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Amid Tightening Credit Conditions, Vendors and Brokers Find Opportunities with Alternative and Story Lenders

by Equipment FinancingFinancingVendor Financing

Amid traditional banking’s tightening credit conditions, many business equipment vendors and loan brokers are feeling the impact. Recent updates reported in Monitor Daily’s Q2/24 Bank Credit Pulse highlight several key changes among large banks that are affecting—or should we say restricting—access to funding.

Here’s a closer look at these changes and how GFLS, a full-service direct lender, can help vendors and brokers take advantage of opportunities to get more applications approved and businesses forward.

Five Key Changes in Bank Credit Offerings

  1. Reduced App-Only Offerings
    • Impact: 11% of large banks have reduced the dollar value of their app-only offerings.
    • Challenge: This reduction means vendors and brokers must now gather more financial information from their customers, adding complexity to an already lengthy and burdensome approval process.
  2. Increased Time in Business (TIB) Requirements
    • Impact: 12% of large banks now require a longer TIB, with some increasing from 2 years to 3 years.
    • Challenge: Newer businesses and startups may struggle to meet these stricter criteria, limiting their funding options.
  3. Higher Minimum Deal Size Thresholds
    • Impact: 6% of banks have raised their minimum deal size threshold.
    • Challenge: Vendors and brokers may find it difficult to get larger financing deals approved at big banks.
  4. Stricter Standards for Financial Strength
    • Impact: 19% of banks have increased their standards for historical financial strength.
    • Challenge: This makes it harder for business owner with past financial challenges to get approved.
  5. Reduced Broker Business Volume
    • Impact: 17% of banks are reducing the volume of broker business they entertain.
    • Challenge: Brokers are looking for new funding sources to be a reliable and flexible partner.

How Global Financial & Leasing Services Partner with Equipment Vendors and Brokers

With these key changes in bank credit offerings, vendors and brokers need alternative funding solutions. Here’s how GFLS opens new opportunities:

  • Flexible Funding Options: Unlike the tightening bank standards, GFLS offers more flexible terms that can accommodate a wider range of business needs. As a nationwide lender, we provide equipment-based financing and supply fast, flexible equipment financing to non-investment grade companies—often in days, not weeks. With an average origination of over $180,000 this year and the ability to fund up to a million, we are well-positioned to compete for larger deals that big banks might now turn away.
  • Tailored Solutions: We look at each transaction differently, tailoring solutions best suited to the applicant. Our approval process is handled by a direct decision maker and is based primarily on the applicant’s ability to service their current and proposed debt.
  • Direct Lending with Own Capital: As a direct lender using our own capital, GFLS can offer the flexibility and speed that traditional lending institutions often lack. This makes us an ideal partner for business owners who struggle with equipment financing approval from traditional lending institutions.

Learn more: How Vendor Financing Can Support Your Sales Team

Proven Opportunities with a Proven, Trusted Direct Lender

The GFLS team has been building relationships with brokers, proving the growing need for flexible funding sources. We’re seeing more vendors and brokers seeking partners who can provide the support and flexibility they require to better support their customers’ equipment financing needs. Our team is focusing on this shift, asking vendors and brokers important questions about their current funding challenges:

  • Are you experiencing more turned-down opportunities?
  • How is the requirement for additional financial information affecting your business?
  • Are you aware of how GFLS can help fill the gaps left by traditional banks?

By offering tailored financing solutions, GFLS is ready to help vendors and brokers thrive in this changing credit environment. Bring your financing applicants to us and let’s grow and support business. Get in touch with us.

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Why a Second Opinion on Equipment Financing Could Save Your Business Money

by Business Advice

Did you know that many lenders are turning to automatic submissions and documentation for accepting equipment financing applications? Digital. Automated. Both words that are common today. However, once an equipment financing application is submitted, lenders often send financing documents directly to the applicant without providing a proposal first.

Okay, so is that a problem? It can be.

These documents frequently require the applicant’s signature and submitting additional credit information, often indicating that the applicant is not yet fully credit approved. Also, the financing structure presented might include a substantial first payment or security deposit.

At Global Financial and Leasing Services (GFLS), we see time and time again that this can be a significant hurdle for many business owners. That’s why we offer a “Second Opinion.” This service is designed to provide alternative solutions to business owners who might feel stuck with less favorable financing terms.

A Real-World Example of an Equipment Financing Second Opinion

Recently, an applicant approached us with an existing credit approval structure from another lender. This approval required a hefty 30% down payment as the first payment. Our team at GFLS was able to reassess the applicant’s financial situation and offer a much smaller first payment, significantly easing their cash flow concerns and making the deal more attractive and manageable.

The Benefits of Getting a Second Opinion from GFLS

Unbiased Advice: Our equipment lending experts offer unbiased advice and comprehensive financial solutions tailored to your unique needs. We believe in making sure you’re fully informed so you can make the smartest decisions for your business.

Better Deals: Don’t just take the first offer that comes your way. Before you sign on the dotted line, why not get a second opinion from GFLS? We can help you explore your options and potentially save big.

Tailored Financing Solutions: Ready to finance new or pre-owned equipment? Pause and get a second opinion from GFLS. We offer custom, flexible financing solutions that might just save you money and boost your business’s efficiency and bottom line.

Smarter Financial Decisions: Check in with GFLS first for a second opinion. We deliver competitive, flexible financing options designed to meet your budget and unique business needs because we look at the whole picture, not just a credit score.

Learn more: Beyond Credit Scores: The Human Side of Equipment Financing

Peace of Mind: Discover flexible, cost-effective options that fit your goals. That’s not only the best thing for you, but also your business growth strategy.

Contact Us Today for a Second Opinion

At GFLS, we believe that when it comes to your finances (and most other things), a second opinion could make all the difference. Ready to grow your business with new equipment but unsure about the best financing options? Don’t settle for the first financing offer—let us help you explore better possibilities.

Reach out to us today because it never hurts to explore your options. A second opinion from Global Financial and Leasing Services could be the best decision you make for your business.

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The Equipment Financing Glossary: Demystifying the Jargon for SMBs

by Business Advice

For small and medium-sized business (SMB) owners, the better you understand the equipment financing world; the better prepared you are to navigate it, especially if you have less-than-perfect credit. At Global Financial & Leasing Services (GFLS), a full-service direct lender, we understand the unique challenges faced by SMBs. Unlike traditional lenders, we look at each applicant’s story, ensuring every application is handled by a direct decision maker.

By using our own capital, we tailor solutions best suited to each applicant, supplying fast, flexible equipment financing to non-investment grade companies. Our equipment-based financing is designed to help businesses who struggle with traditional lending institutions with an approval process based primarily on the applicant’s ability to service their current and proposed debt. As a nationwide lender, GFLS aims to demystify the jargon and provide the clarity you need to obtain financing and grow your business.

Glossary of Common Equipment Financing Terms

Amortization The process of spreading out a loan into a series of fixed payments over time. Each payment covers both interest and principal, reducing the loan balance gradually.

Asset-Based Lending (ABL) A type of financing where the loan is secured by company assets such as equipment, accounts receivable or inventory. This allows SMBs to obtain funding based on their assets’ value.

Balloon Payment A large payment due at the end of a loan term. It is often used in financing agreements where lower payments are made initially, with the bulk of the loan due later.

Capital Lease A lease agreement that allows a business to use equipment while assuming some ownership benefits and obligations. This type of lease often includes an option to purchase the equipment at the end of the term.

Collateral Assets pledged by a borrower to secure a loan. In equipment financing, the equipment itself often serves as collateral.

Credit Score A numerical representation of a borrower’s creditworthiness based on their credit history. SMBs with less-than-perfect credit scores may find it challenging to secure traditional loans but can still qualify for equipment financing with a “story lender” like GFLS.

Debt Service Coverage Ratio (DSCR) A financial metric used by lenders to determine a business’s ability to repay its debt. It is calculated by dividing net operating income by total debt service.

Depreciation The reduction in the value of an asset over time due to wear and tear. Depreciation is a key consideration in equipment financing as it impacts the collateral value.

Direct Lender A financial institution that lends its own money directly to borrowers as opposed to acting as an intermediary. GFLS, as a direct lender, offers streamlined and flexible financing solutions.

Equipment Financing A loan or lease used specifically to purchase business-related equipment. This type of financing allows businesses to acquire necessary equipment without paying the full cost upfront.

Fair Market Value (FMV) The estimated price that equipment would sell for on the open market. FMV is often used to determine lease-end purchase options.

Fixed Rate An interest rate that remains constant throughout the life of the loan, ensuring predictable monthly payments.

Full-Service Lender A lender that provides a comprehensive range of financial services, from loan origination to servicing and collections. Full-service lenders like GFLS offer personalized support throughout the financing process.

Leaseback A financial transaction where a business sells its equipment to a lender and then leases it back. This allows the business to access capital while continuing to use the equipment.

Loan-to-Value Ratio (LTV) The ratio of a loan amount to the value of the collateral securing the loan. A lower LTV indicates less risk for the lender.

Operating Lease A lease agreement where the lessee uses the equipment but does not assume ownership benefits. Operating leases typically have lower monthly payments and are treated as operating expenses.

Principal The original sum of money borrowed in a loan, not including interest. Principal repayment is a key component of loan payments.

Residual Value The estimated value of leased equipment at the end of the lease term. Residual value influences lease payments and purchase options.

Secured Loan A loan backed by collateral. In equipment financing, the equipment being purchased often serves as collateral, reducing the lender’s risk.

Soft Costs Expenses related to equipment purchase but not part of the equipment itself, such as installation, shipping and training. Some lenders may include soft costs in the financing agreement.

Learn more: What are the Soft Costs of Financing Business Equipment?

Underwriting The process lenders use to assess the risk of lending money. Underwriting involves evaluating the borrower’s financial information, credit history and ability to repay the loan.

Variable Rate An interest rate that can fluctuate over the life of the loan based on market conditions. Variable rates can lead to changing monthly payments.

Understanding these terms can help SMB owners make informed decisions about equipment financing. At GFLS, we are committed to providing clear, straightforward information and personalized service to help you achieve your business goals. Whether you need new machinery, vehicles or other equipment, our tailored financing solutions are designed to meet your unique needs, even if traditional lenders have turned you away.

Ready to explore your equipment financing options? Contact GFLS today and let us help you secure the equipment you need to grow your business.

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The 5 Most Asked Questions About Equipment Financing

by Equipment Financing

Essential business equipment can run thousands to hundreds of thousands of dollars, requiring a significant investment and a major decision. Equipment financing offers a practical solution to obtain the equipment a business needs without the hefty upfront cash layout. Whether you’re a long-time business owner or just starting out, chances are you have questions about how equipment financing works and what it involves.

The five questions below are among the most common ones business owners ask the Global Financial & Leasing Services team about equipment financing, ranging from general concerns about affordability, eligibility and the implications of taking on debt to acquire new assets.

These questions address the typical informational needs of business owners who are considering financing options for their equipment needs:

What is equipment financing?

Who can apply for equipment financing?

What are the benefits of equipment financing?

How does the application process work?

What should I consider before applying for equipment financing?

  1. What is Equipment Financing?

Equipment financing refers to a loan used specifically to purchase or lease essential business-related equipment. This type of financing enables businesses to buy the necessary equipment immediately, while paying back the principal and interest over a set period. In the case of financing an equipment lease, the equipment can be purchased or returned at the lease’s end. Typically, the equipment itself serves as collateral for the loan, which can help to secure lower interest rates.

  1. Who Can Apply for Equipment Financing?

Eligibility for equipment financing can vary by lender, but generally, businesses can apply from a broad range of industries including:

  • Automotive
  • Construction
  • Forestry/Logging
  • Healthcare/Medical
  • Machinery/Manufacturing
  • Recycling/Waste industry
  • Restaurant
  • Titled Vehicles
  • Transportation Equipment
  • Cannabis

Traditional lenders and big banks will look at aspects like your credit score, business financials and the longevity of your business. New businesses and startups may have a harder time securing financing due to a lack of financial history, but other factors like personal credit and industry experience can play a role. If you don’t have a favorable credit score, look at alternative lenders, like Global Financial & Leasing Solutions (GFLS) that dig deeper than the numbers to help you finance equipment.

  1. What Are the Benefits of Equipment Financing?

There are several benefits of equipment financing:

  • Preserve Cash Flow: Instead of paying the full price upfront, you spread out the cost, which can help maintain your business’s cash flow for other operational expenses.

  • Tax Advantages: Often, you can deduct the cost of leasing or loan payments as a business expense on your taxes.
  • Immediate Access to Equipment: Equipment financing allows you to acquire essential machinery right away, which can be crucial for bidding/starting new projects or expanding services or market share.
  • Flexible Payment Options: Many finance agreements offer flexible repayment terms to match your business’s cash flow patterns.
  1. How Does the Application Process Work?

The application process for equipment financing typically involves the following steps:

  • Application: You’ll need to provide details about your business and the equipment you wish to purchase.

  • Credit and Financial Review: The lender will assess your business and personal credit scores, along with your business’s financial statements and get in touch with questions.
  • Approval and Terms: If approved, you will be offered terms, including the loan amount, interest rate and repayment schedule.
  • Documentation: Finally, you’ll complete the necessary paperwork and, upon signing, receive the funds to purchase your equipment.

You can review GFLS’s equipment financing application.

  1. What Should I Consider Before Applying?

Before applying for equipment financing, consider these key factors:

  • Total Cost of Ownership: Look beyond the sticker price of the equipment to include maintenance, supplies and potential downtime.

  • Loan Terms: Make sure the repayment terms align with your business’s financial planning. Understand the interest rates and any potential fees involved.
  • Equipment Lifespan: Consider whether the equipment might become obsolete before you’ve finished paying for it. In which case, financing an equipment lease might make more sense for your business.

Related Reading: Key Trends in Equipment Financing for 2024

Equipment financing can be a strategic approach to upgrading your business’s capabilities without straining your finances. By understanding the fundamentals and preparing accordingly, you can make informed decisions for your business goals and financial situation. The GFLS team is here to help and answer any other questions you have about equipment financing. Get in touch with us.

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Beyond Credit Scores: The Human Side of Equipment Financing

by Equipment Financing

In the world where many feel like they are simply a number, there’s a unique approach that values people’s stories just as much as their credit score. It’s called “story lending” in the financing industry.

A lifeline for business owners whose credit scores aren’t perfect, story lenders offer more than just equipment financing; they provide a partnership based on understanding each applicant’s story.

Having story lenders as an option is so critical in equipment financing. Not only to be of service to those whose credit took a hit for reasons that may have been out of their control, but to also show that understanding business owners’ unique challenges and goals still matters today.

Traditional Banks Leave Many Behind

Many business owners with less-than-perfect credit scores often find themselves rejected by traditional banks. These institutions tend to stick to rigid credit models that don’t consider the full story behind a business owner’s journey, struggles and potential. This narrow view can unfairly shut down opportunities for those who’ve experienced a rough patch. And frankly, who hasn’t?

Story lenders set themselves apart by really looking at the “why” behind the numbers—maybe a tough economic phase, unexpected market changes, an untrustworthy partner or personal emergencies impacted their personal lives or their business. By learning the why behind a credit score, story lenders can see potential and risk in a fuller, more personal way. This approach not only recognizes the resilience and real potential of entrepreneurs, but also builds a relationship based on trust and mutual understanding. And what business owner couldn’t use another supporter in their corner, especially one specializing in financing?

What is a Story Lender?

At the heart of the story lending philosophy is building relationships, not just conducting transactions. Unlike traditional banks, where interactions often feel impersonal, story lenders engage deeply with business owners.

Here’s what makes this relationship-centric approach so beneficial for business owners who need financing:

  • Personalized Financing Solutions: Understanding each business’s unique challenges and needs helps story lenders create financing solutions that truly fit with what the business needs to grow and thrive.

  • Flexibility in Terms: Story lenders often provide more flexible terms, recognizing that many businesses, especially in sectors like manufacturing or construction, experience ups and downs. This could mean customized repayment plans that better match the business’s cash flow.

For example, Global Financial & Leasing Services recently had an opportunity where the applicant brought us an existing credit approval structure and asked if we could do better. The existing credit approval required a large 30% down payment (first payment). We were able to credit approve with a much smaller first payment. 

  • Support Beyond Lending: Story lenders often go beyond just financing; they offer guidance and advice, acting like business advisors. This can be a game-changer for small business owners who might not have a mentor or advisory networks.

This kind of in-depth support not only helps businesses financially, but also boosts their long-term success, contributing to stronger local economies and communities.

The Value of the Story Lending Approach in Today’s World

In today’s often impersonal business environment, the story lending approach brings a crucial human touch to finance. This approach is especially valuable today because it:

  • Encourages Diverse Economic Participation: By backing businesses that might otherwise struggle to get financing, story lenders help create a more diverse and inclusive economy.

  • Drives Innovation and Entrepreneurship: With more story-based financing, businesses can implement innovative ideas and technology that might seem too risky for traditional lenders.
  • Builds Stronger Communities: Businesses that get this kind of support often stay loyal to their lenders and their communities, resulting in local growth and more business collaborations.

The story lending approach to equipment financing is more than a financial service; it’s a belief in the power of human connections. Story lenders enable a broader range of entrepreneurs to achieve their dreams and contribute to a fairer, more prosperous economic landscape. The human side of equipment financing isn’t just an alternative—it’s a vital evolution in how we should support and understand business today.

Global Financial & Leasing Services is a Proud Story Lender Since 2009

Global Financial & Leasing Services (GFLS) is a veteran-owned company, founded in 2009 and based in Scottsdale, Arizona.

GFLS was founded to meet the equipment financing needs of small to mid-sized businesses all over the United States. We provide equipment financing solutions for a wide range of companies and a wide range of credits. Our customers, ranging from startups, emerging businesses, private equity-backed companies, “C” and “D” types, turnarounds and those with less-than-perfect credit, seek to finance the equipment they need to launch, expand and/or grow their companies. We specialize in making credit decisions based on the potential of the applicant, not a credit score. We look to uncover value and create a structure that will often work for the situation.

We can provide equipment financing solutions for a large variety of equipment types including, but not limited to manufacturing, health, medical, surgery centers, wound care, dental, construction, commercial landscaping, restaurant, food/beverage manufacturing, farming, recycling, automotive, printing, sanitation, mining, oil & gas, cannabis and many more.

We are here to often say “yes” when others say no, offering the financial support to move businesses forward. Talk to one of our equipment financing experts and experience the story lender difference in equipment financing.

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How Startups Can Use Equipment Financing to Scale Up

by Equipment FinancingStartups

Taking your startup to the next level involves making strategic decisions about how and when to invest in essential business equipment—equipment that can give your company an edge over competition, bring efficiencies to services or operations and more.

But for many startup owners, there isn’t a clear path to obtaining that essential equipment, especially if it’s a time sensitive purchase or lease (traditional lenders are notorious for taking weeks to months to approve equipment financing applications) or they have less-than-perfect credit (big banks often reject all but the most qualified applicants).

Having access to equipment financing is essential for startup business owners who must overcome budget constraints and/or credit blemishes to scale their operations and accelerate growth.

There is a way around these challenges, and that is to work with a story lender, like Global Financial & Leasing Services (GFLS). Unlike traditional lenders and big banks, a story lender makes credit decisions based on a comprehensive view of your financials and credit history, not just a credit score.

GFLS empowers startups, offering substantial funding ranging from $50,000 to $5,000,000. We’re a direct lender with a variety of resources at our disposal. Our network, which includes over 200 private and public banks, allows us to offer financing solutions that many traditional banks cannot. Our team understands that every startup has its unique challenges, whether it’s past bankruptcies, student loans, tax liens or less-than-perfect credit. Our approach is to work with you, not against you, in overcoming these challenges so you can use equipment financing to scale up your startup.

Equipment Financing’s Role in Taking Your Startup to the Next Level

Investing in the right equipment can drastically improve efficiency, increase production capacity or even allow your startup to expand into new markets. However, the upfront cost of such equipment can put growth out of reach or significantly delay it for many credit score-challenged startup business owners. Here’s where equipment financing comes into play, enabling startups to acquire essential business equipment without taking on immediate financial burden.

Be Strategic When Exploring Your Equipment Financing Options

Should you lease or buy? The rule of thumb when deciding between leasing versus buying your essential business equipment is that leasing usually makes more sense for high-tech or rapidly evolving equipment to avoid obsolescence, whereas purchasing may be more economical for long-term essential machinery.

Related Reading: Lease to Own vs. Loan to Buy: Making the Best Equipment Financing Decision for Your Business

Is your lender willing to be flexible? There are lenders, like GFLS, who offer customizable payment plans that can be tailored to your startup’s cash flow patterns, easing the pressure during lean periods. Our team is human, too, and we understand what it’s like to have the opportunity to scale up a business, but not necessarily the financial power to do so. At GLFS, we frequently work with startup business owners to help them scale up faster than they ever thought possible.

Preserving Your Cash by Financing Equipment is Just One Advantage

Equipment financing isn’t just about preserving cash. It can also:

  • Offer tax advantages since lease payments may be deductible as business expenses.
  • Include maintenance agreements, reducing the risk of unexpected repair costs.
  • Free up capital that can be used for other strategic investments, such as marketing or research and development.

Common Mistakes to Avoid When Considering Financing Equipment

Work with a lender, like GFLS, who is committed to helping startup business owners make decisions in the best interests of their companies. This can protect against over-leveraging yourself with excessive debt. We help you understand the complete terms of financing, including interest rates and total cost of ownership. And remember, forecasting the ROI that the new equipment will bring is essential to validate your investment.

Effective equipment financing is more than just a financial decision—it’s a strategic move that can define a startup’s short- and long-term success. By thoughtfully integrating financing into your growth strategy, you can ensure your startup remains agile and responsive to market demands.

Equipment Financing is Still About Relationships

Building a trustworthy relationship with your lender is not just about securing funds; it’s about creating a partnership that supports your business’s growth and adapts to its changing needs, both now and in the future.

We’re looking forward to building a relationship with you and meeting your financing needs. We are here to often say “yes” when others say no, offering you the financial support to move your business forward. Talk to one of our equipment financing experts and see why GFLS is a great equipment financing partner.

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Equipment Financing on a Budget: Advice for Getting the Most Bang for Your Buck

by Equipment Financing

The internet is full of advice for business owners. Most every city has chambers of commerce and business mentoring groups to support business growth. They all offer advice—some solicited, some not, some good, some not—on running your business.

In the competitive landscape of small and medium-sized businesses, growth and success are a result of doing things better, smarter, faster or different than other companies in your industry. Equipment financing can be one of most important decisions you make that has the potential to expand your business, and therefore its profitability.

Obtaining essential business equipment needed to spur growth and innovation often requires financing. Even if you have the best of credit, being approved for financing can be a time- and resource-intensive process. If you are on a budget, have a startup company and/or have blemishes on your credit report, getting approved for equipment financing can be difficult. But it’s not impossible with Global Financial & Leasing Services (GFLS) because we’re a story lender that considers your entire financial picture with Certified Lease & Finance Professionals who can offer advice on getting the most bang for your buck without straining your finances.

Making an Informed Equipment Financing Decision

Before deciding to finance a piece of equipment, make sure it’s the right one for your business and market. Here are a few points to research:

  1. The equipment’s leading manufacturers and vendors.
    • Identifying the top suppliers can reveal who dominates the market and why.
  2. The unique features of each equipment option.
    • Comparing features across different models and brands helps in assessing which equipment offers the best value or unique capabilities that suit your specific business needs.
  3. What current users say about the equipment.
    • Reviews and testimonials can provide insights into reliability, user satisfaction and potential issues.
  4. This equipment’s performance compared to that of its competitors.
    • Evaluate performance benchmarks and case studies to understand if the equipment outperforms its competitors in crucial areas like speed, efficiency or cost-effectiveness.
  5. Market trends influencing the availability and price of this equipment.
    • Market trends can affect equipment costs and availability, impacting when and what to buy.

This testimonial from D.W. from Discovery Ultrasound is an example of the impact having the right equipment can make on a business.

“Thank you so much for all of your help and incredible speed. This new piece of equipment will be a game changer for my business. No one within 250 miles of me has one. I will crush my competition!”

This new equipment wasn’t merely an upgrade—it gave a strategic advantage, setting Discovery Ultrasound apart in a highly competitive market.

Have a Budget in Mind That Includes Soft Costs

When financing business equipment, it’s crucial to consider not only the hard costs like purchase price and interest rates but also the often-overlooked soft costs. Soft costs are indirect expenses such as legal fees, insurance, installation, training and maintenance.

These costs can significantly affect the total cost of financing. Understanding and managing these costs are important to avoid unexpected expenses. Soft costs vary depending on the equipment and financing option, so including them in your budget reduces the likelihood of being spending more than you expected.

Shop Wisely to Find the Best Deal on Equipment

There’s merit in financing pre-owned equipment to cut down on expenses. Also, leasing a piece of equipment can offer savings benefits, such as included maintenance, which helps avoid unforeseen costs in the future. Finally, timing purchases or leases during seasonal sales or fiscal incentives can result in savings.

Need Advice on Equipment Financing?

Obtaining the right equipment at the right price or affordable lease payment starts with research to make informed decisions. It’s about more than just acquiring new technology—it’s about strategically enhancing your operational efficiency and market position. Paying close attention to each phase of the financing process, your business can achieve substantial growth without stretching your finances too thin.

Related Reading: The 7 Secrets of Building a Trustworthy Relationship with Your Equipment Financing Lender

The GFLS team is here to answer your questions and help you get the most out of your equipment financing. We often say “yes” when others say no, offering you the financial support to move your business forward. Talk to one of our equipment financing experts and see why GFLS is a great equipment financing partner.

happy-business-people-shaking-hands-after-finishing-up-meeting

The 7 Secrets of Building a Trustworthy Relationship with Your Equipment Financing Lender

by Equipment Financing

Between online banking and lending, chatbots, advances in AI assistants, the world’s pandemic shutdown and such, building and maintaining personal relationships with other businesses isn’t as easy or prevalent as it once was. The team at Global Financial & Leasing Services (GFLS) believes it’s more important than ever, especially in this digital world.

As with any relationship, the foundation lies in trust and transparency. GFLS, with our long history of working with small and medium-sized businesses (SMBs), works hard to build robust and reliable relationships with borrowers. We think that by understanding your business and goals, we can create customized lending solutions that not only meet your current needs but also supports your future growth.

In other words, the effort you put into building a trusted relationship with a lending partner, the better prepared you will be when you need financing for essential business equipment.

Here are seven ways you can establish a relationship with a financing partner.

1) Open Communication is Key

Transparency is the backbone of any strong relationship. It’s important to maintain an open line of communication with your lender. This means being upfront about your business needs, concerns and expectations. In return, expect the same level of openness regarding the terms, conditions of your equipment financing or leasing agreement. Regular check-ins and updates can prevent misunderstandings and build a foundation of trust.

2) Understand Your Equipment Financing Provider’s Offerings

Each financing company, including GFLS, has its unique set of products, services and areas of expertise. Take the time to understand what your lender offers and how these services align with your business objectives. This understanding can help you leverage the right products and services at the right time, ensuring a mutually beneficial relationship.

3) Have Shared Goals and Values

Aligning your business goals with those of your equipment loan provider is smart. When both parties have a clear understanding of what they are working towards, it fosters a sense of partnership and collaboration. With Global Financial & Leasing Services, we ensure that your objectives in growth, financial health and equipment needs are aligned with ours because we want to be helpful long-term partners with customers.

4) Be Proactive with Your Needs

Anticipate future equipment needs and financial scenarios and communicate these proactively to GFLS. By forecasting your requirements, you allow our team to prepare and present the most suitable financing solutions in advance. This forward-thinking approach not only demonstrates your commitment to success but also supports more strategic financial planning.

5) Build Personal Connections

Beyond the financial transactions and contracts, building personal relationships with your lending partner can be invaluable. Understanding who you are working with on a personal level can build trust and make communications more effective, especially critical for those with less-than-perfect credit and need their stories to be heard.

Related Reading: Beyond the Credit Score: Alternative Equipment Financing with Us

6) Demonstrate Financial Responsibility

Trust is a two-way street. Just as you expect transparency and reliability from Global Financial & Leasing Services, it’s essential to demonstrate your commitment to financial responsibility. This includes timely repayments, managing credit and being honest about your financial situation so your lending solution truly matches your needs and budget.

7) Continuous Learning and Adaptation

The business landscape is ever evolving, and so are equipment financing needs and options. Stay up to date on the latest trends in equipment financing and how they impact your industry. Our blog is a good resource for information. Check in with GFLS to explore how new financing products or adjustments can benefit your business. Being adaptable and informed makes sure you’re better positioned for growth.

Building a trustworthy relationship with your equipment financier is not just about securing funds; it’s about creating a partnership that supports your business’s growth and adapts to its changing needs. In the business world, the strength of your relationships can be just as crucial as the quality of your product or service.

We’re looking forward to building a relationship with you and meeting your financing needs. We are here to often say “yes” when others say no, offering you the financial support to move your business forward. Talk to one of our equipment financing experts and see why GFLS is a great equipment financing partner.

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5 Myths About Equipment Financing for Businesses with Credit Challenges

by Business Advice

For small and medium-sized businesses (SMBs), equipment is king. Having the right equipment can make the difference between breaking even and profitability, being competitive and lagging, and maximizing efficiency and missing deadlines and goals. And, for SMBs facing credit challenges, obtaining equipment financing presents some challenges.

Our team has been working with SMBs since 2009. As a story lender, we specialize in helping business owners with less-than-perfect credit get financing for essential business equipment. We base credit decisions on an applicant’s history, not just a credit score. Working closely with applicants, our team is aware of real challenges business owners face when applying for financing from big banks, as well as the myths that prevent some from applying for equipment financing in the first place.

Global Financial & Leasing Services (GFLS) is committed to debunking common myths and providing the insight and encouragement business owners need to confidently pursue equipment financing options, regardless of credit scores. With clear information, you can find financing options with confidence.

Myth 1: Perfect Credit is a Must-Have

The truth: The widely accepted idea that only business owners with impeccable credit qualify for financing is one of the most widespread myths. At GFLS, we recognize that a credit score is just one piece of your business’s financial puzzle. We look closer at your business’s potential, considering its overall financial health and prospects. Our goal is to customize financing solutions that have mutual success as the primary goal.

Related Reading: Beyond the Credit Score: Alternative Equipment Financing with Us

Myth 2: A Substantial Down Payment is the Norm

The reality: Assuming that a substantial down payment is a normal part of equipment financing couldn’t be further from the truth. At GFLS, we offer a variety of financing options, many of which either require minimal down payments or, in some cases, none. If you’ve been assuming you need to save for a down payment before applying for equipment financing, it’s worth a conversation about your options.

Myth 3: The Equipment Financing Approval Process Takes Weeks or Months

This one may be true, depending on your equipment financing lender. While big banks and other traditional lenders still require weeks or months to approve or deny equipment financing applications, there are lenders, like GFLS, that do not. Our team uses follows an applicant-centric philosophy, which streamlines the application process, and therefore the credit decision. Our process is designed for efficiency, resulting in quick approvals and minimal paperwork, so you can focus on what matters most, running your business.

Myth 4: Financing Is Cost-Prohibitive for Credit-Challenged SMBs

The economic reality: It’s a common misconception that a less-than-perfect credit history automatically puts the cost of equipment financing out of reach. GFLS specializes in tailoring competitive, affordable financing packages based on a comprehensive view of your business’s financial situation. Our team works hard to make financing a practical tool for growth, offering terms that meet the unique challenges faced by credit-challenged business owners.

Myth 5: Repayment Terms are Inflexible

The truth: In the world of modern equipment financing, flexibility is key. Recognizing that no two businesses are the same, GFLS offers a broad spectrum of customizable financing terms. From the duration of the loan to the structure of repayments, our focus is on creating a financing solution that works with your business’s operational flow and financial capacity.

Related Reading: Frequently Asked Questions About Equipment Financing

The Biggest Myth of All: Your Past Credit Determines Your Business’s Potential

They say the past predicts the future. GFLS wouldn’t be in business today if that were true in all cases, especially when it comes to SMBs. Our team has evaluated many reasons why equipment financing applicants have less-than-perfect credit. If you fall in that category, then you know credit blemishes are not always avoidable and can be circumstantial.

We view your application through a lens of potential, not just credit score. Factors like operational history, market position and the strategic value of the essential equipment are important in our evaluation.

Dispel the myths and growth your business with GFLS. Equipment financing, even amidst credit challenges, is possible. We are here to often say “yes” when others say no, offering you the financial support to move your business forward. Talk to one of our equipment financing experts and see the GFLS difference in equipment financing.

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Lease to Own vs. Loan to Buy: Making the Best Equipment Financing Decision for Your Business

by Benefits of LeasingFinancing

The decision between obtaining essential business equipment through leasing (with an option to own) or purchasing outright with a loan is a strategic choice that can have long-lasting financial implications for your company.

At Global Financial & Leasing Services (GFLS), our experts are always prepared to help you thoroughly compare your options, so you have the knowledge to make an informed decision that aligns with your budget and business objectives.

We know you understand your business and finances better than anyone. We recommend discussing financial implications of leasing to own versus obtaining a loan to buy with your accounting expert and with our Certified Lease and Finance Professionals (CLFP) to help guide you in the right direction.

Related Reading: Working with a Certified Lease and Finance Professional (CFLP) is a Smart Decision

The following is a broad overview of information to keep in mind when deciding between lease to own or loan to buy your business equipment.

Understanding Lease to Own

The Advantages:

  • Reduced Initial Expenditure: Leasing has the potential to eliminate the need for a large down payment, offering you a way to gain necessary equipment without a significant initial financial outlay. This allows you to save capital for other operational needs.
  • Adaptability and Technological Edge: Leasing agreements can offer the flexibility to upgrade to the latest equipment models at the lease’s end, ensuring that your business remains at the forefront of technology without the full cost of purchasing new equipment. If you’re in an industry where technology upgrades are essential to remain competitive, leasing makes sense.
  • Tax Efficiency: Lease payments may be deductible as business expenses, offering potential tax benefits and reducing the overall cost of the leasing arrangement.

The Possible Drawbacks:

  • Cumulative Costs: The total leasing cost over time can surpass the purchase price of the equipment, making it a more expensive option in the long run.
  • Conditional Ownership: During the leasing period, the lessee (you) does (do) not own the equipment, which could be a disadvantage for businesses that prefer or require asset ownership.

What Lease to Own Looks Like in the Real World

Consider a medical office startup that opts for a lease-to-own arrangement for state-of-the-art healthcare equipment. This choice allows the startup to mitigate upfront costs, maintain financial flexibility and ensure it remains technologically relevant to patients, with the option to purchase the equipment at the lease’s end.

Exploring Loan to Buy

The Advantages:

  • Immediate Ownership: A loan provides immediate equipment ownership, which is beneficial for assets expected to have a long service life or for businesses that prioritize asset accumulation.
  • Long-Term Savings: Purchasing equipment with a loan often results in lower overall costs compared to leasing, especially for equipment that retains its value and use over time.
  • Asset Appreciation and Collateral Value: Owning the equipment outright allows businesses to benefit from any appreciation in value and leverage the equipment as collateral for future financial and business goals.

The Potential Drawbacks:

  • Upfront Financial Commitment: Loans usually require a down payment, which can be a significant immediate financial outlay.
  • Risk of Depreciation: Owned equipment may depreciate, potentially diminishing its value on your balance sheet and leading to increased costs if the equipment becomes technologically obsolete.

What Loan to Buy Looks Like in the Real World

A construction company might choose a loan to purchase durable, heavy machinery. Given the machinery’s longevity and stable value, the loan approach provides a cost-effective road to ownership, enhancing the company’s asset base and financial leverage.

Making an Informed Decision

Selecting between leasing and buying with a loan requires evaluating your business’s financial health, the specific equipment’s lifespan and technological evolution and the broader tax implications.

The three key factors typically include:

  • Cash Flow and Capital Conservation: If maintaining liquidity is critical, leasing may be a more viable solution.
  • Equipment Obsolescence: For technology or equipment that quickly becomes outdated, leasing provides a way to stay current without a big investment in new purchases.
  • Tax Strategy: Consulting with your financial advisor to understand the different tax implications of leasing versus buying can significantly influence your decision-making process.

Whether you lean towards the flexibility and potential tax benefits of leasing or the ownership and long-term cost savings of a loan, Global Financial & Leasing Services (GFLS) can guide you through this decision-making process. Our goal is to ensure that your equipment financing strategy positions your business for sustained success and growth.

Ready to learn more, let’s talk about the possibilities. Or get started today by filling out an online application.