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Where Can I Find Equipment Financing Loans?

by Equipment Financing

Luckily, banks and credit unions aren’t the only place you can find equipment financing loans. Times have changed, and now you have several options to finance the essential business equipment your business or startup needs.

Equipment Financing Loans from Banks

Banks and credit unions are still options for finding equipment financing loans, but too often they are not in reach for some business or startup owners. Unless you have good or excellent credit, financing equipment through a traditional bank is next to impossible since they typically approve applicants with top-tier credit scores. Even if your credit score is up to snuff, you face a lot of paperwork and long wait times for final approval. If you have an urgent need for business equipment, don’t have a sizable down payment, don’t want liens placed on other business or personal assets or have credit blemishes, you’ll be disappointed with a traditional bank’s equipment financing.

Equipment Financing Loans from Vendors

Equipment vendors, when faced with fewer sales, began offering equipment financing loans to customers. This gave business owners a way to obtain essential equipment without going through normal bank channels. Vendors create equipment financing programs through direct lenders, like Global Financial & Leasing Services (GFLS). These programs benefit both buyers and venders. Buyers can explore financing a higher priced piece of equipment rather than settle for less expensive machinery priced within the bank’s approved amount. Vendors are able to sell equipment to buyers who wouldn’t otherwise qualify from a traditional bank. With vendor financing, consumers have more flexibility, especially when the vendor works with a lending partner committed to closing sales.

SBA Equipment Financing Loans

The Small Business Administration (SBA) is a federal organization that has low-cost, government-backed loan programs for small business owners. The SBA backs a portion of the loan a small business owner obtains from lenders, such as banks and nonprofits. SBA loans are less risky for the lenders, and they can come with lower interest rates and longer terms for borrowers. For example, current interest rates for SBA loans in September 2022 are:

  • SBA 7(a) loans: 7.75% – 10.25%
  • SBA CDC/504 loans: Approximately 5.39% – 5.46%
  • EIDL loans for COVID relief: 3.75% for for-profit businesses and 2.75% for nonprofit businesses.
  • PPP loans: 0% if forgiven; 1% if not forgiven.
  • Maximum rates for other SBA disaster loans: 4.00% with no credit available elsewhere, or 8.00% with credit available elsewhere.

SBA loans are an option for business owners with excellent credit who are growing or expanding business with equipment. But, the application and approval process can take months, and the majority of applicants are denied due to bad credit, character issues, lacking collateral, insufficient revenue or capital to repay, and inability to repay due to other outstanding loan payments.

Financing Equipment Through Sale/Leaseback

Financing business equipment through a sale/leaseback is like using your home equity for a purchase. An equipment sale/leaseback loan is an option if your business owns assets like trucks, machinery or construction equipment.

The equipment is sold or leased, but retained for business use. Because the transaction is secured by the equipment, this loan type is relatively easy to qualify for, and it can be structured so you can own the equipment at the term’s end, ranging from 24-60 months and the payments are tax deductible. Sale leasebacks often require an equipment appraisal from a Certified Asset Appraisal firm, and the lender often lends to advance a percentage of the Force Liquidation Value of the appraisal.

Equipment Financing Through a Direct Lender, Like Global Financial & Leasing Services

Global Financial & Leasing Services (GFLS) is a direct funder, providing funding opportunities that typical banks don’t. In certain situations, we can use our connections to numerous banks and institutions to offer you the best financing solution for your credit profile. In the end, you get the right financing for your needs and access to the funds faster.

Unlike big bank applications, our process is simple and streamlined so you have a decision often in 24 hours or less. Talk to one of our equipment lease financing experts at 480.478.7400 or start your application today.

Making the Finance Process Easy and Quick

by Customer Testimonials

Here’s a story about a 20-year-old trucking and excavating company that specializes in lawn care, excavating, digging basements, building foundations for new homes, and snow removal in the winter. Ninety percent of their customers are commercial businesses, such as nursing homes and cemeteries. Ten percent is residential business. One of their large customers is a state government, for which they are a subcontractor for snow removal.  

The client says, “We were able to acquire the equipment quickly, and it was so fantastic to work with Pat, who was amazing, and Rachelle, who made it very easy and quick for them to go through the finance process.”  

They would not have been able to secure the account if it were not for having the equipment we financed for them. This equipment enabled them to grow their business, as well. Prior to our financing solution, they had to rent equipment, which was more expensive. Additionally, since this was used equipment, they had difficulty finding someone who would provide the equipment financing.

What is Machinery Equipment Financing?

by Equipment Financing

The textbook definition of equipment financing is a lease or loan used to obtain equipment for a business. Adding machinery to the term only means the equipment obtained is machinery or manufacturing equipment of some sort. There is equipment financing available for all industries, such as medical, restaurant, printing and more. Equipment financed is usually essential to a business’s operations and considered an asset, and therefore doesn’t include real estate because property is obtained via a commercial real estate loan.

Why Business Owners Need Access to Machinery Equipment Financing

If you follow any corporate moguls on social media, listen to business-related podcasts or read finance news, then you know how very rarely business owners and leaders contribute their success to luck alone. Maybe a few lucky breaks here and there or being in the right place at the right time, but success comes from making smart and strategic business decisions. Often, business decisions are based on whether or not you can afford to make them.

Regardless of how strong cash flow is, having access to equipment financing is especially important for business owners in industries that require machinery and/or manufacturing equipment because their cost runs tens to hundreds of thousands of dollars.

Having a source for equipment financing is just as critical for startup entrepreneurs who need machinery equipment financing to get their business off the ground.

Either way, considering the high price of machinery and manufacturing equipment, financing a purchase or lease means taking on a monthly financial commitment—one that will help your business grow and generate a level of revenue that more than covers the lease or financed purchase payment.

Machinery Equipment Financing Vs. Equipment Leasing

If you need to finance your machinery or manufacturing equipment, you have two options. Take out a loan to purchase it or lease it. Making the best and smartest decision for your business and circumstances depends on two main factors:

  1. Your personal and business credit rating because those affect your ability to qualify for financing
  2. The useful life expectancy of the equipment you’re financing

Let’s take a closer look at these factors.

If you have a good or excellent credit score, equipment financing is far easier. However, if your credit score is 640 or below, you will find a limited number of lenders willing to finance your machinery or manufacturing equipment.

LEARN MORE: Can I Finance Equipment with a 640 Credit Score?

Machinery and manufacturing equipment are workhorses designed to last for years with proper maintenance and service. So, the useful life expectancy is long. Think in terms of useful then to your business. Will you keep the equipment for the long haul? Then, financing its purchase may make the most sense. Will you be upgrading soon or using it for just a handful of jobs? Then, equipment leasing might be the way to go.

LEARN MORE: Your Approach to Financing an Equipment Lease Matters

Talk to One of Our CLFPs About Machinery Equipment Financing for Your Business

Global Financial & Leasing Services (GFLS) has Certified Lease and Finance Professionals (CLFP) on our team to help you choose and get the equipment financing that’s right for your business goals and finances. CLFPs must pass various tests and meet strict professional and ethical requirements to become officially certified, making them more reliable partners than non-certified lenders.

CLFPs are the best of the best in equipment financing. They demonstrate extensive knowledge of the field, and also, have never been involved in any questionable transactions. When you work with a CLFP like those here at GFLS, you know that your lender is competent and has your best interest in mind.

GFLS can finance almost any business seeking to acquire equipment. With our in-house funds and relationships with over 200 private label and public banks, we have the ability to finance those who have been turned down by the banks due perhaps to prior bankruptcy, student loans, tax liens and bad credit. Want to learn more? Let’s talk about the possibilities. Or, get started today by filling out an online application.

We Are on Your Side

by Customer Testimonials

A large, diversified construction company with annual revenues in excess of $9M has been serving Texas and surrounding states since 2005. Their customers include national homebuilders, custom homebuilders and general contractors. GFLS did a couple of small transactions including tele-handlers and a Vermeer Tractor. They had ordered a large polishing system to be used to polish stone and it was to be set up in a mining area. This system was ordered from a manufacturer in Italy.

Though we had approved this transaction, the applicant wanted a longer term than we could provide, a financing structure we could not offer, and of course a much lower rate. Everyone finally agreed to a structure and we moved forward. Once the lease was signed, we paid the vendor 100%. Then COVID hit, followed by supply chain bottlenecks disrupting getting the equipment to the US.    

Since there was an equipment delivery delay, the customer wanted to explore for a lower cost of financing.  We agreed to work with them and put in a position where we were at risk of losing financing. We worked very closely with our customers’ Finance Director to help them find a new source for the financing. They took it directly to their bank, with whom they had a long-term relationship and were declined. We worked with our syndications desk and was able to secure a Term Sheet for them.  They were going to pass.

Ultimately, they felt comfortable with our documentation and process. They also felt we were on their side and working for them. This Lessee’s credit was not stellar and company had multiple LLCs set up due to the diversity of their businesses. Their goal was to have a lower monthly payment than what we could offer.  Solution? If they could pay down the financing amount, we lengthen the term from 36 to 48 months, the new monthly payment could work. They agreed. They have been a wonderful Lessee to work with – a win-win for the both of us.

Expanding Your Business

by Customer Testimonials

A family-owned and high-quality landscaping company provides services to a wide array of satisfied customers with both commercial and residential properties. The principal had an accident in 2012 and could not work for several months. The financial strain was overwhelming, but they fought through it. Their credit suffered as a result, but they did not file bankruptcy. Once he resumed working, he has been catching up with his creditors and trying to build back his credit.  

They were seeking financing for additional equipment to support expanding their business. Without our financing in place, they would not have been able to grow.  They were renting equipment that proved to be too expensive and was not justified for growing for their business.  With our financing solution, they were able to reduce their costs.  

Since he was able to secure the equipment, they have doubled their business. Additionally, they have been able to widen the job spectrum, opening up new opportunities they would otherwise not been able to pursue.  

Customer Now Enjoying Cost Savings

by Customer Testimonials

An excavating company out of Ohio, also a current customer of Global Financial & Leasing Services (GFLS), was able to realize major cost savings by acquiring a lighter duty truck. The business owner clarified that with fuel costs increasing, it is no longer economical to use a dump truck to haul materials from smaller job sites. With the new lighter duty truck, he would be able to haul smaller jobs at significant fuel cost savings, since using the dump truck for these jobs was “overkill.”

This customer has a great payment history with us, and we were able to extend the credit for the truck. The customer is now enjoying cost savings and increased competitiveness, as well as bidding jobs that would not have been economically feasible before obtaining the lighter duty truck.

how does it work gr

How Does Equipment Financing Work?

by Financing

If you’ve ever financed a vehicle purchase or lease, taken out a home mortgage, made payments on a television or even helped your children pay for college with an education loan, then understanding how equipment financing works will be a piece of cake.

For business owners, equipment financing works very similarly to other types of financing—you specifically use the funds to obtain essential business equipment, you agree to terms with your lender and at the end of term you own or return the equipment based on whether you chose to financing an equipment lease or purchase.

What Equipment Financing Can Look Like in the Real World

Here’s a generic scenario… You’re starting or expanding your business. Whether it’s a restaurant, a printing company or a healthcare business, you’ve estimated the equipment you’ll need at $100,000. Rather than dig into your personal or business savings for the money to buy the equipment outright, you decide to finance it, which leaves your cash reserves as a cushion for emergencies and daily operations, hiring, marketing and other expenses. Ideally, the profit your business generates from having the essential business equipment you need to compete successfully in your marketplace is more than enough to cover the monthly payments on your equipment purchase or lease loan. In other words, the equipment more than pays for itself each month.

Are Equipment Leasing and Equipment Financing the Same Thing?

No. In a nutshell, equipment financing and equipment are only the same in that you make monthly payments.

Equipment Financing Equipment Leasing
You own the equipment at the end of the loan’s term. Lessor owns the equipment and leases it to you for a set term, after which you have the option to either return the equipment, renew the lease or purchase the equipment for the then Fair Market Value (FMV).
Collateral (business or personal) usually is required to secure the financing. In most cases, no collateral issues required since equipment is the collateral.
Smart option for obtaining equipment with a long use life. Smart option for equipment with a short use life due to frequent tech upgrades, wear and tear, etc.

Qualifying for Equipment Financing

Of course, it is easier to qualify for equipment financing with a high FICO score and a long history of running a successful business. However, those with credit blemishes and/or startup companies are not shut out of equipment financing if they choose the right lending partner.

Traditional lenders typically draw a hard line in the credit score sand at 650, meaning a credit score of 649 is an automatic equipment financing rejection. Their scoring models offer no wiggle room, nor do they take other factors into consideration, such as:

  • Your company’s cashflow
  • Number of years in business
  • The type of equipment being financed
  • The reason(s) your credit is blemished

LEARN MORE: Can I Finance Equipment with a 640 Credit Score?

Finding the Right Equipment Leasing Partner

Global Financing & Leasing Services (GFLS) approves equipment financing at no hard cap on the amount for a wide range of companies and a wide range of credits with no minimum FICO score requirement. Our team evaluates your credit history to find value and create an equipment financing solution that will work for you. See the possibilities by filling out an online application.

Getting the Story Behind the Customer

by Customer Testimonials

A family-owned sand mine came to Global Financial & Leasing Services (GFLS) in February of 2022. The company was looking to finance mining and excavation equipment. The company had previous judgements of more than $200,000, and one of the co-signers had a previous bankruptcy and a credit score below 550. We took our time working with the customer in getting the full story of their judgements, with a major part of the judgement stemming from a former landlord unilaterally selling his leased equipment.

By getting the big picture and story behind the customer, we were able to have our credit committee understand that this family-owned company is also a company that would have future success if we gave them the opportunity to expand their business. This sand mine is now a GFLS customer and has been on time with payments.

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Medical Equipment Financing to Grow Your Practice

by Financing

Having worked with medical professionals across the country to finance essential medical equipment, our team knows all too well the implications new equipment can have on growing a practice. It supports you in providing the best patient care possible. It retains patients in your practice versus referring them to other doctors. It improves patient satisfaction via better diagnosis accuracy and treatment plans. It can even increase the number of patients you can see due to improved efficiencies. And, if the medical equipment you want is the latest technology with limited availability in your area, it makes you more competitive in your specialty. All or any combination of these can grow your practice.

Despite all the benefits and advantages of financing medical equipment, it’s not always easy for medical professionals to find a lender willing to work with their unique situation. That’s where the expertise of a lending partner, like Global Financial & Leasing Services (GFLS), comes into play. Our team works with all types of medical professionals, such as those who open their own practice or a new location, have recently graduated medical school, are adding additional services to their practice or want to invest in new or upgraded medical equipment. And just as importantly, those who have less-than-perfect credit and aren’t likely to be approved for financing through traditional banks.

Given the high cost of medical equipment, financing makes sense for several reasons.

Financing medical equipment lets you keep cash reserves on hand. Though you have a medical practice, you know it operates as a business with many of the same expenses others businesses have. Between payroll, office space rent, utilities, malpractice and other insurance, software subscriptions, school loans and more, buying medical equipment outright is not feasible financially for many. Financing a medical equipment purchase or lease allows you to keep cash for other expenses or emergencies, and the monthly payment becomes a more affordable monthly expense.

Financing essential medical equipment results in better care and increased patient satisfaction. Having access to essential medical equipment allows you to better care for your patients, regardless of your specialty, and especially if you’re in a quickly evolving field. As medical equipment becomes more advanced, it becomes far easier to quickly diagnosis and begin a treatment plan, which can improve or even save patients’ lives. Medical equipment is critical to patient care, and financing shouldn’t keep you from providing the best. The better the outcomes, the more patient satisfaction scores improve, affecting your overall practice, reimbursements and referrals. New or upgraded medical equipment gives you the technology you need for more accurate diagnostics, and higher patient satisfaction rates.

Medical equipment financing brings new technology to your patients. Of course, this is an opportunity to improve patient care and outcomes, but also, it’s a way to be more competitive in your specialty. Given the choice between a practice with old technology versus the latest in the field, patients are likely to choose a practice offering state-of-the-art equipment. Keep in mind, medical technology can evolve quickly. Purchasing equipment outright typically means you’ll keep it longer for a better ROI. By financing an equipment lease, you can choose to end the lease and finance a better piece of equipment when your term is over or purchase and keep it.

LEARN MORE: With Inflation and Rising Interest Rates, Is Now a Good Time to Finance Equipment for Your Business?

Let GFLS Finance the Medical Equipment You Need

GFLS has been assisting small and medium-sized medical practices since 2009. We are a direct lender with connections to numerous banks and institutions, so we can access funds faster.

  • 100% financing without additional fees from sales tax, delivery, warranties, or installation
  • Solutions that save your lines of credit for emergencies and help you maintain your credit history while leasing equipment instead of purchasing with cash
  • Direct communication with our vendors and clients
  • Financing options that conserve working capital for more important uses, such as expansion or hiring more staff
  • Personalized, co-branded programs
  • Tax consideration on leased equipment as business operating expenses
  • New and used equipment for lease, so you can use equipment before they become obsolete
  • The option to purchase equipment after leasing

GFLS provides equipment financing solutions with no hard cap on the amount for a wide range of medical practices and credit tiers with no minimum FICO score requirement. If you want to finance medical equipment to grow your practice, partner with us. Ready to learn more? Let’s talk about the possibilities. Or, get started today by filling out an online application.

Credit rating concept vector illustration.

Can I Finance Equipment with a 640 Credit Score?

by Financing

Can I Finance Equipment with a 640 Credit Score?

650 is a common make-or-break number in the equipment financing world. A credit score of 649—a mere one-point difference—can be a canyon wide enough to keep a business owner from being able to finance equipment. Think about that. Falling one point short of a set credit score can squash a dream, kill a great idea and keep a company from reaching its potential.

All business owners with more than a 20 percent equity position in a company typically guarantee a financing transaction. Therefore, personal credit scores play a large role in financing an equipment. Traditional big banks require a 700+ credit score to consider you eligible for financing. And, “B” lenders use the 650 mark as their cut-off point.

Can you finance equipment with a 640 credit score? 649? Basically, any score below 650? Yes, you can, if you work with a Direct Lender who specializes in lending to people in that credit range, like Global Financial & Leasing Services (GFLS). Unlike many other lenders, we work with all credit types and do not have a minimum FICO score to qualify for equipment financing. Nor do we have other disqualifying measures such as prior bankruptcies, tax liens, judgments, foreclosure or ridged industry restrictions.

Sound too good to be true? It’s not. Here are just two real-life testimonials from our clients.

“Global Financial & Leasing Services provided our company with financing resources when every other firm said no. Both Jim and Judi Jenks have been supportive beyond any experience I’ve had with other financing firms. Their professionalism and ‘going the extra mile’ for their client was the norm, not the exception. I highly recommend GFLS for your financing needs, as you will be dealing with people who truly practice what they preach.”

CFO & Treasurer, SerenaGroup, Inc.

 

“Global Financial & Leasing Services has allowed our business the growth we needed and given us an exceptional partner we can count on. Other leasing firms were merely interested in looking for certain numbers to meet in the short term. J.D. Jenks, GFLS’s CEO, understood our business model and why we needed what we needed.”

President, Wound Care Management Company

Is Equipment Leasing an Option for Your Business?

Equipment Leasing is a great option for business owners, especially those with bad credit. When you lease equipment, you make a monthly payment for an agreed-upon term. At the end of the lease, you may have the option to purchase the equipment. When compared to the possibility of not starting your business or trying to make do without essential equipment that could have a massive positive impact on your efficiency, profit and ability to compete, it’s the smart choice.

Build a partnership with a lender who makes credit decisions based on your business’s whole picture. While other lenders use an unyielding scoring model, GFLS looks at:

  • Your business’s cashflow
  • Your time in business
  • The type of equipment for which you’d like to finance a lease
  • The reason(s) your credit is blemished

Back in 2008, the Great Recession caused a great number of foreclosures, some just a matter of luck and timing. In 2009, GFLS was created to meet the equipment financing needs of small to mid-sized businesses all over the United States, who had been frozen out by the banks for any number of credit blemishes. GFLS’s team believes character is more than just a credit score.

LEARN MORE: Ways to Fund Equipment Purchases or Leases for Your Startup Business

GFLS provides equipment financing solutions with no hard cap on the amount for a wide range of companies and a wide range of credits with no minimum FICO score requirement. If you have been shut out of the credit market, let our team peel back the layers of your credit history to reveal value and create a structure that will work for you. Ready to learn more? Let’s talk about the possibilities. Or, get started today by filling out an online application.