The White Oak Group of companies act as both a funder and commercial finance broker who assists business customers, including limited companies, partnerships and professional individuals in obtaining finance. White Oak’s aim is to provide appropriate funding options to suit our customer’s business needs
As part of our business, we carry out the following activities:
- Providing businesses with credit and hire agreements.
- Introducing businesses seeking to obtain credit to alternative financers.
- Recommending or making available credit or hire agreements businesses.
- Assisting businesses by undertaking preparatory work in relation to such agreements, and
- Referring customers to financers.
LDF Operations Limited will typically introduce clients to an White Oak Company for consideration. The White Oak Finance Companies focus is on supporting SMEs, corporates and professional practices through the provision of competitive hire and credit agreements.
However, if a client’s requirements sit outside our credit or risk appetite we will source finance for client via an appropriate member of our funding panel.
As a credit intermediary, we maintain a panel of lenders who are:
- Reputable and experienced in the asset finance or consumer credit sector, and that
- Offer products or services to suit a variety of credit strengths.
With over thirty years’ experience of the market place, we consider ourselves well placed to identify, provide and source the most appropriate funding for our clients.
Transaction Process and Declines
As both a funder and credit intermediary, White Oak has due regard for the FCA’s Principles of Business, its regulations and guidance and the business strives to satisfy these through its operational practices. White Oak ensure that customers are provided with clear and transparent communication throughout the transaction process and where possible, try to avoid multiple contact and correspondence with the customers which may cause unnecessary confusion.
White Oak will make an internal assessment as to the likely cost of credit or hire. Although any quotation provided is an accurate reflection of this assessment at the time of publication, it is subject to full underwriting and fluctuations in interest rates, terms fee, facility type and other factors which may be unforeseen at this initial stage.
Acting as a Credit Broker
LDF Operations Limited will always consider whether it is able to fund a proposal within the White Oak Group first, before considering funders. We aim to provide competitive finance option(s) to our clients, coupled with a high level of customer service and a relevant product range.
If the proposed transaction sits outside the scope of White Oak’s credit or risk appetite, then we may introduce your proposal to an alternative funder. This means sourcing the most suitable funding option available, considering the specific circumstances of the transaction, including but not limited to:
- Speed of decision
- Product range available
- Credit considerations
- Amount of required advance
- Asset or loan type, and
- Security provided
When acting as a credit intermediary, White Oak act entirely independently in sourcing credit from our panel of funders and are committed to ensuring that all applications for credit are placed with the most appropriate funder for a transaction.
Where White Oak acts as credit broker, we may receive a commission payment for effecting this introduction, equally, if the deal has been introduced to White Oak by way of a referral, White Oak may choose to pay some of its commission to this referring party.
It is important that you provide accurate information on your application and disclose all relevant information that would reasonably be considered to have bearing on any credit decision, including but not limited to:
- Any corporate action, legal proceedings or other procedure or step by any person in relation to the insolvency of the customer, or the occurrence of any insolvency event in respect of the customer or any of its assets (including without limitation any arrangement with its creditors or any steps to appoint an administrator);
- The customer to be in breach of any applicable law or regulation binding upon the customer or its directors, or to be in breach of any authorisation, consent, permission, approval, resolution, licence, exemption, filing or registration binding upon the customer or its directors with any governmental, regulatory or other authority (financial or otherwise), or any governmental, regulatory or other authority (financial or otherwise) to intervene in the business or affairs of the customer or impose any fine on, or take disciplinary action against, the customer for any reason, or cause the customer at any time to lose any licence(s) required to be held by it to conduct its business; or
- Any bank or financial institution to accelerate, cancel, suspend or terminate any agreement relating to any indebtedness of the customer with that bank or financial institution as a result of an event of default (howsoever described) or otherwise.
When sourcing available credit, White Oak does not make multiple proposals (“multi-prop”) transactions to multiple funders; only one funder will be approached at any one time and only when this funder has declined the prospective transaction will White Oak approach an alternative funder, who they consider to be the most appropriate. The reason that White Oak operate in this way is to ensure that the number of credit searches carried out against prospective customers is minimised.
Whilst White Oak does not “multi-prop”, if it is necessary to split a large transaction into smaller amounts to obtain funding, White Oak will only propose the smaller transaction amounts to one set of funders at any one time.
If a finance application is accepted, White Oak will notify you of the acceptance and any accompanying terms and conditions.
Acceptances are valid for a limited period and a further application will need to be submitted for consideration if this period lapses.
White Oak and its funding panel reserve the right to withdraw an acceptance at any time if they become aware of any information that adversely affects your financial status. White Oak may execute documents via manual or electronic signature.
White Oak will endeavour to keep you updated with regards to the progress of your application for finance. Where we decline a proposal, or receive notice of a decline from a funder, we shall contact you and inform you of the decision.
It is important that the finance product that we provide for you is suitable for your requirements. We will only consider finance for equipment being acquired for the benefit of the business and therefore will not facilitate any personal lending or hiring.
Whilst we will endeavour to understand your needs and assist you in looking for an appropriate product, we would encourage you to use the information below to ensure that the facility that White Oak provides or arranges for you is suitable.
If you require further information you should seek advice from your accountants or other professional advisors (please note that White Oak do not provide advice on these matters).
There are two main types of lease, an Operating Lease and a Finance Lease.
Both leases involve the hire of equipment and may also be known by other names such as Lease Rental, a Rental Agreement or a Minimum or Fixed Term Hire Agreement.
- The lessee (customer or borrower) will select an asset (equipment, vehicle, software).
- The lessor (the finance company) will purchase that asset.
- The lessor will make rental payments, during the initial or primary period of the lease.
- The lessee is committed to paying these rentals over the term of the lease and technically, a finance lease ie defined as non-cancellable although it may be possible to terminate early by paying the future rentals less a discount.
At the end of the lease
What happens at the end of the primary lease period will vary and depends on the actual agreement, but the following options are possible:
- Continue to rent the equipment.
- Return the equipment to the lessor.
- Or terminate the lease.
If upon terminating the lease you would like to acquire ownership of the equipment this can usually be arranged by White Oak following the payment of an appropriate fee.
White Oak typically use a Minimum Term Hire Agreements which means all the options detailed above would be available to you. We will write to you nearer to inform you of the impending end of your primary period and advise you as to the appropriate next steps. It is important that you take action following receipt of the letter as otherwise a secondary period of rentals will automatically begin.
- Funding secured against the equipment.
- Available on nearly all equipment purchases.
- Spreads the cost of the purchase.
- VAT is paid on each rental, so you do not need to pay it upfront.
- Potential tax advantages.
Hire Purchase is also known as a Lease Purchase or HP. Hire Purchase is a loan or contract that is linked to a specific equipment purchase and is a way of obtaining the use of an asset before payment is completed.
The payments of the HP are in regular (typically monthly) instalments which includes a capital repayment plus interest followed by an option to purchase fee at the end of the term of the agreement. Ultimately by making these payments the customer will obtain ownership of the asset. The payment of the VAT is required upfront, at the beginning of the agreement.
- The customer selects an asset (equipment, vehicle, software).
- The finance company purchases the asset whilst agreeing to sell the asset on credit to the customer by the way of the hire purchase agreement.
- The customer must make the agreed regular payments for the term of the agreement that cover the original cost of the asset.
- The customer is able to buy the asset at any time by giving notice to the owner (the finance company) and paying the balance of the HP price less rebate.
- Funding secured against the equipment
- Spreads the cost of the purchase of the equipment
- Potential tax advantages
At the end of the lease
Ownership will pass to you once an option to purchase fee is paid. The fee varies dependant on the funder but typically ranges from £100 – £250. The fee is disclosed on the HP agreement which you should check before signing and is available on request once the finance has been accepted.
An unsecured loan is money lent from one party to another without any asset to secure its repayment.
- The customer requests funding for a specific purpose.
- The finance company advances funds to the customer.
- The customer must make the agreed regular payments for the term of the agreement that cover the cost of the funds advanced plus interest.
- The customer is able to terminate the agreement at any time by giving notice to the finance company and paying the balance of the agreement less rebate.
- Funding can be used to fund a wide variety of purposes.
- Spreads the cost of expenses.
Please note: It may be that the actual products available to you are restricted due to the finance purpose, business structure or credit appetite of certain funders. All finance products will typically include a Documentation Fee which is determined by the funder and usually collected with the first payment.
When deciding to proceed with a finance product, it is important to consider some key factors:
- Is this the right product?
- How quickly can it be delivered?
- Can the provider offer the product you need?
- Can the provider assist your business/ industry?
- What are their service standards and reputation?
- What rates are available to you?
When considering costs, always consider the rental and repayment costs, the frequency of this and the total amount that you are being asked to repay. This will help you to compare costs and to ensure that the repayments meet with any budgeting requirements you may have.
The APR on a finance product is one such factor and is calculated on all Credit Agreements (which in White Oak’s case are all Loan and Hire Purchase contracts that are regulated by the Consumer Credit Act). Whilst White Oak only work with businesses, sole traders and partnerships, borrowing less than £25,000, these customers are still classed as consumers when borrowing wholly or predominantly for business purposes.
If you are a corporate entity, APR is not published on your documentation, however it is always available on request.
Rates from 5.4% APR to 107.7% APR are available.
The amount of interest you are offered by White Oak is based upon an assessment being made of your financial circumstances. All lending is subject to status and availability. White Oak reserve the right to decline any application for borrowing by a customer. The actual interest rate offered will be calculated based on your financial circumstances.