AI

The Intersection of AI and Equipment Financing: What to Expect

by Business AdviceEquipment FinancingFinancingIndustry News

The Intersection of AI and Equipment Financing: What to Expect

Artificial intelligence (AI) is reshaping how businesses secure capital and equipment financing is no exception. From faster approvals to more personalized lending options, AI is streamlining the process for companies ready to grow.

But even as technology evolves, one thing remains true: real relationships with financing partners still matter. Especially for business owners with less-than-perfect credit, partnering with a lender who understands your story — not just your score — can make all the difference between equipment financing approval and denial.

How AI Is Changing the Equipment Financing Process

The financing equipment process isn’t cut and dry, varying from lender to lender and big banks to alternative lenders. Particularly in traditional banking, the process can be painstakingly slow and follow a rigid criterion, which shuts out all but the most qualified borrowers. AI is helping change that.

Here’s how:

  • Faster Applications and Approvals: AI speeds up decision-making by instantly reviewing applications and surfacing key financial data.
  • Smarter Risk Assessment: Instead of focusing only on credit scores, AI analyzes trends in cash flow, seasonality and overall business performance.
  • Customized Loan Offers: AI tools help tailor terms to equipment financing applicants’ needs; matching repayment plans to how the business actually runs.

This is a step in the right direction for businesses that big bank loan officers might pass over. But technology alone doesn’t get deals done. People do.

Why Human Insight into Equipment Financing Applicant’s Stories Still Matters in the AI Era

Global Financial & Leasing Services (GFLS) uses technology to make equipment financing smarter. But we never let it replace human insight, flexibility or service.

Here’s what sets GFLS apart:

1. We Look at Each Deal Differently

AI sees patterns. Our team sees potential. Every business has a story, and we take time to understand yours, including your current and future ability to manage current and proposed debt without the shadow of past credit hiccups.

2. You Work with a Direct Decision Maker

No middlemen. No hand-offs. When you work with GFLS, you’re talking to the person who makes the call. That means faster answers, a lot less red tape and the beginning of building a solid partnership with a lender.

3. We Use Our Own Capital

Because GFLS is a direct lender, we can move quickly and structure terms around your specific needs. Our broad network of financial partners and lenders gives us access to various funding options. This means we can explore multiple avenues to find the best fit for your business, increasing the likelihood of approval on financing equipment purchases from $25,000 to $5,000,000.

4. We Serve Businesses That Traditional Banks Don’t

We specialize in equipment-based financing for companies with non-investment grade credit. Whether you’re rebuilding, expanding or recovering, GFLS was founded to serve businesses big banks deem too high a credit risk.

What the Future Holds

The future of equipment financing is a mix of powerful technology and strong relationships. As AI tools improve, here’s what you can expect:

  • Expedited decision making
  • Offers based on how your business performs, not just credit scores
  • Flexible structures for businesses facing with real-world challenges
  • Advisors who know your industry, not just your file

At GFLS, we believe AI is a tool, not a replacement for human decision-making. We think business owners wanting to grow their companies using equipment financing deserve more than a formula. They deserve a lending partner who understands where they’ve been and helps them get where they’re going.

Ready for what’s next in your growth phase? Start the application process or get in touch with us to learn more.

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How and Why to Build a Strong Relationship with Your Equipment Financing Partner

by Benefits of LeasingBusiness AdviceEquipment FinancingFinancingIndustry News

How and Why to Build a Strong Relationship with Your Equipment Financing Partner

In a world of texts, emails and Zoom meetings, relationships matter. Maybe more than ever. When it comes to equipment financing, building a strong partnership with your lender isn’t just beneficial, it’s essential. A meaningful relationship can lead to a deeper understanding of your business needs, especially when you’re dealing with a less-than-perfect credit score.

The Importance of a Solid Financing Partnership

A trusted equipment financing lender does more than just provide funds; they become an extension of your team, understanding your history, operations, challenges and goals. This gives you access to financing solutions tailored to support your business’s growth and adaptability.

Tips for Fostering a Collaborative Relationship

1. Open Communication is Key

Transparency always lays the foundation for trust. Regularly update your equipment financing partner about your business’s performance, upcoming projects and any challenges you foresee. This proactive approach allows your lender to offer timely solutions and adjust if necessary.

2. Understand Your Direct Lender’s Offerings

Each lender has its unique set of products and services. Familiarize yourself with these offerings to leverage the best solutions for your needs. For instance, some lenders might offer seasonal payment structures, specialized programs for certain industries or work well with credit score challenged deals.

3. Align on Shared Goals

Ensure that your business objectives align with your lender’s capabilities. When both parties work towards common goals, it fosters a sense of partnership and mutual respect.

4. Share Feedback

Constructive feedback helps lenders refine their services. Whether something worked really well or hit a snag, letting your lender know helps improve future experiences for you and others.

Building Long-Term Financial Success

A strong relationship with your equipment financing partner can be the starting point for sustained growth. It’s about more than just transactions; it’s about building a partnership that understands and supports your business now and in the future. By focusing on open communication, understanding offerings, aligning goals and providing feedback, you can build and maintain a relationship with your equipment financing partner that drives long-term success.

Ready to build something with a direct lender who understands your financial past isn’t necessarily your future? Contact GFLS or apply now to explore your equipment financing options.

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Equipment Financing: A Mid-Year Check-In & What’s Ahead for 2025

by Equipment FinancingFinancingIndustry NewsUncategorized

Equipment Financing: A Mid-Year Check-In & What’s Ahead for 2025

 

Hard to believe we’re already halfway through 2025. And if the first six months are any indication, the equipment financing world is heading into some interesting territory. With new tech on the rise, regulatory changes kicking in, and an economy that’s keeping everyone on watch, the way business owners secure and use equipment is shifting fast.

So, what’s shaping the equipment financing right now, and what should business owners keep in mind as we head into the second half of the year?

 

Interest Rates Are Still High, But Businesses Are Adapting

At the start of the year, there was hope that interest rates might drop more quickly. While the Fed has eased up a bit, rates are still higher than what most of us were used to pre-2020. That makes financing equipment more expensive and decision-making a bit more complicated.

According to the Equipment Leasing & Finance Foundation, growth in equipment and software investment is slowing—forecasted at 2.8% for the year, down from 4.7%. That’s mostly due to ongoing market uncertainty and global trade concerns. But that doesn’t mean business owners are sitting still. They’re just being more selective and strategic about how and when they finance equipment.

How the Global Financial & Leasing Services Team Helps You Adapt:

We offer flexible financing options that match your business’s cash flow, so you don’t have to push pause on your growth plans or miss out on an opportunity. With fast approvals, we keep things moving.

 

Smarter Tech Equals Faster, Easier Financing

The equipment financing process is getting a tech upgrade, and that’s a good thing for some, but not all applicants.

Artificial intelligence and data tools are streamlining how lenders assess credit risk, speeding up approvals and helping more small businesses get access to the funding they need. Meanwhile, some platforms are experimenting with blockchain tech to make things like contracts and payments more transparent and secure.

Then there’s the growing buzz around Equipment-as-a-Service (EaaS). Think subscription-style access to machinery and tech, with maintenance and upgrades included. It can be a smart option for businesses that want to stay agile and avoid owning outdated equipment.

How the Global Financial & Leasing Services Team Brings Human Touch to Technology:

For those with perfect credit, AI and software-based equipment financing approvals are easy. But for those with less-than-perfect credit, they’re a fast track to an automated credit denial.

GFLS is an alternative direct lender. Our team reviews your “story” to evaluate the hiccups in your past and how you overcame them. We offer 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 the ability to fund up to a million, we can fund larger deals that big banks might turn away.

We look at each transaction differently, tailoring solutions best suited to your situation and goals. Our approval process is handled by a direct decision maker and is based primarily on your ability to service your current and proposed debt.

Plus, our lease options give you flexibility to upgrade or own, depending on what’s best for your business.

 

New Regulations Are Coming

There’s been a lot of movement on the compliance front this year. One of the big ones? Section 1071 of the Dodd-Frank Act, which now requires lenders to report more data on small business loans. It’s part of a broader effort to promote transparency and fairness, and it’s changing how some lenders operate.

Then there’s Basel III, a global banking reform set to roll out in July. It’s pushing financial institutions to be more conservative with risk, which means lending.

Where GFLS Comes In:

We’re not a one-size-fits-all lender. We take the time to understand your business and its goals because we know you’re more than a credit score. Our team is here to help you navigate the paperwork and make smart, compliant decisions.

 

Not All Industries Are Feeling the Same Impact

The economic picture isn’t the same across every industry.

In agriculture, for example, high costs and falling incomes are slowing down equipment purchases. Last year, John Deere predicted decreasing sales and profit for 2025, and it’s May report reflected those losses in farm equipment and construction and forestry segments. (If you’re in the market for this equipment, now might be a good time to find a good deal.) On the flip side, clean energy is going strong. Developers are locking in long-term financing deals to weather higher rates and keep projects moving forward.

The lesson? Market conditions may vary, but the need for strategic equipment investments is universal.

Where GFLS Works Across Industries:

We work across many industries, from construction and healthcare to manufacturing and beyond. Our industry-specific expertise means we can tailor financing to fit your sector’s needs. And if you’re a vendor, our vendor financing solutions help close deals faster.

 

What Now? Make the Rest of 2025 Count

Is this going to be a “wait and see” year? The businesses that plan, stay nimble, are open to new financing models and proactive about growth will have the edge.

Mid-year is a good time to evaluate your equipment strategy. Are you using outdated machines that cost more in repairs than they’re worth? Are you expanding and need to scale up fast? Or are you launching something new and need a financing partner who believes in your vision?

It’s Time to Talk to GFLS

We support startups. We’re direct lenders. We move fast. Whether you’re leasing your first piece of equipment or expanding your fleet, we’ve got the equipment financing solution to help you keep moving forward.

The second half of 2025 will be all about balance between innovation and caution, ambition and risk. With smart financing strategies and the right partner, you don’t just wait and see, you make balance work for you.

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

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Ask the Equipment Financing Experts Q&A

by Business AdviceEquipment FinancingFinancingIndustry News

Ask the Equipment Financing Experts

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

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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How is Blockchain Impacting Equipment Financing?

by Business AdviceEquipment FinancingFinancingIndustry News

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

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

Potential for Increased Transparency in Equipment Financing

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

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

Enhancing Security and Reducing Fraud

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

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

The Possibility of Streamlining the Financing Process

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

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

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

The Future of Blockchain in Equipment Financing

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

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

Looking Ahead and in the Meantime

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

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

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The Impact of Economic Indicators on Equipment Financing Rates

by Business AdviceEquipment FinancingIndustry NewsUncategorized

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

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

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

Inflation and Equipment Financing Rates

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

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

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

Employment Rates and Business Lending

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

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

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

GDP Growth and Equipment Investment

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

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

What Business Owners Can Expect in 2025

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

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

Take Control of Your Equipment Financing

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

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

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

 

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Big Bank Practices Are Killing Their Customers’ Credit History  

by Industry News

It’s only second quarter of 2023 and three banks—First Republic Bank, Signature Bank and Silicon Valley Bank—have failed. While First Republic Bank was the last to fail so far this year, it is the second largest bank failure in history with approximately $229 billion in assets before failing, second only to Washington Mutual’s collapse in 2008, holding $307 billion at the time.

Since 2020, 565 banks have failed, averaging out to about 25 failures annually. With three so far in 2023, bank failures are actually lagging behind the yearly norm. That’s a positive sign, but is still concerning given the current anxious economic climate and ongoing concerns regarding a looming recession.

Moody’s Investors Service cut its outlook for the entire U.S. banking sector and placed six U.S. banks on review for potential credit rating downgrades. According to a CNN article published in March, 2023, Moody’s said, “The good news is that America’s banking system is generally healthy. It has enough cash and liquid assets to withstand an economic downturn. The bad news, for banks anyway, is that U.S. regulators may require them to hold more capital after Silicon Valley Bank’s rapid failure.”

Lots of eyes watch over the banking industry, from regulators and politicians to investors and financiers. Your eyes should be on your bank. Their current standard business practices could be killing your credit history, and you might not realize it until it’s too late and the damage is done.

How do we know? Unlike traditional lenders and big banks that make credit decisions based solely on a credit score, Global Financial & Leasing Services looks at the applicant’s whole story. Primarily, our team works with business owners who have less-than-perfect credit to get them the funding they need to acquire essential business equipment. Getting the whole story requires asking questions about why accounts were closed or why there is negative activity reported. Sometimes, the answers are surprising and little or no fault of the applicant.

The following are real-world banking situations our team has heard while discussing finances and credit histories with equipment financing applicants. We’re sharing them to help make you better informed and in a better position to obtain equipment financing when you need it.

Banks Close Accounts Seemingly on a Whim

Our team spoke to an applicant to inquire about a closed bank account. Turns out the well-known, big bank closed the account due to non-sufficient funds (NSF). If you read your account agreement, the small print states the bank can close or suspend your accounts for any reason they see fit. This particular applicant was fortunate to discover the reason; however, banks aren’t forthcoming with their reason most of the time.

With fraudulent activity and crime on the rise, any irregular activity can result in a Suspicious Activity Report (SAR). If banks fail to submit a SAR when there is reason, banks face heavy fines and employees are penalized. Closing accounts is a way big banks protect themselves and their shareholders from SAR-related sanctions. Unfortunately (or fortunately, depending on your position), the suspicious activity reported is not crime or fraud related a vast majority of the time, but rather a customer making an unusual transaction. For example, depositing large checks from retirement accounts to fund a business purchase, etc. Without personal relationships with their customers anymore, banks are closing accounts proactively to protect their interests.

Banks Stick to Automatic Payment Dates

Automatic payments that come directly out of bank accounts make paying bills and loan payments easy. It avoids ever missing a payment due to a bill lost in the mail or simply just forgetting to pay it. The set date the automatic payment comes out of the account can be problematic though if you’re not tracking your available account balance and don’t have enough funds to cover the payment.

Set a calendar alert for each auto draft date. Check your account balance to ensure sufficient funds are available to cover the payment. Banking is automated. It doesn’t wait a day for a check to clear before withdrawing an auto draft.

A benefit to obtaining equipment financing with Global Financial & Leasing Services is that all our clients have to do is call us if their account balances won’t cover the auto draft. We can pause it and avoid a rejection, plus the service fee big banks charge, and worst case, a closed account. Having a personal relationship with your financing company matters in the time of automation and technology.

Banks Put Unnecessarily Long Hold Times on Your Deposits

Imagine depositing a check, anticipating paying bills or payroll with funds from that check, and having the bank put a 7-10 day hold on the funds. In today’s electronic world, there’s no reason for a bank to place a hold for more than two days.

We’ve listened to applicants who’ve deposited funds, say from accounts receivables, pay invoices and payroll using those funds, only to be charged multiple overdraft fees or had payments rejected.

Stay Informed and Protect Your Credit

Things happen, in and out of your control, that can negatively affect your credit history. But, what’s even worse is when your bank’s standard practices are working against you. Remember, it’s your money. You have the power to bank where your business is valued, where you’re more than an account number.

The same applies to when it comes to obtaining equipment financing for essential business equipment. 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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The Best Equipment Financing Options of 2023 for Business Owners

by Business AdviceEquipment FinancingIndustry News

For many people, the new year is a time for setting personal resolutions. Yet, statistics indicate most people let theirs slide by the end of February. For business owners, it’s not only the start of a new year, it’s first quarter—a time to kick off year-long sales goals, new initiatives and grow your company. Business “resolutions” aren’t as easy to let slip because there are livelihoods, including yours, counting on your follow-through and success.

If 2023 is the year you’re going to need to finance essential equipment to achieve your goals, here are a few of the best options for business owners to consider.

  • Bank loans: You can apply for a loan from a bank or other financial institution to finance your equipment. This option may have a lower interest rate, but the application process can be lengthy, and you may need to provide collateral, as well as meet a minimum credit score requirement.
  • Small business loans: If you are a small business owner, you may be able to qualify for a small business loan from the government or a private lender. These loans are specifically designed to help small businesses finance equipment, among other things. The application process is wieldy and the time can lag between application and funding. Generally, very good to excellent credit is required to qualify.
  • Leasing: Instead of buying the equipment outright, you can lease it from a leasing company. This allows you to use the equipment without having to pay the full purchase price upfront. However, you will need to make regular lease payments and may or may not have the option to purchase the equipment at the end of the lease, depending on how the lease is structured. Another option is to finance the equipment lease.
  • Equipment financing: There are specialized, direct lenders, like Global Financial & Leasing Services (GFLS) who offer equipment financing, which is a loan used for the purpose of buying (or leasing) essential business equipment. The terms of these loans can vary, so it’s important to shop around and compare offers, application processes and customer service to find the best match for your business and credit score.
  • Vendor financing: Some equipment vendors offer financing options to help you purchase their products. This can be a convenient option, but be sure to compare the terms of the vendor’s financing to other options to ensure you are getting the best deal.

Even Those with Less-Than-Perfect Credit Can Qualify for Equipment Financing

If you have credit blemishes, it may be more difficult to secure financing for equipment. However, there are still ways you can get the equipment your business needs this year.

  • Personal loans: If you have a good relationship with a bank or credit union, you may be able to get a personal loan to finance your equipment. The interest rate on a personal loan may be higher if you have B or C tier credit, but it can still be a possibility. Keep in mind that in most cases it’s considered smarter to keep business and personal finances separate. Intertwining the two puts both at risk should one go south.
  • Crowdfunding: If you are unable to secure financing through traditional channels, you may be able to raise funds for your equipment through crowdfunding. There are several crowdfunding platforms that allow business owners and entrepreneurs to pitch their ideas and solicit small investments from a large number of people. Crowdfunding is an option for both new and existing companies, but it’s gained popularity among startups in recent years, and for many has been quite successful in supporting their launch.
  •  Equipment financing: Some equipment financing companies, like GFLS, specialize in working with business owners who have less-than-perfect credit. LEARN MORE: Can I Finance Equipment with a 640 Credit Score?
  • Leasing: Leasing equipment may be a good option if you have bad credit, as the approval process is often less stringent than for a loan. However, as noted above, be aware that you will need to make regular lease payments and may or may not have the option to purchase the equipment at the end of the lease. LEARN MORE: Loans vs. Leases: Choosing the Right Option for Equipment Financing

What Should Business Owners Look for in a Lender?

When looking for a direct lender to finance your equipment, there are five things you should consider:

  1. The interest rate on your loan will directly impact your monthly payments and the overall cost of financing your equipment. Partner with a lender who is willing to help you obtain the best deal for your budget and credit situation.
  2. The loan terms, including the length of the loan and any fees or charges, can significantly affect the overall cost of your equipment financing. Be sure to understand all the terms of the loan before you agree to it.
  3. It’s important to work with a reputable lender with certified professionals who have a history of fair and ethical lending practices. Do some research and read reviews to get a sense of the lender’s reputation.
  4. If you have questions or need help during the loan process, it’s important to work with a lender that has good customer service. Look for a lender who is responsive and willing to help you with any issues that may pop up.
  5. Consider whether the lender is willing to work with you to tailor a loan that meets your specific needs. A lender who is willing to be flexible and find a solution that works for you will be the best fit.

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.

SBA sets opening date for Restaurant Revitalization Fund. Here’s when you can apply.

by Company NewsIndustry News
Andy Medici

The Small Business Administration is officially opening its much-anticipated Restaurant Revitalization Fund to applications on May 3, the agency said in a Tuesday announcement.

The agency said it will allow businesses to register ahead of time, starting April 30, and once the portal opens, it will remain open until the $28.6 billion in program funds are exhausted. The program provides restaurants and other eligible businesses with grants of up to $10 million and must be used on eligible expenses by March 11, 2023. We covered those details here.

“Restaurants are the core of our neighborhoods and propel economic activity on main streets across the nation,” said SBA Administrator Isabella Guzman in a press release. “They are among the businesses hardest hit and need support to survive this pandemic. We want restaurants to know that help is here.”

Businesses can register to start the application process here beginning April 30.

The SBA recommends that eligible businesses set themselves up for a smooth experience by reviewing the official guidance, gathering the required documentation and attending one in a series of live webinars to be held in the days preceding the official opening. One webinar is available on Tuesday and two are available on Wednesday.

The SBA also recently announced that restaurants will be able to access their applications and the data they need to fill out their applications through service providers including Clover, NCR Corp., Square and Toast as part of what it called a “groundbreaking collaboration” to help deliver the relief funds.

The funding, however, likely will only last “a matter of weeks” according to Sean Kennedy, executive vice president for public affairs at the National Restaurant Association.

“We know from webinars we’ve hosted and discussions with our state partners that demand and need are still very high, and with this level of preparation, we believe that it’s very likely the $28.6 billion fund will be gone in a matter of weeks, possibly only a few,” Kennedy said in a statement. “We expect that day one numbers will be through the roof. We will continue to work with SBA and our members to ensure the application process goes smoothly, even as we’re alerting Congress to our concerns about the limits of the current funds.”

He stressed that the SBA has been focused on getting the application process up quickly and done right and is doing everything it can to educate restaurants on how to apply.

But even when the portal opens, the agency will prioritize applications from businesses owned by women, veterans, and socially and economically disadvantaged people for the first 21 days.

The rollout of the Restaurant Revitalization Fund marks the latest step for a lineup of pandemic-relief programs and efforts by the SBA. The SBA recently created a way for small businesses to appeal denials from its Targeted EIDL Advance program, which we wrote about here. The agency also has rolled out a supplemental grant for the hardest-hit businesses.

The agency additionally has said it was more than tripling the maximum size of its Economic Injury Disaster Loans from six months’ worth of economic injury — or up to a maximum of $150,000 — to 24 months of economic injury with a maximum loan amount of $500,000. But it is also working to increase that new limit up to the $2 million statutory limit.

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2021’s Top Trends in Equipment Financing

by Industry News

10 Trends to Watch

Our world changed dramatically over the past year with many working from home, social distancing and video conferencing as a result of COVID-19.

Fortunately, the vaccine has brought about hope for a return to normal, and as restrictions lift, the economy is set to rebound. This year will be a crucial one for many business owners, especially those making decisions regarding financing equipment.

At Global Financial & Leasing Services (GLFS), we stay on top of the latest trends in equipment financing to better serve our customers, helping them not only obtain financing for equipment purchases, but also being a source of valuable industry information. These are the top 10 trends to keep an eye on as you consider equipment financing in 2021.

  1. 2021 is still unpredictable.

In 2020, we learned just how quickly the world could change as COVID-19 drastically altered business operations and consumer habits. Things are looking up in 2021, but there is still uncertainty about virus variants.

Whether we can return to some sense of normalcy will depend on vaccine rollouts, which have been ramped up, but are still inconsistent. Other impacts of the pandemic — such as volatility in the stock market, small business losses and potential inflation — still linger as well. Successful business owners in 2021 will need to expect the unexpected and prepare accordingly.

LEARN MORE: Love in the Time of COVID-19

  1. The political landscape is changing.

The transition of power to President Biden could impact business decisions in various ways. Congress and the Biden Administration will likely increase regulation — especially in the realm of environmental policy. Taxes may increase as well.

On the state level, governors are under increased pressure to close budget gaps, which may also result in increased business or consumer taxes. States may also adjust their consumer financing laws to address issues that result from post-pandemic growth.

  1. Expect more growth in the second half of the year.

The first half of 2021 still looks relatively bleak for some industries. COVID-related restrictions and low consumer spending have extended the economic impacts of the virus.

However, this trend is expected to subside as more people become vaccinated and more restrictions are lifted. In the latter half of 2021, economists expect GDP growth to pick up to nearly 5% as the country returns to normal. Smart businesses will prepare for an uptick in consumer spending by the end of the year.

  1. Increased demand from China will boost U.S. businesses.

China is one of the few major countries whose economies weathered the pandemic relatively well. Barring an increase in tensions between the U.S. and China, demand for U.S. products should increase as China’s consumer spending rebounds.

This uptick in demand will help propel U.S. manufacturers and the economy forward. Manufacturing businesses should prepare for this demand accordingly, especially when it comes to shipping.

  1. Consumer habits will evolve post-pandemic.

As the government lifts pandemic restrictions, workplaces will return to some sense of normalcy. More employees will return to offices, and increased consumer spending will allow businesses to boost hiring and production.

The technology upgrades, lessened business travel and reduced need for commercial space that began during the pandemic are also likely to continue in a different fashion. Many workplaces intend to use a hybrid model that allows some employees to work from home full- or part-time, and they will continue to use videoconferencing solutions instead of traveling for business trips. Most businesses will therefore look for services that offer bundled, personalized packages that meet their needs.

  1. Medical, construction and manufacturing equipment will be in high demand.

Demand for certain types of equipment is expected to grow as COVID-19 subsides. Medical equipment, for instance, is already showing growth as vaccine rollouts intensify, and once hospitals can resume more elective procedures, this sector is expected to explode. Likewise, demand for manufacturing equipment is set to increase as consumer spending bounces back.

Some types of equipment, including construction equipment, have been on the rise throughout the pandemic. More people are building or renovating homes, driving up demand for construction. Additionally, as workplaces convert their commercial space, construction equipment will remain on the rise.

  1. Smart technology will continue to grow.

Many companies, including equipment finance lenders, have begun to increasingly rely on smart technology to do business. This trend is only expected to continue through 2021.

Electronic transactions with lenders, such as e-signatures, will likely continue to expand. Even without the need for social distancing, these kinds of contactless purchases can often be more convenient for lenders and businesses. Lenders will keep growing their e-commerce capabilities to streamline operations and improve client relations.

  1. Cybersecurity will be essential.

The pandemic forced us to move many of our transactions and interactions online. This has enhanced the need for heightened cybersecurity measures to keep our data safe.

Many companies will need to invest in IT infrastructure to enhance their cybersecurity capabilities. Good security protocol provides peace of mind for customers and employees, making it an essential investment for most businesses.

  1. Many businesses are poised to make major purchases.

Although 2021 is still uncertain, companies are becoming more confident, and many are looking to make smart investments. Some plan to invest in software to boost their remote capabilities while others are ramping up for post-pandemic economic growth.

Overall, business investment is expected to grow by nearly 8% this year thanks to this uptick in spending. Smart business owners will think ahead and stay ahead of the curve by making important investments early on.

  1. More companies will acquire equipment through financing.

Most businesses took a financial hit during the pandemic, causing them to realize the importance of keeping cash on hand for emergencies. The Federal Reserve has also lowered interest rates, allowing companies to borrow money more easily. Therefore, more businesses will likely choose to finance their equipment purchases in 2021.

READ MORE: Why Your Business Should Keep Cash Reserves

If your company plans to finance equipment this year, be sure to look for a trusted partner like GLFS. Contact us to learn more about what to expect in 2021 and how we can help your business prepare for the year ahead.