Posts in category: 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.

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.

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.

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.

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.

In the last decade, the financial world has undergone a seismic shift, thanks to digital technology and fintech innovations. These changes have brought about easier access to financial services, improved efficiency and heightened security. Additionally, there’s been a notable increase in regulatory oversight, aiming for more transparency and better consumer protection. The rise of cryptocurrencies and advancements in AI and machine learning are reshaping investment strategies and risk management.

Despite these changes, equipment financing remains essential for companies aiming to start, grow, and innovate. This sector is evolving rapidly, influenced by technological advancements and changing economic priorities. For business owners, especially those with less-than-perfect credit, understanding these shifts is crucial for growth and seizing new opportunities.

Global Financial & Leasing Services (GFLS) Opens Doors for All Businesses

GFLS is at the forefront of ensuring that all businesses, including those traditionally hindered by credit blemishes, can benefit from these industry changes. By focusing on the unique needs of diverse businesses, GFLS can be your partner in accessing and maximizing the benefits of equipment financing. Our team can show you how equipment financing is more than just a way to fund business equipment—it’s a tool for achieving your business’s full potential.

The Blend of AI and Human Insight in Decision Making

The integration of AI in financial services has revolutionized how decisions are made, especially in credit assessment and risk analysis. However, in equipment financing, where every business owner’s story is important, the human touch is still vital.

GFLS exemplifies this blend of technology and human understanding. We consider your story beyond just a credit score. This approach is especially valuable for business owners with challenging credit histories, as it offers a more comprehensive view of their financial situation.

Key Trends Shaping Equipment Financing

1. Digital Transformation: The move towards digital platforms and mobile applications is streamlining the application process, leading to quicker decisions and more transparency.
2. Redefining Creditworthiness: Alternative and “story” lenders, like GFLS, are increasingly evaluating the overall health and potential of businesses, not just their credit scores. This shift opens opportunities for businesses with past financial challenges but strong business models and growth potential.
3. Diverse Financing Options: The market is moving towards more flexible and personalized financing solutions, including leasing, pay-per-use models, and subscription-based financing.

Future Projections in Equipment Financing

1. Blockchain and Smart Contracts: Blockchain technology will likely have a significant impact on equipment financing, streamlining transactions and contract management.
2. Sustainability-Focused Financing: As environmental awareness grows, financing solutions that prioritize eco-friendly equipment will become more prominent.
3. Customized Financial Solutions: The trend towards personalized financing will continue, offering solutions more aligned with individual business needs.

Navigating the Future: Tips for Business Owners

As a leader in equipment financing, our team is encouraging business owners to:

• Embrace New Technologies: Adopt digital financing tools for efficiency but maintain personal relationships, especially with vendors and financial services partners, for tailored solutions.
• Craft a Compelling Business Narrative: Your business story is vital in financing decisions for story lenders, like us. Highlight your business model, growth potential and the role of the equipment in your success.

Related Reading: How to Create a Strong Equipment Financing Application

• Explore Various Financing Models: Be open to different financing options and understand how each aligns with your business strategy.

Looking Ahead: Equipment Financing’s Evolving Role

As equipment financing continues to transform, companies like GFLS, which prioritize understanding an applicant’s unique story, are leading the charge. For business owners, staying informed and adaptable is key to effectively using equipment financing for growth and success. In this new era, equipment financing is not just a financial tool—it’s a strategic asset that fosters innovation and growth.

GFLS is an established direct lender with the unique ability to finance almost any business seeking to acquire equipment. We have been providing equipment financing solutions since 2009 and have the ability to help business owners and startups who have been turned down by the banks. If you have any questions, please get in touch.

Securing equipment financing is a critical step for many business owners who want to expand, innovate or simply maintain their operations. However, obtaining that equipment financing can be difficult, especially if you’re a startup or have less-than-perfect credit.

Global Financial & Leasing Services (GFLS) is an alternative lender and our application process takes more than your credit score into account. No matter who you go through for equipment financing, you should always have a well-thought-out application ready that clearly communicates your needs, as well as and the benefits to the lender.

Here are a few pointers to create strong equipment financing proposal, including practical tips, essential elements to add and common pitfalls to avoid.

The Dos and Don’ts of Completing an Equipment Financing Application

The Dos

1. Clearly Define Your Objectives: Start by clearly explaining why you need the equipment financing. What equipment are you looking to acquire, and how will it benefit your business? Be specific about how the equipment will contribute to your operations, enhance productivity or generate revenue.

2. Provide a Detailed Cost Analysis: Lay out the financial specifics. Include the cost of the equipment, any associated implementation or training costs, and the expected return on investment (ROI). Being transparent about the numbers demonstrates financial literacy and helps build trust with the lender.
3. Showcase Your Business’s Strengths: Use the application as an opportunity to highlight the strengths of your business. This could be your market position, your experienced team or your solid track record of revenue generation. Make it clear why your business is a safe and promising investment. Don’t ignore this section, even if you have less-than-perfect credit. Your story matters when working with an alternative lender, like GFLS.
4. Demonstrate Repayment Capability: Lenders want to know that you can repay the loan. Provide comprehensive financial statements, cash flow projections and any other relevant financial information to demonstrate your business’s financial stability and repayment capability.
5. Develop a Risk Mitigation Plan: Don’t forget to acknowledge potential risks. Do demonstrate that you have a plan to mitigate them. This could be market fluctuations, changes in technology or other industry-specific challenges. Showing that you have considered and planned for potential risks is a sign of a well-managed business.
6. Communicate Effectively: Clarity is key. Ensure that your proposal is well-written, concise and free of industry jargon. Use clear headings and bullet points to make the document easy to navigate. Remember, the goal is to make it as easy as possible for the lender to understand your proposal and see the potential benefits.

The Don’ts

1. Don’t Overcomplicate: Keep your proposal straightforward and to the point. Avoid the temptation to include unnecessary information that could distract from the main message.

2. Don’t Underestimate the Importance of Presentation: First impressions matter. Ensure that your proposal is professionally presented, with no typos or grammatical errors. Use a clean, professional format and high-quality printing if submitting a hard copy.
3. Don’t Be Vague: Vagueness can be a red flag for lenders. Be specific about your needs, your plans for the equipment and how you intend to repay the loan.
4. Don’t Forget to Follow Up: Once you have submitted your proposal, don’t just wait for a response. Follow up with the lender to express your continued interest and offer to provide any additional information they might need. Keep in mind traditional lenders can take months to review and approve or deny your application. Our team reviews equipment financing applications and makes decisions in days versus weeks or months.
5. Avoid Unrealistic Projections: While it’s important to showcase your business’s potential, avoid overly optimistic or unrealistic financial projections. Ensure that all claims are backed up with data and that your projections are based on reality.
6. Don’t Neglect the Terms and Conditions: Be sure to thoroughly review and understand the terms and conditions of the financing agreement. Pay attention to the interest rates, repayment terms and any other obligations. Ensure that you are comfortable with the terms before proceeding. Don’t hesitate to ask questions if you’re unsure.

By following these practical tips and best practices, you can build a compelling case that showcases your business’s potential and demonstrates your ability to take on equipment financing.

Remember that preparation, transparency and effective communication are key. With a well-crafted application, you are one step closer to obtaining financing solutions that will support your business’s success. Global Financial & Leasing Services is here to guide you through the process, providing the support and expertise you want to get the equipment financing you need.