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Frequently Asked Questions About Commercial Vehicle Leasing & Lease Financing

by Business AdviceFinancing

Frequently Asked QuestionsGlobal Financial & Leasing Services (GFLS) offers financing for commercial vehicle leases. Even though these vehicles are put into service in several different industries, our team fields some common questions from business owners that apply regardless of line of work.

Here are the questions about commercial vehicle leasing and lease financing we’re asked most often.

For what types of commercial vehicles do we finance leases?

GFLS finances leases for just about every type of commercial vehicle, ranging from basic work pickups to delivery trucks for local routes and intrastate routes, as well as vehicles used in industries we specialize in, including construction, forestry and logging.

We do not finance leases for semi-trucks used for interstate hauling.

What qualifies as a commercial vehicle?

The US Department of Motor Vehicles identifies any vehicle that is leased by any kind of business as a commercial vehicle. Also, a vehicle is considered in the commercial category if it:

  • Is used for business purposes, but owned by an individual entrepreneur or sole proprietor
  • Is built and used primarily for transportation of property
  • Is designed to carry more 15 passengers
  • Exceeds a certain weight class, even if it’s not owned by a business owner or used for commercial reasons

As such, nearly every business owner’s vehicle(s) qualify as commercial, so GFLS can help you finance a lease if your business involves transporting (large vans, busses, taxis, limousines, and tow trucks, etc.), construction (cranes, bulldozers, dump trucks, and excavators, etc.) agriculture (vehicles used to plant, raise and harvest crops, including tractors, seeders, and cultivators, etc. and same for livestock) to name a few. If you’re not sure if we finance leases for the commercial vehicle(s) your business needs to grow, just ask us.

How does leasing a commercial vehicle help my business?

First, many of our customers don’t have perfect credit or have a startup, which makes it difficult, if not impossible, to obtain lease financing. By financing a commercial vehicle lease with GFLS, you can improve your credit score if you make timely payments. Second, leasing lets you keep cash reserves and/or any other personal or business lines of credit available for other purposes. Last, you can maximize the tax advantages of lease financing.

What are the tax advantages of leasing?

It depends on whether you choose a capital lease or an operating lease. A capital lease allows you to write off the vehicle’s depreciation. An operating lease lets you treat the lease payment as an operating expense.

LEARN MORE: Want to Lease a Titled Vehicle? Global Financial & Leasing Services has a Program for That

Is there a down payment required to finance a commercial vehicle lease?

GFLS requires a 20% down payment.

How soon can I get approved?

Once GFLS receives your application, most of the time you’ll have a decision in as few as 24 hours. Usually, it takes our customers longer to find the commercial vehicle that fits their needs than it does to get approved.

Can I qualify for commercial vehicle lease financing if my business is a startup or I have credit with past blemishes?

GFLS makes it a point to look beyond the numbers when approving applications. We specialize in financing for those just starting out and those with past blemishes on their credit. We consider how you face and conquer challenges and the positive aspects of your financial history. We believe your character and integrity can outweigh credit blemishes or lack of time in business.

Why should I work with Global Financial & Leasing Services?

  • Our team expedites and simplifies the application and funding process because we understand how important having the commercial vehicles you need impacts your business’s success.
  • We understand our customers are more than a credit score or time in business.
  • You can speak directly to our decision makers.
  • We stay in constant communication with you, so you always know where your application stands.
  • Your business matters to us and you can tell by the way our team treats customers with kindness and respect.

Having the right equipment, including commercial vehicle(s), makes all the difference in a company’s ability to grow and thrive. Let GFLS help your business succeed with commercial vehicle lease financing. Contact us or start the process by filling out an application.

Recruiting professionals studying candidate profiles

3 Non-Negotiables When Selecting Your Equipment Lease Financing Partner

by Business AdviceFinancing

Whether you are flush with cash, breaking even or considered a credit risk, eventually you will want to obtain a key piece of equipment to start up or expand your business. Often that critical equipment will come with a hefty price tag, forcing you to weigh all your purchasing options. Regardless of credit score, credit line available or bank account balance, financing an equipment lease is the route many business owners choose to take.

For those with plenty of cash reserves, equipment lease financing preserves funds for operating costs or other investments, like hiring and marketing. For those without excess cash in the bank or less-than-perfect credit, financing an equipment lease is a viable way to get essential equipment now for a more profitable business.  

Given the benefits of what having the right equipment can do for your business, the importance of working with the right lender cannot be underestimated. You are counting on this lender to help you either start your business or grow your business—and basically support you in creating your company’s longevity and profitability.

Over the years, Global Financial & Leasing Services (GFLS) has partnered with startup and established business owners in a wide range of industries to finance leases for much-needed equipment. “Partner” is the key word. Always select a lender who is willing to work closely with you and provide solutions and options, not challenges and red tape.

READ: Your Approach to Financing an Equipment Lease Matters

When you are narrowing down your list of potential equipment lease financing partners, insist on these three non-negotiable qualities.

1. Flexibility

Flexibility in the equipment lease financing world encompasses many things. For example, does the lender consider your “story” when making the final funding decision? Or, does the lender judge your application by the numbers, such as credit scores and account balances? Does the lender work with startups, small and large companies? 

At GFLS, your story is important and can go a long way in explaining why your application is what it is. Our team understands that credit scores and account balances are just a few indicators of your ability and drive to succeed. We use our internal funds, bank lines and non-bank providers to finance equipment leases for companies of all sizes, from just getting off the ground to late-stage growth.

2. Experience in Your Industry

Financing an equipment lease sounds straightforward enough. However, depending on whether you need healthcare/medical equipment or heavy construction machinery, how you go about financing the lease matters. By partnering with a lender experienced in your specific industry, you will gain valuable industry insight and best practice lending standards. Not to mention, you’ll save time knowing that your lending partner can help you obtain the specialized equipment you need.

GFLS specializes in financing equipment used in these industries.

3.  Superior Customer Service

Your equipment lease financing application may be one of hundreds a lender is reviewing at any given moment. But, to you, it’s the most important application. Your lending partner should treat it as such.

The GFLS team works hard to earn your trust by providing top-quality lending products and best-in-class service. Plus, we make decisions on applications generally within 24 hours. After all, building long-term customer relationships is our goal.

If you are looking for a partner to finance your equipment lease, talk to us. The GFLS team has expertise in healthcare/medical, construction, restaurant, machinery/manufacturing, forestry/logging, printing and automotive sectors. We would love to be your lending partner.

Silhouette construction workers fabricating steel reinforcement

Should You Finance a Lease or Raise Equity to Acquire New Equipment?

by Benefits of LeasingBusiness Advice

For startups, equipment acquisition is necessary to get the business off the ground. For established companies, acquiring equipment is a means to grow and expand. Debt is a four-letter word for many business owners. Therefore, many believe raising equity to acquire equipment is better than taking on debt, even though debt comes with a specified interest rate and payoff date. Just because it’s believed, doesn’t make it so.

Taking on debt in the form of an equipment lease is far different than maxing out personal credit cards for frivolous purchases. Financing an equipment lease can be a wise business decision under the right circumstances, especially if your company has a steady flow of receivables that you can count on to keep up with lease payments and other expenses. A conversation with your accountant or a report from your accounting software can give you a clearer look at your income versus expenses, as well as any other upcoming, non-recurring ones for which you must plan.

Compared to raising equity to fund an equipment purchase or lease, financing offers several benefits.

Perhaps Most Importantly, a Lender Won’t Tell You How to Run Your Business 

Chances are you have heard horror stories of equity investors believing their equity buys them a say in how the business is run. The more equity they hold, the bigger their control and influence regardless of whether their equity investment secured them a seat on the board of directors, ownership in the company or a “my money, my business” say in the business during family dinners.

A lender, like Global Financial & Leasing Services, keeps our proverbial nose out of your business. Make your payments (hopefully the equipment you’re financing will bring revenue to do just that) and our involvement ends there.

Equity is the Most Expensive Form of Capital

Equity is most expensive form of capital because it has an indefinite term and is paid in a portion of your profits each year with no cap on the amount that may be paid out. On the other hand, financing equipment with debt has defined terms, including the amount you pay (payment and payoff) and a date when those payments end. Equity takes a percentage of your profits, and the amount paid out to equity holders increases as your company’s revenues grow. The more successful your company becomes, the larger the profits and the more you pay out for that equity stake. As such, a $100,000 piece of equipment may end up costing you hundreds of thousands of dollars.

What that looks like in real life.

If you take a $100,000 five-year loan at 20% APR, that original $100,000 borrowed for the equipment costs you $158,963 when paid off in full. But if you raise $100,000 in equity at a $500,000 company valuation (selling 20% of your equity), then get acquired and in that acquisition, you net $1M, the 20% equity stakeholder(s) would receive $200,000 from the acquisition, plus any distributions of profits that have been paid out over the years and prior to the acquisition.

In a nutshell, you obtain the same amount of capital to fund an equipment purchase at the same time, but that $100,000 in equipment costs you, under the terms above, $158,963, where that same $100,000 from an equity investor costs you more than $200,000 in our example.

There are Tax Benefits to Financing Equipment

Fine print: we are not tax experts. That said, there are tax benefits to financing your equipment lease. With a capital lease you can deduct the full purchase price of the equipment in the tax year it is placed into use. This can equal a sizable deduction on your taxable income. An operating lease allows you to deduct your monthly lease payments as an operating expense for the term of the lease, lowering your taxable income.

READ: Who Finances Heavy Equipment Leases?

Raising Equity Can Require Schmoozing

Whether pitching the idea of raising equity for your company to a private investor, an equity firm, a friend or your brother-in-law, the process takes time—weeks, months, even years, depending on the source and circumstances. Dinner, coffee, drinks, meetings, gathering up documentation, fine-tuning your pitch, answering questions… all are time consuming—time that you could be spending on your business.

Once the equity is raised, there will be more time involved to keep your investor(s) updated on the company’s (and their investment’s) progress.

Global Financial & Leasing Services can often make a lending decision on your equipment lease in as few as 24 hours from the time we receive your application. Time is of the essence when it comes to acquiring equipment. You might have a job that hinges on it or found a great deal that won’t last on the exact model you need.

How you fund equipment acquisition is an important business decision with the potential to alter your company’s course. Understand all your equipment financing options and don’t be afraid to take on debt when it serves you, your customers and your business well.

Rear view of a confused man looking at graphics on black wall

5 Stress-Management Tips for Small Business Owners

by Business Advice

Business Stress ManagementAs a small business owner, you are used to being the first on the job, the last to leave, and wearing multiple hats, from janitorial and marketing to accounting. You also bear the responsibility for employees’ livelihoods and growing your business. Especially now, small business owners are feeling the burden of that weight on their shoulders.

You may not think you have the time to step back and take care of yourself during a crisis, but your business, employees and customers are counting on you to keep a cool head. Our equipment financing team can’t control external stressors, but we can offer tips for managing stress, and perhaps finding time for you to take much-needed down time. Here are some ideas…

1. Keep a reasonable work schedule.

Business owners launch their startups expecting to spend a great deal of time on their businesses. The entrepreneurial mind doesn’t shut off at 5:00 p.m. Or, even 2:00 a.m. It doesn’t necessarily distinguish between workdays, weekends and vacation time (if there’s time for vacation).

But working or thinking about your business non-stop is counterproductive. There are long-term and short-term strategic decisions to make and tactical, daily operations to manage. In the early stages of a business, you may be responsible for most if not all of these. As your business grows, employees can take tasks off your plate. At any stage, recognize that you are less effective when rushed, stressed and tired.

Set a work schedule that prioritizes tasks which result in new business, whether that’s making sales calls or finding a lease financing provider to obtain equipment that grows revenue. Set and keep boundaries whenever possible to give you free time to recharge, which leads to a better mental balance and better decision making. Divide your days or weeks into blocks with time designated to working on the business, working in the business and handling unexpected matters. It won’t always be possible to follow your schedule, but often, you’ll have time left to focus on your well-being.

READ: No Startup Company is Typical

2. Use organization tools that work for you and sync with each other.

One stressor you can control is juggling and keeping track of time and tasks. There are tools on the market that do this beautifully and sync with one another to give you an overview of your schedule at any given moment.

At minimum, consider using a calendar, a contact manager, a task list, a notes area and email—Outlook is a popular program that offers all of these in one, and it can be accessed from any device. Outlook works on Windows and Mac systems, but if you’re using the Mac OS, Calendars, Contacts, Reminders and Mail work similarly and sync together.

Customer relationship management (CRM) and financial management tools help keep sales and accounting organized. Some CRMs offer free versions up to so many contacts, which can give you a good start without a big investment. Some banks offer financial management tools with their business accounts. Choose one that is user friendly and can grow with your business, so that you won’t have to worry about selecting another down the road when you outgrow it.

3. Leave “breathing” time in your day, every day.

No matter how busy you are, always leave blocks of time open on your daily calendar. Back-to-back appointments and tasks leave no room for handling unexpected events or issues that are sure to arise. Plus, having no breathing time on your schedule is a stressful way to start the week or day. Giving yourself a few minutes or an hour at the beginning or end of each day means you can prioritize better. It’s a relief when you can say, “I have time to handle that later.”

4. Work toward life balance, not working 24/7.

Like food, oxygen and water, you require down time. Small business owners often put their personal and family lives aside for their businesses. It makes sense because their personal and family lives can hinge on having a successful business to support life and legacy. However, not taking time for yourself means you’re unable to give all you can to your business, much less yourself and family.

Burn out is real. Physically and mentally, you cannot give 100 percent to your business 100 percent of the time. When you allow yourself a guilt-free break, you’ll find you’re able to be more productive on the work side of life. There is more to life than working hard, and “hard worker” is not what most people want on their grave stone or the only way their family and friends describe them. Of course, there will be exceptions, but physically AND mentally leave the office.

5. Choose people and vendors you can trust.

Hire people you can trust to do their jobs. Partner with vendors who see your business relationship with them as a true partnership in supporting your business. You cannot possibly do everything your business requires to run smoothly. Delegation is the only way to ensure your company moves forward without your hand in everything. There is certainly a sense of relief felt when you delegate a task to someone and know it will be completed well and on time.

You are an expert on your business. Vendors are experts in their industries. Choose vendors you know are smarter than you and let them help you make sound decisions. It requires trust, so get recommendations from people you respect. Challenges will arise, but knowing you’ve put together a team of employees and vendors who you can count on makes dealing with problems far less stressful.

READ: What to Do When the Lender Says No

No, the Global Financial & Leasing Services (GFLS) team is not psychologists, but we’ve partnered with hundreds of small business owners since 2009. Our team has become their trusted partner when it comes to equipment financing. We take the stress of financing equipment leases off their shoulders with best-in-class, personal service and a streamlined application process, even when their credit is less than perfect. We’re a small business and we understand small business. Talk to us about how we can make equipment lease financing easier for, so you can focus on other important matters.

risk

When Small Business Owners Prepare for Known Risks, They’re Better Prepared for the Unknowns

by Business Advice

The decision to start a small business isn’t taken lightly. Running a small business is even harder. If we’ve been reminded of anything lately, it is how important small business is to the economy and employment.  For owners of any-sized businesses, it’s difficult enough to prepare for known risks, much less those we cannot see coming. The good news is that preparing for known risks can put small business owners in a better position to handle the unknowns.

The Numbers Aren’t Always What They Seem

There are lots of statistics pointing toward imminent doom for small businesses. On the whole for small businesses, about 66 percent survive the first two years, 50 percent survive five years, and 33 percent survive 10 years. These numbers don’t indicate necessarily that the non-survivors failed because they could’ve been sold, merged or acquired. Statistics also indicate that small businesses fail fewer times now than they did a generation ago.

Why? Small business owners have access to resources and data that didn’t exist before. Technology plays a key role in being able to help use those resources and data in ways that help guide better decision making. As long as small business owners rely not only on their entrepreneurial nature, but also on the hard data available to plan and prepare for risks and change, they are more apt to succeed now more than ever.

Don’t let numbers alone throw you off or deflate your successes. Look at them objectively. For example, we work with many small business owners who’ve thought new equipment that would grow their business was out of reach because of the monthly lease payment. Come to find out, the additional revenue made from obtaining that equipment covered the payment and added to the bottom line.

Planning for Anything and Everything

Location (brick and mortar and/or online), budget, growth, products/services, workforce, culture and even exiting are just a few of the things small businesses owners plan for and adapt to on a regular basis. In fact, small businesses are better suited to change direction quicker than larger businesses are. After all, it’s easier to change a sailboat’s direction than it is to turn a cargo ship.

In the course of a small business’s lifespan, there may be challenges that arise that no one could’ve planned for; however, having planned for other processes provides the experience to better plan on the fly.

When worldwide or local incidents threaten your small business, reach out quickly to vendors and lenders. Global Financial & Leasing Services was founded during the Great Recession, helping business owners obtain equipment financing in their times of most need. Our team has worked with business owners during natural disasters. We are no strangers to working with small business owners during times of crisis to create a financial plan that works for them.

READ: There are Equipment Leasing Finance Companies, and There are Partners

Credit Score Doesn’t Determine Your “Worth” or Chances of Success

When small business owners require financing for leased equipment, not having perfect credit or the personal funds to prove ability to pay it back is tough to overcome in the traditional financing channels. This puts business owners in a mindset that can lead to poor financing choices, and worst case, business failure. From an equipment financing perspective, these poor choices include, but aren’t limited to:

  • Borrowing money to cover operational costs that don’t equally increase revenue
  • Not calculating a loan’s true cost
  • Applying for the wrong type of loan for the purpose needed
  • Turning to short-term (high interest) loans or credit lines
  • Throwing borrowed money at a problem that money alone cannot solve

The above are just a few common mistakes, which can be avoided with the right equipment financing partner. Our team works with small business owners in the early and established stages of their companies who have less-than-perfect credit, but do have a solid plan for growing their company. We look not only at the numbers and credit scores to help you get the equipment financing you need that makes sense for your future.

Use Equipment Financing to Steady and Preserve Cash Flow

Without steady cash flow, it’s impossible for a small business to succeed long term. Small business owners rely on steady cash flow to buy inventory, pay or hire employees and many other critical daily operations.

Financing equipment leases lets small business owners preserve cash on hand that might otherwise go toward purchasing equipment and deplete cash reserves. Cash on hand is extremely important to have in good and bad times. Even if an event occurs that doesn’t negatively affect your business, it might your customers who’ll then possibly pay invoices late.

READ: Test Your Knowledge on the Unexpected Benefits of Financing Equipment Leases

Support Can Come from Unlikely Places

It is in everyone’s best interest to support small businesses, and for small business owners to choose financing partners who can help them better identify the reasons their companies could fail. That’s why our customers choose Global Financial & Leasing Services. When other lenders say no, we often say yes. And, when other lenders view you as a number, we look at your whole story and can help you better prepare for where you want to take your company’s future.

So, let’s get started! Contact us or begin with filling out an application.

Marketing Advertising Commercial Strategy Concept

First Comes Financing Your Leased Equipment, Then Comes Inbound Marketing

by Business Advice

There are two types of marketing: outbound and inbound. Outbound marketing includes trade shows, email blasts to purchased lists, cold calling, brochures and traditional advertisements. They’re considered “outbound” because you’re pushing your advertising out, hoping that customers see it.

The affordability and effectiveness of inbound marketing is making outbound tactics less popular. Outbound marketing is less effective at moving the sales needle. Why? Consumers are bombarded with thousands of marketing messages every day. And, it’s expensive without the ability to accurately measure results.  

For example, ABC Company can spend thousands on writing, designing and printing company brochures. They end up staying in the box because brochures must be distributed in person. Or, ABC can spend marketing budget on inbound marketing that directly reaches targeted prospects actively seeking ABC’s services.

Inbound marketing tactics can deliver customers straight to your door. No more wasting money sending out messages, hoping the right person sees or hears it. As if that wasn’t convincing enough, here’s another reason to begin or ramp up your inbound marketing to drive sales after you finance an equipment lease:

Inbound marketing is flexible and scalable. You can easily match your changing seasonal, promotional or budgetary needs.

Use These Inbound Marketing Strategies to Increase Demand for Your Leased Equipment

Regardless of the type of leased equipment you financed, the more it’s in use, the more profit you make. Inbound marketing can drive business for your equipment, and even offset the cost of marketing, as well as the monthly payment.

A Website

Inbound marketing leads back to your website. Make sure your website:

  • Is mobile friendly
  • Is optimized for search engine optimization
  • Has great content with your keywords
  • Is user friendly
  • Includes forms or calls to action

Those are for starters. It’s worth investing in a professional website, otherwise you risk turning off customers or not being ranked well in search engines.

A Blog 

Blogs serve several purposes, including:

  • Improving search engine rankings by posting informational blogs that include your service keywords
  • Establishing your company as an expert in your field
  • Posting company news and promotions

Whitepapers and Case Studies 

Whitepapers and case studies prove your knowledge and how you solve customers’ problems. Whitepapers are factual, not salesy. Case studies focus on problems/solutions, not your equipment, but how your equipment or expertise conquers challenges.

Whitepapers and case studies can be posted in your website’s blog section. Or, you can offer them as a download or email in exchange for contact information (and permission to keep marketing to them).

Videos 

Videos can be made with your phone, and shorter is better—no more than two minutes, ideally 30 seconds. Your leased equipment makes for excellent video material, like:

  • Equipment in action
  • How-to videos
  • Experts weigh in
  • Video version of a blog or case study 

Social Media 

Have a social media presence on the channels where your audience is. Post snippets of your blogs, promotions, specials, whitepapers, case studies and videos on social media with a link back to your website. 

Search Engine Optimization (SEO) 

SEO isn’t one tactic, but a number of strategies that makes all of your inbound marketing more visible to search engines. Frankly, it doesn’t matter how wonderful your website, blogs, whitepapers, case studies, videos, etc. are if they aren’t optimized for search engines.

There is far too much information to learn about SEO to cover here, but it’s well worth your time to Google SEO best practices.

Finding What Works Best to Market Your Leased Equipment 

No one knows your business and customers better than you do. You may find a combination of the above or one inbound marketing tactic delivers the sales results you need to make financing your leased equipment even more profitable.

Finally, work with an equipment financing team that is invested in your company’s overall success beyond financing equipment leases. Global Financial & Leasing Services (GFLS) works with many small to mid-sized companies and can answer your questions about all aspects of business. Contact us to find out more about your options. Ready to apply? Start with an application.

 

Man driving a crane to lift-up some equipments

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

by Benefits of LeasingBusiness Advice

As 2019 winds down, it’s that time of year to make resolutions for 2020. Business resolutions are just as important as personal ones if you’re an entrepreneur. If you’re considering financing an equipment lease to start off a new year and a new decade, here are 10 helpful to stand by.

1. Know Your Budget

When you have your own business, it’s of the utmost importance to know your budget and stick to it as best you can. Global Financial & Leasing Services (GFLS) makes this easier by providing you with predictable monthly payments to help manage cash flow. When it comes to the best ways on how to finance an equipment lease, predictability is one of the most important elements to keep in mind.

2. Don’t Pay in Advance

You wouldn’t pay your employees four or five years in advance, right? So why should you pay for your equipment in advance? A business equipment lease allows you to pay for it as it earns you money. This frees up more money for you to use elsewhere in your business.

3. Give Yourself Options

At the end of your lease, GFLS lets you choose one of the following: purchase the equipment at the stated dollar amount, continue your lease at a lower monthly rate, or simply return the equipment with no further obligation. This way, if you love the equipment, it can be yours or you can continue to use it, or if it’s not working out for you, you can return it.

4. Free Yourself to Use the Newest Upgrades

With the speed of technology these days, the best equipment available now may very well be obsolete next month. When you lease with GFLS, you can save your capital and put yourself in a position where you’ll be able to purchase or lease newer, more high-tech equipment when you want, keeping you competitive.

5. Keep Your Starting Costs Low

Why waste money on a huge down payment? With GFLS, we often require only the first payment in advance to order your business equipment. This isn’t the case with other equipment lease financing companies.

6. Don’t Wait Around for Approvals

Your time is valuable. You shouldn’t have to wait to learn if you’ve been approved to lease business equipment. With GFLS, you can get your completed application approved the same day—or within 48 hours for more complicated transactions.

7. Avoid Extra Costs

Most traditional financing sources will not pay for extra costs such as installation, freight, extended warranties, etc. However, we can often provide 100% financing by including a specific amount of these soft costs in your transaction.

8. Claim a Tax Deduction

Did you know that your lease payments can be deducted as a business operating expense in most cases? Doing so can reduce your taxable income.

9. Keep Cash on Hand

By leasing business equipment and avoiding a sizable cash outlay, you can conserve your on-hand capital for more important uses—such as inventory, employees, and advertising. This will advance your business and help it grow.

10. Improve Business and Personal Credit

When you purchase business equipment with borrowed funds, your credit lines with your lender will be significantly reduced. However, when you lease with Global Financial, you can conserve lines of credit for emergencies or other purposes, and can subsequently establish a separate line of credit and maintain an excellent credit history.

When you’re looking for the best way to finance an equipment lease, Global Financial & Leasing Services has you covered, and has your company’s best interest in mind whether starting a new year or a new decade. To learn more or get started today, simply fill out our credit application.

Finance concept

How the Economic Outlook Affects Lease Financing for Construction Equipment

by Benefits of LeasingBusiness Advice

Economic OutlookThe Association of Equipment Manufacturers (AEM) recently published an article on the economic outlook for 2020. It stated that while the economy began 2019 rather strong and that the U.S. is in the middle of 100+ months of economic expansion, many thought leaders are forecasting that our hot economy will cool down a bit. Why pump the brakes in the midst of high business and consumer confidence and low unemployment? Rising interest rates, looming tariffs and an inability to hire enough workers, especially skilled labor.

The Global Financial & Leasing Services (GFLS) team keeps a close eye on economic reports, especially those concerning the industries in which we finance equipment. However, we can gauge the economy’s highs and lows simply by the number of equipment financing applications we receive. Over the past few years, applications have been flooding in from customers who are confident enough in the economy that they’re comfortable spending money.

Construction Leads the Way

The construction industry – residential and commercial – historically leads the way in a good economy. Of course, building requires construction equipment, so it’s no surprise that the demand for construction equipment financing is high.

The past few years were good for leasing pre-owned construction equipment. A good economy mean companies can replace older equipment with new, which increases used inventory. There are a number of construction firms leasing their quality, used construction equipment like backhoes, dump trucks, bulldozers, and other heavy equipment in order to offset the cost of purchasing new equipment.

Is Now the Best Time to Finance Construction Equipment?

Despite interest rates, tariff concerns and labor crunches, it is still a great time to finance construction equipment for a few reasons, including:

  • Used inventory is excellent
  • Current low interest rates (but the Federal Reserve recently has raised rates and more increases could be on the way)
  • The quality manufacturing of today’s construction equipment minimizes the risk of the payments outlasting the equipment

AEM reports that the construction industry is expected to experience steady and solid growth, at least in the short term, though no one can predict the impact of any unforeseen circumstances or events. Financing construction equipment makes sense for many construction firms right now.

READ: Why Put Profit Above an Equipment Lease Payment?

GFLS helps small and medium-sized businesses finance construction equipment leases, even those with less than perfect credit and who have been turned down by other equipment financing providers. Get started today with an application or contact our team for more information.

Woman putting signature on document loan contract, real estate p

What Lenders Want to See in a Business Plan Before Approving Your Equipment Financing Application

by Business Advice

Lenders Want Business PlansA solid business plan does many things for a business owner. It provides a clear road map which outlines the future of the business. It sets goals and holds a business owner accountable to them. It explains what the company is, who it serves, and how it works. It is the overall what, why, and how of a company. And perhaps most importantly, a business plan can make the difference between getting gaining crucial funding for equipment leasing or not.

What is the information that goes into a business plan and makes equipment financing lenders become interested in your business? What exactly do they look for, and what convinces them to approve your application?

Here are the seven components of a business plan, and what your potential funders will be looking for when they go through it.

Executive Summary:

This is a brief summary of your business, and should also compact all the important information of your entire business plan into a relatively short overview. It summarizes the highlights of the other sections of your plan, so a good rule of thumb is to write it after you’ve written all the other parts of the plan so that you can add the important ideas from other sections. This is most likely the first thing that your potential lenders will see, so it needs to be exciting, engaging, and informative—but not too lengthy.

Business Description:

This section explains what your business is, and what it does. It should state when the company was founded, where you are located, your mission statement, your business model, the legal structure, and your projected growth. These answers will tell your story and will help equipment financing lenders connect to you, as it will show them how you’re viewing your venture.

Market Analysis:

Your market analysis section is where you take a look at your market as a whole, where you fit within it, and why you stand out against your competitors. Be sure to include information on your target market, your customer personas, and testimonials (if you have them). The market analysis section is also the perfect place to answer the questions that your value proposition asks:

  • What are you solving for your customers?
  • How are you solving it?
  • Who has the problem?
  • Why do your customers care if you solve it?

This section is important to equipment financing lenders as it will teach them about your market and how you will impact it.

Organization Management:

This section is a great opportunity to impress equipment financing lenders. Be sure to spotlight the expertise and qualifications of each member of your team. Equipment financing lenders will be more likely to approve your application if a company has a competent, qualified staff. It’s the ideal place in your business plan to brag.

Sales Strategies:

The sales strategy section is very important for equipment financing lenders. It’s where you explain in detail how you will utilize marketing efforts such as social media, press releases, search engine optimization, web design and development, and more to raise money with your business and make profits a reality. You will describe your price strategy and will also detail the promotional strategies you’re currently using, along with strategies you plan to implement later on. This section shows that you have carefully considered how to using sales to grow revenue and in turn be able to pay your equipment lease payments.

Funding Requirements:

Here’s where you will ask for the amount of money you need from potential equipment financing lenders. In this section, it’s important to be as realistic as possible, and to also include information for a best-case scenario as well as a worst-case scenario.

Financial Projections:

Another very important section for potential investors, the financial projections are where you summarize any successes up to this point and make forward-looking projections. The projections should be based on information about your revenue growth and market trends, and should be created using information about what’s currently happening, combined with your sales strategies. These projections will let potential equipment financing lenders know when they can expect to see timely repayments.

Each section of a business plan is very important to your potential equipment financing lenders. They will be looking through all of them to discover your story, purpose and mission; who your customers are; why you believe you stand out from your competitors and where you see yourself within your industry; what sort of team you have; what your “disaster planning” is; how much funding you need, and give them confidence in your ability to repay.

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The Key Elements Every Great Business Plan Includes

by Business Advice

Components of a Business PlanFor most business owners, the thought of drafting a business plan sounds like paperwork—something you should do, but just can’t get excited about because you have a business to get off the ground or run.

However, a business plan should be exciting. Why? Because it can be a roadmap that leads you more quickly to the path of success. It allows you to run your company with a complete and cohesive vision, and it is how you will drive the future growth of your business.

How exactly does a document play such a key role in guiding your business? Let’s start with the basics.

Why Have a Business Plan?

Having a business plan sparks action. For one, it forces you to consider all aspects of your company, which means nothing will get overlooked and ignored. When you begin digging into all the information included in a business plan, you’ll uncover factors that demand to be addressed, including your mission statement, value proposition, customer personas, marketing assumptions, operations plan, financial plan, employment plan, and more. A business plan also helps ensure you’ll be prepared for anything because it will point out layout a plan of action to tackle problems before, during and after they occur to avoid serious disruptions and pitfalls.

Are you a goal-driven person? Business owners usually are, and a solid business plan will create and set goals for your business. You can use it to monitor progress, hold you and other stakeholders accountable, and ultimately help control the fate of your business.

When the time comes to secure equipment financing, a well-written business plan is an absolute must. Equipment financing lenders need to see clearly the pathway to your success because they’ll want to evaluate their risk. When the time for financing equipment to further business growth comes, you’ll be glad you have one ready to go versus having to fit developing one into your already busy schedule.

A written record of your company goals—paired with a track record of delivering against those goals—will let equipment financing lenders know that you fully understand your business and industry and will be able to deliver the results that you’re promising. Equipment financing lenders want to know that you’re serious and have thought out and planned your business strategy.

What are the Major Sections of a Business Plan?

Now that you understand why a business plan is crucial, you need to know what to include in the plan. Generally, there are seven components of a strong business plan. These include:

  1. Executive Summary – An overview of your business, which includes the most important ideas from the other sections.
  2. Business Description – An explanation of what your business is and what it does. Location, year founded, and other details should be included.
  3. Market Analysis – A description of your market as a whole, where your business fits within it, and why you feel your company is superior to competitors.
  4. Organization Management – The bios and experience of your impressive leadership and/or management team.
  5. Sales Strategies – An explanation of your current and future marketing plans, and how you plan to generate revenue.
  6. Funding Requirements – A presentation of the amount of money required to fund the business (and essential equipment).
  7. Financial Projections – A summary of your successes up to this point, including forward-looking projections.

Each of these sections are extremely important when writing your business plan. They’ll help you as your business progresses and grows day by day, and they will also come together to form the clear concept and vision that will help secure potential equipment financing lenders, like Global Financing & Leasing Services.

Having a business plan is absolutely necessary for any business. If you haven’t started yours yet, the time to do so is well before your business requires financing for equipment.