A Two-Step Approach to Heavy Equipment Financing

by Benefits of LeasingBusiness 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.

front-view-finance-business-elements-assortment

What are the Benefits of Equipment Leasing?

by Benefits of LeasingBusiness 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.

  1. 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

  1. 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

  1. 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.

  1. 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.

  1. 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.

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.