As we head into 2024, it’s essential to look forward to the trends shaping the landscape of equipment financing. This coming year is expected to bring exciting opportunities and challenges alike, as innovative technologies, evolving economic dynamics and new financing strategies intersect. (Oh, and let’s not forget it’s an election year, which tends to make people hold their breath until we know which parties control what.)
Trends effect most business owners in one way or another, but if you’re planning to buy or finance essential business equipment in 2024, here are a few trends to be aware of.
The Digital Frontier Continues to Revolutionize and Expand Financing
Expect to see an even more obvious digital revolution in equipment financing. Advancements in fintech are no longer just a convenience, but a transformative force. The adoption of sophisticated online platforms is slated to redefine the application process, making it more intuitive, faster and remarkably efficient.
This digital evolution goes beyond mere transactional changes; it’s about enhancing the very experience of securing financing, making it seamless for businesses of all scales, located anywhere.
AI and Machine Learning are Customizing Financing
Artificial Intelligence (AI) and Machine Learning (ML) are not just buzzwords; in 2024, they will become integral to personalized equipment financing solutions. These technologies will enable a deeper dive into a company’s unique financial landscape, offering more nuanced and tailored financing options.
For business owners with less-than-perfect credit histories, this could mean improved access to necessary funds, as AI-driven models provide a more comprehensive risk assessment. When choosing an equipment financing provider, AI and ML can help speed up the process, but nothing still outweighs the benefits of having a human review your story—someone you can talk to and work through your options with.
Green Financing: Aligning Equipment with Sustainability
Sustainability is no longer a choice but a necessity, and in some industries, mandated. In 2024 and beyond, we foresee a substantial shift towards green equipment financing. This trend is not just about meeting operational needs, but also aligning with broader environmental values. Financing options that cater to moving toward ecofriendly and sustainable practices will not only be popular but will also contribute to a company’s impact on the environment.
Given our equipment financing experience in the construction, logging/forestry and manufacturing industries, we’re seeing high demand for introducing new or replacing old equipment and gaining efficiency, productivity and energy savings.
Use the Power of Flexibility to Your Business’s Advantage
“Flexibility” is the keyword for 2024 in equipment financing. The economic landscape demands financing solutions that can adapt to the both the highs and lows of business, as well as global events, like we saw with the pandemic. Be it through adjustable payments, interest options or tailored equipment lease agreements, the ability to obtain financing customized to your needs will be important, particularly if you are managing the complexities of growth or a challenging credit score.
Again, gaining that power of flexibility depends on the type of lender you choose. Global Financial & Leasing Services (GFLS) provides equipment-financing solutions for a wide range of companies and a wide range of credits. We work with business owners who are often seeking to finance the equipment they need to launch, expand and/or grow their companies. Our customers include startups, emerging businesses, private equity-backed companies, “C” and “D” types, turnarounds and those with less-than-perfect credit. We specialize in making credit decisions based on an applicant’s potential. We see applicants as more than a credit score, and we look to uncover their value and create an equipment financing structure that will often work for them.
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Taking Advantage of Educational Opportunities to Become Financing Savvy
Perhaps more so than ever, becoming educated on equipment financing options is a competitive advantage for business owners. As options and strategies become more diverse, business owners who take advantage of resources and expert guidance can grow faster than those who do not. Understanding your financing options empowers owners to make informed, strategic decisions for their businesses’ futures.
At Global Financial & Leasing Services, we are excited for what 2024 will bring, offering our expertise and cutting-edge solutions to help you and your business thrive. If you’d like to learn more about equipment leasing and financing up to $1 million for an SMB, contact us.
