examination of the breast using the mammography x ray machine, which carry out examination of the breast . Prevention of breast cancer.Health care medical technology hi-tech equipment concept. Nurse. medical staff

The Nature of Medical Imaging Equipment Often Makes Financing a Lease a Better Choice Than Purchasing

by Benefits of LeasingFinancing

Medical Imaging LeasingYou might think that only large hospitals and medical facilities purchase x-ray and ultrasound equipment, and smaller facilities and practices finance medical equipment leases. After all, the larger facilities are more likely to have the capital to invest in buying x-ray and ultrasound devices, whereas a smaller or new facility probably doesn’t, and if it did, it’s likely that capital would need to be reserved for other expenses and operational items.

Unless you have a huge amount of cash on hand, you might be better positioning your facility for patient care and financial stability by financing a lease for your medical imaging.

Depending on your way of thinking, you might lean toward believing financing a lease or buying is more cost-effective than the other in the long run. And, there will be those who think financing a lease is and will always be more expensive. However, Jim Jenks, Global Financial & Leasing Services’ founder and CEO, says, “Leasing medical imaging equipment can be less expensive than purchasing things like x-ray and ultrasound machines if the lease is well managed and suited to the client’s needs and goals.”

If Your Goal is to Preserve Cash

Buying medical imaging equipment often means making a hefty down payment. “In some cases, the down payment alone is the decided factor for our clients to finance their x-ray, ultrasound or other medical imaging equipment, even with interest rates low right now. In other cases, they have the capital, but feel they can put that money to another use in their facility, saving it from being tied up in equipment,” says Jenks.

If Your Goal is to Stay Ahead of the Medical Imaging Technology Curve

Unfortunately, old x-ray or ultrasound equipment doesn’t become a valuable “classic” with age. Instead, aged medical imaging equipment becomes outdated and can put your practice or facility at a competitive disadvantage to those offering the latest technology. For example, an expectant mother is excited to see her baby. Given a choice between scheduling a 3D image and a traditional sonogram, which do you think she’ll choose?

Medical equipment is constantly improving, making past models obsolete pretty quickly. Depending on the nature of the equipment and its typical lifespan, buying it can leave you with equipment that is hard to sell when you are ready to upgrade. Leasing medical imaging equipment gives you more options at the end of the lease. You can return it to the leasing company or pay its market value and keep it. Bottom line: leasing gives you more control over your medical equipment upgrade schedule.

If Your Goal is to Work with a Company That Understands Medical Equipment Financing and Leasing

Having financed x-ray machines, ultrasound devices and other medical equipment for medical professionals since 2009, the Global Financial & Leasing Services (GFLS) team has found that it’s not the size of our clients’ facilities, but rather their long-term goals that drive their decisions to lease or buy.

Whether it’s medical imaging or other types of healthcare equipment, GFLS can help get it in your office so you can provide the best patient care. We do not require a down payment. Your first payment in advance is sufficient and then you can pay when your finances and schedule allow. GFLS helps clients with good and bad credit scores and you’ll always quickly receive a decision—just a few of the reasons GFLS is a preferred partner for those in the medical industry. Get started today with an application or contact our team for more information.

Doctor check up x-ray film of the brain by ct scan brain at patient room hospital.

Growing Your Practice by Financing a Medical Equipment Lease

by Benefits of LeasingFinancing

Medical EquipmentLike you and your staff advocate for patient care, the Global Financial & Leasing Services (GFLS) team is your advocate in financing leases for medical equipment. We understand that your ability to provide the best patient care hinges on having both standard and state-of-the-art medical equipment. And, like you, we know the high cost of medical equipment can be a barrier to having it in your practice, especially if your credit is less than perfect for whatever reason.

GFLS partners with medical practices of all types, human and animal, to acquire much-needed financing to lease essential medical equipment. In addition to the benefits patients gain by having in-office medical equipment, our clients with medical practices are able to start and/or grow their practices.

Get Your Practice Off the Ground Faster and Easier

Whether you’re taking over a practice or starting one from scratch, working capital can be tight and medical equipment difficult to come by when you’re getting your medical practice off the ground. Your medical practice can gain equity and worth in a short amount of time with the right lease financing.

Financing a lease for medical equipment is easier if you’re a qualified borrower. GFLS works with customers with good credit, as well as those with bad credit. We listen to your “story” and when other financial institutions say no, we can often say yes so you can provide better care faster and get your practice off to the best start.

READ: How to Improve Your Personal Credit Before Financing Business Equipment

Meet Patient Demand for Specific Tests or Services

When you have to refer patients to other practices for essential or elective tests or services, you are turning away revenue. GFLS has financed medical equipment leases that allow doctors to perform tests and services in-office, so you can keep leakage to a minimum and retain control over your patients’ quality of care.

Plus, leasing medical equipment makes it far easier for you to upgrade since you can turn in equipment once the lease is finished and refinance newer models.

Expand or Relocate Your Practice and Keep Capital Outlay in Check

If your goal is to one day expand the number of your locations to meet the needs of popular or underserved areas, chances are you will require medical equipment at the new location(s). One of the most common obstacles is not building a practice in the new location(s), but funding the medical equipment there. GFLS finances medical equipment leases so you have what your practice needs to move into your new location and preserve capital for other aspects of expanding or relocating.

Take Advantage of Section 179 Tax Benefits

Section 179 of the IRS tax code allows businesses to deduct qualifying medical equipment during the tax year it is purchased and put into service, even if it is a financed lease. We recommend consulting with your tax specialist on how to take full advantage of this tax code.

Learn more about the tax advantages of a capital lease and an operating lease.

Providing Not Only Medical Equipment Financing, but Also Valuable Expertise

When it comes to financing medical equipment, GFLS has the expertise that you can trust. We’ve provided financing options in the healthcare market since 2009, which means we can help you navigate the constant changes in both equipment, software and regulations. Get started today with an application or contact our team for more information.

excavator-financing

Financing an Excavator: Even if You Have Bad Credit

by Benefits of LeasingIndustry News

excavator financingWith construction leading the way in our current economy, it’s no surprise that small and mid-sized companies are taking advantage of the boom and investing in heavy equipment like excavators. These machines help them take on projects previously out of their reach. Also, financing new or gently used excavators beefs up a company’s fleet. However, excavators are a serious investment and purchasing outright is a large capital outlay. This makes buying outright out of reach for many business owners who don’t have that kind of capital or prefer to keep it on hand for other purposes.

Comparing New and Used Excavator Costs

If you’re financing a new, a full-sized excavator, the cost can range generally between $100,000 to $500,000. In general:

  • Small excavators (10 to 15 tons) cost between $80,000 to $150,000
  • Mid-sized excavators (15 to 20 tons) range between $100,000 to $200,000
  • Large excavators (30 to 40 tons) run from $200,000 to $400,000

Accessories, if needed, will be an additional cost. Most excavators come with one bucket, however, your typical jobs may require multiple or different-sized buckets for which you’ll need to budget an additional $1,000 to $5,000 each. Attachments such as rakes, blades and hydraulic hammers can add $5,000 to $10,000 each to the cost.

The high cost of new equipment and a good economy have created an excellent market for used excavators, putting them in reach of many small and mid-sized companies. Used excavators can be had at a significant discount. A gently used excavator with less than 2,000 hours of use might sell for 25 percent less than the original price – a great deal considering these machines have lifespans of up to 10,000 hours or more.

READ: Why Put Profit Above an Equipment Lease Payment?

Financing Your New or Used Excavator

Whether this is your first excavator, your fifth or you’re taking advantage of the great used inventory to upgrade, excavator financing from Global Financial & Leasing Services (GFLS) can help. If there is anything more important than getting the right excavator for your company, it’s working with the right lease financing company with experience in heavy construction equipment financing.

That’s where excavator lease financing from GFLS comes in. Our team can help you acquire essential equipment when you want to retain your capital for other things or bad credit makes you risky on paper to other lenders.

READ: What to Expect if Your Credit Score is Under 750

Get Excavator Financing Through GFLS

Since 2009, GFLS has been providing excavator lease financing for small and mid-sized businesses across the U.S. Our customers count on us to help them obtain the heavy construction equipment they need to compete in their area and take their companies to the next level through:

  • A fast, easy excavator financing process
  • Dealing directly with financing decision makers
  • Our willingness to look beyond a credit score to your “story”
  • Reliable, ongoing communication
  • Equipment financing decision made in <2 to 24 hours
  • A financing culture based on respect

We know what a difference a day can make for companies that need to get excavators on the job. Start the application today and the GFLS team will move heaven and earth to approve your excavator financing in as few as 24 hours. Have a question about heavy construction equipment financing? Contact our team for answers.

Finance concept

How the Economic Outlook Affects Lease Financing for Construction Equipment

by Benefits of LeasingBusiness Advice

Economic OutlookThe Association of Equipment Manufacturers (AEM) recently published an article on the economic outlook for 2020. It stated that while the economy began 2019 rather strong and that the U.S. is in the middle of 100+ months of economic expansion, many thought leaders are forecasting that our hot economy will cool down a bit. Why pump the brakes in the midst of high business and consumer confidence and low unemployment? Rising interest rates, looming tariffs and an inability to hire enough workers, especially skilled labor.

The Global Financial & Leasing Services (GFLS) team keeps a close eye on economic reports, especially those concerning the industries in which we finance equipment. However, we can gauge the economy’s highs and lows simply by the number of equipment financing applications we receive. Over the past few years, applications have been flooding in from customers who are confident enough in the economy that they’re comfortable spending money.

Construction Leads the Way

The construction industry – residential and commercial – historically leads the way in a good economy. Of course, building requires construction equipment, so it’s no surprise that the demand for construction equipment financing is high.

The past few years were good for leasing pre-owned construction equipment. A good economy mean companies can replace older equipment with new, which increases used inventory. There are a number of construction firms leasing their quality, used construction equipment like backhoes, dump trucks, bulldozers, and other heavy equipment in order to offset the cost of purchasing new equipment.

Is Now the Best Time to Finance Construction Equipment?

Despite interest rates, tariff concerns and labor crunches, it is still a great time to finance construction equipment for a few reasons, including:

  • Used inventory is excellent
  • Current low interest rates (but the Federal Reserve recently has raised rates and more increases could be on the way)
  • The quality manufacturing of today’s construction equipment minimizes the risk of the payments outlasting the equipment

AEM reports that the construction industry is expected to experience steady and solid growth, at least in the short term, though no one can predict the impact of any unforeseen circumstances or events. Financing construction equipment makes sense for many construction firms right now.

READ: Why Put Profit Above an Equipment Lease Payment?

GFLS helps small and medium-sized businesses finance construction equipment leases, even those with less than perfect credit and who have been turned down by other equipment financing providers. Get started today with an application or contact our team for more information.

What are Capital Leases?

by Benefits of Leasing

Understanding Capital Leases

We previously discussed Fair Market Value leases.  Today let’s talk about Capital Leases.

Capital leases also are known as buck-out leases, dollar buyout leases, lease purchases, finance leases, and nominal leases. Unlike Fair Market Value (FMV) leases, purchasing the equipment at the lease’s end is not optional. You do purchase the equipment, and the price you will pay for it is determined at the start of the capital lease. This price can be as low as $1.00, thus the buck-out alternative name.

Is a Capital Lease a Loan or a Lease?

Unlike FMV leases, you own the equipment during the lease, which means you can depreciate it and take advantage of certain tax incentives. According to the Financial Accounting Standards Board, to be considered a capital lease, it must meet a minimum of one of the following:

  • The lease transfers ownership of the property to the lessee by the end of the lease term
  • The lease contains a bargain purchase option
  • The lease term is equivalent to 75 percent or more of the estimated economic life of the leased equipment
  • The present value at the beginning of the lease term of the minimum lease payments equals or exceeds 90 percent of the excess of the fair value of the leased equipment

For Which Types of Businesses are Capital Leases Ideal?

Since you own the equipment while you make monthly capital lease payments, the equipment does reflect on your balance sheet. However, it might be an ideal option if you want to reserve your cash. Capital leases might be the ideal choice for equipment that has longevity and little depreciation or chance of obsolescence.

Talking with your accountant and Global Financial & Leasing Services can help point you in the right direction of a lease that fits your goals and financial situation.  Contact us today to learn more.

What is a Fair Market Lease?

by Benefits of Leasing

Not All Equipment Leases are the Same

A lease may seem like a straightforward term, meaning you make payments on business equipment for a set amount of time and once the leasing term ends, the equipment may be returned to the lessor. In the simplest terms, a lease is a rental agreement in which you pay for the use of equipment for a set amount of time. The two most common leases are fair market value (FMV) leases and capital leases. However, like many financial aspects, there are decisions a business owner must make regarding the type of lease that best suits their financial position, type of business, and type of equipment.

Based on the conversations our team has every day with business owners, we can help shed some light on the benefits of both leases and help you determine which one is best for your situation and goals, both long and short term.  Today we will address a Fair Market Value Lease.

What is a Fair Market Value (FMV) Lease?

A FMV lease derives its name from the lessee’s option to purchase at fair market value the equipment at the end of the leasing agreement. The price is determined at the end of the lease. FMV leases also are referred to as operating and true leases – operating because the lease payments are recorded as an operating expense and true because they work like a basic rental agreement.

What are the Benefits of Fair Market Value Leases?

  1. Monthly lease payments offer an opportunity to add equipment to your business that you might not be able to afford otherwise, which in turn could make your company more efficient and profitable.
  2. FMV leases keep equipment off the books as an asset or a liability since it is never purchased and the lease payment is a deductible operating expense. Since it’s not an asset, the equipment doesn’t increase your company’s value. And because it’s not a liability, it doesn’t increase your debt. Depending on your future business plans, both of these situations could work in your favor.
  3. Generally, FMV leases have lower monthly payments for shorter terms. They are often a viable way to get equipment needed for a short amount of time or for a specific project without taking on debt or the hassle of selling it once the project is over.
  4. FMV leases give you the luxury of time to assess the equipment’s performance and usefulness to your operations. If it doesn’t help you meet your goals, you return it at the end of the lease. If it does, you can purchase it at fair market value once the lease expires.

For Which Types of Businesses are Fair Market Value Leases Ideal?

FMV leases can act as insulation against obsolescence. They are ideal for business owners in the technology sector or another industry in which technology quickly evolves. Rather than investing in equipment that will need to be replaced soon after new technology hits the market, a fair market lease for such equipment lets you return it at the end of the lease. Then, you can enter into a new FMV lease for the latest equipment. Since FMV leases tend to be shorter, your business will never be operating with outdated equipment, unless you decide it sufficiently serves your needs.

Talking with your accountant and Global Financial & Leasing Services can help point you in the right direction of a lease that fits your goals and financial situation.

 

Save Cash When Leasing Equipment

by Benefits of Leasing

More reasons to consider leasing

Leasing equipment protects your cash flow. Leasing equipment has a lower upfront cost, which is incredibly appealing if you have fewer available capital funds than operating funds. Also, leasing gives you time to pass the cost of your lease payment on to customers through your pricing structure.

It provides a cushion from the negative effects of obsolescence. Technology advances so rapidly that equipment you purchase today stands a good chance of being obsolete in a few years if you’re lucky – months if you’re not. Replacing outdated lower-cost technology like phones and computers is difficult enough to stomach. Updating equipment that you invested tens or hundreds of thousands of dollars in is like a kick in the stomach.

With a lease agreement, you’re paying monthly for equipment that meets your immediate needs. When the time comes to update your technology, often lease agreements include options for trading in leased equipment for new technology. This is so common that even cellular providers are now leasing smartphones for a monthly fee with an upgrade guarantee, meaning customers never buy and own their phones, but they can always trade up as soon as new models are released.

Trading in leased equipment is far easier than trying to sell that equipment. Others in your industry want the latest technology and are not willing to take on the cost of obsolete equipment. More often than not, outdated equipment ends up collecting dust and taking up valuable space in storage. Or worse, it is kept in use and negatively effects productivity and profit.

The leasing company takes care of the down payment upfront. Purchasing a piece of equipment can require a hefty down payment, similar to the down payment homebuyers are required to put down when buying a house. Leasing equipment eliminates that down payment because the leasing company pays the down payment and rolls it into the monthly lease payments.

Bottom line. Why drain your cash reserves to buy equipment when you could allocate that money toward growing your business and being more competitive in the marketplace? Leasing equipment allows you to retain cash and acquire the revenue-generating equipment your business needs.

Since 2009, we’ve helped decision makers in health/medical, construction, restaurant, machinery/manufacturing, printing, and logging/forestry industries lease or finance the purchases critical to their business. Let’s talk about how we can help your business succeed.

Should a Company Lease or Buy Equipment?

by Benefits of Leasing

What smart business owners understand about leasing equipment vs. buying equipment

A smart business owner would never hire a dynamic, new sales associate and pay him or her three years’ salary in advance. No. Instead, a smart business owner ties compensation to the revenue the sales associate generates for the company. Even though many business owners consider their employees their company’s most important “asset,” they pay a salary for their productivity as it generates sales, and not a minute before.

Regardless of the industry you’re in, this same mindset should apply to how you add business equipment. Just like you’d never waste resources hiring a non-essential employee, it’s a waste of money to invest in equipment unless you can answer, “Yes,” to two questions:

  1. Is it essential to providing your service or product?
  2. Will it generate revenue?

Once you’ve determined that a piece of equipment will help grow your business, the next decision is how to pay for it. The two most obvious choices are to either buy it or lease it. In the majority of cases, smart business owners lease equipment. That way the payments are made over time and are funded by the revenue the equipment generates.

The formula for determining whether leasing a piece of equipment is a smart move is simple:

The revenue generated by the equipment is > or = to the lease payment.

If it is, then leasing makes sense for a number of reasons.

Contact us for more information on how you can make leasing work for your business.