Businessman putting coin to saving jar and use calculator. Money

Why Your Business Should Keep Cash Reserves

by Business Advice

Equipment Financing is Key to Preserve Cash

2020 has been a tumultuous year for business. Between a global pandemic and the recession that followed, business owners have needed to adapt to constantly changing circumstances, often digging deep into their pockets to stay afloat.

One of the prevailing lessons that many owners have learned is the importance of cash reserves. At its most basic, a cash reserve consists of liquid funds that are easy to access for covering expenses when times get tough. A healthy cash reserve should typically be able to cover three to six months of business expenses. Think of it like a personal rainy day fund; you want to be sure that you can keep up with your bills for a few months if you lose your income.

Whether revenue takes a hit, customers are slow or no payers, an emergency arises, or any other situation businesses face, having a strong cash reserve can help yours survive. Here are a few good reasons why you should strengthen your cash reserves.

Staying Prepared for the Unexpected

If 2020 has taught us anything, it’s to be prepared for the unexpected. Whether it’s a natural disaster, economic downturn or regulatory changes, unforeseen events can send your business into a tailspin if you don’t have a financial safety net.

A strong cash reserve can ensure that your company is well-insulated from the fallout of these kinds of abrupt changes. For instance, suppose that a natural disaster damaged some of your essential equipment. If you have a healthy cash reserve, then you can use that to replace or rent it while you wait on insurance payouts, allowing you to continue doing business as usual. Your cash reserve can therefore serve as an insurance policy against adverse events.

Reducing Your Reliance on Credit

Having a healthy cash reserve can also reduce your reliance on credit. When something disrupts your business and you end up strapped for cash, using credit cards, taking out loans or dipping into your personal funds may seem like your only options. However, with a strong cash reserve, you can use your business savings to cover unexpected expenses or supplement lost revenue.

While using credit is always a part of doing business, you should take care to do so wisely. Credit cards can be useful for discretionary purchases, but you should not rely on them to cover major expenses. Likewise, loans or financing can help fund large purchases while keeping cash on-hand, but you should do your best to plan for these in advance. A solid cash reserve can help you use credit carefully.

Enhancing Your Business’s Finances

Many actions that you can take to enhance your cash reserves are common-sense practices that can improve your company’s overall financial health. Saving profits, paying down debts and investing internally are all excellent ways to boost cash reserves and your business’s financial status.

LEARN MORE: Your Approach to Financing an Equipment Lease Matters

Another excellent way to maintain enough liquidity for a healthy cash reserve is to finance major purchases. Large expenses like new equipment will quickly drain your company’s bank account, so financing them can benefit your long-term financial health. Ideally, the revenue generated by leasing essential business equipment will be greater than the monthly payment. If you’re ready to finance equipment and your preserve cash reserves, contact us or begin your application.

 

TAX Concept.Word tax put on coins and glass bottles with coins i

Smart Business Buys to Make Before the End of the Tax Year

by Benefits of LeasingBusiness AdviceWhat about Taxes?

And Lower Your Tax Liability

October marks the start of the 4th quarter and the beginning of the end of the tax year for many business owners. If you’ve been considering making purchases for your business, this might be the right time to buy. Your business benefits from having the goods or services available now, and your expense write offs can reduce your tax liability for this year.

Having worked with businesses since 2009 to provide equipment financing in several industries, here are our recommendations for smart end-of-the-year business buys.

Commercial Vehicle(s)

If you’re considering buying or lease financing a commercial vehicle, now’s a good time to sign on the dotted line for a couple of reasons. Year-end sales get underway. Dealers are anxious to make room on their lots for new vehicles, and they tend to heavily discount their vehicles to meet annual sales goals. If you’re able to negotiable the purchase or lease price down further, the deal gets better, especially if you’re purchasing or lease financing multiple commercial vehicles.

Lease financing before the end of the year provides certain tax advantages. What those advantages are depends on whether you choose a capital or an operating lease. You can write off the vehicle’s depreciation under a capital lease. You can treat lease payments as an operating expense under an operating lease.

LEARN MORE: FREQUENTLY ASKED QUESTIONS ABOUT COMMERCIAL VEHICLE LEASING & LEASE FINANCING

Large Equipment

It is possible that you can write off business equipment, like a forklift, buncher feller, boom trucks and tank trucks, to name a few. Again, the tax advantage depends on the type of lease you choose, operating or capital. Either way, lease financing new or additional equipment can help you improve and expand your business operations so that next year could be the best year yet for your business.

Heavy equipment dealers often share the same mindset as vehicle dealers in that they want to meet annual sales goals and make room for new equipment. From now through the end of December, you can find great deals on equipment. Get a head start by filling out a credit application for your lease financing and check our equipment for sale.

Car or Truck

It’s common for smaller businesses owners to purchase a car or truck to use for both business and personal reasons. The same logic applies as to why the end of the year is a good time to buy or lease finance a car or truck. Check with your tax consultant as to the advantages and strategies to reduce your tax liability when using a personal car for business.

Professional Consulting/Advisory Services

This of all years has been one of massive changes. To best navigate these twists and turns while positioning their business for the future, company owners are seeking professional counsel in a multitude of areas, like sales and marketing, communications, technology, human resources, legal issues and taxes. Joining an executive coaching group or community chamber is an alternative to connect with and learn from others facing similar situations.

Not only can professional consulting or advisory rates and membership fees be written off your taxes, but the advice and guidance gained from participating can help you run and grow business.

Employee Training & Continuing Education

Investing in training and continuing education for your employees at the end of the tax year makes a lot of sense for many business owners, especially if 4th quarter is a traditionally slow period in your industry. Better trained employees can only make your business stronger and put you ahead of competition, not to mention help start off the new year in a better position to improve job performance.

LEARN MORE: HOW TO ATTRACT QUALIFIED OPERATORS TO MAKE THE MOST OF YOUR FINANCED EQUIPMENT

The costs associated with additional training and continuing education for your employees can be deducted from your taxes as long as the education applies to the employees’ position. Meaning, you can write off safety training for heavy equipment operators, but you couldn’t write off training them as IT technicians unless it directly applies to their job description. There are educational opportunities are available online and many are offered as a subscription, allowing employees to learn at their own pace.

These are just a few smart buys that improves your business and can lower your taxes. There, of course, are others, but in terms of “moving the sales needle,” these can’t be beat based on our experience working with business owners to finance equipment.

Human resource, Talent management, Recruitment employee, Successful business team leader concept

How to Attract Qualified Operators to Make the Most of Your Financed Equipment

by Business AdviceIndustry News

Hiring and Retaining the Best Talent Starts with Writing the Job Description

Prior to the global pandemic, the national unemployment rate was low, leaving millions of jobs unfilled. COVID-19 struck and unemployment soared, but with economic activity resuming, the unemployment rate fell to 7.9% in September.

In talking with our clients, we’ve noticed that finding and keeping “good people” are top priorities, even for those currently experiencing a slowdown in business. Eventually, a rebound will occur and business owners want to be ready to hit the ground running with the best operators in their equipment’s driver seats.

Our team has heard that employers have found their best employees from just about anywhere—word of mouth, Craig’s List, Facebook, online job sites like Indeed and more. No matter where or how you advertise your job openings, attracting qualified and experienced operators for your equipment starts with the job description.

Attract Quality Operators with a Two-Punch Job Description

We get it—you’re busy, and it’s easier and less time consuming to use the same job description over and over again. The reality is that there is a difference between what you post online to get candidates interested in working for your company and the specific job description you send to applicants who show interest in a specific position.

Your general online job posting should include information about the company AND the position. This is your chance to highlight your company culture and get applicants excited about the prospect of working there. You should include a general idea of what a specific position entails, but the focus is on the company. Happy employees who enjoy their work environment are less likely to leave, so cultural fit is key.

A detailed job description can be added to the online post or sent in a separate document to applicants who request more information. This is the time and place to get into the details. Be specific about job requirements, expectations, qualifications, experience and certifications. Remember, you’re putting this person in charge of equipment. Hiring inexperienced operators can cost you in terms of project quality and equipment performance. Plus, not fully disclosing job requirements can land you in court should you fire an employee for lack of fulfilling job duties and he or she claims the requirement wasn’t clear.

The Most Important Words to Include in Your Job Posting

“Other duties as required.” Job roles evolve over time and more quickly for smaller businesses that are growing or cutting back. You may have to ask employees to take on more or share responsibilities as your staff size increases and decreases based on work load.

Begin the job description with a 30,000-foot overview of the responsibilities, then include shift and physical requirements, non-negotiable certifications and work conditions that might filter out unqualified applicants. This also is where you can touch on expected “people skills” that are important, especially if the position is customer facing. Think about the environment and conditions, this employee will work under and describe those so that the candidate need not apply if you’re seeking night shift and he or she is only available for day shifts.

Be Aware of Gender, Age and Typo Traps

Quality operators want to work at quality companies. Your job ads, descriptions and even online company reviews make your business’s first impression on job seekers. For positions where details are important, a posting with typos won’t grab the attention of a detail-oriented employee.

Avoid using language that can be considered discriminatory. Even in fields that are heavy equipment related, women are qualified candidates in a traditionally male-dominated industry. Same goes for age. With age comes experience, which is important when you’re putting an employee in charge of expensive equipment in any field.

In preparation to return to pre-pandemic tight employment numbers, now is the time to begin thinking about your hiring strategy to find and retain the most qualified employees—ones whom you can trust to expertly operate your financed lease equipment. Finding the best candidates starts with writing your best job description.

Website

Using Landing Pages to Increase ROI After Leasing New Equipment

by Business Advice

You’ve made the decision to lease equipment to meet market demand, increase your sales or move in to an additional line of business. How good of a decision that was depends on the return on investment (ROI) you earn after adding the leased equipment to your fleet or service offerings. Oftentimes, your ROI is a direct result of the marketing strategy driving sales, unless the equipment is solely leased to improve your employees’ productivity and then the ROI is measured in other ways.

We posted a blog about marketing the capabilities of your new equipment  that included information on PPC ads. One of our recommendations was to create a landing page designated to it. Social media posts, sales emails and PPC ads can click through to that page.

What is a Landing Page?

A landing page is a webpage that speaks to web visitors and compels them to take a certain action in a certain way. Meaning, this landing page would target those interested in services you can perform with that specific equipment and compel them to request a quote, schedule an appointment, etc., ideally via benefit-focused content and a prominent contact form. 

What a Landing Page is Not

A landing page is not just a regular page on your website about your company, other services, other products or such.

What Makes a Landing Page Effective in Increasing ROI?

When a prospect or existing customer clicks on a PPC ad to learn more about what you can offer thanks to your new equipment, they have a specific problem that needs solving. For example, you lease a bobcat and a customer needs land cleared and leveled. An effective landing page makes it clear that your company is the solution and has the equipment for the job. That doesn’t necessarily mean calling out that the equipment is new unless it is brand new to the market. Instead focus every element of your landing page on WIIFM (what’s in it for me?).

The key elements of an effective landing page are:

  • A strong headline that grabs readers’ interest by focusing on solving their problem.
  • A supporting headline that touches on the most important details or benefits.
  • Eye-catching imagery that reflects what you’re selling. This isn’t always an image of your leased equipment. Frankly, sometimes an image of the equipment isn’t interesting or compelling. But what it does cheaper, faster, better certainly is.
  • A short summary of the benefits that is customer focused.
  • A call to action that makes it easy for visitors to do what you want them to do. This can include a special offer, too.
  • Proof that what you’re saying is the truth, which can be in the form of testimonials, a case study or details of the equipment.
  • A final call to action to reinforce and summarize everything in your landing page and offer one last way to contact you.

Getting the Most Traction from Your Landing Page 

Google Ads campaigns are the obvious entry point to click through to your landing page. Plus, there are traditional marketing avenues that can lead users to your landing page. Any marketing channel that leads to your landing page designed to promote your new or improved capabilities can increase the number of clicks-to-sales conversions. 

When using a landing page URL in marketing, keep the URL as short as possible. For example, yourcompany.com/level-land compared to yourcompany.com/bobcatmodel43o8H. The reason is that the URL has to be memorable should it be heard and short if it is to fit on printed material.

Consider driving traffic to your landing page from:

  • Direct mail
  • Radio/streaming ads
  • Social media posts
  • Billboards/banners
  • Print ads

It may seem odd that an equipment financing company is giving marketing advice, but it makes perfect sense given that we’re invested in our customers’ success. Bottom line: when you succeed, leased equipment payments are made on time, which keeps us in business and able to fund even more business owners’ leased equipment needs. If you’d rather work with a partner instead of a vendor, reach out to the Global Financing & Leasing Services team.

Digital-Marketing

How to Brilliantly Market the Capabilities of Your New Equipment

by Business Advice

Once your equipment financing is in place, it’s time to market the capabilities the equipment brings to your company to generate buzz to grow sales and revenue. You can’t afford to take a “If we build it, they will come” approach. Customers can only come to you for bids, new business and expanded services when you get the word out through multiple marketing channels.

Expert tip: When deciding on leasing equipment, ensuring you have sufficient budget to market what it brings to the table should be part of your financial decision. Your inbound marketing plan should be ready to go prior to taking possession of the equipment.

Knowing you have to market your improved or additional capabilities is one thing. Doing it is another, but it’s essential to your success whether your leased equipment brings expanded capacity or a new service/product line.

Start with Search Engine Optimization

We could write a book on search engine optimization (SEO), and many SEO experts have. In a nutshell, SEO starts with narrowing down your keywords, which are the word(s) people type into a search engine to find your business, product or service.

For example, Global Financial & Leasing Services is a leading provider of equipment financing. Therefore, we want business owners who need equipment financing to find our website when they search online for equipment financing providers. One of our keywords is “equipment financing.” A more specific keyword (long tail) for us is “construction equipment financing.”

One of the best keyword research tools is Google’s keyword planner. Once you have a strong list of keywords to market what you can do thanks to your new equipment, you have the foundation for your marketing content: a new page or copy on your website, blogs, digital ads and such. The more a search engine sees your keyword used in RELEVANT content across the internet, the higher it will rank your website for that keyword. In other words, the more likely your business is to be found.

Remember Retaining Customers is Cheaper (and Easier) Than Acquiring New Ones

You financed equipment to provide a new or improved offering, expand your capabilities to meet customer demand, fill a gap in the marketplace or offer a better user experience. Reaching new customers is key to growing business, however, your current customers represent low-hanging fruit. They already know your company, so there are fewer hurdles to reach and engage them.

Immediately, get the word out via email and social media. Those on your email list and those following your company on social media have already shown an interest and have opted in to receive your messages. Sell the benefits of what is new or different and include a call to action to get more information, a quote, etc.

Consider a Strategic Pay-Per-Click (PPC) Campaign

Google Ads puts your company and services and/or products front and center of those searching for what you offer. The gist of it is that you only pay when the user clicks on your PPC ad. Since you’re allowed to set a maximum budget for the month, you can control your PPC advertising costs. PPC campaigns can be turned on and off, allowing you to manage your workload, too. Google Ad specialists can help you set up your campaign if you’re uncomfortable running with it on your own.

Where users go after they click on your ad is key to turning a cold lead into a hot one. Before engaging in a PPC ad campaign, invest time in beefing up the page on your website that features your new equipment. Better yet, create a landing page designated to it if you anticipate demand and sales warranting one.

LEARN MORE: USING LANDING PAGES TO INCREASE ROI ON YOUR LEASED EQUIPMENT

Remember: Marketing Doesn’t Happen in a Bubble

Brilliantly marketing your capabilities available with new leased equipment takes a multi-channel strategy, combining proven tactics that work for your industry. It’s rare, if ever, that a single email will move the sales needle. Or for that matter a single social media post or a PPC ad that clicks to nowhere.

Marketing doesn’t happen in a bubble. To be the most effective, take advantage of the many marketing tools available today. That way, you’ll reach a maximum number of customers and prospects multiple times, which keeps your company top of mind, builds recognition and generates sales.

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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.