Every new business deserves a fair chance & leasing is the perfect option to encourage growth.
A New Start Looking to Invest & Grow
Every single new start business (trading for less than 3 years) deserves a fair chance of making their company a success. The first 3 years of trading are some of the hardest for every business and unfortunately some are not as successful as others.
One of the major concerns for a new start business is cash flow yet there is a massive amount of pressure to employ staff, invest in facilities and essential equipment which all costs money. Equipment leasing is a great solution as it is a cost-effective investment method which attracts many benefits.
Leasing Benefits
- Keep cash flow within the business.
- Get the equipment you want when you need it, not just when budgets allow.
- Claim 100% tax relief on all rentals payable.
Lease Finance for New Start Companies
Along with the pressure to invest in order to grow, new start companies often have the struggle of obtaining finance needed for this investment. The reason banks and finance providers are reluctant to approve new start customers for finance is because they are considered ‘high risk’ as there is no guarantee that these companies will be trading long enough to pay the loan/lease back.
However, we believe that every single new start business deserves a chance of having a successful future. Therefore, when we come across new starts looking for finance we don’t turn them away, we work hard to find a way to approve the finance they need for vital equipment.
Case Study
At the beginning of February 2015 one of our suppliers contacted us with a new start company looking to invest in £10K worth of vending machines.
Rather than turning the proposal down our underwriting team went to work and contacted the customer directly. In order to approve a new start customer for finance our team needs to gather as much information as possible from the customer such as business background, bank statements and accounts. Lucy, who was mainly involved with the lease deal worked with the customer to provide as much information as possible to get them approved.
Our hard work paid off! We managed to approve the customer for £11K worth of finance, meaning they could invest in those vending machines.
We didn’t stop there
Lucy felt that we could potentially offer the customer more credit based on the information provided, the customer was very open and willing to give information which always helps. The new start was looking to develop the company further so Lucy informed them that if they were in need of any more finance for future equipment we could get something in place for them.
Since then the customer has invested in some refrigeration equipment and three more vending machines on lease and are on the road to developing their company further.
Find out more about our support for new start companies or contact us.
