Human resource, Talent management, Recruitment employee, Successful business team leader concept

How to Attract Qualified Operators to Make the Most of Your Financed Equipment

Hiring and Retaining the Best Talent Starts with Writing the Job Description

Prior to the global pandemic, the national unemployment rate was low, leaving millions of jobs unfilled. COVID-19 struck and unemployment soared, but with economic activity resuming, the unemployment rate fell to 7.9% in September.

In talking with our clients, we’ve noticed that finding and keeping “good people” are top priorities, even for those currently experiencing a slowdown in business. Eventually, a rebound will occur and business owners want to be ready to hit the ground running with the best operators in their equipment’s driver seats.

Our team has heard that employers have found their best employees from just about anywhere—word of mouth, Craig’s List, Facebook, online job sites like Indeed and more. No matter where or how you advertise your job openings, attracting qualified and experienced operators for your equipment starts with the job description.

Attract Quality Operators with a Two-Punch Job Description

We get it—you’re busy, and it’s easier and less time consuming to use the same job description over and over again. The reality is that there is a difference between what you post online to get candidates interested in working for your company and the specific job description you send to applicants who show interest in a specific position.

Your general online job posting should include information about the company AND the position. This is your chance to highlight your company culture and get applicants excited about the prospect of working there. You should include a general idea of what a specific position entails, but the focus is on the company. Happy employees who enjoy their work environment are less likely to leave, so cultural fit is key.

A detailed job description can be added to the online post or sent in a separate document to applicants who request more information. This is the time and place to get into the details. Be specific about job requirements, expectations, qualifications, experience and certifications. Remember, you’re putting this person in charge of equipment. Hiring inexperienced operators can cost you in terms of project quality and equipment performance. Plus, not fully disclosing job requirements can land you in court should you fire an employee for lack of fulfilling job duties and he or she claims the requirement wasn’t clear.

The Most Important Words to Include in Your Job Posting

“Other duties as required.” Job roles evolve over time and more quickly for smaller businesses that are growing or cutting back. You may have to ask employees to take on more or share responsibilities as your staff size increases and decreases based on work load.

Begin the job description with a 30,000-foot overview of the responsibilities, then include shift and physical requirements, non-negotiable certifications and work conditions that might filter out unqualified applicants. This also is where you can touch on expected “people skills” that are important, especially if the position is customer facing. Think about the environment and conditions, this employee will work under and describe those so that the candidate need not apply if you’re seeking night shift and he or she is only available for day shifts.

Be Aware of Gender, Age and Typo Traps

Quality operators want to work at quality companies. Your job ads, descriptions and even online company reviews make your business’s first impression on job seekers. For positions where details are important, a posting with typos won’t grab the attention of a detail-oriented employee.

Avoid using language that can be considered discriminatory. Even in fields that are heavy equipment related, women are qualified candidates in a traditionally male-dominated industry. Same goes for age. With age comes experience, which is important when you’re putting an employee in charge of expensive equipment in any field.

In preparation to return to pre-pandemic tight employment numbers, now is the time to begin thinking about your hiring strategy to find and retain the most qualified employees—ones whom you can trust to expertly operate your financed lease equipment. Finding the best candidates starts with writing your best job description.

Close-up of a construction site excavator

Who Finances Heavy Equipment Leases?

Anyone who doesn’t want to purchase outright or may not qualify for a loan through traditional bank funding.

Heavy equipment handles heavy work and commands a heavy price. Paying that price can pay off in terms of business growth and other benefits. 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, finance a purchase loan, and finance a heavy equipment lease. The last is a popular choice because it comes with many benefits.

But before we get to the benefits, let’s lay the foundation about heavy equipment and financing a lease.

What does it mean to finance a heavy equipment lease?

Heavy equipment lease financing means you get a loan to finance your new or used equipment, so you don’t have to purchase it outright. The equipment itself acts as collateral for the financed lease.

What types of equipment fall under the “heavy” category?

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

  • Bulldozers
  • Engineering equipment
  • Forklifts
  • Tractors
  • Excavators
  • Backhoes
  • Material handlers
  • Pavers

Lease Financing isn’t Only for Cash-Strapped Business Owners

Even with sufficient cash to purchase heavy equipment outright, many business owners choose to reserve their cash for working capital or invest it in other activities that spur growth. Others prefer to take advantage of lease agreements specifically designed for the heavy equipment industry, as well as their company’s future needs and budget given the hefty price of such machines.

Heavy equipment’s hefty cost makes even the largest businesses pause. When you’re a small business or your credit isn’t perfect, obtaining heavy equipment is even more difficult. Financing your heavy equipment lease is ideal for businesses that need to get used or new equipment but can’t afford or don’t want to make payment in full or may not qualify for a purchase loan through traditional bank funding.

READ: Financing an Excavator: Even if You Have Bad Credit

Take Advantage of the Tax Benefits

Financing a lease for your heavy equipment comes with tax benefits that incentivize business owners to start or expand their companies.

Under Section 179, you can deduct the full cost of heavy equipment up to $1 million in the year of purchase. Section 179’s advantage is that you don’t have to depreciate the cost of the equipment year over year, taking the tax savings in one year.

If you don’t qualify for Section 179 or your tax professional suggests against it, another option is to write off loan interest or lease payments as business expenses on your tax return.

Another option is to depreciate your heavy equipment every year and take a small tax deduction over the useful life of the equipment. A conversation with your tax expert or accountant can help ensure you take advantage of the tax benefits of financing a heavy equipment lease.

READ: Why Put Profit Above an Equipment Lease Payment?

Global Financial & Leasing Services (GFLS) works with many business owners to help them get the heavy equipment they need. Begin the application process and our team will do everything we can, plus we can approve heavy equipment lease financing in as few as 24 hours.

Coworkers team brainstorming

Love in the Time of COVID-19

As relief is announced to help small businesses, GFLS is supporting brokers, too.

As of this writing, the country is grappling with COVID-19. With livelihoods and lives at stake, states and the federal government are hashing out legislation to support affected people and businesses. Here in Arizona, where Global Financial & Leasing Services (GFLS) is headquartered, loans up to $2 million are available from the U.S. Small Business Administration (SBA) to small businesses hurt by COVID-19 pandemic.

The longer the virus and the financial slide that accompanies it continues, the more significant the toll to businesses and the economy. With government stimulus packages available and communities rallying around local small businesses, GFLS is supporting brokers, too, since they are an important part of the economic equation.

This is an unprecedented time for everyone. But, there are a few things that brokers can count on from their partnership with GFLS, no matter what.

To name a few of the most meaningful…

We know your customers and vendors are yours, not ours. Therefore, we would never build a one-on-one relationship with them, and our team politely refers all direct calls and inquiries back to you.

We know your response times are dependent on ours. Our team responds quickly to you, so you can do the same for your customers. The majority of time, we make decisions within 24 hours.

We help you say yes more often, when other lenders say no. GFLS finances B- and C-tier credit types and startups in a variety of industries, including healthcare/medical, restaurant, construction, machinery/manufacturing, forestry/logging and automotive. We look at an applicant’s “story” to get the whole picture, not just the credit score and other numbers.

READ: You Need to Package Your “Story Credit”

We stand by our decisions, so you can stand by your word. Nothing’s worse than having to back out of a deal at the last minute. GFLS will not pull funding based on information we had from the beginning.

Remember, GFLS was founded in 2008 during the Great Recession. Your customers are more than a credit score—that’s what we focused on then, and what we continue focusing on as we navigate this pandemic together. Don’t disregard a potential deal because the numbers aren’t there. Send it to GFLS, and let’s work through it.

Contact us to see how we can help.

Loans now available to Arizona small businesses hit hard by coronavirus

Arizona small businesses hurt by the coronavirus pandemic can apply for up to $2 million each in loans from the U.S. Small Business Administration now that the agency has accepted the state’s disaster declaration request. 

Arizona’s Economic Injury Disaster Loan declaration was approved by the SBA on Thursday after Gov. Doug Ducey submitted a letter requesting federal assistance on March 16. 

“Business across the state have already experienced significant economic losses and are anticipated to continue to lose revenue due to this pandemic,” Ducey said in his letter.

Businesses can apply for loans through the SBA website at SBA.gov/disaster.

The normal loan processing time for the loans is around three weeks, according to Jordan Ripley of the SBA’s Arizona District Office.

Ripley said there is no limit to the total amount available to Arizona business, but individual borrowers can be approved for up to $2 million. 

The loans may be used to pay fixed debts, payroll, accounts payable and other expenses impacted by COVID-19. Interest rates are 3.75% for small businesses without other credit options and 2.75% for nonprofits. Long-term repayment options up to 30 years are available, with terms determined on a case-by-case basis, based on each borrower’s ability to repay, according to the SBA. 

“Without a doubt, these tough times will take a significant toll on our economy and the livelihood of working men and women throughout the state,” said Chad Heinrich, Arizona State Director of the National Federation of Independent Business, in a statement. “This relief will go a long way to repair the damage done and protect Arizona families.”

Debbie Hann, chief operating officer of the Arizona Small Business Association, told the Business Journal her organization is just beginning to hear from people starting the application process and is ready to connect business owners to resources that can help if needed. 

She said that a byproduct of the coronavirus crisis has been that various agencies and groups are working together to help businesses navigate the difficulties. 

“We are truly wanting to help the small businesses,” she said. “It’s really a team effort for all of us.”

The SBA loans are available through the Coronavirus Preparedness and Response Supplemental Act signed by President Donald Trump on March 6.

Monitor

Concern Rises as Small Businesses Borrow from Unregulated Online Lenders

DEC 31, 2019 – 7:00 am

The Wall Street Journal reported that small businesses continue to borrow from unregulated online lenders, raising concerns about “sky-high” rates and other costly terms.

In 2019, one-third of small businesses applied for a loan, up from 19% in the previous year, according to research from the Federal Reserve.

The Journal reported that tech-enabled lenders are meeting the needs of small businesses that banks are unable to serve, but often at the detriment of the borrowers who are often unable to repay their debts.

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READ:  There are Equipment Leasing Finance Companies, and There are Partners

business-equipment

ELFF: Nearly 8 in 10 End-Users Acquire Equipment Through Financing

According to the 2019 Equipment Leasing & Finance Industry Horizon Report released by the Equipment Leasing & Finance Foundation, approximately 79% of businesses rely upon financing for at least part of their equipment and software purchases.

In a recent article, Monitor Daily summarized the 2019 report, which gives key industry performance data as well as a detailed analysis of recession risk.

You can read the full article from Monitor Daily here, and view the 2019 Equipment Leasing & Finance Industry Horizon Report released by the Equipment Leasing & Finance Foundation here.

Wood processing factory

The Role of Financing in the Forestry & Logging Industry

Although wood is used for a wide variety of products (crates, boxes, paneling, cladding, furniture, guitars, drum shells, frames, sports equipment, ladders, firewood, windows, doors, cabinets, shelving, and entire homes), and it seems as though construction is going on constantly, the logging industry can be surprisingly slow at times. And, when the demand for wood becomes too slow, many logging business owners find themselves having to sell equipment or are unable (financially or logically) to renew their logging equipment leases.

But, like any industry, the demand for logging goes up and down. There is seasonality to need, and when need becomes high, logging business owners can find themselves scrambling to find logging equipment again.

Having proper logging equipment such as delimbers, harvesters, loaders, logging trucks, processors, excavators, feller bunchers, forwarders, skidders, yarders, etc. is extremely important to a logging business if it is to meet demand regardless of market fluctuations.

The problem some logging company owners who need equipment when demand is high is that when the industry picks up again, they may run into problems when trying to secure leasing. Reasons could involve lack of longevity in business or not having the data and information that most leasing or lending companies or big banks require.

READ: What Lenders Want to See in a Business Plan Before Approving Your Equipment Financing Application

However, it’s possible to get lease financing for logging equipment if you know where to look.

Companies, like Global Financial & Leasing Services (GFLS), help owners of small- to medium-sized logging businesses acquire leasing for logging equipment in order to meet their customers’ needs when the demand for wood is high. Whether you need just one piece of machinery or a whole new fleet, lease financing for logging equipment is often the wisest choice because you can use the leased equipment to make a profit, which can amount to far more than the lease payment itself. If you purchase the equipment outright, your cash will be tied up in it.

With lease financing for logging equipment, business owners have the machinery to do the jobs without committing to a big purchase, and can change the equipment out for newer models when necessary, which will help them surpass their competitors who may be operating with older, less productive equipment that can become more expensive to operate in terms of maintenance.

Whether you’re looking to lease just one piece of logging equipment, you want to replace outdated or broken machinery, you want to expand your operations, or you want to get your hands on a new piece of equipment to have an advantage over your competitors, lease financing for logging equipment is a great way to obtain essential equipment while maintaining cash reserves.

At Global Financial & Leasing Services, we have expertise in the field of logging and forestry equipment financing, and we would love to help you start or expand your business. With us, you don’t need to provide a large down payment, and we are known in the industry for working with business owners who have a less-than-perfect credit.

If you’re interested in lease financing for logging equipment, please don’t hesitate to contact us.

Feller-Buncher

Financing for Feller Bunchers

When it comes to highly productive felling machines, feller bunchers are at the top of the list because they work well in thinnings and clearcuts. Plus, compared to manual felling, feller bunchers offer better control when felling trees, which can minimize residual stand damage.

What dictates the size of feller buncher that would serve your company’s demands (and how much financing for feller bunchers you will need)?

  • The type of forestry work your company is doing
  • Your productivity goals
  • Where you are going to use it
  • The impact on surrounding area

As one of the most practical logging machines, a feller buncher has the ability to cut multiple trees at the same time or in a row, gathering them up like a bouquet of flowers. A feller buncher can do this before the group of trees ever hit the ground—literally gathering up a “bunch.” This obviously saves your company a lot of time and energy (and therefore, money) because it makes the process go faster than gathering one tree at a time.

A feller buncher also is efficient for clearing wide areas of growth because it grabs the trees, saws them from their base, and stacks them in a manner so they can be more easily loaded onto a forwarder.

Because a feller buncher is practical and efficient, logging companies that have one or a fleet of them can gain a competitive advantage in the marketplace. However, feller bunchers are a hefty investment. According to numbers released by the U.S. Forest Service, hourly productivity ranged from 428.9 to 2267.7 ft3 per productive machine hour (PMH) for the feller buncher and 178 to 2186 ft3/PMH for the top/delimber. Hourly costs were estimated to be $99.68/PMH for the feller buncher and $28.23/PMH for the top/delimber.

Purchasing a feller buncher outright ties up a significant amount of your company’s cash. But not to worry. Lease financing for feller bunchers is a very popular option for logging and forestry business owners. And, you don’t even have to have excellent or even very good credit.

READ: You Need to Package Your “Story”

By financing instead of buying this critical piece of logging equipment, you can take advantage of its abilities without committing to the expensive outlay that purchasing requires. Working with a company, such as Global Financing & Leasing Services (GFLS), is a means to add a feller buncher to your equipment fleet and begin benefitting immediately from improved processes and productivity.

In addition, your cash can be reserved or budgeted for other important business objectives like hiring skilled labor, training, marketing and such.

Maybe you want to replace your outdated or broken feller buncher, move into a new area, or get a logging or forestry business off the ground. Whatever your business goals, lease financing for your feller buncher couldn’t be easier with GFLS.

We are experts in lease financing for feller bunchers and other logging and forestry equipment for small- to medium-sized businesses. If you are looking for a new feller buncher and you need to secure financing, you will appreciate our expertise with both tracked and wheeled machines.

In most cases, we don’t require a down payment, and we have a long history of helping business owners who have less-than-perfect credit. If you’ve had trouble getting financing from a bank or other lender, we may be able to help you.

As you build or expand your logging business, we have you covered when it comes to lease financing for feller bunchers and any other logging machinery. Please contact us today to learn about your lease financing options.

printing-equipment

How to Find the Right Financing in the Printing Industry

Nearly every type of business requires printing of some kind at some point, and there is no lack of options both brick and mortar and online print shops. Printing is a dog-eat-dog industry with customers won and lost on pricing and capability. Perhaps nothing is more important to a printing company’s survival is having the latest, most cutting-edge printing technology in order to stay competitive with other print shops.

However, if your presses aren’t able to print large-scale, high-volume, high-quality, commercial color items, then you simply won’t be able to take care of your customers’ needs—and that has led many printing companies to close their doors. Make no mistake. Companies are hyper aware of the “noise” they’re fighting against for attention whether they’re B2B or B2C. And, they insist on partnering with printing companies that have the solutions to help them stand out.

Adding state-of-the-art printing equipment is never a cheap proposition, and they represent one of the biggest expenses that printing company owners face.

Because of this, one of the main challenges that many print shop owners have to deal with is securing financing to get printers and other equipment. When it comes to lease financing for printers, a company like Global Financial & Leasing Services is ideal because we provide a variety of financing options to help owners acquire the printing equipment they need.

Lease financing for printers means that you, as a business owner, can stay on top of any new printing technology and offer it to your customers without investing cash reserves on it. You’ll have the opportunity to test out the newest equipment and see if it will benefit your print shop and customers without the long-term commitment of purchasing it. Offering the newest printing technology (such as 3D printers) will give you a huge advantage over your competitors.

It also means that you’ll cut down greatly on maintenance and supply costs because you won’t need to worry about excessive wear and tear on your equipment. You can simply upgrade older printers for new, more high-tech versions every few years.

By using lease financing for printers and other machines, your customers will be able to count on you to provide what they need for all their printing jobs, including digital printing, 3D printing, labeling, packaging, and more.

A problem that crops up with many printing business owners is that conventional lenders often have very strict underwriting guidelines. This means that it can be extremely difficult to get a loan from them.

In cases like this, help from a lender like Global Financial & Leasing Services is perfect, because we specialize in helping small- to medium-sized printing company owners with less-than-perfect credit scores.

Whether you’re opening up your first print shop or your current printing equipment is no longer meeting the needs of your customers, consider the benefits of lease financing for printers from Global Financial & Leasing Services to update your operations. Even if you’ve had bad luck in the past securing financing to lease equipment from big banks, we can help.

If you’re interested in lease financing for printers and other equipment for your print shop, please contact us at Global Financial & Leasing Services to learn more or get started today by filling out a credit application.