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Used vs. New Equipment: When Financing Pre-Owned Makes Sense (And When It Doesn’t)

by Benefits of LeasingBusiness AdviceEquipment FinancingFinancing

Used vs. New Equipment: When Financing Pre-Owned Makes Sense (And When It Doesn’t)

In a perfect world, business owners would always have the cash, confidence and clarity to go straight for brand-new equipment. But in the real world, especially during uncertain economic times, business owners must weigh their options carefully. That’s when the question comes up: Should I finance used equipment, or does it make more sense to go new?

The Global Financial & Leasing Services (GFLS) team helps business owners across several industries figure that out every day. There’s no one-size-fits-all answer, but there are smart guidelines that can help you make the right move, financially and operationally.

Here’s when it makes sense to finance used equipment, when new is worth the investment and how to avoid the common pitfalls either way.

Why Financing Used Equipment Can Make Sense for Your Situation

There’s a reason demand for used equipment has gone up in recent years; it’s practical. You get what you need, without overextending yourself. Here are some scenarios where financing used equipment makes more sense.

1. You Need to Control Cash Flow

Used equipment usually comes with a lower sticker price. That means lower financing amounts, smaller monthly payments and less risk if you need to pivot later. For business owners looking to preserve liquidity, used equipment is often a strategic play.

Example: A construction crew replacing a skid steer mid-season may opt for a used model so they can keep working while holding cash for payroll and materials.

2. You’re in a Short-Term or Project-Based Role

If the equipment is only needed for a short amount of time or a specific project or contract, going used can be a no-brainer. Financing used equipment gets the job done without a long-term financial tie.

Benefit: Some used financing terms are shorter, so you’re not stuck with a 5-year payment plan for a 9-month job.

3. Availability is Everything

During supply chain slowdowns or market-wide demand spikes, new equipment can be backordered for months. If your project or contract can’t wait, financing used equipment can be the fastest path forward.

At GFLS, we help clients identify in-stock used options and finance them quickly, so they can get to work without delay.

4. The Equipment Type Isn’t Tech-Heavy

Some equipment doesn’t change much from year to year. Think trailers, generators, basic construction equipment or ag gear. If the performance difference between a 2-year-old unit and a new one is minimal, why pay for more?

If the equipment has been inspected and well maintained, it can be a smart way to stretch your budget and preserve cash.

When New Equipment is Worth Financing

Used doesn’t always win. Sometimes, new is the better long-term move. Here’s when financing brand-new equipment makes more sense.

1. Technology or Compliance is a Factor

Some industries, like medical or manufacturing, have strict compliance or tech standards. If staying competitive or legal means staying current, financing new ensures you’re not buying equipment that’s already outdated.

Tip: Many OEMs offer promotional financing on new units. We can help you evaluate whether those terms actually save you money over time.

2. You’re Building for the Long Haul

If this piece of equipment will be a staple in your business for the next 5 to 10 years, new might offer more ROI. You’ll get the full lifespan, warranty protection and peace of mind.

3. Used Options are Hard to Find or Don’t Check Out

Sometimes used equipment isn’t all that cheaper, and it’s just risky. Some used equipment might be in high demand and hard to find, which puts the price close to new. Some used equipment is risky. If the maintenance history is sketchy, the machine has hidden wear or the price isn’t much better than new, walk away. Financing new may cost more upfront, but it can save you in repairs and downtime.

How GFLS Helps You Decide

We’re not here to push one direction or the other. Our job is to help you make the best financial move for your business. We’ll ask about your timeline, your budget, your workflow and your goals. Then we’ll lay out the best financing options, whether that’s a gently used piece of equipment or the latest model straight from the dealer.

We’ll help you:

  • Compare used vs. new pricing and terms
  • Explore lease or loan structures based on your needs
  • Move fast when the right equipment becomes available

New or Used, Focus on Financing Equipment That Moves Your Business Forward

Don’t let the used vs. new decision hold you up from growing your business. What matters most is whether the equipment will help you do more, earn more and run your business more efficiently. With the right financing structure, either financing used, or new equipment can be a smart move.

Let’s talk through your options. Contact us to set up a meeting or start your application now.

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Financing Smarter in Tough Times: How to Secure Equipment When the Market Gets Rough

by Benefits of LeasingBusiness AdviceEquipment FinancingFinancing

Financing Smarter in Tough Times: How to Secure Equipment When the Market Gets Rough

If you’re feeling like things are shaky out there, you’re not alone. Rates are climbing, banks are cautious, and a lot of business owners are holding their breath waiting to see what happens next. But when you’re running a business, you don’t necessarily have the luxury of time. You still need equipment. You still have jobs to do. So, you still need financing for essential business equipment.

At Global Financial & Leasing Services (GFLS), we talk to business owners and brokers every day who are trying to make the numbers work while navigating market uncertainty. The good news? You can still get the equipment you need; you might just need to go about it a little differently, especially if your credit history is less than perfect.

Here are six smart ways businesses are securing financing right now, even with an uncertain economic future.

1. Lease Instead of Buy to Keep Cash Flowing

Right now, cash is more valuable than ever. That’s why equipment leasing has become such a smart move. Instead of making a gigantic purchase upfront, leasing lets you:

  • Keep your working capital intact
  • Spread out payments over time
  • Still get the equipment your business needs now

You’re not sacrificing quality, either. Many lease agreements offer buyout options, upgrade paths and tax advantages. It’s a way to move forward without draining cash reserves.

2. Turn Your Assets into Capital

Here’s something a lot of businesses forget: the stuff you already own, such as equipment, vehicles and inventory has value. That value can be leveraged.

Asset-based lending is one of the most underused tools in uncertain times. You’re not asking lenders to take a risk on a spreadsheet. You’re backing your financing with hard assets. That’s a much easier “yes” in today’s market.

And it’s not just about credit scores. It’s about what you’ve already built. Plus, often times when you’re financing equipment, the equipment itself can serve as collateral for financing.

3. Used Doesn’t Mean Second-Rate

If you’ve always purchased brand-new equipment, now might be the time to rethink. Used equipment can get the job done and cost significantly less.

Not only are payments lower, but you’re less exposed if the economy tightens further. At GFLS, we help clients find and finance reliable used equipment every day.

Used equipment lets you stretch your budget without cutting corners. Think of it like buying a pre-owned vehicle. It still runs perfectly fine, but someone else took the huge depreciation hit as soon as it was driven off the lot.

4. Get Your Financials in Shape, Even If They’re Not Perfect

One of the fastest ways to move an equipment financing deal forward is by having your financials ready. You don’t need to have perfect numbers, but updated financials, a couple of recent tax returns and a rough budget or business plan go a long way.

Story-based lenders, like GFLS, don’t expect you to be flawless. We do want to know you’re thinking ahead.

Not sure where to start? That’s where the GFLS team steps in. We’ve helped countless businesses organize their paperwork and secure financing without making it a headache on your part.

5. Work with a Lender Who Understands the Business Side of Things

Traditional banks aren’t built for this. When the economy starts to wobble, they get conservative. They tighten requirements. They take their time. They reject more equipment financing applications.

But you don’t have time. Many don’t meet traditional banks’ credit score requirements.

At Global Financial & Leasing Services, we do things differently. We talk to you like a human, not software analyzing numbers. We ask questions, listen to what you’re trying to accomplish and then find a way to help you get it done. Sometimes it’s structuring seasonal payments. Sometimes it’s not requiring a down payment. Sometimes it’s just being faster or more flexible.

6. Keep an Eye on the Market, But Don’t Freeze

It’s smart to stay informed, but don’t let headlines paralyze you. Some of the savviest moves are made in down markets. Right now, we’re seeing clients:

  • Grab discounted equipment from sellers who need to move inventory
  • Finance now while their competitors hesitate

The point is that you don’t need a perfect economy. You just need a plan. And a lending partner, like GFLS, who’s focused on solutions.

Our team doesn’t expect you to have it all figured out. That’s what we’re here for. Whether you need equipment financing, want to explore leasing or just want to talk through your options, we’re happy to help. Contact us to set up a meeting or start your application now.

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

by Benefits of LeasingFinancing

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

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

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

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

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

Understanding Lease to Own

The Advantages:

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

The Possible Drawbacks:

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

What Lease to Own Looks Like in the Real World

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

Exploring Loan to Buy

The Advantages:

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

The Potential Drawbacks:

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

What Loan to Buy Looks Like in the Real World

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

Making an Informed Decision

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

The three key factors typically include:

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

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

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

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Tech Innovations: Cutting-Edge Equipment for Business Advancement Through Lease Financing

by Benefits of LeasingBusiness Advice

Technological innovations available today make integrating state-of-the-art equipment vital for companies to remain competitive and grow. But what about business owners, especially those with less-than-perfect credit, who face challenges accessing the financial support needed to add or update their equipment? Rather than risk being left behind, they are turning to alternative lenders, like Global Financing & Leasing Services (GFLS) to help them finance the cutting-edge equipment they need to compete in their markets.

What kind of technological innovations are we talking about here? Well, of course, you know your industry and business better than anyone, and some tech innovations are better suited for certain industries. But, in general the top innovations involve artificial intelligence (AI), robotics and renewable energy.

Taking Advantage of Three Technology Innovations

  1. Artificial Intelligence (AI): AI systems optimize supply chains, predict consumer behaviors and automate redundant tasks, thereby enhancing efficiency and competitiveness.
  2. Robotics: Bringing precision, speed, and consistency to the workplace, robotics in the manufacturing, recycling, construction and mining sectors can reduce errors, increase productivity, decrease costs and help alleviate workforce and hiring issues.
  3. Renewable Energy: Embracing renewable energy, like solar or wind, not only reduces operational costs, but also appeals to the increasing population of eco-conscious customers.

The Financing Conundrum

The most significant deterrent for business owners, especially those with credit hiccups, from integrating these technologies is the initial capital requirement. Traditional banks often have rigid lending criteria, rejecting equipment financing applications from business owners who don’t have an impeccable credit record.

Lease Financing Can Be a Solution to Obtaining Technologically Advanced Equipment

If you’re unfamiliar with the term lease financing; it involves acquiring equipment on lease for a specified period, at the end of which businesses can buy, upgrade or return the equipment.

GFLS is a lender specializing in financing essential business equipment. This means the equipment itself becomes collateral. A win-win for both parties: your business gets its needed equipment, while we’re able to approve more equipment financing loans. In fact, we started tracking application in 2017, though we were founded in 2009. We reached the $1 billion application mark in 2023 and in the same year are receiving 12% more applications on a monthly basis than we did during our record year in 2022.

RELATED READING: With Small Business Loan Approval Hard to Come By, Alternative Financing Offers Hope

Three Reasons Business Owners are Financing Their Business Equipment

  1. Flexible Terms: Lease financing’s payment terms make it easier for business owners to manage cash flow. Meaning, you know what payment to expect and can budget accordingly
  2. Up-to-date Technology: One of the most significant advantages of leasing is the ability to upgrade. As technology evolves even more, businesses can adapt without significant reinvestment.
  3. Preserve Credit and Cash: By opting for lease financing, business owners can keep other lines of credit open and preserve cash for different operational needs.

The Role of AI in Financing Decisions

Interestingly, AI can be instrumental in the financing world. Lenders using AI can get a comprehensive evaluation of a business’s financial health, considering industry trends, financial history and digital presence. Such insights can lead to more tailored and advantageous financing terms. However, the GFLS team finds AI can only tell part of your story.

RELATED READING: The Role of Relationships in Equipment Financing Approval

Build a partnership with a lender who makes credit decisions based on your business’s whole picture. While other lenders use an AI-assisted scoring model, GFLS also 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

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 of helping your business grow with tech-driven equipment. Or, get started today by filling out an online application.

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When Is Financing Equipment a Smart Choice for Small Business?

by Benefits of LeasingBusiness Advice

Buying essential business equipment can be a very expensive endeavor. More often than not, small business owners cannot afford to purchase the equipment outright. Even when they can, rarely do they feel comfortable draining their cash reserves. Whether you can afford to purchase equipment outright or not, oftentimes the smart choice is to finance it.

Four Reasons Financing Equipment is Smart Choice

1. Buying is too expensive considering the equipment’s useful lifespan.

Consider the last time you got a new phone. As soon as you plunk down the money for an upgrade, you know it’s only a matter of time before you do it all over again. Multiply that cost and that’s how it is for many big equipment purchases. With phones costing $1,000+ today, many people are financing them. They save a large initial purchase and instead make monthly payments. At the end of the lease, they can upgrade and the process starts all over again. Do you own it? No. But do you want to own that outdated phone four years from now? Probably not.

2. The equipment is just too expensive to buy outright, period.

If your small business requires specific equipment to operate, that’s considered essential business equipment. For example, those in the restaurant, logging, manufacturing, healthcare, and such need expensive equipment. Without it, there is no business. However, the lack of cash doesn’t have to keep you from getting that equipment if you finance it.

3. Purchasing drains cash reserves, which could be used to take advantage of opportunities that arise—opportunities that require cash and don’t have the option of financing.

Leaving your small business cash poor could prevent you from advertising and marketing, recruiting new employees, etc. Also, in this economy, conserving your cash is critical. Over the next two years you will want to stretch your cash flow rather than sink it into hard assets which depletes cash you might need later on.

READ MORE: Think Equipment Financing Before Dipping into Cash Reserves

4. It may offer tax credits.

Equipment financing can be eligible for tax credits. You may be able to deduct your payments as a business expense by taking advantage of Section 179 qualified financing deductions.

What Small Business Owners Should Know About Equipment Financing

Essentially, equipment leasing means you are renting the equipment rather than purchasing it outright. You rent the equipment for a specified time period, and then you return the equipment, renew your lease or buy it.

Equipment renting is not the same as equipment financing. When you finance equipment, you take out a loan to purchase the equipment and pay that loan back monthly over a set period of time. The equipment is the collateral used to secure the loan, and you own the equipment after the loan is repaid.

Since equipment rental is not a loan, it won’t appear on your credit report. Thus, it won’t inhibit you from taking out a business loan for other purposes.

How to Choose a Reputable Lender

The best lenders are those, like Global Financial & Leasing Services (GFLS), who see themselves as your business partner—one who understands your business and industry. Our equipment financing services extend to a variety of industries, including:

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

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 budget.

Our process is simple and streamlined so you have a decision often in 72 hours or less. Talk to one of our equipment financing experts at 480.478.7400 or start your application today.

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What is My Best Source for Equipment Financing?

by Benefits of LeasingFinancing

What is My Best Source for Equipment Financing?

Obtaining equipment financing lets business owners get the machinery needed to improve and grow their companies. Everyone knows that. What gets confusing is finding the best source for financing equipment. There certainly is no lack of options when it comes to equipment financing companies, but how do you find the lender who’s best suited for your business and financial situation?

Of course, financing up to 100% of the equipment, competitive interest rates and a willingness to work with your credit rating are important. Yet, finding a lender who offers it all can be like finding a needle in a haystack. The better you understand what equipment financing is, how it works and the process of getting it, the easier you can find your best source for it.

What Is Equipment Financing?

Equipment financing is a commercial lease or a loan specifically used to obtain equipment and machinery businesses need to operate, upgrade, expand and grow. Business equipment can range from technology to manufacturing and construction heavy equipment.

Global Financial & Leasing Services (GFLS) serves a variety of industries.

What is the Difference Between an Equipment Loan vs. Equipment Lease?

Equipment leases: With leasing, you don’t own the equipment outright. Rather, the lender purchases the equipment from a vendor and rents it to you for a monthly payment. At the end of your lease, you can choose to purchase the equipment, renew your lease, or return the equipment. There are two main types of equipment leases: operating leases and capital leases.

Equipment Loans: With a loan, the customer agrees to purchase the equipment from a dealer. The lender provides the financing on behalf of the customer. Over time, you pay down the principal, plus interest. After making the last payment, you own the equipment free and clear.

How Does Equipment Financing Work?

Traditional big banks, credit unions, private and alternative lenders are the most common sources for equipment financing. Interest rates and repayment terms vary based on a variety of market and borrower criteria. Big banks and credit unions typically advertise competitive interest rates, but qualifying for them requires excellent credit and meeting other rigorous stipulations. Their review, approval and funding process can take weeks or months. Private and Alternative lenders often tend to be quicker with their funding and work with all types of credit scores. GFLS generally makes equipment financing decisions in 48 hours or less and can approve all credit levels, including business owners with credit blemishes.

Once your application is approved and financing documents signed, then the equipment is funded. Monthly payments are then spread out over your lease term. The equipment financed acts as collateral, so if the borrower defaults on the equipment financing, it can be repossessed and sold to help repay any outstanding debt.

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

Do the Prep Work Before Applying for Equipment Financing

  • Evaluate your company’s equipment needs. Before applying for equipment financing, determine the amount you’ll need to borrow. Make sure the cost will be offset by new business, better efficiency and growth to keep your business profitable.
  • Know your credit score. Equipment financing is secured by the underlying collateral, but lenders still want to know they will be repaid. Many lenders use your personal and business credit history and score to determine the likelihood of repaying the financing. Most lenders require a minimum 650 credit score. GFLS does not have a minimum credit score requirement and works with all types of credit scores because we look beyond the number and take other circumstances into consideration.
  • Submit your equipment financing application. Get started with your equipment financing application.

Choose GFLS as Your Best Source for Equipment Financing

GFLS has been a leading provider in equipment financing since 2009, providing small and medium-sized businesses with the financing needed for essential use equipment. We are an established direct lender with the unique ability to 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 help those businesses who have been turned down by the banks due perhaps to prior bankruptcy, student loans, tax liens and bad credit. Ready to learn more? Let’s talk about the possibilities. Or, get started today by filling out an online application.

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Companies Obtaining Heavy Equipment Lease and Purchase Financing in Response to Infrastructure Bill Passage

by Benefits of LeasingFinancing

In November of 2021, the House of Representatives passed the Senate version of the Infrastructure Investment and Jobs Act (IIJA) and President Biden signed it in to law. Not only does IIJA’s passage mark the biggest investment in the U.S.’s infrastructure since the New Deal, it also triggers a starting gun for companies that will contract with the government directly or government contractors on projects, ranging from transportation and water to energy, broadband, and rehabilitating our country’s natural resources. Overall, the bill represents approximately $1.2 trillion, which is about $550 billion in new spending with over half of that focused on transportation—an area that requires heavy equipment.

While it may be years before we see actual IIJA-funded projects underway in our neighborhoods, the wheels already have started to turn at the federal level. Any time government increases spending at this magnitude on projects, all levels of government grow to oversee and administer funds.

In the meantime, business owners who operate in the industries affected by IIJA projects are ramping up in preparation. Especially companies that do contract work involving any heavy equipment are positioning themselves to be competitive and capable of executing IIJA-funded projects. Since there are currently kinks in the global supply chain, keeping a close eye is critical. Competition for supplies and equipment may be fierce, and companies don’t want to miss out on IIJA projects due to scarcity or being unprepared.

Given the scope of IIJA and the projects that will stem from it, this bill not only is a milestone for the U.S., but also can be for your business. Now is the time to start looking for pre-owned heavy equipment for sale. Or, get your heavy equipment lease or purchase financing partner in place.

Heavy Equipment Comes with a Hefty Price Tag

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

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

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 or finance the purchase with a loan or lease. The last is a popular choice because it reserves cash and comes with tax deductions.

Read more: A Two-Step Approach to Heavy Equipment Financing

Global Financial & Leasing Services is a Smart Source for Construction Equipment Financing

GFLS helps small and medium-sized businesses obtain the financing they need to buy or purchase reliable new or used equipment. We make the process simple. Once you fill out an application, we quickly turn around a response. Global specializes in blemished and storied credit histories. When Other Lenders Say No, We Often Say Yes.

If other lenders have declined your applications, then consider working with us. As a direct lender, we use our in-house funds to assist companies. This gives us flexibility, so we can come up with the perfect financing plan for you.

Working with Global Financial and Leasing Services lets you:

  • Receive competitive rates, as well as 100% financing
  • Benefit from tax deductions on essential-use equipment
  • Avoid down payments; we ask for your first payment in advance, and then you can pay once you receive money
  • Save your on-hand capital for more important costs, such as office expansions and new-hire training programs
  • Maintain or establish your credit through leasing
  • Obtain equipment while it is current without making big purchases that will soon become obsolete

Numerous companies across the United States already use some form of financing, and you can, too. Construction equipment leasing with Global Financial and Leasing Services is flexible and tailored to your specifications. Contact us today for more information.

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2022: The Year of Working with Equipment Financing and Accounting Professionals

by Benefits of LeasingBusiness AdviceFinancing

The Global Financial & Leasing Services (GFLS) team works with business owners across the country who operate companies in a wide variety of industries. While their products and/or services can be quite different from one another, there are universal truths that apply to all businesses. One is eventually the time comes that working with outside professionals is a must. Doing so gives you more time to focus on running your business, which is what you do best, and it gives you the expert insight needed to help your business grow.

Those outside professionals include marketing, sales, insurance, human resources and more. GFLS’s expertise is in equipment financing, which ultimately is affected by the numbers—your accounting.

Working with companies, both big and small, to finance their equipment, our team understands the business growth cycle. Startups and small companies often rely on one in-house employee or the owner to handle the finances. Sure, accounting software and cloud services make it a bit easier, but when combined with other duties, it quickly becomes too much. Customer service and revenue generation are top priorities, so accounting often gets placed on the backburner.

It’s understandable, but it’s avoidable. If you don’t already, make 2022 the year you work with a professional accountant (CPA). There are numerous benefits gained out of this relationship.

You’ll “know your numbers.” No doubt you’ve heard the phrase “let’s run some numbers.” Business owners must know their numbers, and you’d be surprised how many don’t. We’re not talking general balances and such, but rather knowing the numbers and how they affect business today and long term.

You’ll be prepared when the time comes to finance or lease equipment. Your numbers pertain to obtaining equipment because an equipment financing lender will need to see your financials to put together a financing/lease plan that works best for you. Having an accountant means that this is a much easier request to fulfill compared to you spending time getting your books in order.

You’ll be able to take advantage of tax-saving strategies. Most business owners aren’t tax specialists, so you could be leaving money on the table. CPAs are experts in developing short- and long-term tax strategies specific to your business and industry and help ensure you are taking your due deductions. In terms of equipment financing, a CPA can help your business benefit from tax considerations, like the Section 179 deduction, as well as determine the implications of an operating versus capital lease.

Read more: How do capital lease tax advantages compare?

You’re more likely to attract new partners or buyers for your business. New partners or buyers are considering making a financial investment in your business. Initially, the nature and/or success of your business is likely what attracts them. Eventually, the conversation will turn to the numbers. The numbers will tell a story themselves, but having an accountant behind them speaks volumes about the serious way you run your company and can bring peace of mind to the decision process.

There’s a strong argument that in a chicken-egg contest, your equipment financier and accountant are the two outside professionals who can guide and support your businesses growth to the point where it makes sense to hire other professionals full-time. Which comes first? The accountant. Not having your financials professionally buttoned up is a red flag for new partners, buyers and equipment purchase or lease financing companies, like GFLS.

If you’re considering financing equipment, talk to your accountant and talk to us. As a direct lender, GFLS is able to approve credit with our in-house funds, and the typical turnaround time is 24 to 48 hours. When other lenders say no to financing equipment, GFLS can often say yes, so tell us about your financing needs and let’s take a look at the numbers.

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Think Equipment Financing Before Dipping into Cash Reserves

by Benefits of LeasingBusiness Advice

We’re heading into the home stretch of 2021, a popular time of year for business owners to acquire essential equipment. Fourth quarter is an opportunity to take advantage of end-of-the-year sales, deduct the expense on this year’s taxes, be better prepared for business in the coming year, and upgrading or replacing equipment that is becoming obsolete or doesn’t meet your needs any longer. Even though supply chain issues have created shortages of some equipment, if you can find what you need, consider financing equipment buys or leases before dipping into your cash reserves.

Keeping Cash on Hand is More Important Now Than Ever

What a year it has been. There’s not a company that the pandemic hasn’t affected in one way or another, good or bad. Either way, a lesson was learned that you can never be prepared for every scenario and ramping up or riding out the bad requires having sufficient capital reserves on hand.

Keeping cash on hand (experts recommend six months’ worth of expenses) leaves you better prepared for emergencies. Not just unexpected events like the pandemic, which took pretty much everyone by surprise, but also events that might occur that threaten to close your doors should you not have the cash to “handle business” until profits return to normal operation levels.

Maybe you’re thinking you can get a line of credit or loan in the case of an emergency. Maybe is the key word. Typically, big banks want to see sufficient cash reserves before approving a line of equity or loan. Worst case scenario, making the loan payment digs your business into a deeper financial hole. Business owners can dip into their own personal savings to keep the company afloat, but that might leave you personally at risk.

There is a better option for getting the equipment your business needs without draining your cash reserves: equipment financing.

Equipment Financing Lets You Keep or Save Cash Reserves

Your cash reserves might be drained by purchasing essential business equipment upfront, leaving your business at risk should the unexpected happen. Financing equipment over time keeps your cash liquid. Should the equipment financed be used to expand your business, you’ll have the opportunity to increase cash reserves.

LEARN MORE: Your Approach to Financing an Equipment Lease Matters

Financing Essential Equipment Can Reduce Your Tax Liability for 2021

When you lease or finance equipment, you can take advantage of tax benefits. Double check with your accountant and/or tax attorney to ensure your business can use equipment financing as a tax reduction strategy. In many cases, you can write off part of your monthly payments if you lease or finance essential business equipment.

If you finance, all of your interest payments will be tax-deductible as a business expense. You can write off the full cost of your payments if you lease your equipment, and you can also choose to write off the full cost of the equipment in a given tax year. This can come in handy during high growth and profitability years when you want to reduce your tax liability.

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Apply for Equipment Financing with Global Financial & Leasing Services

While it’s important for a company to have a healthy level of cash reserves, it’s not the only thing on which a lender should base a financing decision. Global Financial & Leasing Services (GFLS) works with many business owners who have don’t have the credit history, score or time to waste on big banks that can take weeks or months to make a credit decision. At GLFS, we strive to keep our application process as quick and painless as possible. We evaluate your business’s overall financial picture and respond as soon as possible (often in 24 hours or less) with equipment financing solutions that meet your company’s needs. Our team understands that time can be of the essence, especially at this time of year when special year-end deals might be available and the end of the tax year looms for companies that follow a January to December tax year.

If you’re ready to finance equipment and retain cash reserves, contact us or begin your application.

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How Vendors are Becoming an Attractive Source of Equipment Funding

by Benefits of LeasingFinancing

Startup business financingBorrowers are Seeking Vendor Financing, and Vendors are Seeking Reliable Partners

Consumers today expect financing options. Long gone are the days when banks were the sole source of funding. In fact, some would argue that big banks have held on so tightly to the old ways of financing business equipment that they have become consumers’ least favorite source. Whatever the reasons, there is an opportunity for vendors to move into that space where banks once ruled. Vendors who don’t are leaving money on the table.

Why are Consumers Turning to Vendor Financing?

Banks are notorious for hoops through which applicants must jump. And, many applicants won’t meet banks’ stringent requirements for a loan. With vendor financing, consumers have more flexibility, especially when the vendor works with a lending partner committed to closing sales.

Consumers can explore financing a higher priced piece of equipment rather than settle for less expensive machinery priced within the bank’s approved amount. This is a win-win for both vendor and consumer since a higher sales price results in a higher revenue per sale for the vendor and the customer obtain the equipment best suited for his or her needs.

Why are Businesses Partnering with Reliable Vendor Financing Companies?

With the right partner in place, there are several ways vendor financing benefits your business.

Expanded customer base. By offering in-house financing, more consumers across a credit score spectrum will be able to finance directly through you.

Control over your financing program. An in-house vendor financing program lets you control how your customers’ purchases are financed. Partner with a company, like Global Financial & Leasing Services (GFLS), who will tailor a financing program that works for you and your customers.

Be more competitive in a competitive marketplace. Consumers shop around, and when all things are equal, will choose the best offer. Having a finance partner in place means application decisions are made quickly, helping consumers get the equipment they need faster.

Choosing the Right Financing 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 vendors as a primary or secondary financing partner. Thanks to our streamlined processes, your buyers will have a financing decision in less than 48 hours without any extra burden on your team’s shoulders.

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. In the end, your sales reps can focus on closing sales, not finding financial solutions.

Five reasons vendors choose GFLS:

  1. They can sell more equipment and help increase profit margins.
  2. They can close sales quickly because we are a motivated credit team who provides fast approvals.
  3. They can expand their sales offers to buyers who don’t have capital on hand.
  4. They get a tailored program at no cost to them.
  5. They receive 100% payment of the invoice via wire or ACH.

Our team works with vendors in a variety of industries and can help you provide the financing your customers need to keep your financing in house and your customers happy.

Submit an Equipment Vendor application today. If you have questions, contact our team for answers.