Posts in category: Equipment Financing

Between online banking and lending, chatbots, advances in AI assistants, the world’s pandemic shutdown and such, building and maintaining personal relationships with other businesses isn’t as easy or prevalent as it once was. The team at Global Financial & Leasing Services (GFLS) believes it’s more important than ever, especially in this digital world.

As with any relationship, the foundation lies in trust and transparency. GFLS, with our long history of working with small and medium-sized businesses (SMBs), works hard to build robust and reliable relationships with borrowers. We think that by understanding your business and goals, we can create customized lending solutions that not only meet your current needs but also supports your future growth.

In other words, the effort you put into building a trusted relationship with a lending partner, the better prepared you will be when you need financing for essential business equipment.

Here are seven ways you can establish a relationship with a financing partner.

1) Open Communication is Key

Transparency is the backbone of any strong relationship. It’s important to maintain an open line of communication with your lender. This means being upfront about your business needs, concerns and expectations. In return, expect the same level of openness regarding the terms, conditions of your equipment financing or leasing agreement. Regular check-ins and updates can prevent misunderstandings and build a foundation of trust.

2) Understand Your Equipment Financing Provider’s Offerings

Each financing company, including GFLS, has its unique set of products, services and areas of expertise. Take the time to understand what your lender offers and how these services align with your business objectives. This understanding can help you leverage the right products and services at the right time, ensuring a mutually beneficial relationship.

3) Have Shared Goals and Values

Aligning your business goals with those of your equipment loan provider is smart. When both parties have a clear understanding of what they are working towards, it fosters a sense of partnership and collaboration. With Global Financial & Leasing Services, we ensure that your objectives in growth, financial health and equipment needs are aligned with ours because we want to be helpful long-term partners with customers.

4) Be Proactive with Your Needs

Anticipate future equipment needs and financial scenarios and communicate these proactively to GFLS. By forecasting your requirements, you allow our team to prepare and present the most suitable financing solutions in advance. This forward-thinking approach not only demonstrates your commitment to success but also supports more strategic financial planning.

5) Build Personal Connections

Beyond the financial transactions and contracts, building personal relationships with your lending partner can be invaluable. Understanding who you are working with on a personal level can build trust and make communications more effective, especially critical for those with less-than-perfect credit and need their stories to be heard.

Related Reading: Beyond the Credit Score: Alternative Equipment Financing with Us

6) Demonstrate Financial Responsibility

Trust is a two-way street. Just as you expect transparency and reliability from Global Financial & Leasing Services, it’s essential to demonstrate your commitment to financial responsibility. This includes timely repayments, managing credit and being honest about your financial situation so your lending solution truly matches your needs and budget.

7) Continuous Learning and Adaptation

The business landscape is ever evolving, and so are equipment financing needs and options. Stay up to date on the latest trends in equipment financing and how they impact your industry. Our blog is a good resource for information. Check in with GFLS to explore how new financing products or adjustments can benefit your business. Being adaptable and informed makes sure you’re better positioned for growth.

Building a trustworthy relationship with your equipment financier is not just about securing funds; it’s about creating a partnership that supports your business’s growth and adapts to its changing needs. In the business world, the strength of your relationships can be just as crucial as the quality of your product or service.

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.

Technological innovation happens fast in today’s business world, quickly making equipment outdated and leaving companies scrambling to keep up. Equipment obsolescence is a pervasive challenge that impacts most every industry, affecting efficiency, productivity, and ultimately, competitiveness.

For business owners, it’s imperative to anticipate these changes as best they can and strategize effectively to ensure continuous growth and success. Let’s look at the intricacies of equipment obsolescence and how Global Financial & Leasing Services (GFLS) provides robust financing solutions to help your business stay ahead of the curve.

The Challenge of Inevitable Equipment Obsolescence

Equipment obsolescence is unavoidable, as technological advancements render older models less efficient and potentially obsolete. This change can impact various aspects of a business, from operational downtime to increased maintenance costs and lessened output quality. For businesses in highly competitive markets, the stakes are even higher, as failing to keep pace can lead to lost business opportunities and market share.

Being Strategic About Equipment Lifecycle Management

Effective equipment lifecycle management is critical, requiring businesses to assess, update and upgrade their tools and machinery on a regular basis. Being proactive ensures that operations hum along, and your company stays ahead of industry trends. However, this strategy can require a substantial financial investment, often creating challenges for business owners, particularly those with constrained budgets or less-than-perfect credit histories.

RELATED READING: Cutting-Edge Equipment for Business Advancement Through Lease Financing

Transforming Challenges into Opportunities with GFLS

GFLS helps business owners address these challenges with tailored equipment financing solutions that transform potential obstacles into opportunities for growth and innovation. Unlike traditional lender and big banks, we’re an alternative lender providing business owners of all credit tiers with the financing to obtain cutting-edge equipment and stay competitive.

Key Advantages of Partnering with GFLS to Combat Equipment Obsolescence

• Capital Preservation: Our financing solutions help you to preserve your capital, so that you have funds available for other critical operations and investments.
• Payment Plans: We recognize our clients’ diverse needs, so we work with you to create a payment plan that aligns with your company’s cash flow and financial structure.
• Speed and Simplicity: In the fast-moving digital world, time is of the essence. Our streamlined application and approval processes ensure that you can access the financing you need. Our team works quickly, reviewing equipment financing applications and making decisions in days rather than the weeks or months it takes other financial institutions. In fact, the only thing that slows down our equipment financing credit decisions is missing or incomplete information on the applicant’s side.RELATED READING: How Fast Can I Get Equipment Financing?
• Ensuring Competitiveness: With access to financing for the latest equipment, regardless of startup status or credit history, your business is better positioned to meet customer demands, improve operational efficiency and maintain a competitive edge in the market.
• Sustainable Growth: Our equipment financing solutions are designed to support sustainable growth, providing you with the tools and resources needed to scale your operations and expand your business footprint.

The Only Constant in Life and Business is Change

Change is the only constant in life and business, so staying proactive in managing equipment lifecycle is crucial. GFLS is your trusted partner, providing alternative equipment financing solutions that help you stay ahead of the curve in equipment obsolescence and move your business forward. Contact GFLS today, and take advantage of how equipment financing can lead to innovation, growth and success.

Without perfect credit, finding a lender who’ll work with you on equipment financing can be an uphill battle, but it doesn’t have to be a losing one. At Global Financial & Leasing Services (GFLS), we take a more empathetic approach to evaluating your credit and approving applications for equipment financing.

We understand that your credit history doesn’t tell your whole story. Through a comprehensive and compassionate evaluation process, we look at various aspects of your business’s operations and financials to uncover the real story behind the numbers. GFLS, considered an alternative lender, is changing the game in equipment financing, ensuring that business owners of all credit backgrounds have access to the funding they need to grow their companies.

Related Reading: Tech Innovations: Cutting-Edge Equipment for Business Advancement Through Lease Financing

Traditional Credit Scoring Has Shortcomings

Credit scores have traditionally been the go-to metric for financial reliability. However, they can be rigid and unforgiving, not considering the unique challenges and circumstances business owners face. GFLS’s team recognizes that a credit score is a single chapter in your larger story.

A Holistic Approach to Understanding Your Business

At GFLS, we consider various factors to ensure a fair and accurate representation of your financial health and creditworthiness. Here’s how we do it:

• Analyzing Cash Flow: Your cash flow tells a story of resilience and management savvy. We analyze your cash flow trends, knowing that stability and consistency can sometimes speak louder than a credit score.
• Valuing Industry Expertise: Longevity and experience in your industry signify stability and expertise. We take stock of the years you’ve dedicated to honing your craft, acknowledging that your industry acumen is a vital component of your creditworthiness. On the other hand, we also work with startup business owners to fund their equipment purchases or leases. We believe being new to one business doesn’t mean you’re new to business ownership or managing financial responsibility.
• Comprehensive Financial Review: We go below the surface, analyzing your business’s complete financial picture. From income and expenses to profitability, we assess facets of your financial performance to gain a true understanding of your fiscal health rather than make credit decisions based on a single number—a credit score.
• Considering Collateral and Assets: Assets and collateral provide an additional layer of security and trust. We evaluate the resources at your disposal, since your assets play a crucial role in securing your equipment financing.
• Assessing Customer Feedback and Reputation: Your interactions with customers paint a picture of your business’s integrity and quality. We might skim customer reviews and testimonials, understanding that a stellar reputation is a testament to your reliability and excellence in service. We note trends. No one can please all the people all the time. And one or a few bad reviews are expected business practice. In fact, GFLS received a bad review from a client who had us confused with another company with the same/close name.
• Leveraging Personal and Business References: References offer a unique perspective on your business operations and reliability. We might consider both personal and business references as integral components of our holistic credit assessment.

Related Reading: With Small Business Loan Approvals Hard to Come By, Alternative Financing Offers Hope

The GFLS Advantage: Your Future Business Success Doesn’t Have to Hinge on Your Past

At GFLS, we are committed to breaking down barriers, providing equipment financing solutions tailored to your unique business story. Our approach to credit assessment ensures that you are not defined by your credit score, but rather by the potential and resilience of your business.

Your access to equipment financing should not be hindered by the constraints of traditional credit scoring. Explore the possibilities with GFLS, and partner with a financing provider that sees beyond the numbers. Contact us today and take the first step towards unlocking the equipment financing your business deserves.

Successfully navigating the complexities of franchise ownership demands a strategic approach, especially when it comes to equipment financing. Much like industries that are heavily regulated, such as healthcare, cannabis and construction, franchise businesses operate within strict frameworks, adhering to brand standards while striving to remain profitable and competitive.

Our team at Global Financial & Leasing Services (GFLS) understands the intricacies of equipment financing tailored specifically for franchise businesses, offering invaluable insights and strategies to align your equipment needs with brand requirements and growth goals.

The Franchise Framework: A Balancing Act

Owning a franchise means more than just managing day-to-day operations; it involves maintaining brand integrity through consistency and quality across all facets of the business. This extends to the equipment that powers your franchise, from kitchen appliances in a restaurant to computer systems in a retail outlet.

Each piece of equipment plays a critical role in upholding brand standards and delivering exceptional customer experiences. Ensuring that every upgrade or new equipment acquisition aligns with franchisor protocols is not just a legal agreement or brand compliance issue—it’s essential for business success. After all, part of the appeal of buying a franchise business is that the business plan and operations flow is already set, tried and true—turnkey map to success.

Understanding Equipment Financing in the Franchise Context

Franchise business owners face a unique set of challenges, like those in regulated sectors like healthcare and cannabis. Selecting the right equipment financing provider is crucial, as it requires a partner with a deep understanding of the franchise landscape. At GFLS, we bring our expertise and industry knowledge to the table, ensuring your equipment financing strategy is in perfect alignment with your franchise agreement and sales goals.

Specifically…

The right equipment financing partner can make all the difference. Look for a provider with a track record of working with franchise businesses, as they will have a better understanding of brand requirements and industry standards. At GFLS, our team is well-versed in the unique needs of franchise operations, providing tailored financing solutions that match your business objectives and brand guidelines.

Just as industries such as recycling and construction require adaptable equipment solutions to navigate ever-changing technology and regulations, franchise businesses need financing options that support scalability and growth. Our financing solutions are designed to provide the flexibility required to upgrade or add equipment as your franchise evolves, all while ensuring terms that support your business’s financial health.

Franchise operations come with a set of brand standards that must be adhered to, including equipment specifications and supplier requirements. It’s imperative to choose a financing provider that understands these standards and can work seamlessly with your equipment suppliers. Our team at GFLS ensures that every equipment financing plan we provide aligns with your franchisor’s specifications, maintaining your business’s compliance and enhancing operational efficiency.

Recognizing the distinct equipment financing needs of franchise businesses, we offer specialized solutions to cater to a wide array of industries. From cannabis, recycling/waste and healthcare to transportation and restaurant franchises, our financing plans are tailored to meet your specific requirements, ensuring that you have the resources needed to thrive in your area.

Equipment Financing for Franchise Owners in a Nutshell

Franchise ownership, while rewarding, requires strategic planning and informed decision-making, especially when it comes to equipment financing. At GFLS, we help empower franchise business owners with the knowledge, flexibility and customized solutions needed to drive success. Our equipment financing options are designed to align with brand standards, support growth and provide the financial agility needed to adapt to your business landscape. Contact us today to get started on your journey to strategic equipment financing.

The old adage “It’s not what you know, but who you know” holds true in the world of equipment financing. This is especially the case for business owners with less-than-perfect credit. Credit scores don’t paint the whole picture. While your credit score and financial statements are top priority for traditional lenders, there’s an often-overlooked asset that can swing the equipment financing decision in your favor with Story lenders: relationships.

Why Relationships Matter from a Financing Applicant’s Perspective

All business relationships, including those providing financial solutions, matter. Unlike traditional or large corporate banks, many equipment financing providers, like Global Financial & Leasing Services (GFLS), value personal relationships. We strive to understand the unique needs and challenges of each business owner. By nurturing this relationship, you help position you and your business in a favorable light. Strong relationships with lenders provide a holistic view of your business—your dedication, past successes and future potential.

Also, having strong ties with your suppliers can lead to negotiation power. This can result in being offered better terms, discounts or even referral advantages—all of which appeal to equipment financing lenders.

Five Ways to Build and Nurture Relationships for Equipment Financing Approval

1. Start Early

Establish a connection with your potential lender and suppliers before you need financing. Ways to make connections include attending industry events, joining trade associations and arranging informational meetings. Interested in talking to one of our Certified Lease and Finance Professionals (CFLP)? Schedule a meeting.

RELATED READING: Working with a Certified Lease and Finance Professional (CFLP) is a Smart Decision

2. Be Transparent

Transparency goes a long way. Be upfront about your financial challenges, offering context and showing how you’ve tackled these issues.

3. Foster Mutual Benefit

Think of ways you can benefit your lenders and suppliers. Offer them testimonials, referrals or partnership opportunities.

4. Stay in Touch

Maintain regular communication, sending updates or just a simple note of progress. Regular interactions with your lender, even outside of immediate financing needs, solidify trust. Celebrate milestones with them, discuss challenges or provide industry updates. This ongoing engagement underscores the value you place on the relationship, extending beyond mere transactions.

5. Be Informed

Understanding the intricacies of equipment financing shows your lender and suppliers your commitment and knowledge.

What Your Equipment Financing Partner Would Like from the Relationship

Very similar to how you can build and nurture relationships with your equipment leasing partner, your lender also looking for specific information and qualities through their relationship with you. You can help them gain insight into what Story lenders value: character, business acumen and collateral.

Since Story lenders don’t prioritize credit scores, lenders, like GFLS, want to get to know you. Showing integrity, commitment and responsibility speaks to your character. Understanding industry trends reflects business acumen. And, showcasing other valuable assets, beyond the equipment financed itself, improves collateral considerations.

For example, after we approved and commenced the lease, a freight brokerage firm was able to secure a Master Carrier Agreement with a major steel company. The signed agreement represents at least four years of work for our customer and opens up the opportunity to land other heavy hauling projects.

The Power of Referrals and Recommendations

Part of the power of relationships is the influence of referrals and recommendations that comes along with them. As you nurture your connections.

Seek out referrals from all connections. Don’t hesitate to ask your lender, suppliers or even other business colleagues for referrals. They might introduce you to other business growth ideas or supplier options that are aligned with your needs.

All relationships benefit from a give-and-take approach. Be generous with your recommendations. If a particular lender or supplier provided exceptional service, share that with your network. Your endorsement not only strengthens your bond with that person, but also positions you as a valuable connection in your industry.

Here’s another story about the power of relationships in equipment financing:

A 20-year-old trucking and excavating company that specializes in lawn care, excavating, digging basements, building foundations for new homes, and snow removal in the winter. Ninety percent of their customers are commercial businesses, such as nursing homes and cemeteries. Ten percent is residential business. One of their large customers is a state government, for which they are a subcontractor for snow removal.

The client says, “We were able to acquire the equipment quickly, and it was so fantastic to work with Pat, who was amazing, and Rachelle, who made it very easy and quick for them to go through the finance process.”

They would not have been able to secure the account if it were not for having the equipment we financed for them. This equipment enabled them to grow their business, as well. Prior to our financing solution, they had to rent equipment, which was more expensive. Additionally, since this was used equipment, they had difficulty finding someone who would provide the equipment financing.

Global Financing & Leasing Services (GFLS) simplifies and speeds up the equipment financing process. We have a history of successful lending, access to capital and commitment to our mantra: “When Other Lenders Say No, We Often Say Yes.”™ If you’d like to learn more about equipment leasing and financing up to $1 million for an SMB, contact us.

If you’ve ever purchased a vehicle, then you know what they say about new ones. A new vehicle depreciates thousands of dollars as soon as you drive it off the car lot. This alone is enough steer buyers toward purchasing only previously-owned vehicles. And, there is the price difference between new and used vehicles that keep budget-focus buyers solely in the more affordable used market. On the other hand, there are buyers who insist on purchasing only new vehicles, either due to personal preference, not knowing the previous owners’ maintenance diligence, and/or knowing they’ll keep the vehicle long enough to pay new vehicle pricing.

Do the same car buying principles apply to business owners when they want to obtain essential business equipment? And, is it easier to get financing for new or used business equipment?

Global Financial & Leasing Service (GFLS) was created to meet the equipment financing needs of small to mid-sized businesses all over the United States. Our team finds equipment-financing solutions for a wide range of companies and a wide range of credits. Partnering with both clients who have great financials and credit history and those who have less-than-perfect credit scores or have startup companies, GFLS has the ability to provide equipment-financing solutions. For those who have been turned away from traditional equipment lenders, we work hard to create a structure that will work for the situation. Since we work with customers across all credit ranges, we’re often asked about feasibility of financing equipment, and whether new or used is the way to go.

What Are the Advantages of Financing New Equipment?

Financing new equipment has a couple of advantages that can work in your favor. First, lenders might perceive new equipment as a less risky investment on their part. Like new vehicles, new business equipment used in a variety of industries typically come with warranties, improved reliability and reduced maintenance costs. The idea of reduced risk can make lenders more willing to offer financing options to business owners with less than perfect credit. After all, the equipment itself acts as collateral for the equipment financing loan.

Second, new equipment often includes the latest technology, which can measurably increase a company’s efficiency, productivity and profitability. These potential benefits can support your application for financing, especially when combined with a solid business plan and growth projections.

What Should You Consider About the Challenges of Financing New Equipment?

While there are clear advantages to financing new equipment, there also are potential challenges, which are similar to those you’ve probably experienced if you’ve decided to purchase a new car over a used one.

Like new vehicles, new equipment is typically more expensive than used equipment, meaning higher financing amounts. For business owners with less than perfect credit, the higher the financed amount, the tighter the lending criteria. In this case, it’s essential to find an alternative lender, like GFLS, that specializes in working with applicants who’ve been turned away from traditional lenders, like big banks.

RELATED READING: With Small Business Loan Approvals Hard to Come By, Alternative Financing Offers Hope

Also, that drive-off-the-lot depreciation is a factor. New equipment depreciation rate is usually higher, meaning the value of your collateral backing the financing decreases more rapidly.

What Are the Benefits of Financing Used Equipment?

Financing used equipment offers distinct advantages that can make it an attractive option for business owners with less than perfect credit. First, used equipment is generally more affordable than new equipment, resulting in lower financing amounts and potentially lower monthly payments or a shorter loan term. Of course, lower monthly financing payments are easier on monthly cash flow.

Second, used equipment tends to have a slower depreciation rate compared to new equipment, making it a relatively stable asset that lenders can count on as collateral. In other words, that rapid first-use depreciation has already occurred. This stability may lead to increased financing options, particularly if you have credit blemishes.

Browse our used medical and heavy equipment for sale.

What Should You Know About the Drawbacks of Financing Used Equipment?

While financing used equipment has its advantages, including potential lower overall costs and shorter loan terms, there are some potential drawbacks. Used equipment may have a shorter lifespan, higher maintenance costs and a higher risk of breakdowns or malfunctions compared to new equipment.

Also, the onus is on the business owners to perform their due diligence to ensure the used equipment they intend to finance is in good operating condition, has a reasonable remaining useful life, and aligns with operational needs and growth plans.

There’s No Simple Answer to Whether You Should Finance New or Used Equipment, so Talk to an Expert

The bottom line is that whether you apply for financing new or used essential business equipment depends on your lending options, your lender’s ability to meet your needs regardless of your credit score, the type of equipment you need and your budget. Finding the right financing solution takes evaluating your specific circumstances and considering the short- and long-term advantages and challenges.

Acquiring construction equipment, even used machinery, can be a significant investment for construction company owners, especially for those with less than perfect credit or startups without an extensive credit history. While traditional financing options usually create hurdles for these applicants, there are alternative options to obtain financing for used construction equipment.

Key takeaways for how to finance used construction equipment:

1. Assess your financial situation and credit score before exploring your used construction equipment financing options.
2. Research alternative financing options such as equipment financing, lease-to-own agreements and equipment rental.
3. Build strong relationships with equipment suppliers, vendors or dealerships to potentially receive customized financing solutions.
4. Consider alternative lenders who are more flexible in their eligibility requirements.
5. Work on improving your creditworthiness over time to increase your chances of securing favorable financing terms in the future.

1) Assess Your Financial Situation

Before applying for financing for used construction equipment, it is important to assess your current financial situation. Take a close look at your credit score, outstanding debts and cash flow. While less-than-perfect credit may limit your options, it does not render financing impossible. Big banks and traditional lenders may not be options, and it’s better to work with a lender who’s willing to work with you rather than waste time only to have your application denied.

2) Research Financing Options

Equipment financing is a popular choice for acquiring used construction equipment. Look for lenders that specialize in equipment financing for businesses with lower credit scores, like Global Financial & Leasing Services (GFLS). They are more likely to understand your situation and offer flexible terms. The equipment itself serves as collateral, making it easier to secure financing.

Another option is a lease-to-own agreement, where you lease the equipment for a specified period with an option to purchase it at the end of the term. This can be a viable option for startups or businesses with limited credit history.

If purchasing equipment is not financially wise at the moment, consider renting equipment on an as-needed basis. This can be a cost-effective alternative, allowing you to complete projects without a large upfront investment and save for a purchase or lease later.

3) Build Strong Relationships

Establishing strong relationships with lenders, equipment suppliers, vendors or dealerships can open doors to better financing options. Reach out and discuss your requirements, emphasizing your commitment and long-term business potential. Such relationships may lead to customized financing solutions or even the opportunity to purchase equipment on installment plans.

4) Consider Alternative Lenders

Traditional banks are hesitant to lend to construction company owners with less-than-perfect credit or startups without a long credit history. However, alternative lenders, like GFLS have more flexible criteria, even approving equipment financing for those with a 640 credit score.

5) Improve Your Creditworthiness

While immediate financing needs may be pressing, it’s important to work towards improving your creditworthiness in the long run. Pay your bills on time, reduce outstanding debts, and avoid taking on unnecessary credit. Over time, these steps can positively impact your credit score, making it even easier to secure financing in the future.

Remember, each business’s financial situation is unique, and what works for one may not work for another. It is essential to evaluate your financial situation carefully and consult with lending experts, like our team at GFLS. We have been providing equipment financing solutions since 2009.

Let’s talk about the possibilities. Or, get started today by filling out an online application.