TAX Concept.Word tax put on coins and glass bottles with coins i

Smart Business Buys to Make Before the End of the Tax Year

by Benefits of LeasingBusiness AdviceWhat about Taxes?

And Lower Your Tax Liability

October marks the start of the 4th quarter and the beginning of the end of the tax year for many business owners. If you’ve been considering making purchases for your business, this might be the right time to buy. Your business benefits from having the goods or services available now, and your expense write offs can reduce your tax liability for this year.

Having worked with businesses since 2009 to provide equipment financing in several industries, here are our recommendations for smart end-of-the-year business buys.

Commercial Vehicle(s)

If you’re considering buying or lease financing a commercial vehicle, now’s a good time to sign on the dotted line for a couple of reasons. Year-end sales get underway. Dealers are anxious to make room on their lots for new vehicles, and they tend to heavily discount their vehicles to meet annual sales goals. If you’re able to negotiable the purchase or lease price down further, the deal gets better, especially if you’re purchasing or lease financing multiple commercial vehicles.

Lease financing before the end of the year provides certain tax advantages. What those advantages are depends on whether you choose a capital or an operating lease. You can write off the vehicle’s depreciation under a capital lease. You can treat lease payments as an operating expense under an operating lease.

LEARN MORE: FREQUENTLY ASKED QUESTIONS ABOUT COMMERCIAL VEHICLE LEASING & LEASE FINANCING

Large Equipment

It is possible that you can write off business equipment, like a forklift, buncher feller, boom trucks and tank trucks, to name a few. Again, the tax advantage depends on the type of lease you choose, operating or capital. Either way, lease financing new or additional equipment can help you improve and expand your business operations so that next year could be the best year yet for your business.

Heavy equipment dealers often share the same mindset as vehicle dealers in that they want to meet annual sales goals and make room for new equipment. From now through the end of December, you can find great deals on equipment. Get a head start by filling out a credit application for your lease financing and check our equipment for sale.

Car or Truck

It’s common for smaller businesses owners to purchase a car or truck to use for both business and personal reasons. The same logic applies as to why the end of the year is a good time to buy or lease finance a car or truck. Check with your tax consultant as to the advantages and strategies to reduce your tax liability when using a personal car for business.

Professional Consulting/Advisory Services

This of all years has been one of massive changes. To best navigate these twists and turns while positioning their business for the future, company owners are seeking professional counsel in a multitude of areas, like sales and marketing, communications, technology, human resources, legal issues and taxes. Joining an executive coaching group or community chamber is an alternative to connect with and learn from others facing similar situations.

Not only can professional consulting or advisory rates and membership fees be written off your taxes, but the advice and guidance gained from participating can help you run and grow business.

Employee Training & Continuing Education

Investing in training and continuing education for your employees at the end of the tax year makes a lot of sense for many business owners, especially if 4th quarter is a traditionally slow period in your industry. Better trained employees can only make your business stronger and put you ahead of competition, not to mention help start off the new year in a better position to improve job performance.

LEARN MORE: HOW TO ATTRACT QUALIFIED OPERATORS TO MAKE THE MOST OF YOUR FINANCED EQUIPMENT

The costs associated with additional training and continuing education for your employees can be deducted from your taxes as long as the education applies to the employees’ position. Meaning, you can write off safety training for heavy equipment operators, but you couldn’t write off training them as IT technicians unless it directly applies to their job description. There are educational opportunities are available online and many are offered as a subscription, allowing employees to learn at their own pace.

These are just a few smart buys that improves your business and can lower your taxes. There, of course, are others, but in terms of “moving the sales needle,” these can’t be beat based on our experience working with business owners to finance equipment.

Boom Truck, crane .

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

by Benefits of LeasingFinancing

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

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

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

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

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

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

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

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

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

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

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

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

Ready to Finance a Lease on a Commercial Vehicle?

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

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

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

Your Approach to Financing an Equipment Lease Matters

by Benefits of LeasingFinancing

Your Approach to Financing an Equipment Lease Matters

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

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

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

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

 

What is your expectation for financing an equipment lease?

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

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

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

 

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

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

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

 

How does the new equipment fit into your overall operations?

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

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

 

Can your customers and finances tolerate a learning curve?

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

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

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

 

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

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

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

Silhouette construction workers fabricating steel reinforcement

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

by Benefits of LeasingBusiness Advice

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

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

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

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

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

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

Equity is the Most Expensive Form of Capital

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

What that looks like in real life.

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

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

There are Tax Benefits to Financing Equipment

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

READ: Who Finances Heavy Equipment Leases?

Raising Equity Can Require Schmoozing

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

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

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

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

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.

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.

Wood processing factory

The Role of Financing in the Forestry & Logging Industry

by Benefits of LeasingIndustry News

Although wood is used for a wide variety of products (crates, boxes, paneling, cladding, furniture, guitars, drum shells, frames, sports equipment, ladders, firewood, windows, doors, cabinets, shelving, and entire homes), and it seems as though construction is going on constantly, the logging industry can be surprisingly slow at times. And, when the demand for wood becomes too slow, many logging business owners find themselves having to sell equipment or are unable (financially or logically) to renew their logging equipment leases.

But, like any industry, the demand for logging goes up and down. There is seasonality to need, and when need becomes high, logging business owners can find themselves scrambling to find logging equipment again.

Having proper logging equipment such as delimbers, harvesters, loaders, logging trucks, processors, excavators, feller bunchers, forwarders, skidders, yarders, etc. is extremely important to a logging business if it is to meet demand regardless of market fluctuations.

The problem some logging company owners who need equipment when demand is high is that when the industry picks up again, they may run into problems when trying to secure leasing. Reasons could involve lack of longevity in business or not having the data and information that most leasing or lending companies or big banks require.

READ: What Lenders Want to See in a Business Plan Before Approving Your Equipment Financing Application

However, it’s possible to get lease financing for logging equipment if you know where to look.

Companies, like Global Financial & Leasing Services (GFLS), help owners of small- to medium-sized logging businesses acquire leasing for logging equipment in order to meet their customers’ needs when the demand for wood is high. Whether you need just one piece of machinery or a whole new fleet, lease financing for logging equipment is often the wisest choice because you can use the leased equipment to make a profit, which can amount to far more than the lease payment itself. If you purchase the equipment outright, your cash will be tied up in it.

With lease financing for logging equipment, business owners have the machinery to do the jobs without committing to a big purchase, and can change the equipment out for newer models when necessary, which will help them surpass their competitors who may be operating with older, less productive equipment that can become more expensive to operate in terms of maintenance.

Whether you’re looking to lease just one piece of logging equipment, you want to replace outdated or broken machinery, you want to expand your operations, or you want to get your hands on a new piece of equipment to have an advantage over your competitors, lease financing for logging equipment is a great way to obtain essential equipment while maintaining cash reserves.

At Global Financial & Leasing Services, we have expertise in the field of logging and forestry equipment financing, and we would love to help you start or expand your business. With us, you don’t need to provide a large down payment, and we are known in the industry for working with business owners who have a less-than-perfect credit.

If you’re interested in lease financing for logging equipment, please don’t hesitate to contact us.

packaging-equip

The Longevity and Retooling of Packaging Machines

by Benefits of Leasing

Packaging EquipmentWhen you think about it, basically everything that consumers purchase comes in a package…and those packages were shipped in a package, and those packages most likely came in even bigger packages at one point.

The packaging industry affects nearly every other industry in one way or another, at some time or another and so it makes sense that packaging is considered to be the third-largest industry in the world. 

More Efficient

Packaging machinery makes unit production much more efficient. When you have a packaging business, every millisecond counts—and with the right machinery, production that may take one minute can be decreased, making profit increase. In other words, the quality and efficiency of packaging machinery generates or eats away at revenue.

As technology improves, it’s important to keep in mind that this valuable machinery must be kept updated.

Manufacturers of packaging machinery often upgrade this equipment to be even better, faster, and more efficient, which means that the companies that use that equipment will be better, faster, and more efficient as well. Upgrades mean that “bugs” are worked out of the machines and that improvements are made. Plus, packaging industry customers change formulas or packaging needs, which can require upgrading or retooling systems.

When a business is either being built or modernized, one of the most important elements of the budget planning is the packaging machinery’s lifespan. With the right equipment, a new packaging company can be thriving within a few months, and an established one can take production from good to the best.

Packaging machines are often necessary to the growth and progression of a company, because a company can grow with the upgrades. This is what makes them great candidates for financing: they can help a company generate revenue as they are being paid for.

READ: Why Put Profit Above an Equipment Lease Payment

Lease financing for the packaging industry has helped many companies because instead of buying packaging machinery outright up front, the machines can be financed and the extra money can be put into the business.

The first step is to determine what packaging machinery is needed (or will be needed for an upgrade), and then set up lease financing for your packaging industry business with a reputable lender who will help you determine the best plan for you. 

At Global Financial & Leasing Services, we have expertise in the field of packaging machine financing, and we can guide you in the right direction. We don’t require any down payment, and we specialize in helping business owners who have less-than-perfect credit.

If you’re interested in lease financing for the packaging industry, please don’t hesitate to contact us to learn more!

restaurant

Using Equipment Lease Financing to Set Up Your Restaurant for Success

by Benefits of LeasingIndustry News

finance restaurant equipmentIf you’re opening your own restaurant, you know very well that there are many factors and expenses that go into doing it right—just like any business. And, one of the heaviest financial burdens for those opening a new restaurant is the equipment that your establishment requires.

Restaurant equipment definitely isn’t cheap, but it makes up some of the most necessary items that owners need to run their place. It goes way beyond a simple refrigerator and stove. Also, there are dishwashers, steam tables, ice machines, fryers, bar equipment, prep and work tables, holding cabinets, and much more.

Any one of these items alone can be incredibly expensive—not to mention multiple items, which most restaurant owners need. Because of the reality of high restaurant equipment costs, many owners choose to take advantage of restaurant equipment lease financing.

With restaurant equipment lease financing, you’ll be able to get your hands on the equipment you need to get your restaurant up, running, and successful, even if you don’t have a huge budget to work with from the beginning. Instead of having to pay a large, up-front lump sum, restaurant equipment lease financing allows you to pay a monthly payment instead and keep more of your start-up funds in the bank for other expenses, like:

Quality Employees

You can hire better, experienced employees and pay them an attractive salary to reduce turnover. The better employees there are, the better the customer service will be, which is a big attraction for customers, as no doubt you’ve read on Yelp reviews.

Property Rent

Without the drain of a huge purchase for equipment, you could perhaps afford a better location and have greater confidence you’ll be able to pay your rent on the restaurant space each month.

Better Inventory

Excellent food comes from excellent ingredients, but many quality ingredients are more expensive. Locally-grown, in-season fruits and vegetables, as well as healthier ingredients, simply tend to cost more. With the money that restaurant equipment lease financing allows owners to save, you can afford to invest in better ingredients.

Food Safety

With restaurant equipment lease financing, you can have access to equipment that keeps food at its very best, such as heating cabinets and industry-quality freezers. Keeping food warmed up for pick-up customers or frozen enough to be safe is very important, and if it’s not, inspectors can and will cause trouble for you.

Décor

Ambiance and atmosphere are key to your restaurant’s overall experience. If you’re starting a new restaurant, chances are you have a specific vision for it. The money that financing a restaurant equipment lease saves compared to purchasing outright allows can help bring that vision to life.

Unfortunately, what often stops owners from leasing restaurant equipment is their credit. Restauranteurs with less than perfect credit, typically have a difficult time getting financing from banks. But this is no reason for you to settle for basic equipment, or choose to not open your restaurant at all.

Direct lenders like Global Financial & Leasing Services work with restauranteurs and entrepreneurs who have imperfect credit to get them the tools and equipment they need to kickstart their business. To us, you’re more than just your credit. You could be the next Wolfgang Puck.

If you need help with restaurant equipment lease financing, talk to us at GFLS. We’re here for you, and we want you to be able to achieve your culinary dreams.