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Used vs. New Equipment: When Financing Pre-Owned Makes Sense (And When It Doesn’t)

by Benefits of LeasingBusiness AdviceEquipment FinancingFinancing

Used vs. New Equipment: When Financing Pre-Owned Makes Sense (And When It Doesn’t)

In a perfect world, business owners would always have the cash, confidence and clarity to go straight for brand-new equipment. But in the real world, especially during uncertain economic times, business owners must weigh their options carefully. That’s when the question comes up: Should I finance used equipment, or does it make more sense to go new?

The Global Financial & Leasing Services (GFLS) team helps business owners across several industries figure that out every day. There’s no one-size-fits-all answer, but there are smart guidelines that can help you make the right move, financially and operationally.

Here’s when it makes sense to finance used equipment, when new is worth the investment and how to avoid the common pitfalls either way.

Why Financing Used Equipment Can Make Sense for Your Situation

There’s a reason demand for used equipment has gone up in recent years; it’s practical. You get what you need, without overextending yourself. Here are some scenarios where financing used equipment makes more sense.

1. You Need to Control Cash Flow

Used equipment usually comes with a lower sticker price. That means lower financing amounts, smaller monthly payments and less risk if you need to pivot later. For business owners looking to preserve liquidity, used equipment is often a strategic play.

Example: A construction crew replacing a skid steer mid-season may opt for a used model so they can keep working while holding cash for payroll and materials.

2. You’re in a Short-Term or Project-Based Role

If the equipment is only needed for a short amount of time or a specific project or contract, going used can be a no-brainer. Financing used equipment gets the job done without a long-term financial tie.

Benefit: Some used financing terms are shorter, so you’re not stuck with a 5-year payment plan for a 9-month job.

3. Availability is Everything

During supply chain slowdowns or market-wide demand spikes, new equipment can be backordered for months. If your project or contract can’t wait, financing used equipment can be the fastest path forward.

At GFLS, we help clients identify in-stock used options and finance them quickly, so they can get to work without delay.

4. The Equipment Type Isn’t Tech-Heavy

Some equipment doesn’t change much from year to year. Think trailers, generators, basic construction equipment or ag gear. If the performance difference between a 2-year-old unit and a new one is minimal, why pay for more?

If the equipment has been inspected and well maintained, it can be a smart way to stretch your budget and preserve cash.

When New Equipment is Worth Financing

Used doesn’t always win. Sometimes, new is the better long-term move. Here’s when financing brand-new equipment makes more sense.

1. Technology or Compliance is a Factor

Some industries, like medical or manufacturing, have strict compliance or tech standards. If staying competitive or legal means staying current, financing new ensures you’re not buying equipment that’s already outdated.

Tip: Many OEMs offer promotional financing on new units. We can help you evaluate whether those terms actually save you money over time.

2. You’re Building for the Long Haul

If this piece of equipment will be a staple in your business for the next 5 to 10 years, new might offer more ROI. You’ll get the full lifespan, warranty protection and peace of mind.

3. Used Options are Hard to Find or Don’t Check Out

Sometimes used equipment isn’t all that cheaper, and it’s just risky. Some used equipment might be in high demand and hard to find, which puts the price close to new. Some used equipment is risky. If the maintenance history is sketchy, the machine has hidden wear or the price isn’t much better than new, walk away. Financing new may cost more upfront, but it can save you in repairs and downtime.

How GFLS Helps You Decide

We’re not here to push one direction or the other. Our job is to help you make the best financial move for your business. We’ll ask about your timeline, your budget, your workflow and your goals. Then we’ll lay out the best financing options, whether that’s a gently used piece of equipment or the latest model straight from the dealer.

We’ll help you:

  • Compare used vs. new pricing and terms
  • Explore lease or loan structures based on your needs
  • Move fast when the right equipment becomes available

New or Used, Focus on Financing Equipment That Moves Your Business Forward

Don’t let the used vs. new decision hold you up from growing your business. What matters most is whether the equipment will help you do more, earn more and run your business more efficiently. With the right financing structure, either financing used, or new equipment can be a smart move.

Let’s talk through your options. Contact us to set up a meeting or start your application now.

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Financing Smarter in Tough Times: How to Secure Equipment When the Market Gets Rough

by Benefits of LeasingBusiness AdviceEquipment FinancingFinancing

Financing Smarter in Tough Times: How to Secure Equipment When the Market Gets Rough

If you’re feeling like things are shaky out there, you’re not alone. Rates are climbing, banks are cautious, and a lot of business owners are holding their breath waiting to see what happens next. But when you’re running a business, you don’t necessarily have the luxury of time. You still need equipment. You still have jobs to do. So, you still need financing for essential business equipment.

At Global Financial & Leasing Services (GFLS), we talk to business owners and brokers every day who are trying to make the numbers work while navigating market uncertainty. The good news? You can still get the equipment you need; you might just need to go about it a little differently, especially if your credit history is less than perfect.

Here are six smart ways businesses are securing financing right now, even with an uncertain economic future.

1. Lease Instead of Buy to Keep Cash Flowing

Right now, cash is more valuable than ever. That’s why equipment leasing has become such a smart move. Instead of making a gigantic purchase upfront, leasing lets you:

  • Keep your working capital intact
  • Spread out payments over time
  • Still get the equipment your business needs now

You’re not sacrificing quality, either. Many lease agreements offer buyout options, upgrade paths and tax advantages. It’s a way to move forward without draining cash reserves.

2. Turn Your Assets into Capital

Here’s something a lot of businesses forget: the stuff you already own, such as equipment, vehicles and inventory has value. That value can be leveraged.

Asset-based lending is one of the most underused tools in uncertain times. You’re not asking lenders to take a risk on a spreadsheet. You’re backing your financing with hard assets. That’s a much easier “yes” in today’s market.

And it’s not just about credit scores. It’s about what you’ve already built. Plus, often times when you’re financing equipment, the equipment itself can serve as collateral for financing.

3. Used Doesn’t Mean Second-Rate

If you’ve always purchased brand-new equipment, now might be the time to rethink. Used equipment can get the job done and cost significantly less.

Not only are payments lower, but you’re less exposed if the economy tightens further. At GFLS, we help clients find and finance reliable used equipment every day.

Used equipment lets you stretch your budget without cutting corners. Think of it like buying a pre-owned vehicle. It still runs perfectly fine, but someone else took the huge depreciation hit as soon as it was driven off the lot.

4. Get Your Financials in Shape, Even If They’re Not Perfect

One of the fastest ways to move an equipment financing deal forward is by having your financials ready. You don’t need to have perfect numbers, but updated financials, a couple of recent tax returns and a rough budget or business plan go a long way.

Story-based lenders, like GFLS, don’t expect you to be flawless. We do want to know you’re thinking ahead.

Not sure where to start? That’s where the GFLS team steps in. We’ve helped countless businesses organize their paperwork and secure financing without making it a headache on your part.

5. Work with a Lender Who Understands the Business Side of Things

Traditional banks aren’t built for this. When the economy starts to wobble, they get conservative. They tighten requirements. They take their time. They reject more equipment financing applications.

But you don’t have time. Many don’t meet traditional banks’ credit score requirements.

At Global Financial & Leasing Services, we do things differently. We talk to you like a human, not software analyzing numbers. We ask questions, listen to what you’re trying to accomplish and then find a way to help you get it done. Sometimes it’s structuring seasonal payments. Sometimes it’s not requiring a down payment. Sometimes it’s just being faster or more flexible.

6. Keep an Eye on the Market, But Don’t Freeze

It’s smart to stay informed, but don’t let headlines paralyze you. Some of the savviest moves are made in down markets. Right now, we’re seeing clients:

  • Grab discounted equipment from sellers who need to move inventory
  • Finance now while their competitors hesitate

The point is that you don’t need a perfect economy. You just need a plan. And a lending partner, like GFLS, who’s focused on solutions.

Our team doesn’t expect you to have it all figured out. That’s what we’re here for. Whether you need equipment financing, want to explore leasing or just want to talk through your options, we’re happy to help. Contact us to set up a meeting or start your application now.

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Understanding the Environmental Impact of Your Equipment Choices

by Business AdviceEquipment FinancingFinancingStartups

Understanding the Environmental Impact of Your Equipment Choices

You already know that financing the right equipment is critical for staying productive, meeting customer expectations and demands, and gaining or maintaining your company’s competitive edge. And the more competitive your industry, the more critical your equipment choices are.

But beyond performance and efficiency, there’s another consideration to keep in mind. In honor of April’s Earth Day, we’re answering the question: how do your equipment choices impact the environment? From construction machinery to titled vehicles, the equipment your business uses every day contributes to your environmental footprint. The good news? Choosing sustainable equipment can benefit both the planet and your bottom line.

Why Equipment Choices Matter More Than Ever

Whether it’s on a job site, in a clinic or on the road, every piece of equipment your business operates affects the environment. Older, outdated models often consume more energy, emit more pollution and generate more waste. On the other hand, newer, energy-efficient equipment is engineered with sustainability in mind. Upgrading to modern technology helps reduce environmental impact and can lower your long-term costs related to energy use, maintenance and regulatory compliance.

Here’s a closer look at how essential business equipment used across various industries can impact ecological footprint:

  • Construction Equipment: Traditional heavy machinery burns a lot of diesel, which produces significant carbon emissions. Newer models are cleaner, more efficient and better for air quality.
  • Medical Equipment: Hospitals and clinics are energy-intensive environments. Upgrading to newer, energy-efficient medical devices reduces electricity usage and even can improve quality of patient care thanks to latest advances.
  • Logging and Forestry Equipment: Advanced technology helps reduce overharvesting and minimizes environmental damage, promoting more sustainable land management.
  • Manufacturing Equipment: Legacy systems are often energy drains. Modern machinery offers improved precision and energy use, resulting in cutting costs and waste.
  • Printing Equipment: Newer printers are built to reduce energy consumption, minimize paper waste, and streamline operations, all while saving money.
  • Titled Vehicles: Company vehicles can be a major emissions source. Replacing older models with fuel-efficient, hybrid or electric options lowers your carbon footprint and fuel costs.

The Business Case for Financing Sustainable Equipment

Financing environmentally friendly equipment isn’t just a responsible move; it’s a strategic one. Businesses that prioritize sustainability gain measurable advantages:

  • Lower Operating Costs: Energy-efficient equipment costs less to run and often requires fewer repairs compared to older equipment.
  • Boosted Productivity: Many newer models come with smart features that automate and simplify tasks.
  • Enhanced Brand Reputation: Customers and stakeholders are paying attention to sustainability. Eco-conscious operations can improve your brand image and attract business.
  • Regulatory Readiness: Following environmental standards, sustainable equipment helps keep your company compliant and avoids steep fines.
  • Financial Incentives: Many states offer rebates or tax credits for businesses that invest in green technology.

Financing Sustainable Equipment with GFLS

We know that upgrading your equipment isn’t always in the budget. That’s where Global Financial & Leasing Services (GFLS) comes in. We make it simple and more affordable to invest in sustainable equipment through flexible financing options tailored to your business.

Whether you operate in construction, healthcare, manufacturing, or another essential industry, GFLS offers:

  • 100% Financing: Get the equipment you need without upfront costs.
  • Flexible Repayment Terms: Customize payment plans that align with your cash flow.
  • Support for All Credit Types: We work with businesses regardless of credit score.
  • Fast Approvals: Don’t let financing delays hold you back. We move quickly on equipment financing decisions.

With GFLS, you can upgrade to eco-friendly equipment now and start enjoying the benefits.

Ready to Make a Difference?

Switching to sustainable equipment is more than a trend. It’s a smart, future-ready move. It supports your business growth, aligns with evolving environmental expectations and shows your customers that you care.

If you’re ready to take the next step, GFLS is here to help. Our team will work with you to create a financing plan that meets your needs and sets your business up for long-term success.

Contact GFLS or apply now to explore your sustainable equipment financing options.

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Ask the Equipment Financing Experts Q&A

by Business AdviceEquipment FinancingFinancingIndustry News

Ask the Equipment Financing Experts

Q&A with Josh Shull, CLFP, Director of Sales at Global Financial & Leasing Services

 

Welcome back to our “Ask the Equipment Financing Experts” blog series. At Global Financial & Leasing Services (GFLS), we provide financing solutions for equipment purchases ranging from $25,000 to $5,000,000, especially for business owners who don’t meet traditional lenders’ strict criteria. That’s why we’ve created this series: to bring expert insight straight from our experts who help business owners navigate equipment financing every day.

This month, we sat down with Josh Shull, CLFP, Director of Sales at GFLS. With a background in aerospace, government contracts and equipment lifecycle strategy, Josh brings a unique perspective on what business owners are facing right now and how GFLS helps them move forward.

Q: What are some of the biggest changes you’ve seen in the equipment financing industry over the first quarter?

A: Honestly, the biggest shift has been how tight the banks have gotten. Approvals are slower, requirements are stricter and a lot of small and mid-sized businesses are getting left behind. That’s where we’ve seen GFLS really step up. Because we’re direct lenders, we’re able to move quickly and look at the applicant’s full story, not just the credit score. We’re also seeing a lot more demand for used equipment financing as businesses look for ways to stretch their budgets.

Q: How do you see current economic conditions—rising interest rates, inflation and market volatility—affecting equipment financing in 2025 and beyond?

A: Rising rates have made monthly payments heavier, which puts pressure on businesses’ cash flow. But at the same time, inflation has driven up the cost of equipment, so waiting to purchase can be just as risky. We expect more business owners to seek flexible structures, like deferred payments or seasonal terms to ease the upfront burden. The forward-thinking ones are locking in equipment now before rates or prices climb further.

Q: What’s the most common mistake you see business owners make when securing equipment financing, and how can they avoid it?

A: A lot of folks either wait too long or only go to their bank. Then they’re stuck when that one option falls through. The smarter move is to talk to a direct lender like GFLS early in the process, even before you’ve finalized the equipment. We’ll take the time to understand your business and how the equipment fits into your bigger picture, which gives us more room to structure something that works, even if you’ve been in business for fewer than two years or don’t have perfect credit.

Q: What industries are seeing the most demand for equipment financing right now, and why?

A: Construction and transportation are still hot because of the amount of infrastructure work happening. We’re also seeing a big uptick in medical, dental and even some agriculture equipment. What these industries have in common is that they can’t afford to slow down, and they need real solutions fast. That’s why GFLS has become a go-to partner for many business owners in these industries. We specialize in story deals and make applying and approvals quick and realistic, even in complex situations.

Q: With changing tariffs and trade restrictions, how do you see these policies affecting equipment financing, particularly for industries reliant on imported machinery?

A: When import costs go up and delivery timelines stretch, it throws a wrench in the buying process. That’s where GFLS comes in with flexible terms, so businesses aren’t stuck waiting on financing while prices keep climbing. We’re also seeing some clients shift to domestic or used equipment, and we’re right there with them, ready to finance what makes sense in today’s environment.

Q: Are there any regulatory or government policy changes that business owners should be aware of when planning their equipment financing strategy?

A: A lot of our clients are taking advantage of tax incentives tied to clean energy or Section 179 deductions. If you’re buying equipment, or anything that qualifies for bonus depreciation, you should absolutely be talking to a lender who understands how to align financing with those benefits. At GFLS, we work closely with business owners and their CPAs to make sure their financing strategy supports year-end planning and long-term savings.

Q: What advice would you give to a startup or small business looking to finance equipment today?

A: Don’t assume you need perfect credit or years in business to get approved. What matters more is your story, your plan for the equipment and how it’ll help you generate revenue. Having a business plan—even a simple one—goes a long way in helping tell your story. And if you build a relationship with GFLS early, we can help you structure a deal that supports your growth from day one.

Q: What emerging trends or technologies do you think will have the biggest impact on equipment financing in the next five years?

A: AI is already changing how financing works, allowing for faster decision-making, better fraud detection and smarter approvals. But we’re also seeing more smart equipment, EVs and automation coming into play across industries. That’s going to shift not just how businesses operate, but how they think about financing long-term assets.

Have a question for our experts? We’re here to help. Contact GFLS today and talk with a real decision-maker who understands your business and how to structure financing that fits.

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Five Equipment Financing Strategies for Rapidly Scaling Startups

by Business AdviceEquipment FinancingStartups

Five Equipment Financing Strategies for Rapidly Scaling Startups

Scaling a startup is exhilarating. Until you hit a roadblock, then it can be difficult deciding which is the best workaround. Whether it’s outdated machinery slowing down production or a lack of funds preventing expansion, many startup owners find themselves at a crossroad between rapid growth and limited resources. Equipment is essential to scale, but purchasing outright can drain your capital and leave you struggling to cover other expenses like hiring, marketing and product development—all equally important to scale up. As your startup gains traction, the need for better technology, machinery and other essential equipment grows. But with rapid expansion comes a crucial question: How do you secure the essential business equipment you need without draining your cash flow?

That’s when smart equipment financing strategies are necessary. Instead of using up cash reserves, the right financing approach allows startups to scale efficiently while keeping operations flexible and preserving resources for other key areas. With options like leasing, equipment loans and vendor financing, startups can get what they need to expand without risking their momentum.

  1. Preserve Cash Flow with Equipment Leasing

For startups, cash is king — and keeping sufficient reserves is crucial for long-term stability and success. Instead of making large upfront purchases, leasing equipment offers a more affordable way while keeping your cash flow steady.

Why Leasing Works for Startups:

    • Lower upfront costs compared to purchasing
    • Predictable monthly payments for easier budgeting
    • Flexibility to upgrade to newer technology as needed

Startups in technology, healthcare and manufacturing benefit from leasing because it allows them to stay competitive without the financial strain of large equipment purchases. Also, many leasing agreements can include maintenance and service, reducing unexpected costs.

  1. Explore Flexible Equipment Loans

For startups that prefer ownership, equipment loans provide a way to finance purchases while spreading costs over time. Many lenders offer loans covering up to 100% of the equipment cost, making them an attractive option for businesses investing in long-term assets.

What to Consider When Choosing an Equipment Loan:

    • Competitive interest rates to keep costs manageable
    • Flexible repayment terms that align with projected revenue growth
    • Favorable approval terms, even for startups with limited credit history

At Global Financial & Leasing Services (GFLS), we work directly with startups to structure financing solutions that align with their growth plans, helping them access equipment without unnecessary financial strain.

  1. Unlock Capital with a Sale-Leaseback

While unlikely outside of the strongest assets and highest credit ratings, a sale-leaseback can serve as a stopgap measure when poor planning during the equipment acquisition phase leads to unexpected cash flow shortages. This strategy allows businesses to sell their equipment to a lender and lease it back, maintaining access to essential tools while converting assets into working capital. Typically structured with terms of 24-60 months, it can also offer tax-deductible payments and an option to reclaim ownership at the end of the term. However, lenders often require a Certified Asset Appraisal and will only advance a percentage of the Forced Liquidation Value.

  • Benefits of a Sale-Leaseback:
    • Immediate cash infusion to cover financial gaps
    • Continued use of essential equipment
    • Potential tax benefits, depending on the deal structure

GFLS has helped startups navigate cash flow challenges by leveraging sale-leaseback agreements, ensuring they have the capital to sustain and grow their operations despite early-stage financial missteps.

  1. Take Advantage of Vendor Financing Programs

Many equipment manufacturers and suppliers offer vendor financing programs, helping startups acquire machinery and technology with flexible payment plans. However, many of these programs struggle to approve startups due to stricter credit requirements, leaving a gap in financing options. That’s where GFLS comes in.

  • Advantages of Vendor Financing:
    • Fast approval and funding timelines
    • Equipment-specific financing structures tailored to startup needs
    • Potential promotional rates, such as deferred payments or lower interest

While vendor financing can be a great option, it’s essential to compare offers. GFLS works directly with vendors to provide financing solutions, helping startups secure funding even when traditional vendor programs fall short.

  1. Combine Multiple Financing Strategies

For startups with unique financial needs, mixing multiple financing strategies can be an effective way to optimize resources. For example, you could lease some equipment while financing other assets with an equipment loan or combine vendor financing with cash payment, meaning there is more than one way to obtain equipment needed to scale up a business.

Find the Right Financing Partner for Your Startup

Selecting the best equipment financing strategy depends on your startup’s cash flow, growth trajectory and industry needs. Working with an experienced lender who understands startup dynamics can make all the difference in securing the most favorable terms and keeping expansion on track.

GFLS’s team understands that startups need fast, flexible financing that works with their rapid growth—not against it. Whether you’re looking for leasing options, equipment loans or a customized financing structure, our team is here to help. We work with startups, ensuring they have access to the equipment they need without putting their cash flow at risk.

Talk to our financing specialists today and get the equipment you need—without putting your cash flow at risk.

 

Block chain concept - digital code chain. 3d rendering

How is Blockchain Impacting Equipment Financing?

by Business AdviceEquipment FinancingFinancingIndustry News

Blockchain technology is revolutionizing industries across various sectors, but its role in equipment financing is still in the early stages. While blockchain has great potential for transforming how businesses secure financing, its adoption remains a bit limited. Most equipment financing today is still handled through traditional lenders, but companies are beginning to explore how blockchain can enhance transparency, security and efficiency.

Some financial institutions are experimenting with it to streamline processes and reduce fraud. As this technology continues to evolve, it may create new financing solutions beyond traditional lenders, allowing businesses to scale without unnecessary constraints. However, working with an alternative lender, like Global Financial & Leasing Services offers these benefits today. How? We’re not constrained to credit scores. Instead, we look at your financial story. In addition to being a direct lender, our broad network of financial partners and lenders gives us access to various funding options. This means we can explore multiple avenues to find the best fit for your business, increasing the likelihood of approval.

Potential for Increased Transparency in Equipment Financing

One of blockchain’s advantages is it creates transparency. As a decentralized ledger, blockchain records every transaction in a secure, absolute format. This ensures that all parties involved — lenders, borrowers, and regulators — can access a verified, tamper-proof record of financing agreements.

This level of transparency could minimize disputes, expedite approval processes, and foster trust between applicants and lenders. Borrowers would gain real-time insight into their financing terms, payments and outstanding balances, while lenders could efficiently track loan repayments and collateral. Additionally, blockchain’s ability to provide instant data access could help businesses with multiple locations manage their financing details effortlessly.

Enhancing Security and Reducing Fraud

Fraud is a persistent issue in equipment financing, from forged documents to inflated asset valuations. Blockchain has the potential to mitigate these risks by creating an unchangeable record of transactions, making fraudulent activities significantly more difficult to execute, protecting borrower and lender alike.

Plus, blockchain’s smart contracts — self-executing agreements with predefined conditions — could add an extra layer of security. These digital contracts automatically enforce terms, ensuring transactions proceed as agreed without intermediaries. This feature would not only minimize fraud risk but also accelerate loan approvals, enabling businesses to acquire equipment more quickly.

The Possibility of Streamlining the Financing Process

If you’ve ever applied for equipment financing the traditional way, you know how time-consuming and complex it can be. Blockchain has the potential to simplify and accelerate the process by automating financial transactions and reducing paperwork.

Blockchain-powered lending platforms could allow businesses to apply for financing, undergo verification and receive funds much faster than conventional methods. This could be especially beneficial for small and mid-sized businesses that require quick access to equipment to maintain operations and meet market demands. GFLS’s streamlined application process already drastically cuts down on approval time, plus gives applicants a direct line to decision makers, meaning financing is often approved within days, not weeks or months.

Another major advantage would be improved data accuracy. Blockchain’s decentralized system could ensure records are updated in real-time and verified across all stakeholders, reducing errors and administrative time. This could make financing more accessible, even for businesses with less-than-perfect credit histories.

The Future of Blockchain in Equipment Financing

Blockchain’s role in equipment financing is still evolving, and while its full-scale adoption is not yet a reality, its potential is there. As more financial institutions and businesses explore blockchain-based solutions, we may see:

  • Faster loan approvals: Automated verification and smart contracts could cut down on paperwork and speed up decision-making.
  • Lower costs: Eliminating intermediaries might reduce administrative fees and operational expenses for both lenders and borrowers.
  • Greater accessibility: Peer-to-peer lending networks powered by blockchain could open financing opportunities for businesses that struggle with traditional lenders.
  • Improved regulatory compliance: Blockchain’s transparent, immutable records could simplify compliance with financial regulations, minimizing audit risks and legal complications.

Looking Ahead and in the Meantime

Equipment financing is evolving, and blockchain is a technology that has a lot of promise. However, while some lenders are beginning to experiment with it, mainstream adoption remains a work in progress. Our experts recommend staying informed about how blockchain could impact equipment financing in the coming years, but for now, build a partnership with an alternative, direct lender, like GFLS. While blockchain may play a more significant role in the future, we focus on providing practical, accessible financing solutions today.

If you’re looking for a lender that understands alternative financing needs, contact us today to learn how we can help your secure equipment financing tailored to your business.

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The Impact of Economic Indicators on Equipment Financing Rates

by Business AdviceEquipment FinancingIndustry NewsUncategorized

Now mid-way through Q1, business owners are keeping a closer eye than ever on economic headlines about tariffs, layoffs, inflation and interest rates—all of which singly or combined will affect companies. While we cannot control the economy, our team can help you navigate how external factors impact equipment financing.

Interest rates, loan terms and approval criteria are directly influenced by key economic indicators like inflation, employment rates and GDP growth. Understanding how these indicators shape financing conditions helps you make informed decisions on when and how to invest in new or preowned essential business equipment. Also, shifts in global markets, supply chain dynamics and federal policies all play a role in shaping financial conditions that impact your business’s growth and sustainability.

There are recent technology advancements altering the way businesses approach financing. Digital lending platforms, automated approval processes and alternative lenders, like Global Financial & Leasing Services (GFLS), have expanded access to funding. While you now have more options, making the right financing choice requires a clear understanding of how economic trends affect borrowing opportunities. So, let’s start with equipment financing rates and inflation, which is up to 3% as of January.

Inflation and Equipment Financing Rates

Inflation is one of the most significant economic indicators affecting equipment financing. When inflation is high, the Federal Reserve often raises interest rates to curb spending and stabilize prices. This, in turn, increases borrowing costs, resulting in higher monthly payments and potentially stricter approval requirements for equipment financing. On the flip side, when inflation is low, interest rates tend to decrease, making financing more affordable and accessible.

Beyond influencing interest rates, inflation (and impending possible tariffs) also affects the cost of equipment itself. Rising material and manufacturing costs can drive up equipment prices, making it even more crucial for businesses to secure favorable financing terms. Inflation also impacts consumer spending, which can affect business revenue. When you anticipate economic shifts and secure financing at the right time, you can position your business for stability and long-term growth.

For business owners, keeping track of inflation trends is crucial. If rates are expected to rise, locking in an equipment financing deal sooner versus later can mean substantial long-term savings. Our advice: if you’re planning on financing equipment or leasing in 2025, talk to our experts now.

Employment Rates and Business Lending

Employment rates influence lending conditions. When unemployment is low, consumer spending increases, and businesses experience higher demand. This often leads to more favorable lending conditions as lenders gain confidence in borrowers’ ability to repay loans. However, in periods of rising unemployment, lenders tend to tighten approval requirements, making it more difficult for businesses — especially those with less-than-perfect credit — to secure financing.

At GFLS, we recognize that business success isn’t dictated solely by economic conditions. Unlike traditional lenders that may restrict financing during uncertain times, we offer flexible solutions, helping you obtain the essential business equipment you need regardless of employment fluctuations.

Related reading: Amid Tightening Credit Conditions, Vendors and Brokers Find Opportunities with Alternative and Story Lenders

GDP Growth and Equipment Investment

Gross Domestic Product (GDP) growth is a key measure of economic strength. When GDP expands, businesses tend to invest more in equipment, workforce expansion and operational improvements. Strong GDP growth instills confidence in lenders, often leading to more favorable financing options such as lower interest rates and extended repayment terms.

During times of sluggish or negative GDP growth, traditional lenders become more cautious, tightening credit requirements and making financing more difficult to secure. This is when working with a direct lender like GFLS becomes highly beneficial. Since we evaluate financing applications based on a business’s ability to service its debt rather than just its credit score, we can tailor solutions that align with unique financial situations, even in uncertain economic times. A customized equipment financing solution starts with an application.

What Business Owners Can Expect in 2025

Our advice is to stay informed about economic indicators that could impact your financing options. Inflation, employment trends and GDP fluctuations will continue to influence equipment financing conditions, and staying ahead of these changes will be essential if you’re looking to invest in equipment.

One of the best ways to navigate these shifts is by partnering with a lender that understands the needs of small to mid-sized businesses. GFLS offers fast, flexible financing solutions that aren’t dictated solely by economic conditions. Whether interest rates are rising or falling, we help business owners obtain the equipment they need to maintain a competitive edge.

Take Control of Your Equipment Financing

Economic conditions will always impact financing rates, but they don’t necessarily have to limit your ability to grow and succeed. By staying informed and working with a lender that prioritizes your business’s needs, you can make smart financial decisions regardless of market fluctuations.

Whether it’s securing financing before interest rates rise, timing equipment purchases or leases strategically or exploring alternative lending options, having a well-thought-out financial plan can set your business up for long-term success.

If you’re considering financing equipment in 2025, now is the time to act. Contact us today.

 

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Financing Solutions to Help Small to Mid-Sized Businesses “Crush Their Competition” in 2025

by Business AdviceEquipment FinancingFinancing

As we slide into 2025, small to mid-sized businesses across the country continue to face unique challenges when it comes to securing financing for essential equipment. The economic landscape will (and has already) shifted with a new administration that’s expected to change regulations and laws, so adapting to opportunities and obstacles is crucial.

Traditional lenders may still struggle to understand your specific needs and operations, especially if you have less-than-perfect credit. That’s where Global Financial & Leasing Services (GFLS) comes in and fills an equipment financing void. We specialize in providing full-service, direct lender solutions tailored to businesses like yours.

By using our own capital and offering fast, flexible equipment financing, we empower businesses to thrive in this evolving economic landscape, and very competitive markets. For example, one of our clients shared, “Thank you so much for all of your help and incredible speed. This new piece of equipment will be a game changer for my business. No one within 250 miles of me has one. I will crush my competition!”

A little competition is good for everyone, from business owners and labor to consumers, right? Competition encourages businesses to innovate, improve efficiency and offer better products or services. It can also lead to lower prices and more consumer choices for, while encouraging workers to learn new skills. But everything has a flip side, and we’d be remiss to ignore that excessive or unfair competition can lead to negative effects, such as market instability, so balance is key.

What Challenges Small to Mid-Sized Businesses Face in Today’s Equipment Financing Climate

For many small to mid-sized businesses, acquiring the equipment necessary to maintain operations or scale growth remains a significant hurdle. Limited cash reserves often make it difficult or impossible to purchase essential business equipment outright, and less-than-perfect credit can disqualify applicants from traditional financing.

The changing economic environment, including rising interest rates and shifting market demands, has added another layer of complexity for those making financing decisions and those applying for financing.

Last but not least, industries such as construction, transportation, and healthcare continue to require specialized, high-cost equipment that traditional lenders may shy away from funding due to cost or risk.

These challenges can leave you feeling you haven’t many good options, but GFLS offers equipment financing solutions that overcome common challenges. How? By looking at each applicant as an individual — not a credit score — and tailoring deals to suit their unique needs.

How a Story Lender, like GFLS, is Positioned to Address These Challenges in 2025

GFLS was founded from the start (during the Great Recession in 2009, to be exact) to support small to mid-sized businesses with our tailored financing solutions. As a nationwide, direct lender, we supply fast, flexible equipment financing to non-investment grade companies and businesses struggling with traditional lending institutions.

Instead of requiring large upfront payments, we offer up to 100% equipment-based financing that spreads costs over manageable installments. This approach is often the best solution for business owners looking to preserve cash flow while obtaining the equipment they need to startup or expand.

Our approval process is another benefit. Unlike traditional lenders that heavily weigh credit scores, we evaluate your ability to service your current and proposed debt, ensuring that even businesses with fluctuating income can meet their financial obligations. For instance, a trucking company looking to upgrade its fleet can rely on us to provide a financing plan tailored to its monthly revenue, allowing it to scale operations without overextending its budget.

Additionally, our application process is fast and straightforward. Each application is handled by a direct decision-maker, ensuring quick approvals with minimal paperwork. This is particularly advantageous for businesses facing tight deadlines. For example, a small manufacturing business could secure equipment financing in just a few days, putting it in a better position to reach its 2025 goals right off the bat in first quarter.

Benefits of Partnering with Us in 2025

Partnering with us offers several advantages for small to mid-sized businesses. Flexible repayment options and low upfront costs improve your cash flow, allowing you to focus on other critical areas of growth. The ability to access essential equipment—even with credit challenges—means you can continue operating effectively and efficiently. And perhaps more importantly, our personalized support means that you receive a solution tailored to your specific goals and challenges, not an automated rejection.

Related Reading: Why a Second Opinion on Equipment Financing Could Save Your Business Money

How to Get Started on Financing Your Equipment

Getting started with GFLS in 2025 is simple. Fill out our secure online application. From there, one of our equipment financing specialists will work closely with you to understand your needs and create a customized solution. Once approved, you’ll have access to the equipment your business needs to thrive. It’s a hassle-free process designed to get you the equipment you need without frustrating delays.

Today, there is no longer any reason to rely solely on traditional lenders. With Global Financial & Leasing Services, you can overcome credit score challenges, invest in essential business equipment and reach your 2025 and beyond goals. Whether you’re interested in flexible leasing options or customized financing solutions, we’re here to help you succeed.

Contact us today to discuss how we can support your business’s equipment needs with innovative financing solutions.

 

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Understanding the Lifecycle of Equipment Financing

by Equipment FinancingFinancing

Understanding the Lifecycle of Equipment Financing

You know you need equipment to run and grow your business. You also know you don’t want to or can’t fund a big outlay of capital to obtain that essential business equipment. Sounds like a catch-22, right? Not necessarily. This is where equipment financing comes into play. Being approved for equipment financing allows you to get the equipment you need for a thriving business without depleting or tying up your cash reserves.

The process of financing equipment isn’t cut and dry, especially if you’ve struggled with credit approval in the past due to any number of reasons. If this sounds familiar, you’re not out of equipment financing options. While traditional lending institutions may reject your application, alternative or direct lenders, like Global Financing & Leasing Solutions (GFLS) can often approve your equipment financing. When you better understand the lifecycle of an equipment financing deal, you’re better positioned to make informed decisions and navigate the process smoothly. Here’s a closer look at the seven stages involved when working with GFLS, from your initial application to the final repayment.

  1. Initial Inquiry and Assessment

The lifecycle begins as soon as you identify the need for new equipment. This could be anything from construction machinery to medical equipment. At this point, you reach out to a direct lender, like GFLS, to explore your options. What sets GFLS apart as a direct lender is our ability to tailor solutions specifically to your needs. Unlike traditional banks, which often have rigid financing approval criteria, our team looks at each application differently. We focus on your ability to service your current and proposed debt rather than just your credit score—in other words, “your story.”

During this phase, a direct decision maker at GFLS handles the inquiry. The goal here is to understand your business’s needs and your financial situation to offer the most suitable financing options.

  1. Equipment Financing Application and Documentation

Once the preliminary assessment is complete, the next step is filling out an equipment financing application. GFLS uses our own capital, which means more flexibility and quicker decisions compared to traditional lenders and big banks. You will need to provide documentation that supports your ability to repay the financing request, such as financial statements, tax returns and details about the equipment being financed.

This stage also involves discussing the financing terms, including interest rates, repayment schedules and any collateral requirements. Since GFLS supplies fast, flexible equipment financing to non-investment grade companies, we are often able to finance business owners who might not qualify for traditional financing requests.

  1. Credit Review and Approval

The approval process is where you’ll notice GFLS is truly different from other lenders Instead of relying heavily on credit scores, the approval is based primarily on your ability to service your current and proposed debt. This approach is a miracle for business owners who have strong cash flow but may not have stellar credit.

GFLS founder & CEO, Jim Jenks, explains, “A lot of our competitors use a ‘Scoring Model.’ Through this method, they are making a credit decision—approved or rejected—on the application within minutes from the time they have received it. In most cases, there is no discussion with the applicant. That is very impersonal and highlights the lack of interest by funding source in their potential customers. We, on the other hand, don’t rely on a ‘model,’ we don’t rely on just the applicant’s FICO score or available credit amounts. We want to learn about the applicant. We want to understand what has happened in the past and what has been done to ‘course correct’ going forward. We are making our credit decisions on their potential to become successful in the future. We spend time with our applicants. They are not just a number to us.”

As a nationwide lender, GFLS has the expertise to assess a wide range of industries and business models. The credit review process is handled quickly because you’re working directly with our decision-makers, meaning you get the equipment you need, if approved, without waiting weeks or months.

  1. Agreement and Funding

Once approved, the financing agreement is drawn up. This document outlines all the terms and conditions, including the financing amount, interest rate, payment schedule and any specific covenants or requirements. At this point, you review the agreement and ask any questions you might have.

After the agreement is signed, the funds are disbursed quickly. With GFLS, there’s no waiting for third-party approvals, making the funding process faster and more efficient.

  1. Equipment Acquisition and Implementation

With the funds approved and available, you’re free to lease or purchase your new or pre-owned essential business equipment. This stage involves working with the equipment vendor and ensuring that the purchase aligns with the financing terms. Once the equipment is acquired, it’s put into operation, and you can start to benefit from the new asset, from accepting to contracts, expanding your services or offering new services and/or products.

  1. Repayment and Relationship Management 

The final stage in the lifecycle of equipment financing is repayment. Repayments are made according to the agreed-upon schedule. GFLS’s flexible repayment options are designed to fit the cash flow patterns of the business, ensuring that repayments are manageable. The phrase, “Your success is our success” is never truer than in a financing relationship.

Throughout the repayment period, GFLS continues to maintain a relationship you. Communication is the best way to handle any hiccups and adjustments if your business’s circumstances change and provides opportunities for additional financing as your business grows.

  1. Term Maturity and Renewal Options

As the equipment financing agreement approaches its contractual term, you have several options. Either pay off the remaining balance, refinance the equipment or explore additional financing for new equipment needs. GFLS’s role as a full-service lender means we can offer various options, tailored to your evolving needs.

Renewal options are particularly beneficial if you’re in an industry where you need to continuously upgrade equipment to stay competitive. By refinancing or entering into new agreements, you always have access to the latest technology without straining your capital reserves.

 

Read More: The Equipment Financing Glossary: Demystifying the Jargon for SMBs

The More You Know; the Better You’re Prepared to Get Equipment Financing

 

Understanding the lifecycle of equipment financing helps you make more informed decisions. Think of Global Financial & Leasing Services as a partner that not only provides the necessary capital but also offers a level of service and flexibility that traditional lenders simply can’t match. Whether you own a small business or a medium-sized enterprise, navigating the equipment financing lifecycle with a direct lender like GFLS can lead to more tailored solutions and a smoother overall experience. Ready to learn more or get started with an equipment financing application? Get in touch.

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Amid Tightening Credit Conditions, Vendors and Brokers Find Opportunities with Alternative and Story Lenders

by Equipment FinancingFinancingVendor Financing

Amid traditional banking’s tightening credit conditions, many business equipment vendors and loan brokers are feeling the impact. Recent updates reported in Monitor Daily’s Q2/24 Bank Credit Pulse highlight several key changes among large banks that are affecting—or should we say restricting—access to funding.

Here’s a closer look at these changes and how GFLS, a full-service direct lender, can help vendors and brokers take advantage of opportunities to get more applications approved and businesses forward.

Five Key Changes in Bank Credit Offerings

  1. Reduced App-Only Offerings
    • Impact: 11% of large banks have reduced the dollar value of their app-only offerings.
    • Challenge: This reduction means vendors and brokers must now gather more financial information from their customers, adding complexity to an already lengthy and burdensome approval process.
  2. Increased Time in Business (TIB) Requirements
    • Impact: 12% of large banks now require a longer TIB, with some increasing from 2 years to 3 years.
    • Challenge: Newer businesses and startups may struggle to meet these stricter criteria, limiting their funding options.
  3. Higher Minimum Deal Size Thresholds
    • Impact: 6% of banks have raised their minimum deal size threshold.
    • Challenge: Vendors and brokers may find it difficult to get larger financing deals approved at big banks.
  4. Stricter Standards for Financial Strength
    • Impact: 19% of banks have increased their standards for historical financial strength.
    • Challenge: This makes it harder for business owner with past financial challenges to get approved.
  5. Reduced Broker Business Volume
    • Impact: 17% of banks are reducing the volume of broker business they entertain.
    • Challenge: Brokers are looking for new funding sources to be a reliable and flexible partner.

How Global Financial & Leasing Services Partner with Equipment Vendors and Brokers

With these key changes in bank credit offerings, vendors and brokers need alternative funding solutions. Here’s how GFLS opens new opportunities:

  • Flexible Funding Options: Unlike the tightening bank standards, GFLS offers more flexible terms that can accommodate a wider range of business needs. As a nationwide lender, we provide equipment-based financing and supply fast, flexible equipment financing to non-investment grade companies—often in days, not weeks. With an average origination of over $180,000 this year and the ability to fund up to a million, we are well-positioned to compete for larger deals that big banks might now turn away.
  • Tailored Solutions: We look at each transaction differently, tailoring solutions best suited to the applicant. Our approval process is handled by a direct decision maker and is based primarily on the applicant’s ability to service their current and proposed debt.
  • Direct Lending with Own Capital: As a direct lender using our own capital, GFLS can offer the flexibility and speed that traditional lending institutions often lack. This makes us an ideal partner for business owners who struggle with equipment financing approval from traditional lending institutions.

Learn more: How Vendor Financing Can Support Your Sales Team

Proven Opportunities with a Proven, Trusted Direct Lender

The GFLS team has been building relationships with brokers, proving the growing need for flexible funding sources. We’re seeing more vendors and brokers seeking partners who can provide the support and flexibility they require to better support their customers’ equipment financing needs. Our team is focusing on this shift, asking vendors and brokers important questions about their current funding challenges:

  • Are you experiencing more turned-down opportunities?
  • How is the requirement for additional financial information affecting your business?
  • Are you aware of how GFLS can help fill the gaps left by traditional banks?

By offering tailored financing solutions, GFLS is ready to help vendors and brokers thrive in this changing credit environment. Bring your financing applicants to us and let’s grow and support business. Get in touch with us.