lease-renting-contract-residential-tenant-concept-scaled

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

February 22, 2024

by Brenda H. Benefits of Leasing Financing

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.

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.

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

September 6, 2023

by Brenda H. Benefits of Leasing Business 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

Artificial Intelligence (AI): AI systems optimize supply chains, predict consumer behaviors and automate redundant tasks, thereby enhancing efficiency and competitiveness.
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.
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.

Three Reasons Business Owners are Financing Their Business Equipment

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
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.
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.

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.

When Is Financing Equipment a Smart Choice for Small Business?

October 30, 2022

by Brenda H. Benefits of Leasing Business 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.

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.

What is My Best Source for Equipment Financing?

July 13, 2022

by Brenda H. Benefits of Leasing Financing

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.

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

January 28, 2022

by Brenda H. Benefits of Leasing Financing

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.

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.

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

January 25, 2022

by Brenda H. Benefits of Leasing Business Advice Financing

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.

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.

Think Equipment Financing Before Dipping into Cash Reserves

November 18, 2021

by Brenda H. Benefits of Leasing Business 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.

Browse our spa and heavy equipment for sale.

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.

How Vendors are Becoming an Attractive Source of Equipment Funding

September 29, 2021

by Brenda H. Benefits of Leasing Financing

Borrowers 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:

They can sell more equipment and help increase profit margins.
They can close sales quickly because we are a motivated credit team who provides fast approvals.
They can expand their sales offers to buyers who don’t have capital on hand.
They get a tailored program at no cost to them.
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.

A Two-Step Approach to Heavy Equipment Financing

September 27, 2021

by Brenda H. Benefits of Leasing Business Advice

It Can be Easier Than You Think to Get the Heavy Equipment Your Business Needs

The construction job calls for heavy equipment, maybe a backhoe, skid steer, dump truck or any other type. Perhaps you won a contract, you’re growing the business or you’re replacing or upgrading equipment. Getting the heavy equipment your business needs right now might mean shorter timelines (a competitive advantage), hiring fewer sub-contractors (a cost-saving measure) and the ability to bid on more or different types of projects (a path to grow business). However, heavy equipment either new or used, carries a steep price tag.

Many construction companies and contractors don’t have the financial liquidity to purchase heavy equipment, but they don’t let the cost stop them from reaching their goals. Heavy equipment financing is the solution, allowing you to avoid a huge cash layout and still get “the job done.”

LEARN MORE: It’s Not the Interest Rate That Counts When Financing Equipment

Here’s a two-step approach that makes it easier than you think to get the heavy equipment your business needs.

Step 1: Determine your financial requirements.

Financing options are more tailored to the borrower’s needs today. Even car companies jumped on board, starting with how much a buyer can afford to spend monthly instead of selecting the vehicle. You know the type of heavy equipment you need, now’s the time to determine how much you can budget for it each month. Unsure?

Ask yourself the following question: How long do you intend to use the equipment?

Your answer helps determine whether short- or long-term financing is best or what type of lease makes sense for your company’s finances and future.

Do you plan on keeping the equipment for the long haul? Long-term financing can result in lower monthly payments.

Will you use the heavy equipment for a single or a few contracts? Short-term financing or renting might be a smart solution.

Is the equipment used on a seasonal basis? Work with a financing provider who is willing to vary the payment amounts based on the time of year.

With all the options available, it’s critical to work with a lender who is willing to work with you to find heavy equipment financing solutions customized to your needs.

Browse GFLS’s Used Heavy Equipment for Sale

Step 2: Get ready for the heavy equipment financing application process.

Step two is where the differences between big banks and lenders, like Global Financial & Leasing Services (GFLS), become obvious. With big banks, expect a lot more paperwork, and make sure your financial statements are buttoned up. Also, build in enough time between the time when you submit your application and when you actually need possession of the heavy equipment. Big banks can draw out the process for weeks or months, and even if eventually approved, funds aren’t made immediately available. This creates a huge problem for business owners who need their equipment to start a project.

We can’t speak for other lenders, but GFLS follows a streamlined process, aiming to keep our application process as quick and painless as possible. We take a look at your business’s overall financial picture, and we respond as soon as possible (often in 24 hours or less) with heavy equipment financing solutions that meet your company’s needs.

GFLS does not require a perfect credit history and goes beyond looking at the numbers when making our credit decisions.

Ready to Apply for Heavy Equipment Financing?

Work with a financing partner who understands small and mid-sized business and the construction and manufacturing industries. GFLS can be your partner for the long run, financing your equipment as you grow. Contact us or start with your application.

What are the Benefits of Equipment Leasing?

April 20, 2021

by Brenda H. Benefits of Leasing Business Advice

5 Reasons to Consider Leasing or Financing Equipment Now

Our team at Global Financing & Leasing Services (GFLS) is seeing light at the end of the tunnel. Not only are we hearing our customers’ stories of confidence thanks to increased business volume, but also, we’re seeing it in the numbers. Certainly, the pandemic has affected small and mid-sized businesses across a spectrum of industries. It’s these exact organizations that’ve been hit hardest and have more difficulty securing financing, especially if they fall on the lower tier of credit ratings.

The economy is preparing for a post-pandemic upswing. When lenders, like GFLS, step up to provide equipment financing, businesses have a strong chance of rising like phoenixes from the ashes. GFLS was founded during the Great Recession to support businesses who aren’t well served by big banks. We have a history of successful lending, access to capital and commitment to our mantra: “When other lenders say no, we often say yes.”

If you’re debating whether this is the right time to finance or purchase equipment for your company, consider these five benefits of equipment leasing.

Upgrading your equipment is more affordable with financing.
It’s understandable that business owners want to have the latest and greatest equipment and for good reason. State-of-the-art machines and technology can increase employee satisfaction while cutting labor costs, and they can cut other expenses bill, too, with green technology, improved efficiency, fewer repairs and down time, and increased productivity.

Remember, keeping up with new developments can quickly become expensive if you buy outright, depleting your working capital. That’s where leasing and financing comes in handy. When you don’t have to pay the full cost of new equipment, you can afford the best new products, while keeping a healthy amount of cash on hand.

READ MORE: 2021’s Top Trends in Equipment Financing

Financing keeps your working capital at a stable level.
When you make a large purchase up-front, your bank account will take a major hit. This means less money for other endeavors, and if your business experiences a downturn for whatever reason, then you’ll have less cash in your rainy-day fund.

Paying for your equipment over time helps you keep more of your liquid funds available for other uses. Whether you need to make multiple purchases or your company hits a snag, having cash on hand offers more flexibility and potentially avert making tough financial calls.

READ MORE: Why Your Business Should Keep Cash Reserves

You can open up other credit lines.
Financing a purchase can help you keep your business’s other lines of credit open. Many companies, especially in their early stages, will use all types of credit for necessary expenditures. These credit lines could include business loans, personal loans, or even credit cards. Therefore, business owners need to be careful to use their credit wisely and make purchases that will benefit them in the long term.

When you use leasing or financing specifically for an equipment purchase, you aren’t cutting into these other lines of credit. You can then use those other lines of credit for other expenses that arise as your business grows since your equipment financing is separate.

You can take advantage of tax benefits.
When you lease or finance equipment, you can take advantage of a surprising number of tax benefits. While you should always consult an accountant and tax attorney to ensure you will benefit. Generally, you can expect to write off part of your monthly payments if you lease or finance a purchase.

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 tax season when you want to maximize your savings.

Applying for equipment financing is surprisingly easy.
Another factor that keeps business owners from leasing or financing equipment can be the misconception that applying for credit is tedious. However, while big banks may force you to jump through hoops to get a loan, equipment financing lenders make getting approved far simpler.

At GLFS, for instance, we aim to keep our application process as quick and painless as possible. We take a look at your business’s overall financial picture, and we respond as soon as possible (often in 24 hours or less) with solutions that meet your company’s needs.

If you’d like to learn more about the benefits of financing your next equipment purchase, contact us.