Benefits of Leasing Archives - Page 3 of 4 - Global Financial & Leasing Services, LLC

The Importance of Transparency in Financing an Equipment Lease

January 20, 2020

by Brenda H. 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!

10 Resolutions for 2020 if You’re Leasing Business Equipment This Year

January 7, 2020

by Brenda H. Benefits of Leasing Business 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.

The Role of Financing in the Forestry & Logging Industry

October 18, 2019

by Brenda H. Benefits of Leasing Industry 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.

The Longevity and Retooling of Packaging Machines

September 5, 2019

by Brenda H. Benefits of Leasing

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

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

More Efficient

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

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

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

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

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

READ: Why Put Profit Above an Equipment Lease Payment

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

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

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

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

Using Equipment Lease Financing to Set Up Your Restaurant for Success

July 29, 2019

by Brenda H. Benefits of Leasing Industry News

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

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

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

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

Quality Employees

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

Property Rent

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

Better Inventory

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

Food Safety

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

Décor

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

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

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

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

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

July 8, 2019

by Brenda H. Benefits of Leasing Financing

You 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.

Growing Your Practice by Financing a Medical Equipment Lease

June 27, 2019

by Brenda H. Benefits of Leasing Financing

Like 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.

Financing an Excavator: Even if You Have Bad Credit

June 25, 2019

by Brenda H. Benefits of Leasing Industry News

With 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.

How the Economic Outlook Affects Lease Financing for Construction Equipment

June 18, 2019

by Brenda H. Benefits of Leasing Business Advice

The 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?

July 24, 2018

by Brenda H. 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.