Credit rating concept vector illustration.

Can I Finance Equipment with a 640 Credit Score?

July 23, 2022

by Brenda H. Financing

Can I Finance Equipment with a 640 Credit Score?

650 is a common make-or-break number in the equipment financing world. A credit score of 649—a mere one-point difference—can be a canyon wide enough to keep a business owner from being able to finance equipment. Think about that. Falling one point short of a set credit score can squash a dream, kill a great idea and keep a company from reaching its potential.

All business owners with more than a 20 percent equity position in a company typically guarantee a financing transaction. Therefore, personal credit scores play a large role in financing an equipment. Traditional big banks require a 700+ credit score to consider you eligible for financing. And, “B” lenders use the 650 mark as their cut-off point.

Can you finance equipment with a 640 credit score? 649? Basically, any score below 650? Yes, you can, if you work with a Direct Lender who specializes in lending to people in that credit range, like Global Financial & Leasing Services (GFLS). Unlike many other lenders, we work with all credit types and do not have a minimum FICO score to qualify for equipment financing. Nor do we have other disqualifying measures such as prior bankruptcies, tax liens, judgments, foreclosure or ridged industry restrictions.

Sound too good to be true? It’s not. Here are just two real-life testimonials from our clients.

“Global Financial & Leasing Services provided our company with financing resources when every other firm said no. Both Jim and Judi Jenks have been supportive beyond any experience I’ve had with other financing firms. Their professionalism and ‘going the extra mile’ for their client was the norm, not the exception. I highly recommend GFLS for your financing needs, as you will be dealing with people who truly practice what they preach.”

CFO & Treasurer, SerenaGroup, Inc.

“Global Financial & Leasing Services has allowed our business the growth we needed and given us an exceptional partner we can count on. Other leasing firms were merely interested in looking for certain numbers to meet in the short term. J.D. Jenks, GFLS’s CEO, understood our business model and why we needed what we needed.”

President, Wound Care Management Company

Is Equipment Leasing an Option for Your Business?

Equipment Leasing is a great option for business owners, especially those with bad credit. When you lease equipment, you make a monthly payment for an agreed-upon term. At the end of the lease, you may have the option to purchase the equipment. When compared to the possibility of not starting your business or trying to make do without essential equipment that could have a massive positive impact on your efficiency, profit and ability to compete, it’s the smart choice.

Build a partnership with a lender who makes credit decisions based on your business’s whole picture. While other lenders use an unyielding scoring model, GFLS looks at:

Your business’s cashflow
Your time in business
The type of equipment for which you’d like to finance a lease
The reason(s) your credit is blemished

Back in 2008, the Great Recession caused a great number of foreclosures, some just a matter of luck and timing. In 2009, GFLS was created to meet the equipment financing needs of small to mid-sized businesses all over the United States, who had been frozen out by the banks for any number of credit blemishes. GFLS’s team believes character is more than just a credit score.

LEARN MORE: Ways to Fund Equipment Purchases or Leases for Your Startup 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. If you have been shut out of the credit market, let our team peel back the layers of your credit history to reveal value and create a structure that will work for you. Ready to learn more? Let’s talk about the possibilities. Or, get started today by filling out an online application.

What is My Best Source for Equipment Financing?

July 13, 2022

by Brenda H. Benefits of Leasing Financing

What is My Best Source for Equipment Financing?

Obtaining equipment financing lets business owners get the machinery needed to improve and grow their companies. Everyone knows that. What gets confusing is finding the best source for financing equipment. There certainly is no lack of options when it comes to equipment financing companies, but how do you find the lender who’s best suited for your business and financial situation?

Of course, financing up to 100% of the equipment, competitive interest rates and a willingness to work with your credit rating are important. Yet, finding a lender who offers it all can be like finding a needle in a haystack. The better you understand what equipment financing is, how it works and the process of getting it, the easier you can find your best source for it.

What Is Equipment Financing?

Equipment financing is a commercial lease or a loan specifically used to obtain equipment and machinery businesses need to operate, upgrade, expand and grow. Business equipment can range from technology to manufacturing and construction heavy equipment.

Global Financial & Leasing Services (GFLS) serves a variety of industries.

What is the Difference Between an Equipment Loan vs. Equipment Lease?

Equipment leases: With leasing, you don’t own the equipment outright. Rather, the lender purchases the equipment from a vendor and rents it to you for a monthly payment. At the end of your lease, you can choose to purchase the equipment, renew your lease, or return the equipment. There are two main types of equipment leases: operating leases and capital leases.

Equipment Loans: With a loan, the customer agrees to purchase the equipment from a dealer. The lender provides the financing on behalf of the customer. Over time, you pay down the principal, plus interest. After making the last payment, you own the equipment free and clear.

How Does Equipment Financing Work?

Traditional big banks, credit unions, private and alternative lenders are the most common sources for equipment financing. Interest rates and repayment terms vary based on a variety of market and borrower criteria. Big banks and credit unions typically advertise competitive interest rates, but qualifying for them requires excellent credit and meeting other rigorous stipulations. Their review, approval and funding process can take weeks or months. Private and Alternative lenders often tend to be quicker with their funding and work with all types of credit scores. GFLS generally makes equipment financing decisions in 48 hours or less and can approve all credit levels, including business owners with credit blemishes.

Once your application is approved and financing documents signed, then the equipment is funded. Monthly payments are then spread out over your lease term. The equipment financed acts as collateral, so if the borrower defaults on the equipment financing, it can be repossessed and sold to help repay any outstanding debt.

LEARN MORE: With Inflation and Rising Interest Rates, Is Now a Good Time to Finance Equipment for Your Business?

Do the Prep Work Before Applying for Equipment Financing

Evaluate your company’s equipment needs. Before applying for equipment financing, determine the amount you’ll need to borrow. Make sure the cost will be offset by new business, better efficiency and growth to keep your business profitable.
Know your credit score. Equipment financing is secured by the underlying collateral, but lenders still want to know they will be repaid. Many lenders use your personal and business credit history and score to determine the likelihood of repaying the financing. Most lenders require a minimum 650 credit score. GFLS does not have a minimum credit score requirement and works with all types of credit scores because we look beyond the number and take other circumstances into consideration.
Submit your equipment financing application. Get started with your equipment financing application.

Choose GFLS as Your Best Source for Equipment Financing

GFLS has been a leading provider in equipment financing since 2009, providing small and medium-sized businesses with the financing needed for essential use equipment. We are an established direct lender with the unique ability to finance almost any business seeking to acquire equipment. With our in-house funds and relationships with over 200 private label and public banks, we have the ability to help those businesses who have been turned down by the banks due perhaps to prior bankruptcy, student loans, tax liens and bad credit. Ready to learn more? Let’s talk about the possibilities. Or, get started today by filling out an online application.

Accountant calculating profit with financial analysis graphs

With Inflation and Rising Interest Rates, Is Now a Good Time to Finance Equipment for Your Business?

June 15, 2022

by Brenda H. Business Advice Financing

Let’s get the bad news over with… Global Financial & Leasing Services is headquartered in Scottsdale, Arizona. Our equipment financing experts are paying over $5 a gallon for gas. Even if your business is located elsewhere across the country, you and your employees are paying close to or over the five-dollar mark. Gas isn’t the only thing we’re paying more for now.

Last month, consumer prices for products and services, such as food, rent, gas and travel rose quickly. Recent headlines point out 2022’s annual inflation rate increase is larger than any single year since the early 1980s.

Now, add interest rate hikes. According to a Reuters poll of economists released this month, the U.S. Federal Reserve will hike its key interest rate by 50 basis points in June and July, with increasing chances of a similar move in September. These economists anticipate no end in rate rises until 2023. Earlier this year, Philadelphia Federal Reserve Bank President, Patrick Harker, said he would support three interest rate hikes this year and would be open to more if inflation worsens.

Feeling Skittish? You’re Not Alone.

You need only to look at your retirement or investment accounts to see how the stock market is reacting to this bad news. After the May inflation rate statistics were released, the Dow dropped 800 points and S&P 500 posted its worst week since January.

In May, even before inflation hit its high from 1981, CNBC reported that eight in 10 small business owners are convinced the U.S. economy will enter a recession this year. The survey found “38% of small business owners say inflation is their biggest concern, twice as many as the second place ‘supply chain disruptions’ (19%) and above ‘Covid-19’ (13%) and ‘labor shortages’ (13%).

As consumers, we’re all feeling it at the pump, the store… almost everywhere. As business owners, we’re all feeling it in supply costs, rising rents, vendor invoices other expenses.

Does All This Bad News Mean You Should Hold Off on Financing Equipment for Your Business?

Attempting to time the market or determine if/when a recession will occur are futile. The best anyone can do is make financial decisions based on the information they have now, which makes it challenging to decide when you should finance equipment to grow your business. Here are two reasons business owners might not want to hold off on financing essential business equipment.

You can lock in lower interest rates.

If you’re on the fence about financing a piece of equipment for your business, weigh the cost versus what you could receive in return. Perhaps that equipment could improve distribution, reduce labor costs, increase staff productivity, shave time off completing projects or make your business more competitive in your industry or area. If any of these are the case or you have another compelling reason for financing new or used equipment, then it might be wise to do it now. You could take advantage of lower interest rates compared to what could be coming next month or in the fall when the Fed is expected to increase them.

Even though interest rates are climbing now, the savings you could achieve by financing now means extra savings you can use to fund other business goals.

You have the chance to finance the purchase or lease of your equipment before inflation increases the price.

The Fed is raising interest rates to fight inflation. Despite that effort, inflation will continue to drive prices higher for equipment; no different than fuel, energy, food, etc. Essentially, assuming (as many economists are) continued inflation throughout 2022 means the price tag for your leased or financed equipment will be lower now than in the near future.

Let Our Equipment Financing Experts Help

Nobody understands your business like you do. And, when it comes to equipment purchase or lease financing, our Certified Lease and Finance Professionals (CLFP) can help guide your decision process.

CLFPs are the best of the best in the world of equipment financing. They must be able to demonstrate extensive knowledge of the field, and also, they must prove that they have never been involved in any questionable transactions.

When you work with a CLFP like those here at Global Financial & Leasing Services, you know that your lender is competent and has your best interest in mind.

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

Business woman's hands typing on laptop keyboard

How to Use Equipment Financing to Take Your Business to the Next Level

May 12, 2022

by Brenda H. Financing

For small or mid-sized business owners, is there anything as satisfying (and even a little daunting) as creating a growth plan and hitting set milestones along the way? Growing your business not only takes strategy, but also money to fund executing that strategy, which probably involves acquiring more business equipment.

Those funds can come in the form of reinvesting profit back into your business, taking on equity partners, depleting cash reserves and using financing to obtain essential business equipment. Reinvesting profit back in the business is a common way to support growth; however, this approach can take a lot of time. Raising equity can quickly infuse your business with cash, but cash gained means a loss of ownership. Spending cash reserves can leave your business vulnerable without a safety net should an opportunity arise or an emergency occurs. Equipment financing gives you the funds you need to take your business to the next level without waiting or giving up control.

LEARN MORE: Think Equipment Financing Before Dipping into Cash Reserves

Use Equipment Financing to Get a New Location Up and Running

If your business growth strategy includes opening additional locations, then those locations will need to be furnished with equipment. You will incur a lot of additional expenses when expanding your company’s footprint, but buying or leasing equipment out of pocket need not be one of them.

Financing your equipment purchase or lease allows you to equip your new location(s) and pay over time. Ideally, the additional revenue generated from the new business will more than cover the monthly financing payment.

Examples include:

Restaurants that open new locations
Medical offices that open satellite facilities

Use Equipment Financing to Expand Your Services or Product Offerings

Whether it’s to meet demand, fill a void in the marketplace or to keep up with your competitors’ offerings, financing an equipment purchase or lease can expand your services or product offerings.

Examples include:

Medical practices that finance new technology to keep patients in office versus referring them to others for procedures and tests
Construction companies that finance equipment that enables them to keep more projects in house rather than subbing to contractors

Use Financing to Replace Old Equipment or Upgrade to New Technology

Financing new or used equipment to replace old and outdated technology can give your business a competitive edge. Outdated equipment slows down a business and decreases efficiency, which impacts your ability to compete with other companies and your bottom line.

Examples include:

Printing companies that finance faster, better, more advanced presses to offer clients more options
Manufacturing companies that finance equipment to increase production speed, eliminate inefficiency or limit manual tasks

Choose an Equipment Financing Provider Who Understands Your Business and Industry

Global Financial & Leasing Services (GFLS) finances equipment leases and purchases for business owners in a variety of industries, including:

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

We help business owners, like you, find a financing solution that works for you and your budget. Imperfect credit doesn’t mean an automation rejection; you tell us your story, and we listen. We are one of the few equipment financing companies who will advocate for you.

When you choose GFLS, you can:

Typically get 100% financing with no down payment
Maintain working capital for use in other areas of your business, such as expansion or hiring more employees
Benefit from tax considerations associated with purchase financing
- Refer to Section 179
Include additional costs such as sales tax, delivery and installation
Build your Business Credit profile

Let our team create a financing solution that can help take your business to the next level. Contact us today to get started!

Is Financing Essential Equipment a Hurdle for Your Business?

April 5, 2022

by Brenda H. Financing

From being in the startup phase to pushing through a growth stage or rising like a phoenix from the ashes of a downturn, there are times when you need to finance essential business equipment. Doing so isn’t cut and dry for many business owners, but rather presents a series of hurdles to overcome in order to obtain the equipment financing they need to start, grow or rebuild the company.

Here are some of the most common hurdles our team of Certified Lease and Finance Professionals (CLFP) see in the industry, and better yet, how you can overcome them.

You’re Trying to Finance Equipment for a Startup

Your startup needs financing to obtain the equipment required to get it off the ground. However, big banks want to see a long track record of growth before financing your equipment lease. Startups don’t have a track record yet.

Look to alternative equipment financing providers, like Global Financing & Leasing Services, LLC (GFLS), who work specifically with startups that don’t qualify for traditional financing. We’re a private company founded in 2009 to serve small- to mid-sized businesses and startups that aren’t attractive to traditional lenders for whatever reason. We look at more than what’s on or not on the application. We look at YOU and match equipment financing options to match your goals and budget.

Looking for used heavy equipment for sale? Check our inventory.

You’re Considering Using Personal Credit to Finance Business Equipment

There are very few times when this makes sense, and business advisors caution against mixing your personal credit with your business. Traditional lenders will often require a personal guarantee on an equipment loan if the business doesn’t have a credit history or any collateral to secure the loan. The problem arises if your business cannot make the payments on the loan. Creditors can seize your personal assets, causing you to lose both business and personal possessions. This can lead to declaring business and personal bankruptcies.

Protect your personal assets by keeping equipment financing in the business’s name. Again, work with a lender who doesn’t require personal guarantees, even if your business doesn’t meet traditional lenders’ typical requirements. They are out there because we are one them. While we look at your personal credit history, we take your entire story into consideration.

You Don’t Have a Spotless Credit History

If your credit history isn’t as impressive as you’d like it to be, take deliberate action to improve it. Of course, this doesn’t help you finance equipment in the short term, but it will benefit your business down the road.

For now, show positive aspects of your financial performance history, such as long periods of positive cash flow, how much your business sells each month, how quickly you were able to turn a profit, how well you have managed expenses, and testimonials from long-time, loyal customers, etc.

A direct lender, like Global Financial & Leasing Services, LLC, is willing to see you as more than numbers and considers character and integrity. If you have imperfect credit, we still strive to work with you on getting the essential business equipment you need to succeed. If your time in business or credit history is putting your business’s future on hold, work on improving your personal credit and talk to GFLS about your equipment leasing needs.

The GFLS Guide to Smart Financing Equipment in the Cannabis Industry

February 24, 2022

by Brenda H. Financing

As of this writing, 48 states have legalized cannabis in some form, recreationally, medically or both. But, until cannabis is no longer a Schedule I controlled substance on the federal level, those seeking cannabis equipment financing will have a difficult time getting traditional bank funding. Big banks are prohibited from lending money to businesses that profit from controlled substance sales. Even though non-traditional and private lenders are stepping in to fund cannabis equipment financing, startups and those with credit blemishes have a hard time finding solutions.

Obtaining financing for cannabis equipment is more difficult to do than for equipment used in other types of industries, but it’s not impossible. Your lender, like Global Financing & Leasing Solutions, must understand and work within local, state and federal lending laws in the cannabis industry. Equally important, your lender should understand your business and goals in order to find equipment funding that works for your cannabis business.

Global Financial & Leasing Services is a veteran-owned company headquartered in Scottsdale, AZ. In 2009, we were founded to meet the equipment financing needs of small to mid-sized businesses all over the United States. GFLS provides equipment financing solutions for a wide range of companies and a wide range of credits. For those who have great financials and credit history or those who have past blemishes or are start-ups, we are able to peel back the layers of an applicant’s credit history to uncover value and create a structure that will often work for them.

We are able to provide financing solutions for a wide variety of cannabis equipment, including:

Testing equipment, such as mass spectrometers, gas chromatographs, liquid chromatography instruments (HPLC), inductively coupled plasma (ICP) & atomic absorption (AA) spectrophotometers, equipment, machines and microscopes
Extraction equipment, such as C02 extractors, evaporators, supercritical systems, distillation systems and wax extractors
Processing & packaging machines, including filling machines, packagers, labeling machines, cartoners, weigh/fill/ package machines
Industrial trimmers
Harvesters
Heavy machinery

Equipment leasing is popular with cannabis businesses because the type of equipment needed is expensive to purchase. Cannabis equipment leasing can be a smart alternative to purchasing, since payments can be made over time and at the lease’s end, depending on your lease option, you can purchase the equipment or lease an upgraded version.

Why Those Seeking Cannabis Equipment Leasing Choose GFLS

Process is simplified, fast, easy
Ability to speak directly to decision maker(s)
Flexible – not all deals are of the “cookie cutter” variety; we take the time to understand
Credit blemishes — tell us the cause(s); we listen
Constant communication – daily updates to both vendor/client
Turnaround Time – 2 to 24 hours
Clients are treated with respect and kindness

LEARN MORE: Taking the Mystery Out of Applying for Equipment Financing

How to Get Approved for Cannabis Equipment Leasing

Global Financial & Leasing Services, has been a leading provider in equipment financing since 2009 for small and medium-sized businesses that need financing for essential use equipment.

We are an established direct lender with the unique ability to finance almost any business seeking to acquire equipment. With our in-house funds and relationships with over 200 private label and public banks, we have the ability to help businesses who have been turned down by or aren’t an option for banks.

Apply NOW and speak with a certified lease and finance professional today.

Companies Obtaining Heavy Equipment Lease and Purchase Financing in Response to Infrastructure Bill Passage

January 28, 2022

by Brenda H. Benefits of Leasing Financing

In November of 2021, the House of Representatives passed the Senate version of the Infrastructure Investment and Jobs Act (IIJA) and President Biden signed it in to law. Not only does IIJA’s passage mark the biggest investment in the U.S.’s infrastructure since the New Deal, it also triggers a starting gun for companies that will contract with the government directly or government contractors on projects, ranging from transportation and water to energy, broadband, and rehabilitating our country’s natural resources. Overall, the bill represents approximately $1.2 trillion, which is about $550 billion in new spending with over half of that focused on transportation—an area that requires heavy equipment.

While it may be years before we see actual IIJA-funded projects underway in our neighborhoods, the wheels already have started to turn at the federal level. Any time government increases spending at this magnitude on projects, all levels of government grow to oversee and administer funds.

In the meantime, business owners who operate in the industries affected by IIJA projects are ramping up in preparation. Especially companies that do contract work involving any heavy equipment are positioning themselves to be competitive and capable of executing IIJA-funded projects. Since there are currently kinks in the global supply chain, keeping a close eye is critical. Competition for supplies and equipment may be fierce, and companies don’t want to miss out on IIJA projects due to scarcity or being unprepared.

Given the scope of IIJA and the projects that will stem from it, this bill not only is a milestone for the U.S., but also can be for your business. Now is the time to start looking for pre-owned heavy equipment for sale. Or, get your heavy equipment lease or purchase financing partner in place.

Heavy Equipment Comes with a Hefty Price Tag

Heavy equipment, also called construction equipment, includes equipment that moves earth, performs construction or does similar heavy-duty work. Examples of this equipment type include:

Bulldozers
Engineering equipment
Forklifts
Tractors
Excavators
Backhoes
Material handlers
Pavers

There are a few ways that companies can add heavy equipment to their fleets. Buy outright, partner with another company to share heavy equipment assets or finance the purchase with a loan or lease. The last is a popular choice because it reserves cash and comes with tax deductions.

Global Financial & Leasing Services is a Smart Source for Construction Equipment Financing

GFLS helps small and medium-sized businesses obtain the financing they need to buy or purchase reliable new or used equipment. We make the process simple. Once you fill out an application, we quickly turn around a response. Global specializes in blemished and storied credit histories. When Other Lenders Say No, We Often Say Yes.

If other lenders have declined your applications, then consider working with us. As a direct lender, we use our in-house funds to assist companies. This gives us flexibility, so we can come up with the perfect financing plan for you.

Working with Global Financial and Leasing Services lets you:

Receive competitive rates, as well as 100% financing
Benefit from tax deductions on essential-use equipment
Avoid down payments; we ask for your first payment in advance, and then you can pay once you receive money
Save your on-hand capital for more important costs, such as office expansions and new-hire training programs
Maintain or establish your credit through leasing
Obtain equipment while it is current without making big purchases that will soon become obsolete

Numerous companies across the United States already use some form of financing, and you can, too. Construction equipment leasing with Global Financial and Leasing Services is flexible and tailored to your specifications. Contact us today for more information.

2022: The Year of Working with Equipment Financing and Accounting Professionals

January 25, 2022

by Brenda H. Benefits of Leasing Business Advice Financing

The Global Financial & Leasing Services (GFLS) team works with business owners across the country who operate companies in a wide variety of industries. While their products and/or services can be quite different from one another, there are universal truths that apply to all businesses. One is eventually the time comes that working with outside professionals is a must. Doing so gives you more time to focus on running your business, which is what you do best, and it gives you the expert insight needed to help your business grow.

Those outside professionals include marketing, sales, insurance, human resources and more. GFLS’s expertise is in equipment financing, which ultimately is affected by the numbers—your accounting.

Working with companies, both big and small, to finance their equipment, our team understands the business growth cycle. Startups and small companies often rely on one in-house employee or the owner to handle the finances. Sure, accounting software and cloud services make it a bit easier, but when combined with other duties, it quickly becomes too much. Customer service and revenue generation are top priorities, so accounting often gets placed on the backburner.

It’s understandable, but it’s avoidable. If you don’t already, make 2022 the year you work with a professional accountant (CPA). There are numerous benefits gained out of this relationship.

You’ll “know your numbers.” No doubt you’ve heard the phrase “let’s run some numbers.” Business owners must know their numbers, and you’d be surprised how many don’t. We’re not talking general balances and such, but rather knowing the numbers and how they affect business today and long term.

You’ll be prepared when the time comes to finance or lease equipment. Your numbers pertain to obtaining equipment because an equipment financing lender will need to see your financials to put together a financing/lease plan that works best for you. Having an accountant means that this is a much easier request to fulfill compared to you spending time getting your books in order.

You’ll be able to take advantage of tax-saving strategies. Most business owners aren’t tax specialists, so you could be leaving money on the table. CPAs are experts in developing short- and long-term tax strategies specific to your business and industry and help ensure you are taking your due deductions. In terms of equipment financing, a CPA can help your business benefit from tax considerations, like the Section 179 deduction, as well as determine the implications of an operating versus capital lease.

You’re more likely to attract new partners or buyers for your business. New partners or buyers are considering making a financial investment in your business. Initially, the nature and/or success of your business is likely what attracts them. Eventually, the conversation will turn to the numbers. The numbers will tell a story themselves, but having an accountant behind them speaks volumes about the serious way you run your company and can bring peace of mind to the decision process.

There’s a strong argument that in a chicken-egg contest, your equipment financier and accountant are the two outside professionals who can guide and support your businesses growth to the point where it makes sense to hire other professionals full-time. Which comes first? The accountant. Not having your financials professionally buttoned up is a red flag for new partners, buyers and equipment purchase or lease financing companies, like GFLS.

If you’re considering financing equipment, talk to your accountant and talk to us. As a direct lender, GFLS is able to approve credit with our in-house funds, and the typical turnaround time is 24 to 48 hours. When other lenders say no to financing equipment, GFLS can often say yes, so tell us about your financing needs and let’s take a look at the numbers.

Yes, Virginia, Companies Really Do Believe in Vendor Financing

December 20, 2021

by Brenda H. Financing

From startups to global corporations and from cash-flush to cash-strapped companies, they all take advantage of and benefit from vendor financing. In fact, the Equipment Leasing and Finance Association (ELFA), reports nearly 8 out of 10 U.S. companies rely on some sort of financing to obtain equipment, which is used to grow their businesses and thus contribute to our country’s growth and employment numbers.

Global Financial & Leasing Services (GFLS) partners with vendors to offer their customers equipment financing in the following industries:

Healthcare/Medical
Restaurant
Construction
Machinery/Manufacturing
Forestry/Logging
Automotive
Printing

Why Do Capital-Rich Companies Finance Equipment Purchases or Leases?

There are many reasons. Financing equipment purchases or leases often is a part of a forward-looking, strategic financial plan. Keeping a large amount of cash on hand is attractive to banks and investors, plus dramatically increases the odds a company will survive an unexpected event, like a pandemic, natural disaster, etc.

The question arises, “If a company is in an attractive financial position, why don’t they seek traditional bank financing?” The answer is simple: big banks require a lot of application paperwork and can take weeks or months to decide whether they are approving or rejecting the loan. Companies don’t have that kind of time to waste, especially if they win a project, find a super deal on equipment or need to act quickly for any other reason. Not to mention, bank financing is just another added step. Vendor financing streamlines the process and can even remove any barriers your customers might have in the purchase or lease decision.

Financing an equipment purchase or lease comes with numerous benefits compared to making a large outlay of cash. And, by partnering with GFLS for vendor financing, your customers can:

Typically get 100% financing without a down payment via ACH or wire
Keep their working capital to fund other business objectives, such as expansion or increasing their workforce
Benefit from tax considerations, like Section 179 associated with purchase financing
Generate revenue with the equipment they finance
Add additional costs such as sales tax, delivery and installation to the financed amount
Build their Business Credit profile

LEARN MORE: How Venders are Becoming an Attractive Source of Equipment Financing

What About Companies with Less-Than-Perfect Credit or Little Cash on Hand?

For these types of businesses, having the ability to finance the lease or purchase of the equipment they need can make or break the company. While they are not big banks’ target customers, they can be your customers when you partner with GFLS, which ultimately grows your sales numbers.

GFLS works with all credit tiers. Our financing decisions are based on a company’s story, not just the credit score. Our team gives decisions in 48 hours or less. This is very attractive for your customers who don’t have the time or desire to jump through big bank financing hoops or the credit score to make them creditworthy in big banks’ eyes.

With the Right Partner, Vendor Financing is a Win-Win

Your customers are going to finance their equipment purchases and leases. Rather than lose out on sales opportunities to competitors who do offer vendor financing, partner with GFLS and bring your financing in house or offer financing to your customers who aren’t or won’t be approved through traditional means.

Together, we can provide essential equipment, quick credit decisions and convenience with a streamlined application process. In the end, you’ll be providing a better customer experience for all, resulting in more sales and higher customer retention rates when it’s time to buy new or upgrade.

Bottom line: if anyone questions whether companies are interested in vendor financing, yes, Virginia, they really are.

Submit an Equipment Vendor application today. If you have questions, contact our team for answers.

Do You Have Skeletons on Your Business Credit Report?

October 20, 2021

by Brenda H. Business Advice Financing

The Time to Find Out is Before Applying for Equipment Financing

For small business owners, your personal credit history plays a role in obtaining essential use business equipment financing. However, lenders also draw a correlation between your personal credit history and your business credit report—the belief being that people tend to treat their business accounts much like they do their personal accounts. If you’re a new small business owner, your personal credit history will take precedence over any business credit history you’ve yet to build. But, if your business is established, your business credit report pulls more weight on an equipment financing application.

Before Applying for Equipment Financing is the Time to Find and Clean Up Any Skeletons

A lender can certainly review your business credit report prior to approving credit. Lenders use this report to verify the information you provide on your credit application. You’ve probably heard stories about applicants being caught off guard by what a lender finds, especially if the finding(s) is inaccurate. Business credit bureaus have been known to make mistakes, and it falls on the business owner to review his or her report to ensure it is accurate.

LEARN MORE: How to Improve Your Personal Credit Before Financing Business Equipment

Dun & Bradstreet is the largest and most common source for business credit reports. The firm receives its information for credit reports from various sources, much like individual credit reporting bureaus, including Equifax, TransUnion and Experian. Before a lender orders your business credit report, you should obtain a copy to verify all data it contains is correct. Doing so gives you the opportunity to remove inaccuracies and time to repair any credit blemishes as much as possible.

Request a Copy of Your Business Credit Report

Dun & Bradstreet offers a free business credit report. You can order it online.

10 things to review for accuracy on your business credit score are:

Your official business name, as well as any trade styles (DBAs).
Your physical business and website addresses.
Your business SIC/NAICS code.
Your business ownership entity (corporation, LLC, etc.) and number of years in business.
The name(s) of your business’s officer(s) and work experience.
Any data regarding business history, company events, ownership and/or location changes, etc.
Any financial information you’ve opted to list.
Your payments score. You can challenge late payments if you have proof they were made on time.
Any business liens, lawsuits and loans.
Public record information, such as UCC filings, tax liens or legal judgments. You can dispute any inaccurate public record information with the credit reporting agency.

How Often Should You Check Your Business Credit Report?

Protecting your business credit history is just as important as reviewing your personal credit report from time to time. Regular reviews not only ensure accuracy, but also can alert of identity theft if you notice accounts open in your name that you did not open.

Have a question about how business and personal credit reports affect your equipment financing application? Talk to one of our staff members. We’re happy to help.