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Using Landing Pages to Increase ROI After Leasing New Equipment

by Business Advice

You’ve made the decision to lease equipment to meet market demand, increase your sales or move in to an additional line of business. How good of a decision that was depends on the return on investment (ROI) you earn after adding the leased equipment to your fleet or service offerings. Oftentimes, your ROI is a direct result of the marketing strategy driving sales, unless the equipment is solely leased to improve your employees’ productivity and then the ROI is measured in other ways.

We posted a blog about marketing the capabilities of your new equipment  that included information on PPC ads. One of our recommendations was to create a landing page designated to it. Social media posts, sales emails and PPC ads can click through to that page.

What is a Landing Page?

A landing page is a webpage that speaks to web visitors and compels them to take a certain action in a certain way. Meaning, this landing page would target those interested in services you can perform with that specific equipment and compel them to request a quote, schedule an appointment, etc., ideally via benefit-focused content and a prominent contact form. 

What a Landing Page is Not

A landing page is not just a regular page on your website about your company, other services, other products or such.

What Makes a Landing Page Effective in Increasing ROI?

When a prospect or existing customer clicks on a PPC ad to learn more about what you can offer thanks to your new equipment, they have a specific problem that needs solving. For example, you lease a bobcat and a customer needs land cleared and leveled. An effective landing page makes it clear that your company is the solution and has the equipment for the job. That doesn’t necessarily mean calling out that the equipment is new unless it is brand new to the market. Instead focus every element of your landing page on WIIFM (what’s in it for me?).

The key elements of an effective landing page are:

  • A strong headline that grabs readers’ interest by focusing on solving their problem.
  • A supporting headline that touches on the most important details or benefits.
  • Eye-catching imagery that reflects what you’re selling. This isn’t always an image of your leased equipment. Frankly, sometimes an image of the equipment isn’t interesting or compelling. But what it does cheaper, faster, better certainly is.
  • A short summary of the benefits that is customer focused.
  • A call to action that makes it easy for visitors to do what you want them to do. This can include a special offer, too.
  • Proof that what you’re saying is the truth, which can be in the form of testimonials, a case study or details of the equipment.
  • A final call to action to reinforce and summarize everything in your landing page and offer one last way to contact you.

Getting the Most Traction from Your Landing Page 

Google Ads campaigns are the obvious entry point to click through to your landing page. Plus, there are traditional marketing avenues that can lead users to your landing page. Any marketing channel that leads to your landing page designed to promote your new or improved capabilities can increase the number of clicks-to-sales conversions. 

When using a landing page URL in marketing, keep the URL as short as possible. For example, yourcompany.com/level-land compared to yourcompany.com/bobcatmodel43o8H. The reason is that the URL has to be memorable should it be heard and short if it is to fit on printed material.

Consider driving traffic to your landing page from:

  • Direct mail
  • Radio/streaming ads
  • Social media posts
  • Billboards/banners
  • Print ads

It may seem odd that an equipment financing company is giving marketing advice, but it makes perfect sense given that we’re invested in our customers’ success. Bottom line: when you succeed, leased equipment payments are made on time, which keeps us in business and able to fund even more business owners’ leased equipment needs. If you’d rather work with a partner instead of a vendor, reach out to the Global Financing & Leasing Services team.

Digital-Marketing

How to Brilliantly Market the Capabilities of Your New Equipment

by Business Advice

Once your equipment financing is in place, it’s time to market the capabilities the equipment brings to your company to generate buzz to grow sales and revenue. You can’t afford to take a “If we build it, they will come” approach. Customers can only come to you for bids, new business and expanded services when you get the word out through multiple marketing channels.

Expert tip: When deciding on leasing equipment, ensuring you have sufficient budget to market what it brings to the table should be part of your financial decision. Your inbound marketing plan should be ready to go prior to taking possession of the equipment.

Knowing you have to market your improved or additional capabilities is one thing. Doing it is another, but it’s essential to your success whether your leased equipment brings expanded capacity or a new service/product line.

Start with Search Engine Optimization

We could write a book on search engine optimization (SEO), and many SEO experts have. In a nutshell, SEO starts with narrowing down your keywords, which are the word(s) people type into a search engine to find your business, product or service.

For example, Global Financial & Leasing Services is a leading provider of equipment financing. Therefore, we want business owners who need equipment financing to find our website when they search online for equipment financing providers. One of our keywords is “equipment financing.” A more specific keyword (long tail) for us is “construction equipment financing.”

One of the best keyword research tools is Google’s keyword planner. Once you have a strong list of keywords to market what you can do thanks to your new equipment, you have the foundation for your marketing content: a new page or copy on your website, blogs, digital ads and such. The more a search engine sees your keyword used in RELEVANT content across the internet, the higher it will rank your website for that keyword. In other words, the more likely your business is to be found.

Remember Retaining Customers is Cheaper (and Easier) Than Acquiring New Ones

You financed equipment to provide a new or improved offering, expand your capabilities to meet customer demand, fill a gap in the marketplace or offer a better user experience. Reaching new customers is key to growing business, however, your current customers represent low-hanging fruit. They already know your company, so there are fewer hurdles to reach and engage them.

Immediately, get the word out via email and social media. Those on your email list and those following your company on social media have already shown an interest and have opted in to receive your messages. Sell the benefits of what is new or different and include a call to action to get more information, a quote, etc.

Consider a Strategic Pay-Per-Click (PPC) Campaign

Google Ads puts your company and services and/or products front and center of those searching for what you offer. The gist of it is that you only pay when the user clicks on your PPC ad. Since you’re allowed to set a maximum budget for the month, you can control your PPC advertising costs. PPC campaigns can be turned on and off, allowing you to manage your workload, too. Google Ad specialists can help you set up your campaign if you’re uncomfortable running with it on your own.

Where users go after they click on your ad is key to turning a cold lead into a hot one. Before engaging in a PPC ad campaign, invest time in beefing up the page on your website that features your new equipment. Better yet, create a landing page designated to it if you anticipate demand and sales warranting one.

LEARN MORE: USING LANDING PAGES TO INCREASE ROI ON YOUR LEASED EQUIPMENT

Remember: Marketing Doesn’t Happen in a Bubble

Brilliantly marketing your capabilities available with new leased equipment takes a multi-channel strategy, combining proven tactics that work for your industry. It’s rare, if ever, that a single email will move the sales needle. Or for that matter a single social media post or a PPC ad that clicks to nowhere.

Marketing doesn’t happen in a bubble. To be the most effective, take advantage of the many marketing tools available today. That way, you’ll reach a maximum number of customers and prospects multiple times, which keeps your company top of mind, builds recognition and generates sales.

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Frequently Asked Questions About Commercial Vehicle Leasing & Lease Financing

by Business AdviceFinancing

Frequently Asked QuestionsGlobal Financial & Leasing Services (GFLS) offers financing for commercial vehicle leases. Even though these vehicles are put into service in several different industries, our team fields some common questions from business owners that apply regardless of line of work.

Here are the questions about commercial vehicle leasing and lease financing we’re asked most often.

For what types of commercial vehicles do we finance leases?

GFLS finances leases for just about every type of commercial vehicle, ranging from basic work pickups to delivery trucks for local routes and intrastate routes, as well as vehicles used in industries we specialize in, including construction, forestry and logging.

We do not finance leases for semi-trucks used for interstate hauling.

What qualifies as a commercial vehicle?

The US Department of Motor Vehicles identifies any vehicle that is leased by any kind of business as a commercial vehicle. Also, a vehicle is considered in the commercial category if it:

  • Is used for business purposes, but owned by an individual entrepreneur or sole proprietor
  • Is built and used primarily for transportation of property
  • Is designed to carry more 15 passengers
  • Exceeds a certain weight class, even if it’s not owned by a business owner or used for commercial reasons

As such, nearly every business owner’s vehicle(s) qualify as commercial, so GFLS can help you finance a lease if your business involves transporting (large vans, busses, taxis, limousines, and tow trucks, etc.), construction (cranes, bulldozers, dump trucks, and excavators, etc.) agriculture (vehicles used to plant, raise and harvest crops, including tractors, seeders, and cultivators, etc. and same for livestock) to name a few. If you’re not sure if we finance leases for the commercial vehicle(s) your business needs to grow, just ask us.

How does leasing a commercial vehicle help my business?

First, many of our customers don’t have perfect credit or have a startup, which makes it difficult, if not impossible, to obtain lease financing. By financing a commercial vehicle lease with GFLS, you can improve your credit score if you make timely payments. Second, leasing lets you keep cash reserves and/or any other personal or business lines of credit available for other purposes. Last, you can maximize the tax advantages of lease financing.

What are the tax advantages of leasing?

It depends on whether you choose a capital lease or an operating lease. A capital lease allows you to write off the vehicle’s depreciation. An operating lease lets you treat the lease payment as an operating expense.

LEARN MORE: Want to Lease a Titled Vehicle? Global Financial & Leasing Services has a Program for That

Is there a down payment required to finance a commercial vehicle lease?

GFLS requires a 20% down payment.

How soon can I get approved?

Once GFLS receives your application, most of the time you’ll have a decision in as few as 24 hours. Usually, it takes our customers longer to find the commercial vehicle that fits their needs than it does to get approved.

Can I qualify for commercial vehicle lease financing if my business is a startup or I have credit with past blemishes?

GFLS makes it a point to look beyond the numbers when approving applications. We specialize in financing for those just starting out and those with past blemishes on their credit. We consider how you face and conquer challenges and the positive aspects of your financial history. We believe your character and integrity can outweigh credit blemishes or lack of time in business.

Why should I work with Global Financial & Leasing Services?

  • Our team expedites and simplifies the application and funding process because we understand how important having the commercial vehicles you need impacts your business’s success.
  • We understand our customers are more than a credit score or time in business.
  • You can speak directly to our decision makers.
  • We stay in constant communication with you, so you always know where your application stands.
  • Your business matters to us and you can tell by the way our team treats customers with kindness and respect.

Having the right equipment, including commercial vehicle(s), makes all the difference in a company’s ability to grow and thrive. Let GFLS help your business succeed with commercial vehicle lease financing. Contact us or start the process by filling out an application.

Boom Truck, crane .

Want to Finance a Commercial Vehicle Lease? Global Financial & Leasing Services has a Program for That

by Benefits of LeasingFinancing

Boom TruchGlobal Financial & Leasing Services (GFLS) recently rolled out a program for leasing titled commercial vehicles. From work trucks, boom trucks and tank trucks to tractor/transport trucks and more, now you can finance a lease for a titled vehicle* with us.

Like our other financing programs for businesses, we offer financing for commercial vehicle leases for those with B- and C-tier credit and startups, so even if you have less-than-perfect credit, been turned down for financing at the dealership or starting a new business, it’s possible to get your financing with us. GFLS is known for, “When other lenders say no, we often say yes.”

We believe that credit blemishes shouldn’t keep business owners from financing titled commercial vehicles. Leasing commercial trucks for work can help generate revenue, from winning more contracts to providing more service. Many businesses can grow with the right commercial vehicle in their fleet, so we help business owners get the equipment they need without making a sizeable investment in purchasing or qualifying for traditional financing from big banks.

Choose the Right Type of Lease for Your Business: Operating or Capital

If financing your commercial vehicle lease is the best way to supply your company with the truck or fleet it needs to operate and grow, then you should understand the types of leases available and how they affect your business.

While there are two types of commercial leases, the one you choose has consequences for your business expenses and tax situation. It’s important to understand the differences between them so you can choose the best fit for your business.

An operating lease is considered an expense to the lessee – the one who is leasing – you. The lessee has no ownership stake in the commercial vehicle(s). Instead, you are making your payment each month for the benefit of using them for your business. The titled commercial vehicle(s) is/are the property of the leasing agent or lessor (us). The advantage to you is that because the commercial vehicle(s) is/are leased, the payment is treated as a regular operating expense, and therefore doesn’t pass to your balance sheet. Since the vehicle isn’t considered an asset, you’re not responsible for taxes on it.

Choosing a capital lease means the lessee (you) assumes a portion of the ownership of the titled commercial vehicle(s). The title(s) is/are still held by the lessor (us), but because there is joint ownership, the lessee (you) can claim depreciation and interest expense from your payments on your taxes. Unlike with an operating lease, the vehicle(s) with a capital lease is/are not considered an operating expense. The vehicle is recorded on your balance sheet as an asset because it is owned and a liability because of the payments.

LEARN MORE: Frequently Asked Questions About Commercial Vehicle Leasing
(Link this to the other blog for this month.)

Be Aware of When an Operating Lease is a Capital Lease in the Eyes of the IRS

It’s tempting for business owners to go with an operating lease when financing a commercial vehicle so that the vehicle is an expense, not an asset. However, the operating lease cannot meet four conditions. Otherwise, the IRS will deem it a capital lease instead. These four conditions are:

  1. The life of the lease cannot exceed 75% of the asset life.
  2. There cannot be a transfer of ownership to the lessee (you).
  3. There cannot be a “bargain price” option at the end of the lease.
  4. The current lease payments cannot exceed 90% of the vehicle’s fair market value.

Ready to Finance a Lease on a Commercial Vehicle?

Choosing an operating or capital lease when financing your commercial vehicle(s) comes down to what makes sense for your business. Talk to us if you have questions. Or when you’re ready to work with a dealership, start the application process.

*GFLS does not finance leases for semi-trucks used for interstate hauling.

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Can You Get Equipment Financing with Bad Credit?

by Financing

If could you add an excavator to your heavy equipment fleet, could you more competitively bid larger jobs? Could you increase productivity and profitability by leasing a feller buncher? Maybe you have a solid business plan for a startup, but are unsure how you’d acquire the equipment financing to open the doors. When you have bad credit, you might think that an excavator, feller buncher, other industry-specific equipment or starting a new business is not in the cards for you.

Finding equipment lease financing with bad credit can take some tenacity and research, but it’s out there. We know because that’s what we do.

When Global Financial & Leasing Services (GFLS) was founded during the Great Recession, big banks were tightening their lending criteria, leaving those with less-than-perfect credit few options for financing a lease for essential equipment. GFLS serves customers as an alternative to big banks that only serve the good to great credit market.

Can you get equipment financing with bad credit? Yes, you can. You just have to partner with a lender, like GFLS, who specializes in ALL credit types… one who is willing to look beyond credit scores and listen to your “story.”

READ: You Need to Package Your Credit and Business “Story”

That’s Good News in More Ways Than One

Financing an equipment lease can better serve your business needs and financial situation in the long run compared to waiting the time it takes to improve your credit or saving the cash to buy out it outright or put down a large down payment.

Financing a lease can give you the equipment your business needs NOW. Plus, if you’re in an industry in which technology quickly changes and evolves, lease financing gives you the opportunity to upgrade when the lease is up, keeping your company competitive. Purchasing the equipment outright or signing an equipment loan makes it all the more difficult to let that equipment go when new technology emerges, since you own it.

With lease financing, you can choose to return, upgrade or buy the equipment once the lease ends. Those terms depend on your agreement with the lender. A lender who knows your “story” can help you make the right decision and ensure the terms help meet your business goals.

READ: Test Your Knowledge on the Unexpected Benefits of Financing Equipment

Make sure the numbers add up in favor of your company’s success. Calculate the total of what your equipment lease financing payments will be. Compare that number to additional profit the equipment can generate. Only you can decide what makes the most financial sense for your business. If that’s financing an equipment lease, contact GFLS, even if you have less-than-perfect credit.

Recruiting professionals studying candidate profiles

3 Non-Negotiables When Selecting Your Equipment Lease Financing Partner

by Business AdviceFinancing

Whether you are flush with cash, breaking even or considered a credit risk, eventually you will want to obtain a key piece of equipment to start up or expand your business. Often that critical equipment will come with a hefty price tag, forcing you to weigh all your purchasing options. Regardless of credit score, credit line available or bank account balance, financing an equipment lease is the route many business owners choose to take.

For those with plenty of cash reserves, equipment lease financing preserves funds for operating costs or other investments, like hiring and marketing. For those without excess cash in the bank or less-than-perfect credit, financing an equipment lease is a viable way to get essential equipment now for a more profitable business.  

Given the benefits of what having the right equipment can do for your business, the importance of working with the right lender cannot be underestimated. You are counting on this lender to help you either start your business or grow your business—and basically support you in creating your company’s longevity and profitability.

Over the years, Global Financial & Leasing Services (GFLS) has partnered with startup and established business owners in a wide range of industries to finance leases for much-needed equipment. “Partner” is the key word. Always select a lender who is willing to work closely with you and provide solutions and options, not challenges and red tape.

READ: Your Approach to Financing an Equipment Lease Matters

When you are narrowing down your list of potential equipment lease financing partners, insist on these three non-negotiable qualities.

1. Flexibility

Flexibility in the equipment lease financing world encompasses many things. For example, does the lender consider your “story” when making the final funding decision? Or, does the lender judge your application by the numbers, such as credit scores and account balances? Does the lender work with startups, small and large companies? 

At GFLS, your story is important and can go a long way in explaining why your application is what it is. Our team understands that credit scores and account balances are just a few indicators of your ability and drive to succeed. We use our internal funds, bank lines and non-bank providers to finance equipment leases for companies of all sizes, from just getting off the ground to late-stage growth.

2. Experience in Your Industry

Financing an equipment lease sounds straightforward enough. However, depending on whether you need healthcare/medical equipment or heavy construction machinery, how you go about financing the lease matters. By partnering with a lender experienced in your specific industry, you will gain valuable industry insight and best practice lending standards. Not to mention, you’ll save time knowing that your lending partner can help you obtain the specialized equipment you need.

GFLS specializes in financing equipment used in these industries.

3.  Superior Customer Service

Your equipment lease financing application may be one of hundreds a lender is reviewing at any given moment. But, to you, it’s the most important application. Your lending partner should treat it as such.

The GFLS team works hard to earn your trust by providing top-quality lending products and best-in-class service. Plus, we make decisions on applications generally within 24 hours. After all, building long-term customer relationships is our goal.

If you are looking for a partner to finance your equipment lease, talk to us. The GFLS team has expertise in healthcare/medical, construction, restaurant, machinery/manufacturing, forestry/logging, printing and automotive sectors. We would love to be your lending partner.

Woman examining banknote, man counting coins vector illustration

Vendor Financing Benefits Vendors and Their Customers

by Financing

Vendor Financing Benefits Vendors and Their CustomersEven in a booming economy, closing sales on large equipment or machinery can take time and finesse. In a down or uncertain economy, making sales is even harder. A combination of comparison shopping, exploring purchase options and choosing the right equipment is standing between you and your customers regardless of the state of the economy. However, if you are not offering an easy and affordable financing program, you risk losing sales.

Putting a vendor financing program in place takes choosing an established and trusted partner, like Global Financing & Leasing Services (GFLS). Founded during The Great Recession, we’re no stranger to financing equipment leases in both up and down economies, as well as approving applicants with less-than-perfect credit. Since we specialize in equipment vendor financing in several heavy equipment industries and work with all customer credit tiers, GFLS can tailor a financing program designed to help you sell more equipment.

Increased sales are attractive advantages to offering a vendor financing program. However, they aren’t the only benefits to both vendors and their customers.

 

Offering vendor financing opens up more buying options for customers.

Without the restraint of a large cash outlay or the inconvenience of going through the traditional bank loan process, customers can “afford” to look at and finance a more expensive piece of equipment rather than settle for with a smaller cash payment or a bank approved amount. A higher sales price equates to a higher revenue per sale for the vendor and the best equipment for the customer.

 

Retain control over your own vendor financing program.

Working with a partner, like GFLS, to create your vendor financing program lets you retain control. Our team works with you to design a program that creates a win-win for you and your customers. We’ll take your best interests and preferences in mind, so you can offer your customers terms that work for everyone.

 

Take advantage of the fact that many business owners can’t or don’t prefer to obtain a traditional bank loan.

By offering vendor equipment financing, you’re saving customers the hassle of doing the legwork to find financing on their own or going through the long, arduous process of applying for bank loans. Some customers’ credit scores exclude them from obtaining traditional equipment financing. Others need equipment quickly and have little tolerance for waiting for traditional banks’ approvals. When your vendor financing program is inclusive and fast moving, customers appreciate your willingness to meet them where they are.

 

When all else is equal, a vendor financing program can be the deciding sales factor.

In areas where customers see little difference between their equipment options, having a vendor financing program could be the deciding factor in choosing to finance equipment with your company.

 

A vendor financing program supports customer loyalty.

When customers have financed equipment through you before, chances are higher that they will return when the time comes to upgrade and/or add equipment. Customers gravitate toward the known, and having gone through the vendor financing process with you before, they know what’s expected.

READ: Why Equipment Vendors Outsource Customer Financing to GFLS

 

Choosing the Right Partner is Key to a Successful Vendor Financing Program

Talk to our team about how you can increase your sales without taking on financial risk. GFLS works with many vendors as their primary or secondary financing partner. Thanks to our streamlined processes, your customers will have a financing decision in less than 48 hours without any additional work on your internal staff’s part.

Our strong connections to publicly traded financial institutions means you can expand your target customers from “A-type” credit applicant’s to “B-type” and “C-type” credit and startups. Let vendor sales representatives focus on finding sales opportunities, not financial solutions. That’s what GFLS is for.

Start and Challenge Concept. a Business Man on Formal Shoes Step

Your Approach to Financing an Equipment Lease Matters

by Benefits of LeasingFinancing

Your Approach to Financing an Equipment Lease Matters

You’ve performed your due diligence and decided that obtaining a certain piece of equipment will bring undeniable benefits to your business. Those benefits might include streamlining or improving your processes, increasing employee or operations productivity, innovating your product or service offerings and ultimately boosting your bottom line.

Making an investment in the equipment to take your business to the next level also usually takes a substantial investment, which can have an immediate and/or long-term effect on your cash flow. To mitigate or offset financial risk, your approach to equipment lease financing matters.

The time invested in creating a strategic approach will not only help ensure you get the equipment your business needs, but also help you avoid costly mistakes.

Let your answers to the following questions help guide your approach to financing an equipment lease and move your business forward.

 

What is your expectation for financing an equipment lease?

We listed some in the first paragraph. Maybe those apply or perhaps there are more reasons, such as staying ahead of competitors, evolving with the marketplace, etc.

By having realistic expectations, you’re less likely to accept the wrong equipment lease financing for your budget and situation. You’re more likely to assess payment and terms compared to benefits gained and return on investment.

READ: Should You Finance a Lease or Raise Equity to Acquire New Equipment?

 

Are you too close to the situation to make an objective decision?

When the investment in new equipment is on the cheaper side, a mistake can be absorbed pretty painlessly. Chalk it up to live and learn. But often Global Financing & Leasing Services (GFLS) works with business owners who are investing thousands or hundreds of thousands of dollars in financing an equipment lease. Leasing the wrong equipment for your business goals is a costly mistake with potentially serious business consequences.

The bigger the equipment lease finance payment, the more important it is to vet your options. What separates GFLS from other equipment financing providers is that our team provides objective advice and best-in-class service. Our clients have grown to trust our insights in their industry, and we can help you determine how financing new or upgraded equipment leases might impact your capacity, efficiency, competitive advantage and sales.

 

How does the new equipment fit into your overall operations?

Will your new equipment fit your needs right now or in the long run? Equipment financed for your long-term goals can come with additional costs in the short term in areas like training and peripheral investments in marketing in order to achieve maximum return on investment.

For example, medical equipment. Will your staff require training? Are there any software purchases, subscription fees or supply costs involved? Will patients need education on the equipment’s value to their health? In other industries, billing, manufacturing, shipping/receiving costs may be considerable factors.

 

Can your customers and finances tolerate a learning curve?

Considering what having the newest or upgraded equipment can do for your business, it’s understandable to be so excited that you underestimate the learning curve. Any equipment that will innovate your business is going to come with a learning curve for your employees, and maybe even your customers.

Make sure your customers and finances can tolerate the cost of downtime or temporary decreased productivity while your team gets up to speed.

READ: Test Your Knowledge on the Unexpected Benefits of Financing Equipment Leases

 

If new financing a lease on new equipment is out of reach, have you explored used alternatives?

Your finances may hinder your leap to the latest and greatest piece of equipment on the market. But that doesn’t mean you have to give up on your business goals. Consider taking an incremental jump in productivity or innovation. Taking a smaller step can sometimes boost sales to the point where you can more quickly afford to finance a lease for the equipment on which you originally had your mind set.

The GFLS team has expertise in equipment leasing across many industries. It’s worth your time to talk to us about all your options so you can obtain the equipment your business needs to grow while avoiding a costly mistake.

Silhouette construction workers fabricating steel reinforcement

Should You Finance a Lease or Raise Equity to Acquire New Equipment?

by Benefits of LeasingBusiness Advice

For startups, equipment acquisition is necessary to get the business off the ground. For established companies, acquiring equipment is a means to grow and expand. Debt is a four-letter word for many business owners. Therefore, many believe raising equity to acquire equipment is better than taking on debt, even though debt comes with a specified interest rate and payoff date. Just because it’s believed, doesn’t make it so.

Taking on debt in the form of an equipment lease is far different than maxing out personal credit cards for frivolous purchases. Financing an equipment lease can be a wise business decision under the right circumstances, especially if your company has a steady flow of receivables that you can count on to keep up with lease payments and other expenses. A conversation with your accountant or a report from your accounting software can give you a clearer look at your income versus expenses, as well as any other upcoming, non-recurring ones for which you must plan.

Compared to raising equity to fund an equipment purchase or lease, financing offers several benefits.

Perhaps Most Importantly, a Lender Won’t Tell You How to Run Your Business 

Chances are you have heard horror stories of equity investors believing their equity buys them a say in how the business is run. The more equity they hold, the bigger their control and influence regardless of whether their equity investment secured them a seat on the board of directors, ownership in the company or a “my money, my business” say in the business during family dinners.

A lender, like Global Financial & Leasing Services, keeps our proverbial nose out of your business. Make your payments (hopefully the equipment you’re financing will bring revenue to do just that) and our involvement ends there.

Equity is the Most Expensive Form of Capital

Equity is most expensive form of capital because it has an indefinite term and is paid in a portion of your profits each year with no cap on the amount that may be paid out. On the other hand, financing equipment with debt has defined terms, including the amount you pay (payment and payoff) and a date when those payments end. Equity takes a percentage of your profits, and the amount paid out to equity holders increases as your company’s revenues grow. The more successful your company becomes, the larger the profits and the more you pay out for that equity stake. As such, a $100,000 piece of equipment may end up costing you hundreds of thousands of dollars.

What that looks like in real life.

If you take a $100,000 five-year loan at 20% APR, that original $100,000 borrowed for the equipment costs you $158,963 when paid off in full. But if you raise $100,000 in equity at a $500,000 company valuation (selling 20% of your equity), then get acquired and in that acquisition, you net $1M, the 20% equity stakeholder(s) would receive $200,000 from the acquisition, plus any distributions of profits that have been paid out over the years and prior to the acquisition.

In a nutshell, you obtain the same amount of capital to fund an equipment purchase at the same time, but that $100,000 in equipment costs you, under the terms above, $158,963, where that same $100,000 from an equity investor costs you more than $200,000 in our example.

There are Tax Benefits to Financing Equipment

Fine print: we are not tax experts. That said, there are tax benefits to financing your equipment lease. With a capital lease you can deduct the full purchase price of the equipment in the tax year it is placed into use. This can equal a sizable deduction on your taxable income. An operating lease allows you to deduct your monthly lease payments as an operating expense for the term of the lease, lowering your taxable income.

READ: Who Finances Heavy Equipment Leases?

Raising Equity Can Require Schmoozing

Whether pitching the idea of raising equity for your company to a private investor, an equity firm, a friend or your brother-in-law, the process takes time—weeks, months, even years, depending on the source and circumstances. Dinner, coffee, drinks, meetings, gathering up documentation, fine-tuning your pitch, answering questions… all are time consuming—time that you could be spending on your business.

Once the equity is raised, there will be more time involved to keep your investor(s) updated on the company’s (and their investment’s) progress.

Global Financial & Leasing Services can often make a lending decision on your equipment lease in as few as 24 hours from the time we receive your application. Time is of the essence when it comes to acquiring equipment. You might have a job that hinges on it or found a great deal that won’t last on the exact model you need.

How you fund equipment acquisition is an important business decision with the potential to alter your company’s course. Understand all your equipment financing options and don’t be afraid to take on debt when it serves you, your customers and your business well.

Rear view of a confused man looking at graphics on black wall

5 Stress-Management Tips for Small Business Owners

by Business Advice

Business Stress ManagementAs a small business owner, you are used to being the first on the job, the last to leave, and wearing multiple hats, from janitorial and marketing to accounting. You also bear the responsibility for employees’ livelihoods and growing your business. Especially now, small business owners are feeling the burden of that weight on their shoulders.

You may not think you have the time to step back and take care of yourself during a crisis, but your business, employees and customers are counting on you to keep a cool head. Our equipment financing team can’t control external stressors, but we can offer tips for managing stress, and perhaps finding time for you to take much-needed down time. Here are some ideas…

1. Keep a reasonable work schedule.

Business owners launch their startups expecting to spend a great deal of time on their businesses. The entrepreneurial mind doesn’t shut off at 5:00 p.m. Or, even 2:00 a.m. It doesn’t necessarily distinguish between workdays, weekends and vacation time (if there’s time for vacation).

But working or thinking about your business non-stop is counterproductive. There are long-term and short-term strategic decisions to make and tactical, daily operations to manage. In the early stages of a business, you may be responsible for most if not all of these. As your business grows, employees can take tasks off your plate. At any stage, recognize that you are less effective when rushed, stressed and tired.

Set a work schedule that prioritizes tasks which result in new business, whether that’s making sales calls or finding a lease financing provider to obtain equipment that grows revenue. Set and keep boundaries whenever possible to give you free time to recharge, which leads to a better mental balance and better decision making. Divide your days or weeks into blocks with time designated to working on the business, working in the business and handling unexpected matters. It won’t always be possible to follow your schedule, but often, you’ll have time left to focus on your well-being.

READ: No Startup Company is Typical

2. Use organization tools that work for you and sync with each other.

One stressor you can control is juggling and keeping track of time and tasks. There are tools on the market that do this beautifully and sync with one another to give you an overview of your schedule at any given moment.

At minimum, consider using a calendar, a contact manager, a task list, a notes area and email—Outlook is a popular program that offers all of these in one, and it can be accessed from any device. Outlook works on Windows and Mac systems, but if you’re using the Mac OS, Calendars, Contacts, Reminders and Mail work similarly and sync together.

Customer relationship management (CRM) and financial management tools help keep sales and accounting organized. Some CRMs offer free versions up to so many contacts, which can give you a good start without a big investment. Some banks offer financial management tools with their business accounts. Choose one that is user friendly and can grow with your business, so that you won’t have to worry about selecting another down the road when you outgrow it.

3. Leave “breathing” time in your day, every day.

No matter how busy you are, always leave blocks of time open on your daily calendar. Back-to-back appointments and tasks leave no room for handling unexpected events or issues that are sure to arise. Plus, having no breathing time on your schedule is a stressful way to start the week or day. Giving yourself a few minutes or an hour at the beginning or end of each day means you can prioritize better. It’s a relief when you can say, “I have time to handle that later.”

4. Work toward life balance, not working 24/7.

Like food, oxygen and water, you require down time. Small business owners often put their personal and family lives aside for their businesses. It makes sense because their personal and family lives can hinge on having a successful business to support life and legacy. However, not taking time for yourself means you’re unable to give all you can to your business, much less yourself and family.

Burn out is real. Physically and mentally, you cannot give 100 percent to your business 100 percent of the time. When you allow yourself a guilt-free break, you’ll find you’re able to be more productive on the work side of life. There is more to life than working hard, and “hard worker” is not what most people want on their grave stone or the only way their family and friends describe them. Of course, there will be exceptions, but physically AND mentally leave the office.

5. Choose people and vendors you can trust.

Hire people you can trust to do their jobs. Partner with vendors who see your business relationship with them as a true partnership in supporting your business. You cannot possibly do everything your business requires to run smoothly. Delegation is the only way to ensure your company moves forward without your hand in everything. There is certainly a sense of relief felt when you delegate a task to someone and know it will be completed well and on time.

You are an expert on your business. Vendors are experts in their industries. Choose vendors you know are smarter than you and let them help you make sound decisions. It requires trust, so get recommendations from people you respect. Challenges will arise, but knowing you’ve put together a team of employees and vendors who you can count on makes dealing with problems far less stressful.

READ: What to Do When the Lender Says No

No, the Global Financial & Leasing Services (GFLS) team is not psychologists, but we’ve partnered with hundreds of small business owners since 2009. Our team has become their trusted partner when it comes to equipment financing. We take the stress of financing equipment leases off their shoulders with best-in-class, personal service and a streamlined application process, even when their credit is less than perfect. We’re a small business and we understand small business. Talk to us about how we can make equipment lease financing easier for, so you can focus on other important matters.