ProWood Finance Ltd - Long time supporters of NEY customers
50% of all contracts with ProWood are never terminated as contracted. Customers have to exchange and update machinery in order to follow requirements of productivity, quality and product development.

Traditional finance houses would apply hefty penalties and complex procedures because they are unable to dispose of outdated equipment. In cooperation with NEY these machines find their market again.

ProWood is able to accept new applicants more or less on the spot whilst traditional finance houses have to go in search of balance sheets and this takes time.

Unforeseen developments or new challenges need to be discussed with people who understand your production problems and the market.
Both NEY and ProWood employ people who possess this expertise and are available for consultations with our customers.
Modern finance solutions

In the past banks liked to secure loans with a “fixed and floating charge” over all the assets of the company. This resulted in a deadly dependency on the good will of the Bank Manager.

Many have experienced the banks’ logic to withdraw the umbrella when it rains and offer it back when the sun shines.

The situation becomes worse when a directors guarantee becomes a condition of any loan arrangement. This is dangerous and also morally not justified in a world where the personal efficiency of a Managing Director is only one of the many factors deciding the fate of the company.

Modern financing should be related to the subject to be financed. Long term bank loans should finance buildings, working capital should be financed through the collateral of outstanding debtors and capital goods should be financed by the prospective viability of the undertaking.

The seller of asset finance should be able to discuss with the company the benefit of the proposed acquisition, “the pay back time” and offer technical and commercially based alternatives. Also one has to view future plans, expansion and foreseeable changes which could reflect back on the investment strategy in order to keep control of costs.

Unfortunately, for legal reasons, finance can only be offered to companies in the UK and Northern Ireland.


Hire purchase (“HP”)

Hire purchase is the most popular method of financing. The advantage is the immediate ownership of the machine. Tax-wise it is depreciable and a valuable asset in the balance sheet. The disadvantage is the payment of deposit and VAT up front. If the finance situation allows it is still the most simple and efficient way of purchasing capital goods.

Finance leasing (“leasing”)

With finance leasing the machine remains the property of the finance company. Deposit is still due up front, however VAT payments are only due on the monthly payments. Transfer of ownership is possible with involvement of a third party to buy it from. Practically it is a simple administration process without further complications, however, the Inland Revenue tries to tighten up transfer of ownership but up to now it is legally acceptable. The purchased machine cannot be shown as an asset in the balance sheet but the monthly rental costs are deductible from the taxable profit.

Operational leasing

This is a popular route originated in the car business. The method is similar to “Finance Leasing” but the contract is set up for a period of between 1 – 5 years. The Finance Company retains ownership during this period and the machine is returned after the contract period. The contract can be prolonged or changed according to the wishes of the customer. The advantages are that there is a lower deposit and VAT is added to the monthly payments which are fully tax deductible. Although the customer does not have the benefit of the residual value, he also does not have the problem of disposing of a used machine therefore keeping the cost of production under control. A benefit to companies who like to show low asset value and optimised profits. We believe this increasingly popular method of finance will gain a much larger market share in the future with the focus on viability and profitability.
The clients of ProWood finance

Starter companies:

This is the best justification for the existence of our company. Without the chains and restrictions of government supported schemes we have set up many starter companies. Not every company succeeded, however there are today a smaller number of millionaire companies which started from scratch with the help of ProWood Finance. We are looking primarily into the ability and determination of the owner, his markets and planned products, when deciding to approve finance. Obviously balance sheets or other historic records are non-existent in the case of starter companies. Our specialists will advise about the most prudent and bold ways to move ahead.

Expanding companies:

The profile of our existing customers proves the point of our successful approach:

  • Our customers are mostly the younger generation.
  • Our customers are showing above average profitability.
  • The productivity per employee is the highest in the country.
  • Our typical customer gives priority to quality, design and marketing.
  • Our customers show low stock levels and still offer very flexible lead times.

Restructuring companies:

Most companies are managed by partnership between two people - the technical person and the sales person. Such partnerships also include married couples. If the business is successful often enough the partnership breaks down and a split is unavoidable with financial consequences. In this case we are prepared to support the efforts to continue the company by refinancing equipment and machinery or whatever the individual case requires. It is very rewarding to work with our customers on positive ideas and to discuss the way forward.