When taking the decision to lease equipment or other assets your business requires, selecting the right leasing company to work with is vital. As with entering into any new contract, when opting to lease equipment it is important to choose a reputable leasing partner and to diligently check the credentials of any company you may wish to deal with.
Now more than ever, it is essential that those taking leasing decisions on behalf of a company are fully aware of how the market operates and are fully equipped to verify the credentials of their chosen supplier and to ensure that they achieve the most cost effective solution for their particular needs.
Here are some tips to help you find the right leasing partner:
Always choose a leasing company who is a member of industry bodies such as the FLA (www.fla.org.uk) and NACFB (www.nacfb.org), which ensure best practice. Members of the NACFB operate under an Office of Fair Trading registered Code of Practice.
2. Referrals and recommendations
Scrutinise your potential leasing partner. Find out how long they have been trading and ask for reference sites.
3. Lease types
Find out what type of lease agreements a potential partner offers. There are several types of lease agreement, which will allow your company to acquire the assets you need to run your businesses without upfront capital outlay. These include capital leases (or finance leases) and operating leases. It is important to choose the right lease agreement to meet you business needs.
4. Experience and expertise
Find out if your potential leasing company has experience of leasing in your industry sector or the type of equipment you wish to lease. How long have they been in business? What companies have they worked with? If you are a start-up company, do they have experience in leasing to new businesses? Some companies only deal with established companies, while others have expertise in arranging lease agreements for new businesses.
For more advice on leasing and selecting a reputable leasing partner, download your free Essential Guide to Leasing for Business.
Asset-based finance is an ever more attractive way for SMEs to acquire the machinery and equipment they need to run their businesses and invest in up-to-date IT technology to keep their infrastructure working efficiently. Leasing is also available to cover the cost of office refits, fit outs and refurbishments, which form an essential part of most companies’ business plans.
Leasing allows companies to:
- Preserve their cash reserves and existing lines of credit
- Align costs with income over time rather than making a large upfront payment
- Avoid technology obsolescence and the problem of disposing of old equipment.
These leasing benefits are particularly important for SMEs and Start Up businesses too as they enables them to manage the acquisition of equipment and related services as a predictable monthly or quarterly expense rather than a capital cost, offering clear advantages in terms and tax and budgeting. After all, no business pays three years’ salary for its staff in advance, so why pay for the equipment they use upfront rather than over its useful life.
Whether for new business start-up or an established SME trying to stay competitive, leasing can generally be arranged in a relatively short timescale subject to status, allowing businesses to acquire the equipment they need when they need it.
SMEs looking at their finance options can obtain an instant leasing quote online using the WestWon lease calculator to help with budget planning. You can also email us with any queries at firstname.lastname@example.org or call on Tel: 01494 611 456. We are here to help you grow your business.
WestWon also provides a series of Leasing Fact Sheets for businesses wishing to find out more about leasing for their particular sector – for example, public sector leasing, catering industry leasing and medical and scientific industry leasing as well as general topics such as ‘Leasing Questions Answered’. You can also download the free guide to leasing – Financing Your Business Plans.
Obtaining an outline leasing quote could not be easier. And doing so will help your business compare the cost of leasing versus buying the capital assets you require within seconds. The interest payable on a leasing deal will depend on the amount you finance, the term of the agreement and frequency of repayments. It works just like a mortgage – the shorter the term, the less interest paid.
The table below compares the cost, for example, of a £10,000 lease agreement over various terms.
|Capital cost of lease agreement (excl VAT)||Length of lease period||Monthly repayment (excl VAT)|
For an instant leasing quote, why not try the WestWon lease cost calculator now? (Please note that rates quoted are for illustrative purposes only and payments will vary according to your company’s individual circumstances and leasing requirement.)
If you are thinking of leasing your equipment, machinery, office furniture, office fit out or IT hardware, software and services, there are a few points you should remember:
Top Tips for Leasing
- First and foremost, if something seems ‘too good to be true’ it may well be not what it seems.
- What are the early settlement terms and notice required to terminate the lease before the end of the agreed lease period? Ensure that you are aware of any early exit penalties there may be in the contract.
- Always read the small print. If there is a service contract associated with the lease contract, ensure that you know what it covers and what rights you have should you not be satisfied either with the performance of the equipment or with the quality of service you receive. In particular, check what happens if you wish to terminate both the lease and service contract, for example, should the leased equipment continually malfunction.
- Scrutinise your potential supplier closely. Find out how long they have been trading and ask for reference sites.
- If you have to pay a supplier a deposit, make sure it is correctly documented and inform the leasing company.
- Take particular interest in any settlement figures that you wish to include in a new lease when upgrading an existing lease. This is especially important when dealing with photocopiers.
- Look out for additional charges such as documentation fees and administration fees, so you have a full understanding of total costs.
- Don’t sign a ‘certificate of satisfaction’ or ‘certificate of acceptance’ before you have received delivery of the equipment as this document releases the money from the leasing company to the supplier.
For all your leasing queries, please contact WestWon on Tel: 01494 611 456 or alternatively, you can download more information about how to get the best leasing deals here – Financing Your Business Plans: Free Guide to Leasing
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 boris@WestWon.co.uk or Tel: 01494 611 456