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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 No. But do you want to own that outdated phone four years from now?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.

Browse our spa and heavy equipment for sale.

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.

In the market for used heavy equipment? See what we have for sale.

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.

A Two-Step Approach to Heavy Equipment Financing

by Benefits of LeasingBusiness Advice

It Can be Easier Than You Think to Get the Heavy Equipment Your Business Needs

 The construction job calls for heavy equipment, maybe a backhoe, skid steer, dump truck or any other type. Perhaps you won a contract, you’re growing the business or you’re replacing or upgrading equipment. Getting the heavy equipment your business needs right now might mean shorter timelines (a competitive advantage), hiring fewer sub-contractors (a cost-saving measure) and the ability to bid on more or different types of projects (a path to grow business). However, heavy equipment either new or used, carries a steep price tag.

Many construction companies and contractors don’t have the financial liquidity to purchase heavy equipment, but they don’t let the cost stop them from reaching their goals. Heavy equipment financing is the solution, allowing you to avoid a huge cash layout and still get “the job done.”

LEARN MORE: It’s Not the Interest Rate That Counts When Financing Equipment

Here’s a two-step approach that makes it easier than you think to get the heavy equipment your business needs.

Step 1: Determine your financial requirements.

Financing options are more tailored to the borrower’s needs today. Even car companies jumped on board, starting with how much a buyer can afford to spend monthly instead of selecting the vehicle. You know the type of heavy equipment you need, now’s the time to determine how much you can budget for it each month. Unsure?

Ask yourself the following question: How long do you intend to use the equipment?

Your answer helps determine whether short- or long-term financing is best or what type of lease makes sense for your company’s finances and future.

Do you plan on keeping the equipment for the long haul? Long-term financing can result in lower monthly payments.

Will you use the heavy equipment for a single or a few contracts?  Short-term financing or renting might be a smart solution.

Is the equipment used on a seasonal basis? Work with a financing provider who is willing to vary the payment amounts based on the time of year.

With all the options available, it’s critical to work with a lender who is willing to work with you to find heavy equipment financing solutions customized to your needs.

Browse GFLS’s Used Heavy Equipment for Sale

Step 2: Get ready for the heavy equipment financing application process.

Step two is where the differences between big banks and lenders, like Global Financial & Leasing Services (GFLS), become obvious. With big banks, expect a lot more paperwork, and make sure your financial statements are buttoned up. Also, build in enough time between the time when you submit your application and when you actually need possession of the heavy equipment. Big banks can draw out the process for weeks or months, and even if eventually approved, funds aren’t made immediately available. This creates a huge problem for business owners who need their equipment to start a project.

We can’t speak for other lenders, but GFLS follows a streamlined process, aiming to keep our application process as quick and painless as possible. We take a look at your business’s overall financial picture, and we respond as soon as possible (often in 24 hours or less) with heavy equipment financing solutions that meet your company’s needs.

GFLS does not require a perfect credit history and goes beyond looking at the numbers when making our credit decisions.

Ready to Apply for Heavy Equipment Financing?

Work with a financing partner who understands small and mid-sized business and the construction and manufacturing industries. GFLS can be your partner for the long run, financing your equipment as you grow. Contact us or start with your application.

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Why Your Business Should Switch to EMV 

by Business Advice

EMV Protects Your Company and Your Customers

Over the past decade, a small microchip has been added to the right side of bank and credit cards. Instead of swiping this card, users insert the microchip into a reader to pay, or they may also be able to simply tap their card on the reader.

This technology is called EMV or “smart cards.” It was designed to make credit card payments easier and more secure for both buyers and sellers. EMV cards are more difficult to replicate (counterfeit) than traditional cards, and they allow merchants to more easily verify the card’s authenticity.

If your business still has not upgraded to EMV, then making this transition should be on your radar for the immediate future. Here’s why:

Customer Satisfaction

Customers are used to inserting or tapping their cards to pay, and during the pandemic, contactless payment became even more important to customers. Offering EMV will therefore increase your guest satisfaction by giving them the experience that they are used to at other businesses.

Upgrading to EMV will also give you the capability to accept payments from apps like Apple Pay and Google Pay. These apps became more popular in 2020 as contactless payment became more in-demand, so many customers will appreciate being able to use these features.

Increased Security

Adopting EMV also increases the overall security of your transactions. EMV cards are substantially more difficult to replicate, so your POS terminal will be more likely to detect a fraudulent card before you accept it.

EMV-enabled systems also produce more secure transaction data. With EMV, all of your business transactions will be encrypted, making them useless to potential cyber attackers. This helps ensure that your business won’t suffer from a massive data breach.

Also, the real and perceived sense of security that using EMV brings customers cannot be underestimated.

Decreased Fraud Liability

In the past, liability for fraud where a card was present fell back onto the issuing bank or payment processor, depending on the terms of the card agreement. However, since 2015, major credit card companies have changed the rules so that the liability for fraud falls on the party that is the least EMV-compliant.

So, if your business doesn’t have EMV, then you would be liable for the fraud since you were the least EMV-compliant party. Switch to EMV to ensure that your company doesn’t take a financial hit due to fraud.

How Do I Upgrade?

If your company has not yet adopted EMV, it’s time to upgrade your infrastructure. To do so, you will need to ensure that you have the right software and hardware to process EMV transactions. The software part is easy – most payment processors, such as square, already have those capabilities available. However, you will also need to upgrade your POS systems and card readers.

While this is a business investment, you can ease the financial aspect of it with a trusted financing partner like GLFS. We’ll help you come up with a financing plan that works for your business, and you can reap all of the benefits of upgrading to EMV.

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Can You Ever Prepare Your Business Enough Against Cyberattacks?

by Business Advice

Trends and What You Can Do

Cyberattacks are a small or medium-sized business owner’s worst nightmare. They can slow or bring to a halt productivity, and they can incur other unexpected losses, such as equipment replacement, reputation damage control and even paying a ransom to get your data restored.

Recently, HP announced its forecast for cybersecurity in 2021, and its report noted how cybersecurity attacks are becoming more complex and targeting individual users instead of systems. Ransomware, email corruption and message hijacking have all become more common in 2021.

How do you protect your business against these threats? You first need to understand new trends and threats in cybersecurity for 2021 and implement effective strategies to protect your company, employees and customers from them.

Cybersecurity Trends to Know

To defend against cyberattacks, the first step is understanding modern trends in cybersecurity. Understanding how IT systems and cybersecurity threats have changed over the course of the pandemic will allow you to more effectively implement a company-wide cybersecurity policy.

Working from Home

When the pandemic struck, workers moved out of their offices and into their homes, and many companies are continuing to allow them to work remotely.

Working from home has weakened cybersecurity protocols for many workplaces. In the office, all computers are wired to the same network that can be easily protected by IT staff, but when people work remotely, they must connect to company servers using their home networks. This leaves larger vulnerabilities in data transfer, especially when employees are not aware of or not following security protocols. Even opening a compromised email on their personal accounts could now jeopardize a company’s entire IT infrastructure.

Sophisticated Phishing

Phishing scams have resurged with a vengeance in 2021. Hackers are using bots like Emotet to send nefarious links through email and social media. These scammers can even hijack corporate email servers, sending out legitimate-looking emails from senior management to entrap unknowing employees.

While phishing has always been a major cybersecurity threat, it has taken on new importance with more employees working remotely. Even if the threat arises with an employee’s personal accounts, it can still threaten remote networks if those accounts are linked to the employee’s work computer.

Ransomware

Another threat is ransomware. As the Colonial Pipeline incident illustrated, ransomware can shut down network and business operations until an individual or company pays the attacker a specified sum of money. However, even if you pay up, there’s no guarantee that the attacker will release your system, and that they have not already used your data for criminal activity.

These attacks are usually transmitted through email using malware such as Emotet, TrickBot and Dridex. Many times, unwitting victims open an email, click a link, or download software that allows attackers to install the ransomware on their computer and/or server.

READ MORE: Major Computer Breach – Your Organization May Be a Victim

How You Can Help Protect Your Business Against Cyberattacks

Now that you know what kinds of threats are out there, you’re in a better position to:

  1. Educate Your EmployeesCyber criminals know that the easiest way to break into a company’s network isn’t through sophisticated attacks. Instead, they take advantage of individual users who don’t understand modern cybersecurity threats.Educating your employees about modern threats is therefore a critical part of maintaining your company’s cybersecurity. Your employees should know what phishing emails and websites look like, and they must be taught to evaluate threats and report them to your IT person or department.
  2. Implement a Zero-Trust PolicyIn addition to educating your employees, you should also implement a zero-trust policy. In the cybersecurity sphere, a zero-trust policy entails implementing a variety of authentication, authorization and validation protocols throughout company networks to ensure that only credentialed users can access their information.Think of it this way: when you log into a financial service, you will often be asked to verify your identity through a code sent to your phone number on file. When implemented throughout your network, these tactics can be an effective way to deter and prevent cyberattacks.
  3. Upgrade Your IT EquipmentFinally, you can also defend your business against cyberattacks by upgrading your IT equipment to meet the needs of your remote workforce. Whether you need to modernize your internal infrastructure or revamp employees’ work-from-home setups, upgrading your equipment can help your IT department better combat cybersecurity threats.Upgrading network-connected equipment can be affordable if you finance with the right partner. If you’re interested in equipment financing, contact us or start with your application.