Accounting

Understanding Financial Statements: A Guide for Equipment Financing Applicants

by Business AdviceEquipment Financing

With many ways to finance essential business equipment, it requires more than just a basic understanding of your credit score to find the best lender for your needs, situation and goals. At the heart of every financing decision are financial statements—documents that reveal the financial health and operational status of your business. For lenders, these statements often tell a story beyond mere numbers or credit score, offering insights into a business’s viability and long-term sustainability. Therefore, it’s critical to master the basics of financial statements and their significance to your equipment financing application decision.

1. Income Statement (Profit and Loss Statement)

What is it?

The income statement provides a snapshot of your company’s profitability over a specific period. It showcases revenues (incoming cash from sales) minus expenses, resulting in either a profit or a loss.

Key Components:

  • Revenues: Money earned from sales before any expenses are taken out.
  • Cost of Goods Sold (COGS): Direct costs attributable to the production of the goods sold.
  • Gross Profit: Revenues minus COGS.
  • Operating Expenses: Costs associated with running the business, such as salaries, rent and utilities.
  • Net Profit: The bottom line, indicating the profit (or loss) after all expenses are deducted from revenues.

Why is Your Income Statement Important for Equipment Financing?

Lenders, even Story lenders like Global Financial & Leasing Services (GFLS), review the income statement to gauge the profitability of your business. A consistent record of profitability can indicate good management and a viable business model, making you a more attractive candidate for financing, even if you have less-than-perfect credit.

2. Balance Sheet

What is it?

The balance sheet provides a comprehensive view of your company’s assets, liabilities and equity as of a specific date. Think of it as a snapshot of what your business owns and owes.

Key Components:

  • Assets: Items of value that your business owns. They are categorized as current (converted to cash within a year) and non-current (long-term assets like property or equipment).
  • Liabilities: Debts and obligations owed by the business, also categorized as current (due within a year) and long-term.
  • Equity: Represents the owner’s interest in the business. It’s the residual interest in the assets of the entity after deducting liabilities.

Why is Your Balance Sheet Important for Equipment Financing?

The balance sheet reveals the financial stability of your business. A lender will assess the ratio of assets to liabilities to understand the company’s debt load and its ability to take on additional financing. A strong balance of assets relative to liabilities can boost your financing application.

3. Cash Flow Statement

What is it?

This statement tracks the movement of cash in and out of your business over a period. It showcases how your business generates and uses cash in its operations, investments and financing activities.

Key Components:

  • Operating Activities: Cash flows from core business operations, including receipts from customers and payments to suppliers.
  • Investing Activities: Cash flows from acquiring or disposing of long-term assets, such as equipment or property.
  • Financing Activities: Cash flows related to borrowing, lending and equity transactions.

Why is Your Cash Flow Statement Important for Equipment Financing?

Lenders use the cash flow statement to determine whether your business generates enough cash to meet its operating needs and service any existing debt. Positive cash flow indicates a company can maintain or expand operations, while negative cash flow might be a red flag on your ability to take on more financial commitments.

Why GFLS, a Story Lender, Looks Beyond Your Credit Score

For a Story lender, like GFLS, your credit score is just a single piece of the puzzle. While it gives a quick view of creditworthiness, it doesn’t reveal everything about you and your business. Your financial statements, on the other hand:

  • Offer a Holistic View: They provide comprehensive insights into operations, financial health and management capabilities.
  • Showcase Business Trends: Year-over-year comparisons can highlight growth patterns, profitability trends and potential red flags.
  • Demonstrate Fiscal Responsibility: Proper management of assets, liabilities and cash flow signals responsible financial handling, a crucial factor for equipment financing approval.

Understanding your financial statements is not just about securing equipment financing—it’s about gaining insights into your business’s health and driving strategic business decisions. As you look for equipment financing to grow your business, remember that these documents/reports support and help tell your story. They convey your business’s journey, its ups and downs, and its potential for future success. Equip yourself with this knowledge, and you’ll not only stand a better chance of obtaining equipment financing, but also in leading your business towards long-term growth and success.

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.

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How to Get Equipment Financing: A Quick Start Guide for Business Owners

by Business Advice

Small and medium-sized businesses (SMBs) rely on equipment to operate efficiently and profitably. Whether it’s for manufacturing, construction, healthcare, logging or forestry, restaurant, or printing, having the right tools and machinery is essential for your business to meet customer demand and grow. However, purchasing this equipment can require a significant investment, which can create a difficult situation for startups or businesses with limited capital and for SMB owners with blemishes on their credit reports. Equipment financing provides a workable solution to this problem by allowing business owners to spread the cost of their equipment purchases over time.

What is Equipment Financing?

Equipment financing is a type of loan that businesses use to purchase equipment. The loan amount is typically based on the equipment’s value, and the equipment serves as collateral for the loan. The lender retains ownership of the equipment until the loan is paid in full, and if the borrower defaults on the loan, the lender has the right to repossess the equipment. In other words, equipment financing works in the business world just as it does on the consumer side, say for purchasing homes and cars.

Equipment financing can be beneficial for a business owner because it allows you to acquire the equipment you need without having to pay for it upfront. It also helps business owners manage cash flow by spreading the payments over time, letting you to use your cash reserves for other business expenses. And, of course ideally, the profits gained from additional business gained or products or services sold from having the equipment more than covers the equipment financing payment.

Three Most Common Types of Equipment Financing

There are three common types of equipment financing available to SMBs, more times than not, one will fit your business, budget and needs.

1. Equipment Leasing

Equipment leasing is a popular option for business owners who need equipment, but don’t want to or can’t purchase it outright. With a lease, the business pays to use the equipment for a set period. At the end of the lease term, the business can choose to purchase the equipment, return it or lease new equipment.

Equipment leasing is an attractive option for business owners who need to upgrade equipment frequently or for those that have seasonal or fluctuating cash flow. Leases often require lower monthly payments than loans, and the business can deduct the lease payments as a business expense on its taxes.

2. Equipment Loans

Equipment loans are another option for businesses that need to purchase equipment. With a loan, the business borrows money from a lender to purchase the equipment outright. The loan term can range from one to ten years, and the interest rate is typically fixed.

Equipment loans can be a smart choice for business owners who want to own their equipment outright or have a long-term need for the equipment. Loans typically have lower interest rates than leases, and the interest payments can be deducted as a business expense on the company’s taxes.

3. Sale-Leaseback

A sale-leaseback is an option for businesses that already own equipment. With a sale-leaseback, the business sells the equipment to a lender and then leases it back. This can open cash flow for a business owner while still allowing you to use the equipment.

Sale-leaseback financing can be beneficial for businesses that need to free up cash quickly or want to use the equity in their equipment to finance other expenses. For many business owners, the better option is to finance the equipment in the first place rather than purchase outright, constrict cash flow and do a sale-leaseback later. Why? Sale-lease backs are very challenging to arrange and can be expensive. You have already paid for the equipment, including sales taxes. If you do a sale-leaseback, often the lender will want to have an appraisal completed. This is typically at your expense. Additionally, the lender often will advance a percent of the forced liquidation value, not the full price you originally paid. Finally, often the payment stream is subject to sales taxes—a double whammy on your tax obligation since you paid taxes on it once already.

How to Secure Equipment Financing in Six Steps

Securing equipment financing can be an easier, straightforward process if you follow these steps:

1. Determine Your Equipment Needs

Before applying for financing, determine what equipment your business needs and how much it will cost. This will help you determine what type of financing to pursue and how much money you need to borrow.

2. Check Your Credit

Lenders will look at your credit history to determine if you are a good candidate for financing. Check your credit score and report before applying to ensure there are no errors or issues that need to be resolved.

Don’t think because your credit history isn’t perfect that you’re locked out of the equipment financing market. Seek out direct lenders like Global Financing & Leasing Services (GFLS), who specialize in financing equipment for SMB owners with less-than-perfect credit.

LEARN MORE: Can I Finance Equipment with a 640 Credit Score?

3. Shop Around

Different lenders offer different rates and terms. Shop around to find a lender that offers competitive rates and terms that work for your business. Some lenders specialize in equipment financing, while others offer it as part of their broader suite of business loans.

GFLS was created to meet the equipment financing needs of small to mid-sized businesses all over the United States. Our team provides equipment financing solutions for a wide range of companies and a wide range of credits.

4. Prepare Your Financial Statements

Lenders will want to see your business’s financial statements, including your income statement, balance sheet and cash flow statement. Make sure these documents are up to date and accurate.

LEARN MORE: What Lenders Look for on Credit Reports

5. Gather Your Equipment Information

Lenders will also want information about the equipment you plan to purchase, including its value and condition. Be prepared to provide detailed information about the equipment and any maintenance or repair history. Also, be aware of any soft costs associated with the equipment, some of which may be included in your loan.

LEARN MORE: What are the Soft Costs of Financing Business Equipment?

6. Apply for Financing

Once you have selected a lender, submit your application and be ready to supply all the necessary and requested documentation. The lender will review your application and decide based on your creditworthiness and the equipment’s value.

At this point, the fact that you shopped around really becomes important. Applying for equipment financing with a lender who is truly willing to work with you can make the difference between being approved and denied.

Equipment Financing is a Powerful Tool to Grow Your Business

Equipment financing is a valuable tool for SMBs looking to purchase the equipment you need to operate and grow. With the variety of options available, businesses can choose the type of financing that best fits their needs and budget.

GFLS is an established direct lender with the unique ability to finance almost any business seeking to acquire equipment.  With our in-house funds and relationships with over 200 private label and public banks we have the ability to help those businesses who have been turned down by the banks.  Prior bankruptcy, student loans, tax liens, bad credit, we work with it all. If you have any questions, please get in touch.

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The Best Equipment Financing Options of 2023 for Business Owners

by Business AdviceEquipment FinancingIndustry News

For many people, the new year is a time for setting personal resolutions. Yet, statistics indicate most people let theirs slide by the end of February. For business owners, it’s not only the start of a new year, it’s first quarter—a time to kick off year-long sales goals, new initiatives and grow your company. Business “resolutions” aren’t as easy to let slip because there are livelihoods, including yours, counting on your follow-through and success.

If 2023 is the year you’re going to need to finance essential equipment to achieve your goals, here are a few of the best options for business owners to consider.

  • Bank loans: You can apply for a loan from a bank or other financial institution to finance your equipment. This option may have a lower interest rate, but the application process can be lengthy, and you may need to provide collateral, as well as meet a minimum credit score requirement.
  • Small business loans: If you are a small business owner, you may be able to qualify for a small business loan from the government or a private lender. These loans are specifically designed to help small businesses finance equipment, among other things. The application process is wieldy and the time can lag between application and funding. Generally, very good to excellent credit is required to qualify.
  • Leasing: Instead of buying the equipment outright, you can lease it from a leasing company. This allows you to use the equipment without having to pay the full purchase price upfront. However, you will need to make regular lease payments and may or may not have the option to purchase the equipment at the end of the lease, depending on how the lease is structured. Another option is to finance the equipment lease.
  • Equipment financing: There are specialized, direct lenders, like Global Financial & Leasing Services (GFLS) who offer equipment financing, which is a loan used for the purpose of buying (or leasing) essential business equipment. The terms of these loans can vary, so it’s important to shop around and compare offers, application processes and customer service to find the best match for your business and credit score.
  • Vendor financing: Some equipment vendors offer financing options to help you purchase their products. This can be a convenient option, but be sure to compare the terms of the vendor’s financing to other options to ensure you are getting the best deal.

Even Those with Less-Than-Perfect Credit Can Qualify for Equipment Financing

If you have credit blemishes, it may be more difficult to secure financing for equipment. However, there are still ways you can get the equipment your business needs this year.

  • Personal loans: If you have a good relationship with a bank or credit union, you may be able to get a personal loan to finance your equipment. The interest rate on a personal loan may be higher if you have B or C tier credit, but it can still be a possibility. Keep in mind that in most cases it’s considered smarter to keep business and personal finances separate. Intertwining the two puts both at risk should one go south.
  • Crowdfunding: If you are unable to secure financing through traditional channels, you may be able to raise funds for your equipment through crowdfunding. There are several crowdfunding platforms that allow business owners and entrepreneurs to pitch their ideas and solicit small investments from a large number of people. Crowdfunding is an option for both new and existing companies, but it’s gained popularity among startups in recent years, and for many has been quite successful in supporting their launch.
  •  Equipment financing: Some equipment financing companies, like GFLS, specialize in working with business owners who have less-than-perfect credit. LEARN MORE: Can I Finance Equipment with a 640 Credit Score?
  • Leasing: Leasing equipment may be a good option if you have bad credit, as the approval process is often less stringent than for a loan. However, as noted above, be aware that you will need to make regular lease payments and may or may not have the option to purchase the equipment at the end of the lease. LEARN MORE: Loans vs. Leases: Choosing the Right Option for Equipment Financing

What Should Business Owners Look for in a Lender?

When looking for a direct lender to finance your equipment, there are five things you should consider:

  1. The interest rate on your loan will directly impact your monthly payments and the overall cost of financing your equipment. Partner with a lender who is willing to help you obtain the best deal for your budget and credit situation.
  2. The loan terms, including the length of the loan and any fees or charges, can significantly affect the overall cost of your equipment financing. Be sure to understand all the terms of the loan before you agree to it.
  3. It’s important to work with a reputable lender with certified professionals who have a history of fair and ethical lending practices. Do some research and read reviews to get a sense of the lender’s reputation.
  4. If you have questions or need help during the loan process, it’s important to work with a lender that has good customer service. Look for a lender who is responsive and willing to help you with any issues that may pop up.
  5. Consider whether the lender is willing to work with you to tailor a loan that meets your specific needs. A lender who is willing to be flexible and find a solution that works for you will be the best fit.

GFLS provides equipment financing solutions with no hard cap on the amount for a wide range of companies and a wide range of credits with no minimum FICO score requirement. Ready to learn more? Let’s talk about the possibilities. Or, get started today by filling out an online application.

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When Is Financing Equipment a Smart Choice for Small Business?

by Benefits of LeasingBusiness Advice

Buying essential business equipment can be a very expensive endeavor. More often than not, small business owners cannot afford to purchase the equipment outright. Even when they can, rarely do they feel comfortable draining their cash reserves. Whether you can afford to purchase equipment outright or not, oftentimes the smart choice is to finance it.

Four Reasons Financing Equipment is Smart Choice

1. Buying is too expensive considering the equipment’s useful lifespan.

Consider the last time you got a new phone. As soon as you plunk down the money for an upgrade, you know it’s only a matter of time before you do it all over again. Multiply that cost and that’s how it is for many big equipment purchases. With phones costing $1,000+ today, many people are financing them. They save a large initial purchase and instead make monthly payments. At the end of the lease, they can upgrade and the process starts all over again. Do you own it? No. But do you want to own that outdated phone four years from now? Probably not.

2. The equipment is just too expensive to buy outright, period.

If your small business requires specific equipment to operate, that’s considered essential business equipment. For example, those in the restaurant, logging, manufacturing, healthcare, and such need expensive equipment. Without it, there is no business. However, the lack of cash doesn’t have to keep you from getting that equipment if you finance it.

3. Purchasing drains cash reserves, which could be used to take advantage of opportunities that arise—opportunities that require cash and don’t have the option of financing.

Leaving your small business cash poor could prevent you from advertising and marketing, recruiting new employees, etc. Also, in this economy, conserving your cash is critical. Over the next two years you will want to stretch your cash flow rather than sink it into hard assets which depletes cash you might need later on.

READ MORE: Think Equipment Financing Before Dipping into Cash Reserves

4. It may offer tax credits.

Equipment financing can be eligible for tax credits. You may be able to deduct your payments as a business expense by taking advantage of Section 179 qualified financing deductions.

What Small Business Owners Should Know About Equipment Financing

Essentially, equipment leasing means you are renting the equipment rather than purchasing it outright. You rent the equipment for a specified time period, and then you return the equipment, renew your lease or buy it.

Equipment renting is not the same as equipment financing. When you finance equipment, you take out a loan to purchase the equipment and pay that loan back monthly over a set period of time. The equipment is the collateral used to secure the loan, and you own the equipment after the loan is repaid.

Since equipment rental is not a loan, it won’t appear on your credit report. Thus, it won’t inhibit you from taking out a business loan for other purposes.

How to Choose a Reputable Lender

The best lenders are those, like Global Financial & Leasing Services (GFLS), who see themselves as your business partner—one who understands your business and industry. Our equipment financing services extend to a variety of industries, including:

  • Automotive
  • Cannabis
  • Construction
  • Forestry/Logging
  • Healthcare/Medical
  • Machinery/Manufacturing
  • Recycling/Waste industry
  • Restaurant
  • Titled Vehicles
  • Transportation Equipment

GFLS is a direct funder, providing funding opportunities that typical banks don’t. In certain situations, we can use our connections to numerous banks and institutions to offer you the best financing solution for your credit profile. In the end, you get the right financing for your needs and budget.

Our process is simple and streamlined so you have a decision often in 72 hours or less. Talk to one of our equipment financing experts at 480.478.7400 or start your application today.

loan-lease

Loans vs. Leases: Choosing the Right Option for Equipment Financing

by Business AdviceEquipment Financing

With so many financing options available from a variety of lending sources today, it’s easy to be overwhelmed by choices, especially considering you’re making a serious financial commitment. While you’re weighing choices, your business lacks the equipment needed to launch or grow. If you’ve been trying to decide whether to rent, finance or purchase outright the essential business equipment your company needs, we hope this article makes the decision a lot easier for you.

Let’s take the business factor out of the equation. That way you can better understand your equipment financing options because you’ve probably already made similar choices in your personal life. For example, you had reasons for choosing where you live and what you drive. If you rent your home, essentially you are leasing it from the owner, be it a house or apartment. You can live there as long as you pay your monthly rent, and the owner still owns the property at the end of your lease. If you pay a mortgage, you took out a loan with a lender who gave you the money to buy your home. Once you pay the lender back, you own your property. Same goes for your vehicle. You chose to lease or buy it. If you lease it, you’ll return it at the lease’s end. If you bought it, you either paid cash or took out a loan and make payments, after which you’ll own it.

Why rent versus buy a home? There are many reasons, including saving up for a down payment, a rent payment being more affordable than a mortgage, ensuring what you buy meets your long-term needs and goals, etc.

Why lease versus buy a vehicle? Again, there are many reasons, such as high usage results in wear and tear you don’t want to be responsible for and the vehicle you need in the short-term isn’t the one you’ll need in the future.

If you think about how to finance your essential business equipment in those same ways, deciding between renting, financing or an outright purchase becomes much easier.

Questions to ask yourself before deciding whether to finance an equipment lease or loan:

Do you want to own the equipment eventually? If yes, then financing an equipment loan is right for you. Like a mortgage or car loan, once your loan is paid off, the equipment is yours.

Do you have a down payment or sufficient collateral to qualify for an equipment loan? If not, then financing may be your best bet for getting the equipment your business needs. The additional revenue generated from having essential equipment can be saved for purchasing equipment down the road.

Is the equipment something you’ll use for years or is it the type that is often updated, requiring you to upgrade? If you intend to keep the equipment for a while, an equipment loan makes sense. If you know you’ll need to upgrade the equipment to stay competitive (like medical equipment), financing an equipment lease makes sense because you can return the equipment at the lease’s end and upgrade at that point.

If You Decide to Finance, You Have Two Choices, an Operating or Capital Lease

Operating leases typically have lower monthly payments and you have the choice to either relinquish the equipment at the end of the lease term or buy it at fair market value.

Capital leases generally have higher monthly payments. Although a capital lease is much like a loan, you don’t include it on your balance sheet during the lease term. At the end of the lease, you can buy the equipment for a nominal price, such as $1 or a percentage of the purchase price.

Bottom line: If you decide to finance, consider a lease, as you will be often expensing the rental payments like any other operating expense as you use the equipment.

If You Decide to Take Out a Loan, Understand the Lender’s Requirements

If you choose an equipment loan, your lender will front the money to purchase your piece of equipment. Depending on your lender, you can finance all or most of the purchase price. Like a home or car loan, you’ll pay any down payment, if required, and make monthly payments that cover principle and interest. After the loan’s paid off, you own the equipment outright.

READ MORE: With Inflation and Rising Interest Rates, Is Now a Good Time to Finance Equipment for Your Business?

Our Team is Here to Help

Many small and medium-sized businesses prefer Global Financial & Leasing Services (GFLS) to traditional banks or alternative online lenders due to our easy application process, holistic decision-making and personalized approach to lending. Our equipment financing experts listen to your needs and goals to find a solution that works not only for your budget, but also to meet your short and long-term business goals.

GLFS’s credit application process is designed to be as streamlined as possible, while still giving us a full picture of your business and needs. We understand that time is of the essence when running a business, so we often can get back to you with a credit decision within 72 hours.

Contact us to learn more about how we can help your business.

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With Inflation and Rising Interest Rates, Is Now a Good Time to Finance Equipment for Your Business?

by Business AdviceFinancing

Let’s get the bad news over with… Global Financial & Leasing Services is headquartered in Scottsdale, Arizona. Our equipment financing experts are paying over $5 a gallon for gas. Even if your business is located elsewhere across the country, you and your employees are paying close to or over the five-dollar mark. Gas isn’t the only thing we’re paying more for now.

Last month, consumer prices for products and services, such as food, rent, gas and travel rose quickly. Recent headlines point out 2022’s annual inflation rate increase is larger than any single year since the early 1980s.

Now, add interest rate hikes. According to a Reuters poll of economists released this month, the U.S. Federal Reserve will hike its key interest rate by 50 basis points in June and July, with increasing chances of a similar move in September. These economists anticipate no end in rate rises until 2023. Earlier this year, Philadelphia Federal Reserve Bank President, Patrick Harker, said he would support three interest rate hikes this year and would be open to more if inflation worsens.

Feeling Skittish? You’re Not Alone.

You need only to look at your retirement or investment accounts to see how the stock market is reacting to this bad news. After the May inflation rate statistics were released, the Dow dropped 800 points and S&P 500 posted its worst week since January.

In May, even before inflation hit its high from 1981, CNBC reported that eight in 10 small business owners are convinced the U.S. economy will enter a recession this year. The survey found “38% of small business owners say inflation is their biggest concern, twice as many as the second place ‘supply chain disruptions’ (19%) and above ‘Covid-19’ (13%) and ‘labor shortages’ (13%).

As consumers, we’re all feeling it at the pump, the store… almost everywhere. As business owners, we’re all feeling it in supply costs, rising rents, vendor invoices other expenses.

Does All This Bad News Mean You Should Hold Off on Financing Equipment for Your Business?

Attempting to time the market or determine if/when a recession will occur are futile. The best anyone can do is make financial decisions based on the information they have now, which makes it challenging to decide when you should finance equipment to grow your business. Here are two reasons business owners might not want to hold off on financing essential business equipment.

  1. You can lock in lower interest rates.

If you’re on the fence about financing a piece of equipment for your business, weigh the cost versus what you could receive in return. Perhaps that equipment could improve distribution, reduce labor costs, increase staff productivity, shave time off completing projects or make your business more competitive in your industry or area. If any of these are the case or you have another compelling reason for financing new or used equipment, then it might be wise to do it now. You could take advantage of lower interest rates compared to what could be coming next month or in the fall when the Fed is expected to increase them.

READ MORE: How to Use Equipment Financing to Take Your Business to the Next Level

Even though interest rates are climbing now, the savings you could achieve by financing now means extra savings you can use to fund other business goals.

  1. You have the chance to finance the purchase or lease of your equipment before inflation increases the price.

The Fed is raising interest rates to fight inflation. Despite that effort, inflation will continue to drive prices higher for equipment; no different than fuel, energy, food, etc. Essentially, assuming (as many economists are) continued inflation throughout 2022 means the price tag for your leased or financed equipment will be lower now than in the near future.

Let Our Equipment Financing Experts Help

Nobody understands your business like you do. And, when it comes to equipment purchase or lease financing, our Certified Lease and Finance Professionals (CLFP) can help guide your decision process.

CLFPs are the best of the best in the world of equipment financing. They must be able to demonstrate extensive knowledge of the field, and also, they must prove that they have never been involved in any questionable transactions.

When you work with a CLFP like those here at Global Financial & Leasing Services, you know that your lender is competent and has your best interest in mind.

Ready to learn more? Let’s talk about the possibilities. Or, get started today by filling out an online application.

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2022: The Year of Working with Equipment Financing and Accounting Professionals

by Benefits of LeasingBusiness AdviceFinancing

The Global Financial & Leasing Services (GFLS) team works with business owners across the country who operate companies in a wide variety of industries. While their products and/or services can be quite different from one another, there are universal truths that apply to all businesses. One is eventually the time comes that working with outside professionals is a must. Doing so gives you more time to focus on running your business, which is what you do best, and it gives you the expert insight needed to help your business grow.

Those outside professionals include marketing, sales, insurance, human resources and more. GFLS’s expertise is in equipment financing, which ultimately is affected by the numbers—your accounting.

Working with companies, both big and small, to finance their equipment, our team understands the business growth cycle. Startups and small companies often rely on one in-house employee or the owner to handle the finances. Sure, accounting software and cloud services make it a bit easier, but when combined with other duties, it quickly becomes too much. Customer service and revenue generation are top priorities, so accounting often gets placed on the backburner.

It’s understandable, but it’s avoidable. If you don’t already, make 2022 the year you work with a professional accountant (CPA). There are numerous benefits gained out of this relationship.

You’ll “know your numbers.” No doubt you’ve heard the phrase “let’s run some numbers.” Business owners must know their numbers, and you’d be surprised how many don’t. We’re not talking general balances and such, but rather knowing the numbers and how they affect business today and long term.

You’ll be prepared when the time comes to finance or lease equipment. Your numbers pertain to obtaining equipment because an equipment financing lender will need to see your financials to put together a financing/lease plan that works best for you. Having an accountant means that this is a much easier request to fulfill compared to you spending time getting your books in order.

You’ll be able to take advantage of tax-saving strategies. Most business owners aren’t tax specialists, so you could be leaving money on the table. CPAs are experts in developing short- and long-term tax strategies specific to your business and industry and help ensure you are taking your due deductions. In terms of equipment financing, a CPA can help your business benefit from tax considerations, like the Section 179 deduction, as well as determine the implications of an operating versus capital lease.

Read more: How do capital lease tax advantages compare?

You’re more likely to attract new partners or buyers for your business. New partners or buyers are considering making a financial investment in your business. Initially, the nature and/or success of your business is likely what attracts them. Eventually, the conversation will turn to the numbers. The numbers will tell a story themselves, but having an accountant behind them speaks volumes about the serious way you run your company and can bring peace of mind to the decision process.

There’s a strong argument that in a chicken-egg contest, your equipment financier and accountant are the two outside professionals who can guide and support your businesses growth to the point where it makes sense to hire other professionals full-time. Which comes first? The accountant. Not having your financials professionally buttoned up is a red flag for new partners, buyers and equipment purchase or lease financing companies, like GFLS.

If you’re considering financing equipment, talk to your accountant and talk to us. As a direct lender, GFLS is able to approve credit with our in-house funds, and the typical turnaround time is 24 to 48 hours. When other lenders say no to financing equipment, GFLS can often say yes, so tell us about your financing needs and let’s take a look at the numbers.

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Think Equipment Financing Before Dipping into Cash Reserves

by Benefits of LeasingBusiness Advice

We’re heading into the home stretch of 2021, a popular time of year for business owners to acquire essential equipment. Fourth quarter is an opportunity to take advantage of end-of-the-year sales, deduct the expense on this year’s taxes, be better prepared for business in the coming year, and upgrading or replacing equipment that is becoming obsolete or doesn’t meet your needs any longer. Even though supply chain issues have created shortages of some equipment, if you can find what you need, consider financing equipment buys or leases before dipping into your cash reserves.

Keeping Cash on Hand is More Important Now Than Ever

What a year it has been. There’s not a company that the pandemic hasn’t affected in one way or another, good or bad. Either way, a lesson was learned that you can never be prepared for every scenario and ramping up or riding out the bad requires having sufficient capital reserves on hand.

Keeping cash on hand (experts recommend six months’ worth of expenses) leaves you better prepared for emergencies. Not just unexpected events like the pandemic, which took pretty much everyone by surprise, but also events that might occur that threaten to close your doors should you not have the cash to “handle business” until profits return to normal operation levels.

Maybe you’re thinking you can get a line of credit or loan in the case of an emergency. Maybe is the key word. Typically, big banks want to see sufficient cash reserves before approving a line of equity or loan. Worst case scenario, making the loan payment digs your business into a deeper financial hole. Business owners can dip into their own personal savings to keep the company afloat, but that might leave you personally at risk.

There is a better option for getting the equipment your business needs without draining your cash reserves: equipment financing.

Equipment Financing Lets You Keep or Save Cash Reserves

Your cash reserves might be drained by purchasing essential business equipment upfront, leaving your business at risk should the unexpected happen. Financing equipment over time keeps your cash liquid. Should the equipment financed be used to expand your business, you’ll have the opportunity to increase cash reserves.

LEARN MORE: Your Approach to Financing an Equipment Lease Matters

Financing Essential Equipment Can Reduce Your Tax Liability for 2021

When you lease or finance equipment, you can take advantage of tax benefits. Double check with your accountant and/or tax attorney to ensure your business can use equipment financing as a tax reduction strategy. In many cases, you can write off part of your monthly payments if you lease or finance essential business equipment.

If you finance, all of your interest payments will be tax-deductible as a business expense. You can write off the full cost of your payments if you lease your equipment, and you can also choose to write off the full cost of the equipment in a given tax year. This can come in handy during high growth and profitability years when you want to reduce your tax liability.

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Apply for Equipment Financing with Global Financial & Leasing Services

While it’s important for a company to have a healthy level of cash reserves, it’s not the only thing on which a lender should base a financing decision. Global Financial & Leasing Services (GFLS) works with many business owners who have don’t have the credit history, score or time to waste on big banks that can take weeks or months to make a credit decision. At GLFS, we strive to keep our application process as quick and painless as possible. We evaluate your business’s overall financial picture and respond as soon as possible (often in 24 hours or less) with equipment financing solutions that meet your company’s needs. Our team understands that time can be of the essence, especially at this time of year when special year-end deals might be available and the end of the tax year looms for companies that follow a January to December tax year.

If you’re ready to finance equipment and retain cash reserves, contact us or begin your application.

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Do You Have Skeletons on Your Business Credit Report?

by Business AdviceFinancing

The Time to Find Out is Before Applying for Equipment Financing

For small business owners, your personal credit history plays a role in obtaining essential use business equipment financing. However, lenders also draw a correlation between your personal credit history and your business credit report—the belief being that people tend to treat their business accounts much like they do their personal accounts. If you’re a new small business owner, your personal credit history will take precedence over any business credit history you’ve yet to build. But, if your business is established, your business credit report pulls more weight on an equipment financing application.

Before Applying for Equipment Financing is the Time to Find and Clean Up Any Skeletons

A lender can certainly review your business credit report prior to approving credit. Lenders use this report to verify the information you provide on your credit application. You’ve probably heard stories about applicants being caught off guard by what a lender finds, especially if the finding(s) is inaccurate. Business credit bureaus have been known to make mistakes, and it falls on the business owner to review his or her report to ensure it is accurate.

LEARN MORE: How to Improve Your Personal Credit Before Financing Business Equipment

Dun & Bradstreet is the largest and most common source for business credit reports. The firm receives its information for credit reports from various sources, much like individual credit reporting bureaus, including Equifax, TransUnion and Experian. Before a lender orders your business credit report, you should obtain a copy to verify all data it contains is correct. Doing so gives you the opportunity to remove inaccuracies and time to repair any credit blemishes as much as possible.

Request a Copy of Your Business Credit Report

Dun & Bradstreet offers a free business credit report. You can order it online.

10 things to review for accuracy on your business credit score are:

  1. Your official business name, as well as any trade styles (DBAs).
  2. Your physical business and website addresses.
  3. Your business SIC/NAICS code.
  4. Your business ownership entity (corporation, LLC, etc.) and number of years in business.
  5. The name(s) of your business’s officer(s) and work experience.
  6. Any data regarding business history, company events, ownership and/or location changes, etc.
  7. Any financial information you’ve opted to list.
  8. Your payments score. You can challenge late payments if you have proof they were made on time.
  9. Any business liens, lawsuits and loans.
  10. Public record information, such as UCC filings, tax liens or legal judgments. You can dispute any inaccurate public record information with the credit reporting agency.

How Often Should You Check Your Business Credit Report?

Protecting your business credit history is just as important as reviewing your personal credit report from time to time. Regular reviews not only ensure accuracy, but also can alert of identity theft if you notice accounts open in your name that you did not open.

Have a question about how business and personal credit reports affect your equipment financing application? Talk to one of our staff members. We’re happy to help.

Cropped View of Woman Filling in Application Form

Taking the Mystery Out of Applying for Equipment Financing

by Business AdviceFinancing

With the Right Lender, the Process isn’t Scary

Our team at Global Financial & Leasing Services (GFLS) has heard some pretty scary stories about the process for applying for equipment financing with other lenders, not to mention awaiting credit decisions. The stories range from applicants filling out pages upon pages of tedious financial information to lenders stringing them along only to deny credit. In the end, applicants are left without the equipment they need for their business or starting the entire process over again with a different lender in hopes of a different result. Either way, time and frustration can be avoided if you have a clear understanding of the application process and work with a lender willing to work with you.

Look for a Simplified Financing Application

Take a look at GFLS’s equipment financing application. Beyond basic contact information, such as name and email and phone, you’ll notice there just five additional questions directly related to your business and equipment you’d like to finance—your industry, the finance amount, gross annual sales, years in business and intended use.

That’s all we need to get the ball rolling. Not so scary at all, and it’s worked for us and our customers who need financing for essential use equipment since 2009. How does it work? Global Financial is a direct lender able to finance almost any business seeking to acquire equipment. Even applicants who have been denied credit by the big banks due to prior bankruptcy, student loans, tax liens or bad credit can be approved via our in-house funds or relationships with more than 200 private label and public banks.

Choose a Streamlined Application Supported by Personal Customer Service

Whether this is your first or 15th time applying for equipment financing, there’s bound to be some anxiety associated with waiting for a credit decision to be made. Our simplified application process aims to decrease that anxiety, but it’s our team that truly makes a difference. We understand that nothing makes the experience smoother than simply staying in touch and keeping you up to date with where your application stands.

What makes applying for credit so scary with big banks is the lack of communication and lag time between submission and either approving or denying credit. GFLS’s entire equipment financing process is transparent. Once you submit your financing application, our team reaches out to you. Then, expect to receive daily updates on your application’s status, and more importantly, feel free to speak directly to our credit decision makers.

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Work with the Right Direct Lender

Your financing application only reveals part of the bigger picture of you and your business. If you have B- or C-tier credit or a startup company, working with a direct lender who’s willing to listen and look beyond numbers is important. Along with credit scores, we believe in character and treating every applicant with respect and kindness.

As a direct lender, GFLS is able to approve credit with our in-house funds, and the typical turnaround time is 24 to 48 hours, not weeks or months. When other lenders say no to financing essential use equipment, GFLS can often say yes, so tell us about your financing needs.

Work with a financing partner who takes the mystery of our equipment financing for small and mid-sized business. Contact us or start with your application.