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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.

 

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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.

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The 5 Most Asked Questions About Equipment Financing

by Equipment Financing

Essential business equipment can run thousands to hundreds of thousands of dollars, requiring a significant investment and a major decision. Equipment financing offers a practical solution to obtain the equipment a business needs without the hefty upfront cash layout. Whether you’re a long-time business owner or just starting out, chances are you have questions about how equipment financing works and what it involves.

The five questions below are among the most common ones business owners ask the Global Financial & Leasing Services team about equipment financing, ranging from general concerns about affordability, eligibility and the implications of taking on debt to acquire new assets.

These questions address the typical informational needs of business owners who are considering financing options for their equipment needs:

What is equipment financing?

Who can apply for equipment financing?

What are the benefits of equipment financing?

How does the application process work?

What should I consider before applying for equipment financing?

  1. What is Equipment Financing?

Equipment financing refers to a loan used specifically to purchase or lease essential business-related equipment. This type of financing enables businesses to buy the necessary equipment immediately, while paying back the principal and interest over a set period. In the case of financing an equipment lease, the equipment can be purchased or returned at the lease’s end. Typically, the equipment itself serves as collateral for the loan, which can help to secure lower interest rates.

  1. Who Can Apply for Equipment Financing?

Eligibility for equipment financing can vary by lender, but generally, businesses can apply from a broad range of industries including:

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

Traditional lenders and big banks will look at aspects like your credit score, business financials and the longevity of your business. New businesses and startups may have a harder time securing financing due to a lack of financial history, but other factors like personal credit and industry experience can play a role. If you don’t have a favorable credit score, look at alternative lenders, like Global Financial & Leasing Solutions (GFLS) that dig deeper than the numbers to help you finance equipment.

  1. What Are the Benefits of Equipment Financing?

There are several benefits of equipment financing:

  • Preserve Cash Flow: Instead of paying the full price upfront, you spread out the cost, which can help maintain your business’s cash flow for other operational expenses.

  • Tax Advantages: Often, you can deduct the cost of leasing or loan payments as a business expense on your taxes.
  • Immediate Access to Equipment: Equipment financing allows you to acquire essential machinery right away, which can be crucial for bidding/starting new projects or expanding services or market share.
  • Flexible Payment Options: Many finance agreements offer flexible repayment terms to match your business’s cash flow patterns.
  1. How Does the Application Process Work?

The application process for equipment financing typically involves the following steps:

  • Application: You’ll need to provide details about your business and the equipment you wish to purchase.

  • Credit and Financial Review: The lender will assess your business and personal credit scores, along with your business’s financial statements and get in touch with questions.
  • Approval and Terms: If approved, you will be offered terms, including the loan amount, interest rate and repayment schedule.
  • Documentation: Finally, you’ll complete the necessary paperwork and, upon signing, receive the funds to purchase your equipment.

You can review GFLS’s equipment financing application.

  1. What Should I Consider Before Applying?

Before applying for equipment financing, consider these key factors:

  • Total Cost of Ownership: Look beyond the sticker price of the equipment to include maintenance, supplies and potential downtime.

  • Loan Terms: Make sure the repayment terms align with your business’s financial planning. Understand the interest rates and any potential fees involved.
  • Equipment Lifespan: Consider whether the equipment might become obsolete before you’ve finished paying for it. In which case, financing an equipment lease might make more sense for your business.

Related Reading: Key Trends in Equipment Financing for 2024

Equipment financing can be a strategic approach to upgrading your business’s capabilities without straining your finances. By understanding the fundamentals and preparing accordingly, you can make informed decisions for your business goals and financial situation. The GFLS team is here to help and answer any other questions you have about equipment financing. Get in touch with us.

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Beyond Credit Scores: The Human Side of Equipment Financing

by Equipment Financing

In the world where many feel like they are simply a number, there’s a unique approach that values people’s stories just as much as their credit score. It’s called “story lending” in the financing industry.

A lifeline for business owners whose credit scores aren’t perfect, story lenders offer more than just equipment financing; they provide a partnership based on understanding each applicant’s story.

Having story lenders as an option is so critical in equipment financing. Not only to be of service to those whose credit took a hit for reasons that may have been out of their control, but to also show that understanding business owners’ unique challenges and goals still matters today.

Traditional Banks Leave Many Behind

Many business owners with less-than-perfect credit scores often find themselves rejected by traditional banks. These institutions tend to stick to rigid credit models that don’t consider the full story behind a business owner’s journey, struggles and potential. This narrow view can unfairly shut down opportunities for those who’ve experienced a rough patch. And frankly, who hasn’t?

Story lenders set themselves apart by really looking at the “why” behind the numbers—maybe a tough economic phase, unexpected market changes, an untrustworthy partner or personal emergencies impacted their personal lives or their business. By learning the why behind a credit score, story lenders can see potential and risk in a fuller, more personal way. This approach not only recognizes the resilience and real potential of entrepreneurs, but also builds a relationship based on trust and mutual understanding. And what business owner couldn’t use another supporter in their corner, especially one specializing in financing?

What is a Story Lender?

At the heart of the story lending philosophy is building relationships, not just conducting transactions. Unlike traditional banks, where interactions often feel impersonal, story lenders engage deeply with business owners.

Here’s what makes this relationship-centric approach so beneficial for business owners who need financing:

  • Personalized Financing Solutions: Understanding each business’s unique challenges and needs helps story lenders create financing solutions that truly fit with what the business needs to grow and thrive.

  • Flexibility in Terms: Story lenders often provide more flexible terms, recognizing that many businesses, especially in sectors like manufacturing or construction, experience ups and downs. This could mean customized repayment plans that better match the business’s cash flow.

For example, Global Financial & Leasing Services recently had an opportunity where the applicant brought us an existing credit approval structure and asked if we could do better. The existing credit approval required a large 30% down payment (first payment). We were able to credit approve with a much smaller first payment. 

  • Support Beyond Lending: Story lenders often go beyond just financing; they offer guidance and advice, acting like business advisors. This can be a game-changer for small business owners who might not have a mentor or advisory networks.

This kind of in-depth support not only helps businesses financially, but also boosts their long-term success, contributing to stronger local economies and communities.

The Value of the Story Lending Approach in Today’s World

In today’s often impersonal business environment, the story lending approach brings a crucial human touch to finance. This approach is especially valuable today because it:

  • Encourages Diverse Economic Participation: By backing businesses that might otherwise struggle to get financing, story lenders help create a more diverse and inclusive economy.

  • Drives Innovation and Entrepreneurship: With more story-based financing, businesses can implement innovative ideas and technology that might seem too risky for traditional lenders.
  • Builds Stronger Communities: Businesses that get this kind of support often stay loyal to their lenders and their communities, resulting in local growth and more business collaborations.

The story lending approach to equipment financing is more than a financial service; it’s a belief in the power of human connections. Story lenders enable a broader range of entrepreneurs to achieve their dreams and contribute to a fairer, more prosperous economic landscape. The human side of equipment financing isn’t just an alternative—it’s a vital evolution in how we should support and understand business today.

Global Financial & Leasing Services is a Proud Story Lender Since 2009

Global Financial & Leasing Services (GFLS) is a veteran-owned company, founded in 2009 and based in Scottsdale, Arizona.

GFLS was founded to meet the equipment financing needs of small to mid-sized businesses all over the United States. We provide equipment financing solutions for a wide range of companies and a wide range of credits. Our customers, ranging from startups, emerging businesses, private equity-backed companies, “C” and “D” types, turnarounds and those with less-than-perfect credit, seek to finance the equipment they need to launch, expand and/or grow their companies. We specialize in making credit decisions based on the potential of the applicant, not a credit score. We look to uncover value and create a structure that will often work for the situation.

We can provide equipment financing solutions for a large variety of equipment types including, but not limited to manufacturing, health, medical, surgery centers, wound care, dental, construction, commercial landscaping, restaurant, food/beverage manufacturing, farming, recycling, automotive, printing, sanitation, mining, oil & gas, cannabis and many more.

We are here to often say “yes” when others say no, offering the financial support to move businesses forward. Talk to one of our equipment financing experts and experience the story lender difference in equipment financing.

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How Startups Can Use Equipment Financing to Scale Up

by Equipment FinancingStartups

Taking your startup to the next level involves making strategic decisions about how and when to invest in essential business equipment—equipment that can give your company an edge over competition, bring efficiencies to services or operations and more.

But for many startup owners, there isn’t a clear path to obtaining that essential equipment, especially if it’s a time sensitive purchase or lease (traditional lenders are notorious for taking weeks to months to approve equipment financing applications) or they have less-than-perfect credit (big banks often reject all but the most qualified applicants).

Having access to equipment financing is essential for startup business owners who must overcome budget constraints and/or credit blemishes to scale their operations and accelerate growth.

There is a way around these challenges, and that is to work with a story lender, like Global Financial & Leasing Services (GFLS). Unlike traditional lenders and big banks, a story lender makes credit decisions based on a comprehensive view of your financials and credit history, not just a credit score.

GFLS empowers startups, offering substantial funding ranging from $50,000 to $5,000,000. We’re a direct lender with a variety of resources at our disposal. Our network, which includes over 200 private and public banks, allows us to offer financing solutions that many traditional banks cannot. Our team understands that every startup has its unique challenges, whether it’s past bankruptcies, student loans, tax liens or less-than-perfect credit. Our approach is to work with you, not against you, in overcoming these challenges so you can use equipment financing to scale up your startup.

Equipment Financing’s Role in Taking Your Startup to the Next Level

Investing in the right equipment can drastically improve efficiency, increase production capacity or even allow your startup to expand into new markets. However, the upfront cost of such equipment can put growth out of reach or significantly delay it for many credit score-challenged startup business owners. Here’s where equipment financing comes into play, enabling startups to acquire essential business equipment without taking on immediate financial burden.

Be Strategic When Exploring Your Equipment Financing Options

Should you lease or buy? The rule of thumb when deciding between leasing versus buying your essential business equipment is that leasing usually makes more sense for high-tech or rapidly evolving equipment to avoid obsolescence, whereas purchasing may be more economical for long-term essential machinery.

Related Reading: Lease to Own vs. Loan to Buy: Making the Best Equipment Financing Decision for Your Business

Is your lender willing to be flexible? There are lenders, like GFLS, who offer customizable payment plans that can be tailored to your startup’s cash flow patterns, easing the pressure during lean periods. Our team is human, too, and we understand what it’s like to have the opportunity to scale up a business, but not necessarily the financial power to do so. At GLFS, we frequently work with startup business owners to help them scale up faster than they ever thought possible.

Preserving Your Cash by Financing Equipment is Just One Advantage

Equipment financing isn’t just about preserving cash. It can also:

  • Offer tax advantages since lease payments may be deductible as business expenses.
  • Include maintenance agreements, reducing the risk of unexpected repair costs.
  • Free up capital that can be used for other strategic investments, such as marketing or research and development.

Common Mistakes to Avoid When Considering Financing Equipment

Work with a lender, like GFLS, who is committed to helping startup business owners make decisions in the best interests of their companies. This can protect against over-leveraging yourself with excessive debt. We help you understand the complete terms of financing, including interest rates and total cost of ownership. And remember, forecasting the ROI that the new equipment will bring is essential to validate your investment.

Effective equipment financing is more than just a financial decision—it’s a strategic move that can define a startup’s short- and long-term success. By thoughtfully integrating financing into your growth strategy, you can ensure your startup remains agile and responsive to market demands.

Equipment Financing is Still About Relationships

Building a trustworthy relationship with your lender is not just about securing funds; it’s about creating a partnership that supports your business’s growth and adapts to its changing needs, both now and in the future.

We’re looking forward to building a relationship with you and meeting your financing needs. We are here to often say “yes” when others say no, offering you the financial support to move your business forward. Talk to one of our equipment financing experts and see why GFLS is a great equipment financing partner.