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Top 5 Equipment Financing Mistakes and How to Avoid Them to Grow Your Business

by Business AdviceFinancing

When your business needs new equipment, you’re probably not going to plunk down a lot of cash to purchase it outright. Instead, like many business owners, you’ll explore equipment financing options with vendors, manufacturers and traditional banks or maybe even an alternative lender like Global Financial & Leasing Services (GFLS).

How and where you secure your equipment financing can either support your business’s growth or create new challenges. Unfortunately, many equipment financing applicants make common mistakes that can cost them time, money and opportunities. At GFLS, we prioritize giving you the information you need to make informed financing decisions so that you can achieve your business goals.

Here’s a list of the top five mistakes to avoid when choosing a direct lender and obtaining equipment financing, as well as how working directly with a lender like GFLS can make all the difference in growing your business.

 

Mistake 1: Not Understanding Your Equipment Financing Options

Dealing with financing equipment can feel overwhelming. Many business owners are unaware of the variety of financing structures available and may not realize that some options could meet their needs far better than others.

Solution: Working with a full-service, direct lender like GFLS ensures you get a tailored equipment financing solution whether you need $25,000 or $5M. We look at each transaction differently and use our own capital to offer flexible solutions, specifically designed to fit your financial goals and equipment needs.

 

Mistake 2: Overlooking the Importance of a Transparent Decision-Making Process

Choosing a lender that lacks transparency can lead to funding delays and missed opportunities. Some financing providers, like traditional banks, have long and/or unpredictable decision timelines, which can stall critical business operations or put projects contracts at risk.

Solution: At GFLS, we work efficiently and openly. Every equipment financing application is handled by a direct decision-maker who communicates often and clearly, so that you understand every step of the process. We remain responsive, unlike traditional lenders who are known for being slow and their lack of or impersonal communication.

 

Mistake 3: Settling for One-Size-Fits-All Financing Solutions

Some business owners are unaware of their options and believe that one-size-fits-all financing packages will serve their unique needs. In reality, these solutions can often leave companies underfunded or saddled with inflexible repayment terms.

Solution: We know that every business is unique. The GFLS team takes a personalized approach, working to understand your challenges and goals. By offering flexible, equipment-based financing solutions, we can help even non-investment-grade companies and startups thrive, especially when traditional lenders won’t due to a less-than-perfect credit history and credit score.

 

Mistake 4: Not Considering the Impact of Impersonal “Scoring Models” on Obtaining Equipment Financing

One of the most significant mistakes is relying on lenders that use automated “Scoring Models” to make automated credit decisions. These models often use FICO scores or available credit amounts as the sole criteria for approval or rejection, offering a decision within minutes without any human review of the application. This lending practice is impersonal and shortsighted.

Solution: GFLS stands out from traditional lenders by rejecting these automated models. Instead, we take the time to learn about you and your business. We consider your past, but more importantly, we evaluate your business’s potential for future success. We understand that your past is a story of lessons learned, and we are committed to understanding your plans for growth. Our decisions are based on your ability to service your current and future debt, not just a number on a screen.

 

Mistake 5: Being Unaware of the Equipment Financing Approval Speed

Time is money, and delays in equipment financing approvals can mean missed opportunities and stagnant operations. The traditional banking process is often frustratingly slow, with extensive documentation and drawn-out decision times—meaning weeks or months.

Solution: With GFLS, you can expect a fast, efficient approval process. As a nationwide lender, we’ve refined our methods to provide quick and flexible equipment financing, helping you get the funding you need without the usual back and forth paperwork or wait times. Our goal is to ensure you can continue growing your business without interruption.

 

Avoiding these common mistakes can save your business time and money while giving you a clear path to business growth and success. At GFLS, we believe in a personalized, understanding approach to financing. We are more than just a direct lender; we are your partner. When you’re ready to explore equipment financing options, trust GFLS to look beyond the numbers and invest in your future.

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

by Benefits of LeasingFinancing

The decision between obtaining essential business equipment through leasing (with an option to own) or purchasing outright with a loan is a strategic choice that can have long-lasting financial implications for your company.

At Global Financial & Leasing Services (GFLS), our experts are always prepared to help you thoroughly compare your options, so you have the knowledge to make an informed decision that aligns with your budget and business objectives.

We know you understand your business and finances better than anyone. We recommend discussing financial implications of leasing to own versus obtaining a loan to buy with your accounting expert and with our Certified Lease and Finance Professionals (CLFP) to help guide you in the right direction.

Related Reading: Working with a Certified Lease and Finance Professional (CFLP) is a Smart Decision

The following is a broad overview of information to keep in mind when deciding between lease to own or loan to buy your business equipment.

Understanding Lease to Own

The Advantages:

  • Reduced Initial Expenditure: Leasing has the potential to eliminate the need for a large down payment, offering you a way to gain necessary equipment without a significant initial financial outlay. This allows you to save capital for other operational needs.
  • Adaptability and Technological Edge: Leasing agreements can offer the flexibility to upgrade to the latest equipment models at the lease’s end, ensuring that your business remains at the forefront of technology without the full cost of purchasing new equipment. If you’re in an industry where technology upgrades are essential to remain competitive, leasing makes sense.
  • Tax Efficiency: Lease payments may be deductible as business expenses, offering potential tax benefits and reducing the overall cost of the leasing arrangement.

The Possible Drawbacks:

  • Cumulative Costs: The total leasing cost over time can surpass the purchase price of the equipment, making it a more expensive option in the long run.
  • Conditional Ownership: During the leasing period, the lessee (you) does (do) not own the equipment, which could be a disadvantage for businesses that prefer or require asset ownership.

What Lease to Own Looks Like in the Real World

Consider a medical office startup that opts for a lease-to-own arrangement for state-of-the-art healthcare equipment. This choice allows the startup to mitigate upfront costs, maintain financial flexibility and ensure it remains technologically relevant to patients, with the option to purchase the equipment at the lease’s end.

Exploring Loan to Buy

The Advantages:

  • Immediate Ownership: A loan provides immediate equipment ownership, which is beneficial for assets expected to have a long service life or for businesses that prioritize asset accumulation.
  • Long-Term Savings: Purchasing equipment with a loan often results in lower overall costs compared to leasing, especially for equipment that retains its value and use over time.
  • Asset Appreciation and Collateral Value: Owning the equipment outright allows businesses to benefit from any appreciation in value and leverage the equipment as collateral for future financial and business goals.

The Potential Drawbacks:

  • Upfront Financial Commitment: Loans usually require a down payment, which can be a significant immediate financial outlay.
  • Risk of Depreciation: Owned equipment may depreciate, potentially diminishing its value on your balance sheet and leading to increased costs if the equipment becomes technologically obsolete.

What Loan to Buy Looks Like in the Real World

A construction company might choose a loan to purchase durable, heavy machinery. Given the machinery’s longevity and stable value, the loan approach provides a cost-effective road to ownership, enhancing the company’s asset base and financial leverage.

Making an Informed Decision

Selecting between leasing and buying with a loan requires evaluating your business’s financial health, the specific equipment’s lifespan and technological evolution and the broader tax implications.

The three key factors typically include:

  • Cash Flow and Capital Conservation: If maintaining liquidity is critical, leasing may be a more viable solution.
  • Equipment Obsolescence: For technology or equipment that quickly becomes outdated, leasing provides a way to stay current without a big investment in new purchases.
  • Tax Strategy: Consulting with your financial advisor to understand the different tax implications of leasing versus buying can significantly influence your decision-making process.

Whether you lean towards the flexibility and potential tax benefits of leasing or the ownership and long-term cost savings of a loan, Global Financial & Leasing Services (GFLS) can guide you through this decision-making process. Our goal is to ensure that your equipment financing strategy positions your business for sustained success and growth.

Ready to learn more, let’s talk about the possibilities. Or get started today by filling out an online application.

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What Are the Steps of Applying for Equipment Financing?

by Financing

“Sweet! Thank you so much for all of your help and incredible speed. I just wanted to tell you that 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!”

Williams, Owner, Discovery Ultrasound

In today’s competitive market, staying ahead often requires having the latest equipment and technology. However, obtaining the necessary funds for equipment purchases can be challenging, especially for individuals with less than perfect credit scores. As an alternative lender committed to supporting entrepreneurs in all financial circumstances, we understand the importance of equipment financing and aim to simplify and fast track the application process. So, let’s walk through the steps of applying for equipment financing, helping you to secure the resources you need to move your business ahead.

Step 1: Define Your Equipment Financing Needs and Budget

The first step in applying for equipment financing is to clearly define your equipment requirements. Assess your business needs and identify the specific equipment that will enhance productivity, improve operations or drive growth. Once you have a comprehensive list, establish a realistic budget that aligns with your financial capabilities and long-term business goals. Preparation helps you make informed decisions throughout the financing process. Meaning, you don’t want to overfinance equipment with features or technology you won’t use, and you don’t want to settle for equipment that doesn’t have the features or technology you really need to grow your business.

Step 2: Research Lenders Specializing in Equipment Financing

Getting equipment financing approval from traditional lenders has always been tough, and today, it’s even tougher, especially with less-than-perfect credit. Research alternative lenders that specialize in working with individuals with credit challenges. Look for lenders, like Global Financial & Leasing Services (GFLS) who have a reputation for personalized solutions and a commitment to helping businesses succeed, regardless of credit history.

Step 3: Gather and Prepare Documentation

To streamline the application process, have the necessary documentation in place, ready to go. While specific requirements may vary depending on the application and applicant, typical documents include:

  • Financial statements (profit and loss statement, balance sheet, cash flow statement)
  • Tax returns (personal and business)
  • Bank statements
  • Business plan or executive summary
  • Equipment quotes or invoices

Double check that your financial records are up to date and organized. This makes a good impression on alternative lenders who look beyond your credit score.

Step 4: Complete the Application

Most alternative lenders offer online application processes for convenience and efficiency. Fill out the application form accurately, providing all necessary information, including your business details, financial information, and the equipment you wish to finance. Be transparent about your credit situation, as alternative lenders often take a holistic approach, considering factors beyond credit scores.

Take a look at our alternative financing application.

Step 5: Wait for Approval and Review the Terms

After submitting your application, the lender will review your documentation and assess your eligibility for equipment financing. Alternative lenders, like GFLS, specializing in working with individuals with less-than-perfect credit scores often focus on factors such as business cash flow, industry experience and the value of the equipment being financed. Our approval process is lightning speed compared to traditional lenders. If we receive your application and all the documentation we ask for, we often turn around a credit decision within 48 hours or less.

LEARN MORE: How Fast Can I Get Equipment Financing?

Step 6: Accept the Financing and Acquire the Equipment

If you are satisfied with the financing offer and have clarified any questions with your lender, it’s time to accept the offer and move forward. Provide any additional requested documentation or signatures, and finalize the agreement.

Step 7: Repay the Loan

As with any financing agreement, it is important to repay the loan on time and as stipulated. Timely repayments not only fulfill your financial obligations, but also help build or rebuild your credit history over time.

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.

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

by Equipment FinancingFinancing

Forward-thinking business owners understand the necessity of having access to financing options to support their company’s growth. There are a lot of articles stating how difficult small business loans are to obtain today. Even though the specific statistics vary depending on the source, the trend is crystal clear. The number of small business loans being approved through traditional lenders, like big banks and credit unions, continues to decline and alternative lenders, like Global Financial & Leasing Services (GFLS), offer hope for approval. In fact, we trademarked the phrase, “When other lenders say no, we often say yes.”

If you’ve been turned down for equipment financing by traditional lenders, statistics prove you’re not alone. Being denied funding doesn’t have to be the end of the story (or your business) though. Alternative lenders, like GFLS, are stepping in and bringing with them advantages you would never get with traditional equipment financing.

The Most Common Reason Businesses Fail is Cash Flow Problems

Capital shortage is a significant challenge for small businesses, with the majority of failures attributed to running out of funds. Knowing the importance of having capital, business owners often seek financing options to obtain essential business equipment and keep their cash reserves for other purposes. It’s no surprise, then, that 43% of small businesses applied for loans last year, reflecting the rising demand for external capital at the same time when traditional lenders are denying a higher percentage of financing applications.

According to Fundera, institutional lenders boast the highest approval rate at 66%, but alternative lenders are not far behind, with an approval rate of 56.8%. Alternative lenders, like GFLS, evaluate your business holistically, considering factors besides your credit score to determine your loan eligibility.

GFLS Can Bridge a Gap When 100% Equipment Financing Falls Through

Less than half of small business owners have their financing needs fully met, and GFLS can step in to fill the gap. We work with all kinds of equipment financing situations, such as businesses that receive partial funding, are starting up, face loan rejections or choose not to apply due to existing debts or less-than-perfect credit. Partnering with GFLS opens up opportunities for securing the funds you require, helping your business start off or remain on a successful path.

The average amount of a Small Business Administration (SBA) loan is $107,000. If you’re in an industry, like construction, healthcare, manufacturing, logging & forestry or printing, obtaining essential business equipment requires far more than $107,000. GFLS can fund equipment financing amounts of up to $1 million, and sometimes a higher amount. Applications requesting credit over $75,000 require our team review your complete financial picture.

Alternative Lenders Help Businesses Grow

Approximately 70% of small businesses carry outstanding debt. It’s common to leverage equipment financing options to support business operations, expansion and investments. While a less-than-perfect credit score usually means a denial, GFLS takes a holistic approach, considering a broader set of criteria. This increases your chances of securing funding even if you have existing debt burdens or insufficient credit history.

Our team works with small businesses owners who apply for essential equipment financing—equipment necessary to expand operations, pursue new opportunities or gain a competitive edge. By using an alternative lender, you open up a world of opportunities, ensuring that your company has the equipment it needs. Take advantage of alternative financing, drive your business’s growth and achieve success in today’s tight traditional lending environment.

GFLS is an established direct lender with the unique ability to finance almost any business seeking to acquire equipment. We have been providing equipment financing solutions since 2009 and have the ability to help business owners and startups who have been turned down by the banks. If you have any questions, please get in touch.

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What are the Soft Costs of Financing Business Equipment?

by Financing

When it comes to financing essential business equipment, it’s natural to focus on the hard costs, such as the purchase price, interest rate and repayment terms. However, there is another type of cost that is just as important to consider, yet often overlooked: the soft costs of financing business equipment.

Don’t let the word “soft” fool you. Soft costs can add up quickly and can significantly impact the overall cost of financing your equipment. To avoid surprises, it’s a good idea to familiarize yourself with what the soft costs of financing essential business equipment are, why they are important and how to manage them.

What Are Soft Costs?

Soft costs are indirect costs associated with acquiring and financing essential business equipment. Depending on the type of equipment you’re financing, they can include, but aren’t limited to the following:

  • Legal and accounting fees
  • Appraisal fees
  • Insurance costs
  • Installation and setup
  • Operator training/certification
  • Dealer fees
  • Transportation and delivery fees
  • Taxes
  • Maintenance and repairs
  • Warranties

Unlike hard costs, which are directly tied to the equipment itself, soft costs are not easily quantifiable, and they can vary greatly depending on the financing option you choose.

Why Soft Costs Are Important

Soft costs can be significant, and they can significantly impact the overall cost of financing your equipment. For example, if you choose to finance your equipment through a lease, you may be required to pay appraisal fees and insurance costs, which can add several thousand dollars to the overall cost.

For example, imagine you’re buying a back hoe for your heavy construction company or you’re a physician purchasing an MRI, the soft costs for delivery, installation, transportation, etc. can run upwards of $6,000 to $7,000. When the purpose of financing equipment is to avoid a large capital outlay, these soft costs have a serious financial impact.

In addition to the direct cost impact, soft costs can also impact the timing of your equipment financing. For example, if you need to obtain an appraisal or complete legal paperwork before you can finance your equipment, this can delay the process, which can be costly if you need the equipment to be operational as soon as possible.

How to Manage Soft Costs

The key to managing soft costs is to understand what they are and what they involve. To start, do your research and compare the different financing options available to you. This will help you understand the types of soft costs associated with each option, as well as the costs of financing your equipment overall.

Next, you should work with your equipment vendor and financing provider to identify the soft costs that will be required for your financing. This will give you an accurate picture of the costs involved, and it will help you make informed decisions about how to finance your equipment.

Lenders, like Global Financial & Leasing Services, LLC (GFLS), can include up to 25% of soft costs in the financing. Lenders cannot recoup soft costs. Meaning, if a business owner defaults on the loan, lenders cannot recoup the money spent on transportation, installation, operator training, taxes, and such. Therefore, the exact percent your lender will finance depends on a few factors, including:

  • Your credit rating
  • Type of equipment

LEARN MORE: Can I Finance Equipment with a 640 Credit Score?

Soft Costs Can Add Up to Hard Consequences, Making It Critical to Partner with an Upfront Lender

The soft costs of financing essential business equipment are often overlooked, but they can have a significant impact on the overall cost of financing your equipment. To manage these costs, you need to understand what they are, compare different financing options and consider alternative financing options like those available through GFLS. By taking these steps, you can ensure that you are financing your equipment in the most cost-effective way possible, which will help you achieve your business goals and grow your business.

GFLS provides equipment financing solutions with no hard cap on the amount for a wide range of companies and a wide range of credits with no minimum FICO score requirement. Ready to learn more? Let’s talk about the possibilities. Or, get started today by filling out an online application.

Used plastic bottles in recycling bins for earth day campaign

Equipment Financing for Glass, Plastics and Metals Recycling Businesses

by Financing

Starting or expanding your recycling business can be a profitable and eco-friendly venture, and it’s no secret that the recycling industry is rapidly expanding. The public’s increasing awareness of the environmental impact of glass, plastic and metal waste and the drive towards sustainability has led to a growing demand for recycled products. This has created opportunities for entrepreneurs to start recycling companies and for existing recyclers to expand their operations.

Why Recycling is an Expanding Industry

Recycling is a rapidly growing industry because of the numerous benefits it offers. For starters, it helps to conserve natural resources, as recycled products use less energy to produce compared to the production of new products. Additionally, recycling plastics helps to reduce greenhouse gas emissions, as it reduces the amount of waste that ends up in landfills, where it releases methane, a potent greenhouse gas.

Like most businesses, recyclers create jobs and help stimulate the economy. As the demand for recycled plastic products grows, the need for plastic recycling businesses increases, creating jobs in the collection, sorting, processing and manufacturing of these products.

According to a recent EPA report, on a national average, there are 1.17 jobs, $65,230 wages and $9,420 tax revenues attributable, for every 1,000 (US) tons of recyclables collected and recycled.

Last, but not least, recycling helps to reduce the environmental impact of waste, especially plastic. Plastic is a material that takes hundreds of years to decompose, and the increasing amount of plastic waste in our oceans and landfills is a growing concern. By recycling plastic, we can reduce the amount of plastic waste that ends up in our environment, helping to preserve our planet for future generations. The public, especially Millennials, seek to support companies that have sustainability goals.

Yet, one of the biggest challenges faced by business owners is the cost of recycling equipment, which can run hundreds of thousands of dollars. This is why financing is such a critical component of a recycling business.

Global Financial & Leasing Services (GFLS) provides equipment financing to a wide range of credit tiers. We can finance essential recycling business equipment, such as:

  • Grapples (for loading materials)
  • Loaders (for moving materials)
  • Processors (grinders, melters, etc.)

Traditional Loans for Recycling Business Equipment

Traditional loans from banks and other financial institutions are one of the most common sources of financing for recycling businesses. You can secure a loan by putting up collateral such as property, equipment or inventory. The amount of the loan, the repayment terms and the interest rate will depend on factors such as your credit score, financial history and the size of your business.

Traditional loans are popular because they provide a fixed amount of capital, which makes it easier to budget and plan for the future. Additionally, interest rates are typically lower than other forms of financing, making this option a cost-effective way to finance your business. However, the application process can be lengthy, and the requirements can be strict, which may make it difficult for some businesses to secure a traditional loan.

Leasing Equipment for a Recycling Company

Leasing is another popular financing option for recycling businesses. You can obtain equipment without having to pay the full cost upfront. Instead, you pay a monthly or quarterly fee to the leasing company. At the end of the lease term, you can either buy the equipment for a reduced price, return it, or renew the lease.

Leasing is a good option for businesses that need to upgrade or replace equipment frequently, as it provides more flexibility and avoids the need to tie up capital in equipment that may become obsolete quickly. Additionally, it is typically easier to obtain a lease than a loan, and there is less risk involved, since you are not responsible for the equipment’s depreciation.

LEARN MORE: Loans vs. Leases: Choosing the Right Option for Equipment Financing

Grants for Recycling Initiatives

Grants are a type of financing that is given to businesses and organizations with a specific purpose, such as environmental protection or economic development. There are government and private organizations that provide grants to plastic recycling businesses, which can be used to purchase equipment, research and development or expand operations.

Grants are a great option for businesses that want to start or expand a plastic recycling operation, as they do not need to be repaid. Additionally, grants can help businesses to overcome the financial hurdles associated with starting a new business. However, the application process for grants can be competitive and time-consuming, and there is no guarantee that you will receive the funding you need. Many of them are earmarked for nonprofits or those working directly with local, state or federal government agencies.

GFLS Can Help Your Recycling Company Get the Equipment It Needs

Starting or growing your recycling business can be a rewarding (and profitable) goal, but it requires careful planning and financing. By considering the options of traditional loans, leasing and grants, you can find the right solution for your business and secure the funding you need to purchase the equipment you need. Contact GFLS to explore your financing options and move even closer to contributing to a more sustainable future.

The time of 2022 is running out in the hourglass.

Can You Still Get Equipment Financing Approved Before the End of the Year?

by Equipment FinancingFinancing

You Still Have Time For Financing

It’s a time sensitive issue. You’d like to obtain essential business equipment, and you want it on the books for 2022, lock in a lower interest rate before rates rise or both. Time is running out, and considering how long it takes for the majority of lenders, like traditional banks, to approve your equipment financing application, it may seem impossible. Trust us. It’s not too late to get equipment financing approved before the end of the year.

The key is to work with a direct lender, Global Financing & Leasing Services (GFLS), who has the in-house funds and solid relationships with outside banks and institutions necessary to tailor a financing solution to your needs, budget and goals.

One reason our clients rely on us for their financing needs is because we understand time is of the essence. More likely than not, and especially if you want equipment and financing in place by year’s end, you need to choose a lender who works quickly.

At GFLS, we can get back to you with a credit decision in 48 hours or less. With a caveat… you must have the financial documents our team requests ready for review. The quicker we have them; the quicker you receive an equipment financing decision.

An In-Depth Look at GFLS’s Equipment Financing Decision Timeline

For Equipment Financing Worth $75,000 or Less

  • Submit your financing application to GFLS for review
  • Have the following documents ready for review:
    • Last three months of your business’s bank statements
    • A quote/invoice from the vendor for the equipment you’re financing

For Equipment Financing Worth $75,000 Up to $1 Million

Between our available in-house funds and external financial relationships, GFLS can fund equipment financing amounts of up to $1 million. Applications requesting credit over $75,000 require our team review your complete financial picture.

  • Submit your financing application to GFLS for review
  • Have the following documents ready for review:
    • Last three months of your business’s bank statements
    • A quote/invoice from the vendor for the equipment you’re financing
    • Last three years of business tax returns
    • Profit & Loss (P & L) statements for the business

What are Circumstances That Can Delay Getting Equipment Fast?

Even if you have your application submitted, provide all the necessary and/or required documentation and receive financing approval, there are circumstances that can delay getting your essential business equipment outside of yours or your lender’s control, including:

  • Last-minute changes to the equipment order
  • Supply chain issues
  • Shipping delays

Keep in mind that the year you take receipt of the equipment is the year in which you can claim it for tax purposes, so make sure to double check with vendors on their equipment availability and shipping times. While those circumstances are out of our control, if you have your application complete and required documents ready to go, GFLS’s team is ready to help you finance business equipment in the final days and weeks of December.

Have a specific question we can answer for you? Our team is ready to help. Contact us today.

2022-top-construction-provider

Construction Business Review Recognizes Global Financial & Leasing Services (GFLS) as a 2022 Top Construction Finance Solutions Provider

by AccoladesFinancing

Congratulations Global Financial

The team at Global Financial & Leasing Services (GFLS) is honored to announce the Construction Business Review named us a Top Construction Finance Solutions Provider for 2022.

As such, GFLS also was featured in an article titled, “Credit Score is No Longer a Problem for Equipment Financing” in a recent edition of their business and technology magazine, which circulates widely in the construction industry.

While construction company owners might be surprised by the concept of being approved for equipment financing based on other criteria beyond their credit scores, GFLS has evaluated small to mid-sized construction companies’ bigger picture to make credit decisions on construction equipment since we started in 2009.

GFLS strives to be a reliable source for not only construction equipment financing, but also critical business information to help our clients better understand how financial and leasing services can affect and grow their companies. Take a recent article we posted: Should You Finance or Buy Heavy Construction Equipment?

Following is the article, in its entirety, published in the Construction Business Review highlighting our financing philosophy and services:

Credit Score is No Longer a Problem for Equipment Financing

Comprehensive financial evaluations have proved decisive in measuring or acknowledging an organization’s credibility. They serve as an assurance for investors and a pipeline for funding innovative products and services. While some small and medium­ sized companies (SME) are eligible for working capital bank loans, SMEs and startups with weak or poor financials and blemished credit history struggle with inadequate access to medium or long-term financing solutions that help invest in newer, better technologies and improved equipment. The hardship of borrowing is further exacerbated due to COVID and economic distress, taking a severe toll on SMEs and impeding their growth.

In view of these obstacles, Arizona­ based Global Financial & Leasing Services, LLC (GFLS) opens the door to numerous financing options that bail out companies from situations that traditional financing companies seldom address. Characterized by increased flexibility in financing compared to conventional banks or other financing companies, GFLS meets the equipment financing needs of SMEs all over the United States by merit of internal GFRS Funds, credit lines, and non-bank financial institutions.

“We listen to our client’s story concerning credit issues and believe our customers are more than a FICO score,” says Jim Jenks, Founder & CEO of GFLS.

Founded in 2009, GFLS is a veteran­ owned company providing equipment financing solutions to various industries, including manufacturing, healthcare, medical, surgical, recycling, construction, commercial landscaping and others. GFLS makes detailed evaluations of clients’ companies to understand the nature of their business in terms of contractual obligation, cash flows, collateral, and other prerequisites to deduce a suitable financing solution.

GFLS follows a stepwise process for assessing credit applications. At the start of an evaluation, the company looks through recent bank statements, an invoice or quote from the vendor for the procurement of equipment and when appropriate the tax returns, financial statements, and other required information. An elaborate interaction with the applicant follows this assessment to understand the nature of the business, challenges, and purpose of the equipment for the growth of the company. Based on these evaluations, its credit committee makes an informed decision about the procurement and, if positive, generates a financing contract and from the signed agreement, with a purchase order (PO) of the equipment.

The company’s differentiated approach from traditional financing organizations allows them to enjoy an in-depth understanding of clients’ past problems in cash flow and the steps they have taken to overcome such challenges. For instance, a Midwest-based construction company needed GFLS’ financing solutions to procure various pieces of construction equipment and was not able to obtain credit from other sources owing to their FICO score and similar credit issues. GFLS financed them with over a quarter of a million dollars, having garnered a thorough understanding of their business and the value it would potentially generate. As a result, the client company has attracted additional contracts and digital business since the collaboration, attracting more businesses to partner and collaborate for mutual growth.

Emerging as an active contributor of equipment financing solutions, GFLS has created a reputation in the industry, with which it acknowledges the developmental and innovative strides taken by a business, a stark contrast to evaluating them based on credit ratings. GFLS evaluates the customer’s business objectives, extends additional support to mitigate impediments, and provides professional, actionable insights geared toward enterprise growth.

Think You Won’t Qualify for Heavy Construction Equipment Financing? It’s Time to Rethink Your Options

Your construction company is unique and deserves financing solutions to fit its operations and your growth plans. GFLS looks beyond a credit score. We customize financing options based on your overall business’s health.

GFLS is a trusted source for construction equipment financing, and we can help you obtain the financing you need to add new or used equipment to your fleet.

The process is simple. Submit your financing application. More often than not, we approve your application regardless of your credit score. If you have tried other lenders who rejected your request, consider GFLS.

Contact us today for more information regarding our construction equipment financing.