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Five Equipment Financing Strategies for Rapidly Scaling Startups

by Business AdviceEquipment FinancingStartups

Five Equipment Financing Strategies for Rapidly Scaling Startups

Scaling a startup is exhilarating. Until you hit a roadblock, then it can be difficult deciding which is the best workaround. Whether it’s outdated machinery slowing down production or a lack of funds preventing expansion, many startup owners find themselves at a crossroad between rapid growth and limited resources. Equipment is essential to scale, but purchasing outright can drain your capital and leave you struggling to cover other expenses like hiring, marketing and product development—all equally important to scale up. As your startup gains traction, the need for better technology, machinery and other essential equipment grows. But with rapid expansion comes a crucial question: How do you secure the essential business equipment you need without draining your cash flow?

That’s when smart equipment financing strategies are necessary. Instead of using up cash reserves, the right financing approach allows startups to scale efficiently while keeping operations flexible and preserving resources for other key areas. With options like leasing, equipment loans and vendor financing, startups can get what they need to expand without risking their momentum.

  1. Preserve Cash Flow with Equipment Leasing

For startups, cash is king — and keeping sufficient reserves is crucial for long-term stability and success. Instead of making large upfront purchases, leasing equipment offers a more affordable way while keeping your cash flow steady.

Why Leasing Works for Startups:

    • Lower upfront costs compared to purchasing
    • Predictable monthly payments for easier budgeting
    • Flexibility to upgrade to newer technology as needed

Startups in technology, healthcare and manufacturing benefit from leasing because it allows them to stay competitive without the financial strain of large equipment purchases. Also, many leasing agreements can include maintenance and service, reducing unexpected costs.

  1. Explore Flexible Equipment Loans

For startups that prefer ownership, equipment loans provide a way to finance purchases while spreading costs over time. Many lenders offer loans covering up to 100% of the equipment cost, making them an attractive option for businesses investing in long-term assets.

What to Consider When Choosing an Equipment Loan:

    • Competitive interest rates to keep costs manageable
    • Flexible repayment terms that align with projected revenue growth
    • Favorable approval terms, even for startups with limited credit history

At Global Financial & Leasing Services (GFLS), we work directly with startups to structure financing solutions that align with their growth plans, helping them access equipment without unnecessary financial strain.

  1. Unlock Capital with a Sale-Leaseback

While unlikely outside of the strongest assets and highest credit ratings, a sale-leaseback can serve as a stopgap measure when poor planning during the equipment acquisition phase leads to unexpected cash flow shortages. This strategy allows businesses to sell their equipment to a lender and lease it back, maintaining access to essential tools while converting assets into working capital. Typically structured with terms of 24-60 months, it can also offer tax-deductible payments and an option to reclaim ownership at the end of the term. However, lenders often require a Certified Asset Appraisal and will only advance a percentage of the Forced Liquidation Value.

  • Benefits of a Sale-Leaseback:
    • Immediate cash infusion to cover financial gaps
    • Continued use of essential equipment
    • Potential tax benefits, depending on the deal structure

GFLS has helped startups navigate cash flow challenges by leveraging sale-leaseback agreements, ensuring they have the capital to sustain and grow their operations despite early-stage financial missteps.

  1. Take Advantage of Vendor Financing Programs

Many equipment manufacturers and suppliers offer vendor financing programs, helping startups acquire machinery and technology with flexible payment plans. However, many of these programs struggle to approve startups due to stricter credit requirements, leaving a gap in financing options. That’s where GFLS comes in.

  • Advantages of Vendor Financing:
    • Fast approval and funding timelines
    • Equipment-specific financing structures tailored to startup needs
    • Potential promotional rates, such as deferred payments or lower interest

While vendor financing can be a great option, it’s essential to compare offers. GFLS works directly with vendors to provide financing solutions, helping startups secure funding even when traditional vendor programs fall short.

  1. Combine Multiple Financing Strategies

For startups with unique financial needs, mixing multiple financing strategies can be an effective way to optimize resources. For example, you could lease some equipment while financing other assets with an equipment loan or combine vendor financing with cash payment, meaning there is more than one way to obtain equipment needed to scale up a business.

Find the Right Financing Partner for Your Startup

Selecting the best equipment financing strategy depends on your startup’s cash flow, growth trajectory and industry needs. Working with an experienced lender who understands startup dynamics can make all the difference in securing the most favorable terms and keeping expansion on track.

GFLS’s team understands that startups need fast, flexible financing that works with their rapid growth—not against it. Whether you’re looking for leasing options, equipment loans or a customized financing structure, our team is here to help. We work with startups, ensuring they have access to the equipment they need without putting their cash flow at risk.

Talk to our financing specialists today and get the equipment you need—without putting your cash flow at risk.

 

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How is Blockchain Impacting Equipment Financing?

by Business AdviceEquipment FinancingFinancingIndustry News

Blockchain technology is revolutionizing industries across various sectors, but its role in equipment financing is still in the early stages. While blockchain has great potential for transforming how businesses secure financing, its adoption remains a bit limited. Most equipment financing today is still handled through traditional lenders, but companies are beginning to explore how blockchain can enhance transparency, security and efficiency.

Some financial institutions are experimenting with it to streamline processes and reduce fraud. As this technology continues to evolve, it may create new financing solutions beyond traditional lenders, allowing businesses to scale without unnecessary constraints. However, working with an alternative lender, like Global Financial & Leasing Services offers these benefits today. How? We’re not constrained to credit scores. Instead, we look at your financial story. In addition to being a direct lender, our broad network of financial partners and lenders gives us access to various funding options. This means we can explore multiple avenues to find the best fit for your business, increasing the likelihood of approval.

Potential for Increased Transparency in Equipment Financing

One of blockchain’s advantages is it creates transparency. As a decentralized ledger, blockchain records every transaction in a secure, absolute format. This ensures that all parties involved — lenders, borrowers, and regulators — can access a verified, tamper-proof record of financing agreements.

This level of transparency could minimize disputes, expedite approval processes, and foster trust between applicants and lenders. Borrowers would gain real-time insight into their financing terms, payments and outstanding balances, while lenders could efficiently track loan repayments and collateral. Additionally, blockchain’s ability to provide instant data access could help businesses with multiple locations manage their financing details effortlessly.

Enhancing Security and Reducing Fraud

Fraud is a persistent issue in equipment financing, from forged documents to inflated asset valuations. Blockchain has the potential to mitigate these risks by creating an unchangeable record of transactions, making fraudulent activities significantly more difficult to execute, protecting borrower and lender alike.

Plus, blockchain’s smart contracts — self-executing agreements with predefined conditions — could add an extra layer of security. These digital contracts automatically enforce terms, ensuring transactions proceed as agreed without intermediaries. This feature would not only minimize fraud risk but also accelerate loan approvals, enabling businesses to acquire equipment more quickly.

The Possibility of Streamlining the Financing Process

If you’ve ever applied for equipment financing the traditional way, you know how time-consuming and complex it can be. Blockchain has the potential to simplify and accelerate the process by automating financial transactions and reducing paperwork.

Blockchain-powered lending platforms could allow businesses to apply for financing, undergo verification and receive funds much faster than conventional methods. This could be especially beneficial for small and mid-sized businesses that require quick access to equipment to maintain operations and meet market demands. GFLS’s streamlined application process already drastically cuts down on approval time, plus gives applicants a direct line to decision makers, meaning financing is often approved within days, not weeks or months.

Another major advantage would be improved data accuracy. Blockchain’s decentralized system could ensure records are updated in real-time and verified across all stakeholders, reducing errors and administrative time. This could make financing more accessible, even for businesses with less-than-perfect credit histories.

The Future of Blockchain in Equipment Financing

Blockchain’s role in equipment financing is still evolving, and while its full-scale adoption is not yet a reality, its potential is there. As more financial institutions and businesses explore blockchain-based solutions, we may see:

  • Faster loan approvals: Automated verification and smart contracts could cut down on paperwork and speed up decision-making.
  • Lower costs: Eliminating intermediaries might reduce administrative fees and operational expenses for both lenders and borrowers.
  • Greater accessibility: Peer-to-peer lending networks powered by blockchain could open financing opportunities for businesses that struggle with traditional lenders.
  • Improved regulatory compliance: Blockchain’s transparent, immutable records could simplify compliance with financial regulations, minimizing audit risks and legal complications.

Looking Ahead and in the Meantime

Equipment financing is evolving, and blockchain is a technology that has a lot of promise. However, while some lenders are beginning to experiment with it, mainstream adoption remains a work in progress. Our experts recommend staying informed about how blockchain could impact equipment financing in the coming years, but for now, build a partnership with an alternative, direct lender, like GFLS. While blockchain may play a more significant role in the future, we focus on providing practical, accessible financing solutions today.

If you’re looking for a lender that understands alternative financing needs, contact us today to learn how we can help your secure equipment financing tailored to your business.

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The Impact of Economic Indicators on Equipment Financing Rates

by Business AdviceEquipment FinancingIndustry NewsUncategorized

Now mid-way through Q1, business owners are keeping a closer eye than ever on economic headlines about tariffs, layoffs, inflation and interest rates—all of which singly or combined will affect companies. While we cannot control the economy, our team can help you navigate how external factors impact equipment financing.

Interest rates, loan terms and approval criteria are directly influenced by key economic indicators like inflation, employment rates and GDP growth. Understanding how these indicators shape financing conditions helps you make informed decisions on when and how to invest in new or preowned essential business equipment. Also, shifts in global markets, supply chain dynamics and federal policies all play a role in shaping financial conditions that impact your business’s growth and sustainability.

There are recent technology advancements altering the way businesses approach financing. Digital lending platforms, automated approval processes and alternative lenders, like Global Financial & Leasing Services (GFLS), have expanded access to funding. While you now have more options, making the right financing choice requires a clear understanding of how economic trends affect borrowing opportunities. So, let’s start with equipment financing rates and inflation, which is up to 3% as of January.

Inflation and Equipment Financing Rates

Inflation is one of the most significant economic indicators affecting equipment financing. When inflation is high, the Federal Reserve often raises interest rates to curb spending and stabilize prices. This, in turn, increases borrowing costs, resulting in higher monthly payments and potentially stricter approval requirements for equipment financing. On the flip side, when inflation is low, interest rates tend to decrease, making financing more affordable and accessible.

Beyond influencing interest rates, inflation (and impending possible tariffs) also affects the cost of equipment itself. Rising material and manufacturing costs can drive up equipment prices, making it even more crucial for businesses to secure favorable financing terms. Inflation also impacts consumer spending, which can affect business revenue. When you anticipate economic shifts and secure financing at the right time, you can position your business for stability and long-term growth.

For business owners, keeping track of inflation trends is crucial. If rates are expected to rise, locking in an equipment financing deal sooner versus later can mean substantial long-term savings. Our advice: if you’re planning on financing equipment or leasing in 2025, talk to our experts now.

Employment Rates and Business Lending

Employment rates influence lending conditions. When unemployment is low, consumer spending increases, and businesses experience higher demand. This often leads to more favorable lending conditions as lenders gain confidence in borrowers’ ability to repay loans. However, in periods of rising unemployment, lenders tend to tighten approval requirements, making it more difficult for businesses — especially those with less-than-perfect credit — to secure financing.

At GFLS, we recognize that business success isn’t dictated solely by economic conditions. Unlike traditional lenders that may restrict financing during uncertain times, we offer flexible solutions, helping you obtain the essential business equipment you need regardless of employment fluctuations.

Related reading: Amid Tightening Credit Conditions, Vendors and Brokers Find Opportunities with Alternative and Story Lenders

GDP Growth and Equipment Investment

Gross Domestic Product (GDP) growth is a key measure of economic strength. When GDP expands, businesses tend to invest more in equipment, workforce expansion and operational improvements. Strong GDP growth instills confidence in lenders, often leading to more favorable financing options such as lower interest rates and extended repayment terms.

During times of sluggish or negative GDP growth, traditional lenders become more cautious, tightening credit requirements and making financing more difficult to secure. This is when working with a direct lender like GFLS becomes highly beneficial. Since we evaluate financing applications based on a business’s ability to service its debt rather than just its credit score, we can tailor solutions that align with unique financial situations, even in uncertain economic times. A customized equipment financing solution starts with an application.

What Business Owners Can Expect in 2025

Our advice is to stay informed about economic indicators that could impact your financing options. Inflation, employment trends and GDP fluctuations will continue to influence equipment financing conditions, and staying ahead of these changes will be essential if you’re looking to invest in equipment.

One of the best ways to navigate these shifts is by partnering with a lender that understands the needs of small to mid-sized businesses. GFLS offers fast, flexible financing solutions that aren’t dictated solely by economic conditions. Whether interest rates are rising or falling, we help business owners obtain the equipment they need to maintain a competitive edge.

Take Control of Your Equipment Financing

Economic conditions will always impact financing rates, but they don’t necessarily have to limit your ability to grow and succeed. By staying informed and working with a lender that prioritizes your business’s needs, you can make smart financial decisions regardless of market fluctuations.

Whether it’s securing financing before interest rates rise, timing equipment purchases or leases strategically or exploring alternative lending options, having a well-thought-out financial plan can set your business up for long-term success.

If you’re considering financing equipment in 2025, now is the time to act. Contact us today.

 

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Financing Solutions to Help Small to Mid-Sized Businesses “Crush Their Competition” in 2025

by Business AdviceEquipment FinancingFinancing

As we slide into 2025, small to mid-sized businesses across the country continue to face unique challenges when it comes to securing financing for essential equipment. The economic landscape will (and has already) shifted with a new administration that’s expected to change regulations and laws, so adapting to opportunities and obstacles is crucial.

Traditional lenders may still struggle to understand your specific needs and operations, especially if you have less-than-perfect credit. That’s where Global Financial & Leasing Services (GFLS) comes in and fills an equipment financing void. We specialize in providing full-service, direct lender solutions tailored to businesses like yours.

By using our own capital and offering fast, flexible equipment financing, we empower businesses to thrive in this evolving economic landscape, and very competitive markets. For example, one of our clients shared, “Thank you so much for all of your help and incredible speed. This new piece of equipment will be a game changer for my business. No one within 250 miles of me has one. I will crush my competition!”

A little competition is good for everyone, from business owners and labor to consumers, right? Competition encourages businesses to innovate, improve efficiency and offer better products or services. It can also lead to lower prices and more consumer choices for, while encouraging workers to learn new skills. But everything has a flip side, and we’d be remiss to ignore that excessive or unfair competition can lead to negative effects, such as market instability, so balance is key.

What Challenges Small to Mid-Sized Businesses Face in Today’s Equipment Financing Climate

For many small to mid-sized businesses, acquiring the equipment necessary to maintain operations or scale growth remains a significant hurdle. Limited cash reserves often make it difficult or impossible to purchase essential business equipment outright, and less-than-perfect credit can disqualify applicants from traditional financing.

The changing economic environment, including rising interest rates and shifting market demands, has added another layer of complexity for those making financing decisions and those applying for financing.

Last but not least, industries such as construction, transportation, and healthcare continue to require specialized, high-cost equipment that traditional lenders may shy away from funding due to cost or risk.

These challenges can leave you feeling you haven’t many good options, but GFLS offers equipment financing solutions that overcome common challenges. How? By looking at each applicant as an individual — not a credit score — and tailoring deals to suit their unique needs.

How a Story Lender, like GFLS, is Positioned to Address These Challenges in 2025

GFLS was founded from the start (during the Great Recession in 2009, to be exact) to support small to mid-sized businesses with our tailored financing solutions. As a nationwide, direct lender, we supply fast, flexible equipment financing to non-investment grade companies and businesses struggling with traditional lending institutions.

Instead of requiring large upfront payments, we offer up to 100% equipment-based financing that spreads costs over manageable installments. This approach is often the best solution for business owners looking to preserve cash flow while obtaining the equipment they need to startup or expand.

Our approval process is another benefit. Unlike traditional lenders that heavily weigh credit scores, we evaluate your ability to service your current and proposed debt, ensuring that even businesses with fluctuating income can meet their financial obligations. For instance, a trucking company looking to upgrade its fleet can rely on us to provide a financing plan tailored to its monthly revenue, allowing it to scale operations without overextending its budget.

Additionally, our application process is fast and straightforward. Each application is handled by a direct decision-maker, ensuring quick approvals with minimal paperwork. This is particularly advantageous for businesses facing tight deadlines. For example, a small manufacturing business could secure equipment financing in just a few days, putting it in a better position to reach its 2025 goals right off the bat in first quarter.

Benefits of Partnering with Us in 2025

Partnering with us offers several advantages for small to mid-sized businesses. Flexible repayment options and low upfront costs improve your cash flow, allowing you to focus on other critical areas of growth. The ability to access essential equipment—even with credit challenges—means you can continue operating effectively and efficiently. And perhaps more importantly, our personalized support means that you receive a solution tailored to your specific goals and challenges, not an automated rejection.

Related Reading: Why a Second Opinion on Equipment Financing Could Save Your Business Money

How to Get Started on Financing Your Equipment

Getting started with GFLS in 2025 is simple. Fill out our secure online application. From there, one of our equipment financing specialists will work closely with you to understand your needs and create a customized solution. Once approved, you’ll have access to the equipment your business needs to thrive. It’s a hassle-free process designed to get you the equipment you need without frustrating delays.

Today, there is no longer any reason to rely solely on traditional lenders. With Global Financial & Leasing Services, you can overcome credit score challenges, invest in essential business equipment and reach your 2025 and beyond goals. Whether you’re interested in flexible leasing options or customized financing solutions, we’re here to help you succeed.

Contact us today to discuss how we can support your business’s equipment needs with innovative financing solutions.

 

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Top 5 Equipment Financing Mistakes and How to Avoid Them to Grow Your Business

by Business AdviceFinancing

When your business needs new equipment, you’re probably not going to plunk down a lot of cash to purchase it outright. Instead, like many business owners, you’ll explore equipment financing options with vendors, manufacturers and traditional banks or maybe even an alternative lender like Global Financial & Leasing Services (GFLS).

How and where you secure your equipment financing can either support your business’s growth or create new challenges. Unfortunately, many equipment financing applicants make common mistakes that can cost them time, money and opportunities. At GFLS, we prioritize giving you the information you need to make informed financing decisions so that you can achieve your business goals.

Here’s a list of the top five mistakes to avoid when choosing a direct lender and obtaining equipment financing, as well as how working directly with a lender like GFLS can make all the difference in growing your business.

 

Mistake 1: Not Understanding Your Equipment Financing Options

Dealing with financing equipment can feel overwhelming. Many business owners are unaware of the variety of financing structures available and may not realize that some options could meet their needs far better than others.

Solution: Working with a full-service, direct lender like GFLS ensures you get a tailored equipment financing solution whether you need $25,000 or $5M. We look at each transaction differently and use our own capital to offer flexible solutions, specifically designed to fit your financial goals and equipment needs.

 

Mistake 2: Overlooking the Importance of a Transparent Decision-Making Process

Choosing a lender that lacks transparency can lead to funding delays and missed opportunities. Some financing providers, like traditional banks, have long and/or unpredictable decision timelines, which can stall critical business operations or put projects contracts at risk.

Solution: At GFLS, we work efficiently and openly. Every equipment financing application is handled by a direct decision-maker who communicates often and clearly, so that you understand every step of the process. We remain responsive, unlike traditional lenders who are known for being slow and their lack of or impersonal communication.

 

Mistake 3: Settling for One-Size-Fits-All Financing Solutions

Some business owners are unaware of their options and believe that one-size-fits-all financing packages will serve their unique needs. In reality, these solutions can often leave companies underfunded or saddled with inflexible repayment terms.

Solution: We know that every business is unique. The GFLS team takes a personalized approach, working to understand your challenges and goals. By offering flexible, equipment-based financing solutions, we can help even non-investment-grade companies and startups thrive, especially when traditional lenders won’t due to a less-than-perfect credit history and credit score.

 

Mistake 4: Not Considering the Impact of Impersonal “Scoring Models” on Obtaining Equipment Financing

One of the most significant mistakes is relying on lenders that use automated “Scoring Models” to make automated credit decisions. These models often use FICO scores or available credit amounts as the sole criteria for approval or rejection, offering a decision within minutes without any human review of the application. This lending practice is impersonal and shortsighted.

Solution: GFLS stands out from traditional lenders by rejecting these automated models. Instead, we take the time to learn about you and your business. We consider your past, but more importantly, we evaluate your business’s potential for future success. We understand that your past is a story of lessons learned, and we are committed to understanding your plans for growth. Our decisions are based on your ability to service your current and future debt, not just a number on a screen.

 

Mistake 5: Being Unaware of the Equipment Financing Approval Speed

Time is money, and delays in equipment financing approvals can mean missed opportunities and stagnant operations. The traditional banking process is often frustratingly slow, with extensive documentation and drawn-out decision times—meaning weeks or months.

Solution: With GFLS, you can expect a fast, efficient approval process. As a nationwide lender, we’ve refined our methods to provide quick and flexible equipment financing, helping you get the funding you need without the usual back and forth paperwork or wait times. Our goal is to ensure you can continue growing your business without interruption.

 

Avoiding these common mistakes can save your business time and money while giving you a clear path to business growth and success. At GFLS, we believe in a personalized, understanding approach to financing. We are more than just a direct lender; we are your partner. When you’re ready to explore equipment financing options, trust GFLS to look beyond the numbers and invest in your future.

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Why a Second Opinion on Equipment Financing Could Save Your Business Money

by Business Advice

Did you know that many lenders are turning to automatic submissions and documentation for accepting equipment financing applications? Digital. Automated. Both words that are common today. However, once an equipment financing application is submitted, lenders often send financing documents directly to the applicant without providing a proposal first.

Okay, so is that a problem? It can be.

These documents frequently require the applicant’s signature and submitting additional credit information, often indicating that the applicant is not yet fully credit approved. Also, the financing structure presented might include a substantial first payment or security deposit.

At Global Financial and Leasing Services (GFLS), we see time and time again that this can be a significant hurdle for many business owners. That’s why we offer a “Second Opinion.” This service is designed to provide alternative solutions to business owners who might feel stuck with less favorable financing terms.

A Real-World Example of an Equipment Financing Second Opinion

Recently, an applicant approached us with an existing credit approval structure from another lender. This approval required a hefty 30% down payment as the first payment. Our team at GFLS was able to reassess the applicant’s financial situation and offer a much smaller first payment, significantly easing their cash flow concerns and making the deal more attractive and manageable.

The Benefits of Getting a Second Opinion from GFLS

Unbiased Advice: Our equipment lending experts offer unbiased advice and comprehensive financial solutions tailored to your unique needs. We believe in making sure you’re fully informed so you can make the smartest decisions for your business.

Better Deals: Don’t just take the first offer that comes your way. Before you sign on the dotted line, why not get a second opinion from GFLS? We can help you explore your options and potentially save big.

Tailored Financing Solutions: Ready to finance new or pre-owned equipment? Pause and get a second opinion from GFLS. We offer custom, flexible financing solutions that might just save you money and boost your business’s efficiency and bottom line.

Smarter Financial Decisions: Check in with GFLS first for a second opinion. We deliver competitive, flexible financing options designed to meet your budget and unique business needs because we look at the whole picture, not just a credit score.

Learn more: Beyond Credit Scores: The Human Side of Equipment Financing

Peace of Mind: Discover flexible, cost-effective options that fit your goals. That’s not only the best thing for you, but also your business growth strategy.

Contact Us Today for a Second Opinion

At GFLS, we believe that when it comes to your finances (and most other things), a second opinion could make all the difference. Ready to grow your business with new equipment but unsure about the best financing options? Don’t settle for the first financing offer—let us help you explore better possibilities.

Reach out to us today because it never hurts to explore your options. A second opinion from Global Financial and Leasing Services could be the best decision you make for your business.

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The Equipment Financing Glossary: Demystifying the Jargon for SMBs

by Business Advice

For small and medium-sized business (SMB) owners, the better you understand the equipment financing world; the better prepared you are to navigate it, especially if you have less-than-perfect credit. At Global Financial & Leasing Services (GFLS), a full-service direct lender, we understand the unique challenges faced by SMBs. Unlike traditional lenders, we look at each applicant’s story, ensuring every application is handled by a direct decision maker.

By using our own capital, we tailor solutions best suited to each applicant, supplying fast, flexible equipment financing to non-investment grade companies. Our equipment-based financing is designed to help businesses who struggle with traditional lending institutions with an approval process based primarily on the applicant’s ability to service their current and proposed debt. As a nationwide lender, GFLS aims to demystify the jargon and provide the clarity you need to obtain financing and grow your business.

Glossary of Common Equipment Financing Terms

Amortization The process of spreading out a loan into a series of fixed payments over time. Each payment covers both interest and principal, reducing the loan balance gradually.

Asset-Based Lending (ABL) A type of financing where the loan is secured by company assets such as equipment, accounts receivable or inventory. This allows SMBs to obtain funding based on their assets’ value.

Balloon Payment A large payment due at the end of a loan term. It is often used in financing agreements where lower payments are made initially, with the bulk of the loan due later.

Capital Lease A lease agreement that allows a business to use equipment while assuming some ownership benefits and obligations. This type of lease often includes an option to purchase the equipment at the end of the term.

Collateral Assets pledged by a borrower to secure a loan. In equipment financing, the equipment itself often serves as collateral.

Credit Score A numerical representation of a borrower’s creditworthiness based on their credit history. SMBs with less-than-perfect credit scores may find it challenging to secure traditional loans but can still qualify for equipment financing with a “story lender” like GFLS.

Debt Service Coverage Ratio (DSCR) A financial metric used by lenders to determine a business’s ability to repay its debt. It is calculated by dividing net operating income by total debt service.

Depreciation The reduction in the value of an asset over time due to wear and tear. Depreciation is a key consideration in equipment financing as it impacts the collateral value.

Direct Lender A financial institution that lends its own money directly to borrowers as opposed to acting as an intermediary. GFLS, as a direct lender, offers streamlined and flexible financing solutions.

Equipment Financing A loan or lease used specifically to purchase business-related equipment. This type of financing allows businesses to acquire necessary equipment without paying the full cost upfront.

Fair Market Value (FMV) The estimated price that equipment would sell for on the open market. FMV is often used to determine lease-end purchase options.

Fixed Rate An interest rate that remains constant throughout the life of the loan, ensuring predictable monthly payments.

Full-Service Lender A lender that provides a comprehensive range of financial services, from loan origination to servicing and collections. Full-service lenders like GFLS offer personalized support throughout the financing process.

Leaseback A financial transaction where a business sells its equipment to a lender and then leases it back. This allows the business to access capital while continuing to use the equipment.

Loan-to-Value Ratio (LTV) The ratio of a loan amount to the value of the collateral securing the loan. A lower LTV indicates less risk for the lender.

Operating Lease A lease agreement where the lessee uses the equipment but does not assume ownership benefits. Operating leases typically have lower monthly payments and are treated as operating expenses.

Principal The original sum of money borrowed in a loan, not including interest. Principal repayment is a key component of loan payments.

Residual Value The estimated value of leased equipment at the end of the lease term. Residual value influences lease payments and purchase options.

Secured Loan A loan backed by collateral. In equipment financing, the equipment being purchased often serves as collateral, reducing the lender’s risk.

Soft Costs Expenses related to equipment purchase but not part of the equipment itself, such as installation, shipping and training. Some lenders may include soft costs in the financing agreement.

Learn more: What are the Soft Costs of Financing Business Equipment?

Underwriting The process lenders use to assess the risk of lending money. Underwriting involves evaluating the borrower’s financial information, credit history and ability to repay the loan.

Variable Rate An interest rate that can fluctuate over the life of the loan based on market conditions. Variable rates can lead to changing monthly payments.

Understanding these terms can help SMB owners make informed decisions about equipment financing. At GFLS, we are committed to providing clear, straightforward information and personalized service to help you achieve your business goals. Whether you need new machinery, vehicles or other equipment, our tailored financing solutions are designed to meet your unique needs, even if traditional lenders have turned you away.

Ready to explore your equipment financing options? Contact GFLS today and let us help you secure the equipment you need to grow your business.

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5 Myths About Equipment Financing for Businesses with Credit Challenges

by Business Advice

For small and medium-sized businesses (SMBs), equipment is king. Having the right equipment can make the difference between breaking even and profitability, being competitive and lagging, and maximizing efficiency and missing deadlines and goals. And, for SMBs facing credit challenges, obtaining equipment financing presents some challenges.

Our team has been working with SMBs since 2009. As a story lender, we specialize in helping business owners with less-than-perfect credit get financing for essential business equipment. We base credit decisions on an applicant’s history, not just a credit score. Working closely with applicants, our team is aware of real challenges business owners face when applying for financing from big banks, as well as the myths that prevent some from applying for equipment financing in the first place.

Global Financial & Leasing Services (GFLS) is committed to debunking common myths and providing the insight and encouragement business owners need to confidently pursue equipment financing options, regardless of credit scores. With clear information, you can find financing options with confidence.

Myth 1: Perfect Credit is a Must-Have

The truth: The widely accepted idea that only business owners with impeccable credit qualify for financing is one of the most widespread myths. At GFLS, we recognize that a credit score is just one piece of your business’s financial puzzle. We look closer at your business’s potential, considering its overall financial health and prospects. Our goal is to customize financing solutions that have mutual success as the primary goal.

Related Reading: Beyond the Credit Score: Alternative Equipment Financing with Us

Myth 2: A Substantial Down Payment is the Norm

The reality: Assuming that a substantial down payment is a normal part of equipment financing couldn’t be further from the truth. At GFLS, we offer a variety of financing options, many of which either require minimal down payments or, in some cases, none. If you’ve been assuming you need to save for a down payment before applying for equipment financing, it’s worth a conversation about your options.

Myth 3: The Equipment Financing Approval Process Takes Weeks or Months

This one may be true, depending on your equipment financing lender. While big banks and other traditional lenders still require weeks or months to approve or deny equipment financing applications, there are lenders, like GFLS, that do not. Our team uses follows an applicant-centric philosophy, which streamlines the application process, and therefore the credit decision. Our process is designed for efficiency, resulting in quick approvals and minimal paperwork, so you can focus on what matters most, running your business.

Myth 4: Financing Is Cost-Prohibitive for Credit-Challenged SMBs

The economic reality: It’s a common misconception that a less-than-perfect credit history automatically puts the cost of equipment financing out of reach. GFLS specializes in tailoring competitive, affordable financing packages based on a comprehensive view of your business’s financial situation. Our team works hard to make financing a practical tool for growth, offering terms that meet the unique challenges faced by credit-challenged business owners.

Myth 5: Repayment Terms are Inflexible

The truth: In the world of modern equipment financing, flexibility is key. Recognizing that no two businesses are the same, GFLS offers a broad spectrum of customizable financing terms. From the duration of the loan to the structure of repayments, our focus is on creating a financing solution that works with your business’s operational flow and financial capacity.

Related Reading: Frequently Asked Questions About Equipment Financing

The Biggest Myth of All: Your Past Credit Determines Your Business’s Potential

They say the past predicts the future. GFLS wouldn’t be in business today if that were true in all cases, especially when it comes to SMBs. Our team has evaluated many reasons why equipment financing applicants have less-than-perfect credit. If you fall in that category, then you know credit blemishes are not always avoidable and can be circumstantial.

We view your application through a lens of potential, not just credit score. Factors like operational history, market position and the strategic value of the essential equipment are important in our evaluation.

Dispel the myths and growth your business with GFLS. Equipment financing, even amidst credit challenges, is possible. We are here to often say “yes” when others say no, offering you the financial support to move your business forward. Talk to one of our equipment financing experts and see the GFLS difference in equipment financing.

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Key Trends in Equipment Financing for 2024

by Business Advice

As we head into 2024, it’s essential to look forward to the trends shaping the landscape of equipment financing. This coming year is expected to bring exciting opportunities and challenges alike, as innovative technologies, evolving economic dynamics and new financing strategies intersect. (Oh, and let’s not forget it’s an election year, which tends to make people hold their breath until we know which parties control what.)

Trends effect most business owners in one way or another, but if you’re planning to buy or finance essential business equipment in 2024, here are a few trends to be aware of.

The Digital Frontier Continues to Revolutionize and Expand Financing

Expect to see an even more obvious digital revolution in equipment financing. Advancements in fintech are no longer just a convenience, but a transformative force. The adoption of sophisticated online platforms is slated to redefine the application process, making it more intuitive, faster and remarkably efficient.

This digital evolution goes beyond mere transactional changes; it’s about enhancing the very experience of securing financing, making it seamless for businesses of all scales, located anywhere.

AI and Machine Learning are Customizing Financing

Artificial Intelligence (AI) and Machine Learning (ML) are not just buzzwords; in 2024, they will become integral to personalized equipment financing solutions. These technologies will enable a deeper dive into a company’s unique financial landscape, offering more nuanced and tailored financing options.

For business owners with less-than-perfect credit histories, this could mean improved access to necessary funds, as AI-driven models provide a more comprehensive risk assessment. When choosing an equipment financing provider, AI and ML can help speed up the process, but nothing still outweighs the benefits of having a human review your story—someone you can talk to and work through your options with.

Green Financing: Aligning Equipment with Sustainability

Sustainability is no longer a choice but a necessity, and in some industries, mandated. In 2024 and beyond, we foresee a substantial shift towards green equipment financing. This trend is not just about meeting operational needs, but also aligning with broader environmental values. Financing options that cater to moving toward ecofriendly and sustainable practices will not only be popular but will also contribute to a company’s impact on the environment.

Given our equipment financing experience in the construction, logging/forestry and manufacturing industries, we’re seeing high demand for introducing new or replacing old equipment and gaining efficiency, productivity and energy savings.

Use the Power of Flexibility to Your Business’s Advantage

“Flexibility” is the keyword for 2024 in equipment financing. The economic landscape demands financing solutions that can adapt to the both the highs and lows of business, as well as global events, like we saw with the pandemic. Be it through adjustable payments, interest options or tailored equipment lease agreements, the ability to obtain financing customized to your needs will be important, particularly if you are managing the complexities of growth or a challenging credit score.

Again, gaining that power of flexibility depends on the type of lender you choose. Global Financial & Leasing Services (GFLS) provides equipment-financing solutions for a wide range of companies and a wide range of credits. We work with business owners who are often seeking to finance the equipment they need to launch, expand and/or grow their companies. Our customers include startups, emerging businesses, private equity-backed companies, “C” and “D” types, turnarounds and those with less-than-perfect credit. We specialize in making credit decisions based on an applicant’s potential. We see applicants as more than a credit score, and we look to uncover their value and create an equipment financing structure that will often work for them.

RELATED READING: The Role of Relationships in Equipment Financing Approval

Taking Advantage of Educational Opportunities to Become Financing Savvy

Perhaps more so than ever, becoming educated on equipment financing options is a competitive advantage for business owners. As options and strategies become more diverse, business owners who take advantage of resources and expert guidance can grow faster than those who do not. Understanding your financing options empowers owners to make informed, strategic decisions for their businesses’ futures.

At Global Financial & Leasing Services, we are excited for what 2024 will bring, offering our expertise and cutting-edge solutions to help you and your business thrive. If you’d like to learn more about equipment leasing and financing up to $1 million for an SMB, contact us.

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How GFLS Often Says “Yes” to Equipment Financing Applications When Traditional Lenders Say “No”

by Business Advice

In a world where securing the right funding can mean the difference between business growth and stagnation, Global Financial & Leasing Services (GFLS) stands out as a financing partner and path to opportunity. Since 2009, we’ve been pioneering equipment financing for small and medium-sized businesses, breaking down barriers that often hinder access to essential business equipment financing. Our mantra is clear: when other lenders say no, we often say yes.

A Veteran-Owned Company Offering Robust Equipment Financing Options

As a company proud of its veteran ownership, GFLS brings a unique perspective to the world of equipment financing. Our mission is to empower business owners, offering substantial funding ranging from $50,000 to a significant $5,000,000. This range demonstrates our commitment to supporting a diverse array of business needs.

Why Choose GFLS as Your Equipment Financing Partner?

At GFLS, we’re not just any lender. We’re a direct, story lender with an impressive variety of resources at our disposal. Our network, which includes over 200 private and public banks, allows us to offer financing solutions that many traditional banks cannot. We understand that every business has its unique challenges, whether it’s past bankruptcies, student loans, tax liens or less-than-perfect credit. Our approach is to work with you, not against you, in overcoming these challenges.

Our Simple and Effective Process for Obtaining Equipment Financing for Your Business

  1. Initial Consultation: Our process begins with a conversation. We dive deep into understanding your equipment needs, financial objectives and the specific nuances of your business. This initial consultation sets the stage for a tailored financing solution.
  2. Application and Tailored Solutions: With a comprehensive understanding of your requirements, we’ll guide you through our application process. Or, you can start it on your own here. We may request additional documentation, such as bank statements, financials or tax returns to ensure we have a complete picture. Our goal is to create a financing solution that aligns perfectly with your cash flow and overall credit risk, resulting in a manageable repayment process.
  3. Efficient Approval Process: Once we’ve tailored a solution that you’re comfortable with, our in-house credit committee takes over. Our efficient credit review and approval process are designed to minimize waiting times, quickly getting you a decision. If we receive your application and all the documentation we ask for, we often turn around a credit decision within 48 hours or less.

Learn more about how fast you can get equipment financing.

Unlocking the Potential of Direct Lender Financing

Don’t let funding limitations curb your business ambitions. With GFLS’s direct lending model, you gain access to significant financing, ranging from $50,000 to $5,000,000. This is your opportunity to unlock the potential of equipment financing directly from a lender that understands and supports your business goals.

Why GFLS Stands Apart from Traditional Banks

  • Direct Lender Advantage: Direct lending means quick decisions and more flexibility.
  • Personalized Service: We offer attentive, one-on-one service, ensuring that you feel supported and valued throughout the process.
  • Beyond Credit Scores: At GFLS, you are more than just a credit score; we look at the big picture of your business.
  • Support for Start-ups: We welcome start-ups, understanding the unique challenges and potentials they possess.
  • Diverse Equipment Financing: Most types of equipment are welcomed, allowing a wide range of businesses to benefit from our services.

In an industry often dominated by rigid lending criteria, GFLS has built a reputation as a direct lender that believes in the potential of every business. We are here to often say “yes” when others say no, offering you the financial support to move your business forward. Talk to one of our equipment financing experts and see the GFLS difference in equipment financing.