Leasing for SME’s show a recent survey by the Federation of Small Business reported that approvals from banks had fallen to a 30 month low. The funding gap to SME’s is increasing. This could be down to credit scoring, or as we say, computer says no !!
Oak considers the SME’s ability to generate cash flow and profit from the new equipment.We are fully aware that every SME is different, so a computer scoring model is just is not fit for purpose, your purpose.
You will be pleased to know that firstly, our funders have no restrictions to lending to both new starts and SME’s.
We can often structure a proposal to help you overcome initial cash flow and lack of capital problems.
Where you can help yourself, is a proper and professional business plan. If you do your homework here, it will pay dividends when an underwriter will read your proposal.
In the present post Brexit financial climate, equipment leasing and asset finance for SME’s is proving to be critical for many thousands of companies and SMEs, who through no fault of their own are experiencing some degree of either banking or cashflow problems.
Oak has funding available for all types of equipment, from IT and computers, plant and machinery. Whatever equipment that SME’s need, we have the funding in place ready to fund your equipment. We can even arrange Sale and leaseback,for equipment which is a growing and crucial part of any companies financial plans in the current turbulent market.
Everybody’s reason can be slightly different as no SMEs are the same, but the basis is always the same; spreading the cost over the life of the equipment.
Putting it simply, sale and leaseback enables companies to free up capital, to strengthening their balance sheet, and helps with cash flow. We will even settle existing leasing or HP agreements on equipment and then refinance the equipment over a longer period.
Often any extra or additional funding required for new or necessary asset finance or even leasing is just not available. And yet SMEs are the real heart of the UK economy, who employ 13.5 million people – 59% of the UK’s total private sector workforce.
So why use leasing?
Equipment leasing is a new credit line for SMEs away from their banks, and keeps their banking and overdraft lines free for any unexpected future problem or cash flow issues. In this present time, a very useful option.
The phrase never keep all of your eggs in one basket is very apt at this present time.
The fact that leasing for SME’s is wholly allowable against tax means that equipment leasing is very tax efficient.
Equipment leasing is a fixed cost, and for a fixed and agreed time, unlike banking overdrafts, which are normally renewable every year. Equipment leasing will give you peace of mind, in knowing that your lease will simply run, and is not able to be withdrawn from you.
Leasing will help you in accurate budgeting and forecasting, and can be tailor made for your individual requirements. SMEs will have the opportunity to upgrade equipment at any time during the equipment lease, so you will always have the option of the latest technology.
