risk

When Small Business Owners Prepare for Known Risks, They’re Better Prepared for the Unknowns

by Business Advice

The decision to start a small business isn’t taken lightly. Running a small business is even harder. If we’ve been reminded of anything lately, it is how important small business is to the economy and employment.  For owners of any-sized businesses, it’s difficult enough to prepare for known risks, much less those we cannot see coming. The good news is that preparing for known risks can put small business owners in a better position to handle the unknowns.

The Numbers Aren’t Always What They Seem

There are lots of statistics pointing toward imminent doom for small businesses. On the whole for small businesses, about 66 percent survive the first two years, 50 percent survive five years, and 33 percent survive 10 years. These numbers don’t indicate necessarily that the non-survivors failed because they could’ve been sold, merged or acquired. Statistics also indicate that small businesses fail fewer times now than they did a generation ago.

Why? Small business owners have access to resources and data that didn’t exist before. Technology plays a key role in being able to help use those resources and data in ways that help guide better decision making. As long as small business owners rely not only on their entrepreneurial nature, but also on the hard data available to plan and prepare for risks and change, they are more apt to succeed now more than ever.

Don’t let numbers alone throw you off or deflate your successes. Look at them objectively. For example, we work with many small business owners who’ve thought new equipment that would grow their business was out of reach because of the monthly lease payment. Come to find out, the additional revenue made from obtaining that equipment covered the payment and added to the bottom line.

Planning for Anything and Everything

Location (brick and mortar and/or online), budget, growth, products/services, workforce, culture and even exiting are just a few of the things small businesses owners plan for and adapt to on a regular basis. In fact, small businesses are better suited to change direction quicker than larger businesses are. After all, it’s easier to change a sailboat’s direction than it is to turn a cargo ship.

In the course of a small business’s lifespan, there may be challenges that arise that no one could’ve planned for; however, having planned for other processes provides the experience to better plan on the fly.

When worldwide or local incidents threaten your small business, reach out quickly to vendors and lenders. Global Financial & Leasing Services was founded during the Great Recession, helping business owners obtain equipment financing in their times of most need. Our team has worked with business owners during natural disasters. We are no strangers to working with small business owners during times of crisis to create a financial plan that works for them.

READ: There are Equipment Leasing Finance Companies, and There are Partners

Credit Score Doesn’t Determine Your “Worth” or Chances of Success

When small business owners require financing for leased equipment, not having perfect credit or the personal funds to prove ability to pay it back is tough to overcome in the traditional financing channels. This puts business owners in a mindset that can lead to poor financing choices, and worst case, business failure. From an equipment financing perspective, these poor choices include, but aren’t limited to:

  • Borrowing money to cover operational costs that don’t equally increase revenue
  • Not calculating a loan’s true cost
  • Applying for the wrong type of loan for the purpose needed
  • Turning to short-term (high interest) loans or credit lines
  • Throwing borrowed money at a problem that money alone cannot solve

The above are just a few common mistakes, which can be avoided with the right equipment financing partner. Our team works with small business owners in the early and established stages of their companies who have less-than-perfect credit, but do have a solid plan for growing their company. We look not only at the numbers and credit scores to help you get the equipment financing you need that makes sense for your future.

Use Equipment Financing to Steady and Preserve Cash Flow

Without steady cash flow, it’s impossible for a small business to succeed long term. Small business owners rely on steady cash flow to buy inventory, pay or hire employees and many other critical daily operations.

Financing equipment leases lets small business owners preserve cash on hand that might otherwise go toward purchasing equipment and deplete cash reserves. Cash on hand is extremely important to have in good and bad times. Even if an event occurs that doesn’t negatively affect your business, it might your customers who’ll then possibly pay invoices late.

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

Support Can Come from Unlikely Places

It is in everyone’s best interest to support small businesses, and for small business owners to choose financing partners who can help them better identify the reasons their companies could fail. That’s why our customers choose Global Financial & Leasing Services. When other lenders say no, we often say yes. And, when other lenders view you as a number, we look at your whole story and can help you better prepare for where you want to take your company’s future.

So, let’s get started! Contact us or begin with filling out an application.

Close-up of a construction site excavator

Who Finances Heavy Equipment Leases?

by Industry News

Anyone who doesn’t want to purchase outright or may not qualify for a loan through traditional bank funding.

Heavy equipment handles heavy work and commands a heavy price. Paying that price can pay off in terms of business growth and other benefits. There are a few ways that companies can add heavy equipment to their fleets. Buy outright, partner with another company to share heavy equipment assets, finance a purchase loan, and finance a heavy equipment lease. The last is a popular choice because it comes with many benefits.

But before we get to the benefits, let’s lay the foundation about heavy equipment and financing a lease.

What does it mean to finance a heavy equipment lease?

Heavy equipment lease financing means you get a loan to finance your new or used equipment, so you don’t have to purchase it outright. The equipment itself acts as collateral for the financed lease.

What types of equipment fall under the “heavy” category?

Heavy equipment, also called construction equipment, includes equipment that moves earth, performs construction or does similar heavy-duty work. Examples of such equipment include:

  • Bulldozers
  • Engineering equipment
  • Forklifts
  • Tractors
  • Excavators
  • Backhoes
  • Material handlers
  • Pavers

Lease Financing isn’t Only for Cash-Strapped Business Owners

Even with sufficient cash to purchase heavy equipment outright, many business owners choose to reserve their cash for working capital or invest it in other activities that spur growth. Others prefer to take advantage of lease agreements specifically designed for the heavy equipment industry, as well as their company’s future needs and budget given the hefty price of such machines.

Heavy equipment’s hefty cost makes even the largest businesses pause. When you’re a small business or your credit isn’t perfect, obtaining heavy equipment is even more difficult. Financing your heavy equipment lease is ideal for businesses that need to get used or new equipment but can’t afford or don’t want to make payment in full or may not qualify for a purchase loan through traditional bank funding.

READ: Financing an Excavator: Even if You Have Bad Credit

Take Advantage of the Tax Benefits

Financing a lease for your heavy equipment comes with tax benefits that incentivize business owners to start or expand their companies.

Under Section 179, you can deduct the full cost of heavy equipment up to $1 million in the year of purchase. Section 179’s advantage is that you don’t have to depreciate the cost of the equipment year over year, taking the tax savings in one year.

If you don’t qualify for Section 179 or your tax professional suggests against it, another option is to write off loan interest or lease payments as business expenses on your tax return.

Another option is to depreciate your heavy equipment every year and take a small tax deduction over the useful life of the equipment. A conversation with your tax expert or accountant can help ensure you take advantage of the tax benefits of financing a heavy equipment lease.

READ: Why Put Profit Above an Equipment Lease Payment?

Global Financial & Leasing Services (GFLS) works with many business owners to help them get the heavy equipment they need. Begin the application process and our team will do everything we can, plus we can approve heavy equipment lease financing in as few as 24 hours.

Coworkers team brainstorming

Love in the Time of COVID-19

by Industry News

As relief is announced to help small businesses, GFLS is supporting brokers, too.

As of this writing, the country is grappling with COVID-19. With livelihoods and lives at stake, states and the federal government are hashing out legislation to support affected people and businesses. Here in Arizona, where Global Financial & Leasing Services (GFLS) is headquartered, loans up to $2 million are available from the U.S. Small Business Administration (SBA) to small businesses hurt by COVID-19 pandemic.

The longer the virus and the financial slide that accompanies it continues, the more significant the toll to businesses and the economy. With government stimulus packages available and communities rallying around local small businesses, GFLS is supporting brokers, too, since they are an important part of the economic equation.

This is an unprecedented time for everyone. But, there are a few things that brokers can count on from their partnership with GFLS, no matter what.

To name a few of the most meaningful…

We know your customers and vendors are yours, not ours. Therefore, we would never build a one-on-one relationship with them, and our team politely refers all direct calls and inquiries back to you.

We know your response times are dependent on ours. Our team responds quickly to you, so you can do the same for your customers. The majority of time, we make decisions within 24 hours.

We help you say yes more often, when other lenders say no. GFLS finances B- and C-tier credit types and startups in a variety of industries, including healthcare/medical, restaurant, construction, machinery/manufacturing, forestry/logging and automotive. We look at an applicant’s “story” to get the whole picture, not just the credit score and other numbers.

READ: You Need to Package Your “Story Credit”

We stand by our decisions, so you can stand by your word. Nothing’s worse than having to back out of a deal at the last minute. GFLS will not pull funding based on information we had from the beginning.

Remember, GFLS was founded in 2008 during the Great Recession. Your customers are more than a credit score—that’s what we focused on then, and what we continue focusing on as we navigate this pandemic together. Don’t disregard a potential deal because the numbers aren’t there. Send it to GFLS, and let’s work through it.

Contact us to see how we can help.

Loans now available to Arizona small businesses hit hard by coronavirus

by Industry News

Arizona small businesses hurt by the coronavirus pandemic can apply for up to $2 million each in loans from the U.S. Small Business Administration now that the agency has accepted the state’s disaster declaration request. 

Arizona’s Economic Injury Disaster Loan declaration was approved by the SBA on Thursday after Gov. Doug Ducey submitted a letter requesting federal assistance on March 16. 

“Business across the state have already experienced significant economic losses and are anticipated to continue to lose revenue due to this pandemic,” Ducey said in his letter.

Businesses can apply for loans through the SBA website at SBA.gov/disaster.

The normal loan processing time for the loans is around three weeks, according to Jordan Ripley of the SBA’s Arizona District Office.

Ripley said there is no limit to the total amount available to Arizona business, but individual borrowers can be approved for up to $2 million. 

The loans may be used to pay fixed debts, payroll, accounts payable and other expenses impacted by COVID-19. Interest rates are 3.75% for small businesses without other credit options and 2.75% for nonprofits. Long-term repayment options up to 30 years are available, with terms determined on a case-by-case basis, based on each borrower’s ability to repay, according to the SBA. 

“Without a doubt, these tough times will take a significant toll on our economy and the livelihood of working men and women throughout the state,” said Chad Heinrich, Arizona State Director of the National Federation of Independent Business, in a statement. “This relief will go a long way to repair the damage done and protect Arizona families.”

Debbie Hann, chief operating officer of the Arizona Small Business Association, told the Business Journal her organization is just beginning to hear from people starting the application process and is ready to connect business owners to resources that can help if needed. 

She said that a byproduct of the coronavirus crisis has been that various agencies and groups are working together to help businesses navigate the difficulties. 

“We are truly wanting to help the small businesses,” she said. “It’s really a team effort for all of us.”

The SBA loans are available through the Coronavirus Preparedness and Response Supplemental Act signed by President Donald Trump on March 6.

Marketing Advertising Commercial Strategy Concept

First Comes Financing Your Leased Equipment, Then Comes Inbound Marketing

by Business Advice

There are two types of marketing: outbound and inbound. Outbound marketing includes trade shows, email blasts to purchased lists, cold calling, brochures and traditional advertisements. They’re considered “outbound” because you’re pushing your advertising out, hoping that customers see it.

The affordability and effectiveness of inbound marketing is making outbound tactics less popular. Outbound marketing is less effective at moving the sales needle. Why? Consumers are bombarded with thousands of marketing messages every day. And, it’s expensive without the ability to accurately measure results.  

For example, ABC Company can spend thousands on writing, designing and printing company brochures. They end up staying in the box because brochures must be distributed in person. Or, ABC can spend marketing budget on inbound marketing that directly reaches targeted prospects actively seeking ABC’s services.

Inbound marketing tactics can deliver customers straight to your door. No more wasting money sending out messages, hoping the right person sees or hears it. As if that wasn’t convincing enough, here’s another reason to begin or ramp up your inbound marketing to drive sales after you finance an equipment lease:

Inbound marketing is flexible and scalable. You can easily match your changing seasonal, promotional or budgetary needs.

Use These Inbound Marketing Strategies to Increase Demand for Your Leased Equipment

Regardless of the type of leased equipment you financed, the more it’s in use, the more profit you make. Inbound marketing can drive business for your equipment, and even offset the cost of marketing, as well as the monthly payment.

A Website

Inbound marketing leads back to your website. Make sure your website:

  • Is mobile friendly
  • Is optimized for search engine optimization
  • Has great content with your keywords
  • Is user friendly
  • Includes forms or calls to action

Those are for starters. It’s worth investing in a professional website, otherwise you risk turning off customers or not being ranked well in search engines.

A Blog 

Blogs serve several purposes, including:

  • Improving search engine rankings by posting informational blogs that include your service keywords
  • Establishing your company as an expert in your field
  • Posting company news and promotions

Whitepapers and Case Studies 

Whitepapers and case studies prove your knowledge and how you solve customers’ problems. Whitepapers are factual, not salesy. Case studies focus on problems/solutions, not your equipment, but how your equipment or expertise conquers challenges.

Whitepapers and case studies can be posted in your website’s blog section. Or, you can offer them as a download or email in exchange for contact information (and permission to keep marketing to them).

Videos 

Videos can be made with your phone, and shorter is better—no more than two minutes, ideally 30 seconds. Your leased equipment makes for excellent video material, like:

  • Equipment in action
  • How-to videos
  • Experts weigh in
  • Video version of a blog or case study 

Social Media 

Have a social media presence on the channels where your audience is. Post snippets of your blogs, promotions, specials, whitepapers, case studies and videos on social media with a link back to your website. 

Search Engine Optimization (SEO) 

SEO isn’t one tactic, but a number of strategies that makes all of your inbound marketing more visible to search engines. Frankly, it doesn’t matter how wonderful your website, blogs, whitepapers, case studies, videos, etc. are if they aren’t optimized for search engines.

There is far too much information to learn about SEO to cover here, but it’s well worth your time to Google SEO best practices.

Finding What Works Best to Market Your Leased Equipment 

No one knows your business and customers better than you do. You may find a combination of the above or one inbound marketing tactic delivers the sales results you need to make financing your leased equipment even more profitable.

Finally, work with an equipment financing team that is invested in your company’s overall success beyond financing equipment leases. Global Financial & Leasing Services (GFLS) works with many small to mid-sized companies and can answer your questions about all aspects of business. Contact us to find out more about your options. Ready to apply? Start with an application.

 

Gear cutting machine

Test Your Knowledge on the Unexpected Benefits of Financing Equipment Leases

by Benefits of Leasing

If you’re considering financing an equipment lease for the first time, the obvious benefit is being able to grow your business. Whether the equipment will be used to improve efficiency, productivity, competitiveness or all the above, the ultimate benefits are more revenue and expansion.

What you may not know are the unexpected benefits of financing a lease on your equipment. Test your knowledge with the following questions.

If I have the cash to purchase equipment outright, shouldn’t I buy it and save interest expenses?

No, not necessarily, especially should your company become cash strapped for whatever reason. Business owners and CFOs lean toward saving their cash to use as working capital because once it’s invested in equipment, liquidation requires using the equipment as collateral or selling it.

By financing equipment leases, you can take advantage of a lease program (term and payment) designed for your business, industry and budget. Making an affordable monthly payment means you’ll have cash reserves for other business expenses, growth and even emergencies.

Are the tax benefits under Section 179 worth financing an equipment lease? 

This question is best answered by your tax professional. The tax benefits depend on whether the lease is a capital or an operating one. Capital leases let you deduct the equipment’s full purchase price in the year it was placed into use, which can be a sizable deduction on taxable income. Operating leases let you deduct monthly lease payments as operating expenses for the term of the lease, which lowers your taxable income.

READ MORE: THE TAX IMPLICATIONS OF AN OPERATING LEASE

If I lease my equipment will I be stuck with it even when something new and improved comes on the market or my needs change? 

No. In fact, the opposite may be true. Every industry is different and some count on equipment that has a short lifespan. Depending on your business, financing your equipment’s lease could help you stay ahead of the curve in advancements.

When a short-term lease ends, you have the option to upgrade to newer (or different) equipment. However, purchasing equipment outright means you own it until you liquidate it. If equipment in your industry has a short upgrade or use cycle, then leasing may make better sense.  

Will financing a lease impact my business line of credit?

Having access to a business line of credit is critical for any business regardless of industry. Solid credit puts a company on solid ground since it can be used for rapid expansion, hiring, filling in for late accounts receivables, marketing and more. Financing equipment leases means your line of credit can remain open, ensuring cash flow for your company.

Will payments on the equipment lease positively impact my balance sheet?

They can. Your monthly lease payment is reported as a business expense, not a liability or long-term debt, on your balance sheet. Having little or no debt on your company’s financial statements is a huge benefit if you decide to secure business or investor funding or sell the company.

Talk to our experts about financing for equipment leases.

Global Financial & Leasing Services (GFLS) works with business owners in many industries to secure the equipment they need to grow. Rather than take a cookie-cutter approach to reviewing the numbers, our team looks at you and your company’s position and goals as a whole, so even if you have imperfect credit, you can get equipment essential to your business. Contact us to find out more about your options. Ready to apply? Start with an application.

Thanks for Being Human

by Accolades

Judy,

We are so happy to hear your cancer is in remission!!! I recall when we first started talking you were taking treatments. It’s unfortunate to have to stay on the medication and I hope it does not hinder your everyday life too much. And then the car accident??? This was a difficult email to read as my heart went out to you. BUT – you are a survivor in so many ways!! Gives me chills. Even though we have not officially met you, you touched both of our hearts last year by being so kind and understanding. Also, by being human and not all business. As a small company, it is refreshing to know there are still people like you in the world. We will send many prayers your way to continue to stay in remission…to heal quickly from the accident…and for your husband to get you into that bubble (haha – no bubble, but be safe!!).

Thank you,

Cam and Sandi

Working machines on a sand dune of the south of Spain at night

The Importance of Transparency in Financing an Equipment Lease

by Benefits of Leasing

When financing a business equipment lease, you don’t want any surprises anywhere along the way. Hidden fees or shady representatives are definitely not something else you need on your plate when trying to kick your company into gear or take it to the next level, so it’s crucial to work with a company, like Global Financial & Leasing Services (GFLS), where what you’re told you get is exactly what you actually get.

No matter what industry you’re in, chances are your business requires some sort of equipment. From industry-grade baking ovens for restaurants to medical equipment for physicians to forestry machinery for logging companies and more, 7 out of 10 businesses now lease or finance their equipment.

Why is this? Because when you finance an equipment lease, you get additional and/or newer equipment; you get the most technologically up-to-date versions of that equipment, and you reserve cash to use in other areas of the business.

Difference Between Successful or Not

Equipment very often makes the difference between a company being successful or not, and how quickly that happens. But purchasing it outright can create a situation in which spend more than you want to—or are able to.

Companies like Global Financial & Leasing Services help business owners (even those who have a poor credit score) to get their company off the ground or on a fast track by financing an equipment lease. We look at your cash flow, character and reputation and collateral in order to help provide you with what you need to move forward.

However, as mentioned before, you must partner with a very reputable leasing provider with a spotless reputation. Unfortunately, many companies turn away people who don’t meet their financing criteria or take advantage of dire situations. Be wary of companies like this. Do your research before agreeing to sign an agreement for equipment lease financing with anyone.

Knowing what you’ll be getting, as well as all the facts, is good business. You’ll need to know exactly how much you’ll be spending on leasing your equipment so that you know your company’s budget. 82% of businesses fail because they have cash flow problems, so making sure you know where your money is being spent is vital. You also don’t need hidden or surprise fees sneaking eating away at your budget, so your choice of equipment lease financing companies should ensure you’re advised of terms and conditions.

Compassionate Experts

At Global Financial & Leasing Services, we are compassionate experts at lease financing for business equipment. We specialize in working with those who are interested in financing an equipment lease, but have less-than-perfect credit and do not qualify for financing from big banks. If you’re interested in financing an equipment lease, please let us know. Contact us or fill out our application form today!

Man driving a crane to lift-up some equipments

10 Resolutions for 2020 if You’re Leasing Business Equipment This Year

by Benefits of LeasingBusiness Advice

As 2019 winds down, it’s that time of year to make resolutions for 2020. Business resolutions are just as important as personal ones if you’re an entrepreneur. If you’re considering financing an equipment lease to start off a new year and a new decade, here are 10 helpful to stand by.

1. Know Your Budget

When you have your own business, it’s of the utmost importance to know your budget and stick to it as best you can. Global Financial & Leasing Services (GFLS) makes this easier by providing you with predictable monthly payments to help manage cash flow. When it comes to the best ways on how to finance an equipment lease, predictability is one of the most important elements to keep in mind.

2. Don’t Pay in Advance

You wouldn’t pay your employees four or five years in advance, right? So why should you pay for your equipment in advance? A business equipment lease allows you to pay for it as it earns you money. This frees up more money for you to use elsewhere in your business.

3. Give Yourself Options

At the end of your lease, GFLS lets you choose one of the following: purchase the equipment at the stated dollar amount, continue your lease at a lower monthly rate, or simply return the equipment with no further obligation. This way, if you love the equipment, it can be yours or you can continue to use it, or if it’s not working out for you, you can return it.

4. Free Yourself to Use the Newest Upgrades

With the speed of technology these days, the best equipment available now may very well be obsolete next month. When you lease with GFLS, you can save your capital and put yourself in a position where you’ll be able to purchase or lease newer, more high-tech equipment when you want, keeping you competitive.

5. Keep Your Starting Costs Low

Why waste money on a huge down payment? With GFLS, we often require only the first payment in advance to order your business equipment. This isn’t the case with other equipment lease financing companies.

6. Don’t Wait Around for Approvals

Your time is valuable. You shouldn’t have to wait to learn if you’ve been approved to lease business equipment. With GFLS, you can get your completed application approved the same day—or within 48 hours for more complicated transactions.

7. Avoid Extra Costs

Most traditional financing sources will not pay for extra costs such as installation, freight, extended warranties, etc. However, we can often provide 100% financing by including a specific amount of these soft costs in your transaction.

8. Claim a Tax Deduction

Did you know that your lease payments can be deducted as a business operating expense in most cases? Doing so can reduce your taxable income.

9. Keep Cash on Hand

By leasing business equipment and avoiding a sizable cash outlay, you can conserve your on-hand capital for more important uses—such as inventory, employees, and advertising. This will advance your business and help it grow.

10. Improve Business and Personal Credit

When you purchase business equipment with borrowed funds, your credit lines with your lender will be significantly reduced. However, when you lease with Global Financial, you can conserve lines of credit for emergencies or other purposes, and can subsequently establish a separate line of credit and maintain an excellent credit history.

When you’re looking for the best way to finance an equipment lease, Global Financial & Leasing Services has you covered, and has your company’s best interest in mind whether starting a new year or a new decade. To learn more or get started today, simply fill out our credit application.