees are to be paid by the borrower from the outset. The APR on the loan cannot therefore be more than 14.99%. Full information can be found here.

Hear from others

George Shillingford, the newly appointed Commercial Director at WestWon noted, “An important point one of our funders stated was they are expecting to use the facility where they would normally have rejected an application. However, this is great news to us, as so many companies will be reporting a drop in profits or losses in their 2020 year end accounts, as a result obtaining finance could be harder to find. This scheme will definitely help our clients.”

WestWon CEO, Jeremy Hall added, “We have a second external training session today with another funder we use. We will know how, when and where to offer the Recovery Loan Scheme to our clients. Within the next few weeks, we are expecting a range of financial providers we work with to become authorised. We will be promoting the scheme to a range of the clients we work with.”

To find out more about the Recovery Loan Scheme please speak to a member of the WestWon team on 01494 611 456 or email [email protected]

Support for businesses through deferring VAT- COVID-19

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Support for businesses through deferring VAT- COVID-19 Over the last year, WestWon have been implementing a business plan to launch a new VAT division. Investing time into the production of marketing content to let businesses know that financing VAT is an option. Writing a range of informative blogs, fact sheets, videos and brochures. WestWon has […]

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WestWon Launch VAT Funding Division

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WestWon Launch VAT Funding Division WestWon are pleased to announce the official opening of our VAT Funding Division. VAT funding and Corporation Tax loans has been a product we have been offering for many years, but historically on a reactive basis. Our new VAT funding and Corporation Tax loan division has been created to proactively […]

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