Feller-Buncher

Financing for Feller Bunchers

by Industry News

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

by Industry News

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.

3d printer has printed model of an apple.

3D Printer Financing for Businesses

by Industry News

From the biggest corporations to the smallest startups, it seems like every business is harnessing the power of 3D printing to expand their offerings, not to mention their market share and sales.

Who would have ever believed that so many items could be printed in 3D, including clothing, musical instruments, equipment parts, food, and even a car. Companies are certainly taking advantage of the incredible 3D printers that have the technology to make almost anything.

3D printers are being used to make new products and improve on existing ones, and it’s becoming more and more mainstream. Just look at General Electric (printing fuel nozzles), Nike (cleats), Hasbro (toys), Ford (engine covers), Boeing (air ducts and hinges), and Hershey’s (chocolate). In 2015, the first 3D-printed car was unveiled.

Many industries are getting on board with 3D printing, including the medical, architectural, jewelry, food, toy, fashion, and automotive industries. And smaller businesses are no exception. Small- to medium-sized startups have also jumped onto the 3D printing band wagon. These companies do everything from creating prototypes to making jewelry and toys to printing miniatures for films.

In fact, it’s been predicted that in 15 years, 85% of all businesses will be using 3D printing in some way or another.

With all this said, it’s no surprise that 3D printing has elevated the printing industry to the next level. With no signs of 3D printing going anywhere anytime soon, if your business does any sort of printing and could progress by incorporating a 3D printer, you should most definitely determine how to add one to your arsenal, as well as how to pay for it.

Financing a 3D Printer as the Next Step in Business Growth

Having a 3D printer at your business will help either with your own products or your customers’ products. Either way, having this cutting-edge technology will both further your operations and give you a leg up over your competitors who are slower to adopt this technology.

Of course, high tech, top-quality 3D printers and equipment are not cheap. But don’t let this stop you as with all technology the prices for 3D printers eventually will come down. Plus, you don’t have to own one to profit from one—you only need to have access to one.

READ: Why Put Profit Above an Equipment Lease Payment

This is where lease financing for 3D printers can help. By leasing a 3D printer, you’re gaining critical technology that is key to the future compared to making a monumental investment if you were to purchase it outright. As 3D printing technology improves, financing a 3D printer lease offers a convenient way to upgrade more easily versus owning the printer.

No Stranger to the Printing Industry

At Global Financial & Leasing Services, we offer special lease financing for 3D printers that includes the printers, CAD software, scanners, 3D modeling software, and any materials you may need (such as plastic, glass, metal, and ceramics).

Whether you’re replacing older 3D printing equipment or investing in it for the first time, Global Financial & Leasing Services can help. We can provide lease financing for 3D printers that minimizes costs, while maximizing your return.

We have expertise in the field of lease financing for 3D printers for small- to medium-sized businesses, and we would love to speak with you. We don’t require any down payment, and we specialize in helping business owners who have less-than-perfect credit.

If you’re interested in lease financing for 3D printers and other equipment, please contact us at Global Financial & Leasing Services to learn more.

restaurant

Using Equipment Lease Financing to Set Up Your Restaurant for Success

by Benefits of LeasingIndustry News

finance restaurant equipmentIf you’re opening your own restaurant, you know very well that there are many factors and expenses that go into doing it right—just like any business. And, one of the heaviest financial burdens for those opening a new restaurant is the equipment that your establishment requires.

Restaurant equipment definitely isn’t cheap, but it makes up some of the most necessary items that owners need to run their place. It goes way beyond a simple refrigerator and stove. Also, there are dishwashers, steam tables, ice machines, fryers, bar equipment, prep and work tables, holding cabinets, and much more.

Any one of these items alone can be incredibly expensive—not to mention multiple items, which most restaurant owners need. Because of the reality of high restaurant equipment costs, many owners choose to take advantage of restaurant equipment lease financing.

With restaurant equipment lease financing, you’ll be able to get your hands on the equipment you need to get your restaurant up, running, and successful, even if you don’t have a huge budget to work with from the beginning. Instead of having to pay a large, up-front lump sum, restaurant equipment lease financing allows you to pay a monthly payment instead and keep more of your start-up funds in the bank for other expenses, like:

Quality Employees

You can hire better, experienced employees and pay them an attractive salary to reduce turnover. The better employees there are, the better the customer service will be, which is a big attraction for customers, as no doubt you’ve read on Yelp reviews.

Property Rent

Without the drain of a huge purchase for equipment, you could perhaps afford a better location and have greater confidence you’ll be able to pay your rent on the restaurant space each month.

Better Inventory

Excellent food comes from excellent ingredients, but many quality ingredients are more expensive. Locally-grown, in-season fruits and vegetables, as well as healthier ingredients, simply tend to cost more. With the money that restaurant equipment lease financing allows owners to save, you can afford to invest in better ingredients.

Food Safety

With restaurant equipment lease financing, you can have access to equipment that keeps food at its very best, such as heating cabinets and industry-quality freezers. Keeping food warmed up for pick-up customers or frozen enough to be safe is very important, and if it’s not, inspectors can and will cause trouble for you.

Décor

Ambiance and atmosphere are key to your restaurant’s overall experience. If you’re starting a new restaurant, chances are you have a specific vision for it. The money that financing a restaurant equipment lease saves compared to purchasing outright allows can help bring that vision to life.

Unfortunately, what often stops owners from leasing restaurant equipment is their credit. Restauranteurs with less than perfect credit, typically have a difficult time getting financing from banks. But this is no reason for you to settle for basic equipment, or choose to not open your restaurant at all.

Direct lenders like Global Financial & Leasing Services work with restauranteurs and entrepreneurs who have imperfect credit to get them the tools and equipment they need to kickstart their business. To us, you’re more than just your credit. You could be the next Wolfgang Puck.

If you need help with restaurant equipment lease financing, talk to us at GFLS. We’re here for you, and we want you to be able to achieve your culinary dreams.

industrial-oven

Don’t Finance an Industrial Baking Oven Without Reading This First

by FinancingIndustry News

At the heart of every great bakery is an even greater oven. This piece of equipment is perhaps the most crucial investment you will make as a bakery owner. After all, every detail of the hard work and preparation you put into your baked goods is going to culminate in the baking process.

It’s also important to select an industrial baking oven that’s going to be dependable for a long time. It needs to provide you with consistency and reliability for years and years to come.

But, choosing the exact right oven for your bakery isn’t as easy as it may seem. When you begin shopping around for an industrial baking oven, you will discover that the options are seemingly endless. With so many on the market, how do you choose?

The first thing to understand is the basic different types of industrial ovens. This will help you determine which one will work best for your needs and meet your business goals.

Basic Types of Industrial Baking Ovens

Convection Oven

This is the most common and popular type of industrial baking oven because it’s the most affordable. A convection oven is the best choice for loaves of bread and individual cakes. This oven uses internal fans to circulate heat so that your batters and doughs bake evenly.

Rack Oven

If the amount of baked goods you produce is a priority, a rack oven may be the right choice for your bakery. If you’re planning to have a large-scale supply of bread or cookies at all times, a rack oven allows multiple goods to be baked at the same time.

Stone Deck Oven

If you’re an artisan baker who uses old-world style baking methods, a stone deck oven may be perfect for your bakery. These ovens provide modern heat distribution with artisan results, and they require less maintenance than a convection oven. They also feature stone decks, which means up to four chambers can be baking different items at once.

Revolution Oven

A revolution oven allows you to bake different types of goods at the same time via revolving trays.

And, that’s just the start! There are all sorts of sub-types of industrial baking ovens as well. The most important thing is to ask yourself questions to rule out what you don’t need—and then you can focus on what you do need.

The right industrial baking oven for you will depend not only on the type of goods you make, but also how many you’ll be producing per day, your personal baking process, the oven’s ease of use and baking speed, your building’s size and codes, and your budget.

If you fall in love with an oven, but find that it’s out of your price range and you can’t seem to get any help from banks for financing or leasing, consider industrial baking oven lease financing from a direct lender like Global Financial & Leasing Services. We work with bakery owners who have less than perfect credit in order to provide them with the equipment they need to run their business successfully.

If you need help with industrial baking oven lease financing, please talk to us at Global Financial & Leasing Services.

excavator-financing

Financing an Excavator: Even if You Have Bad Credit

by Benefits of LeasingIndustry News

excavator financingWith construction leading the way in our current economy, it’s no surprise that small and mid-sized companies are taking advantage of the boom and investing in heavy equipment like excavators. These machines help them take on projects previously out of their reach. Also, financing new or gently used excavators beefs up a company’s fleet. However, excavators are a serious investment and purchasing outright is a large capital outlay. This makes buying outright out of reach for many business owners who don’t have that kind of capital or prefer to keep it on hand for other purposes.

Comparing New and Used Excavator Costs

If you’re financing a new, a full-sized excavator, the cost can range generally between $100,000 to $500,000. In general:

  • Small excavators (10 to 15 tons) cost between $80,000 to $150,000
  • Mid-sized excavators (15 to 20 tons) range between $100,000 to $200,000
  • Large excavators (30 to 40 tons) run from $200,000 to $400,000

Accessories, if needed, will be an additional cost. Most excavators come with one bucket, however, your typical jobs may require multiple or different-sized buckets for which you’ll need to budget an additional $1,000 to $5,000 each. Attachments such as rakes, blades and hydraulic hammers can add $5,000 to $10,000 each to the cost.

The high cost of new equipment and a good economy have created an excellent market for used excavators, putting them in reach of many small and mid-sized companies. Used excavators can be had at a significant discount. A gently used excavator with less than 2,000 hours of use might sell for 25 percent less than the original price – a great deal considering these machines have lifespans of up to 10,000 hours or more.

READ: Why Put Profit Above an Equipment Lease Payment?

Financing Your New or Used Excavator

Whether this is your first excavator, your fifth or you’re taking advantage of the great used inventory to upgrade, excavator financing from Global Financial & Leasing Services (GFLS) can help. If there is anything more important than getting the right excavator for your company, it’s working with the right lease financing company with experience in heavy construction equipment financing.

That’s where excavator lease financing from GFLS comes in. Our team can help you acquire essential equipment when you want to retain your capital for other things or bad credit makes you risky on paper to other lenders.

READ: What to Expect if Your Credit Score is Under 750

Get Excavator Financing Through GFLS

Since 2009, GFLS has been providing excavator lease financing for small and mid-sized businesses across the U.S. Our customers count on us to help them obtain the heavy construction equipment they need to compete in their area and take their companies to the next level through:

  • A fast, easy excavator financing process
  • Dealing directly with financing decision makers
  • Our willingness to look beyond a credit score to your “story”
  • Reliable, ongoing communication
  • Equipment financing decision made in <2 to 24 hours
  • A financing culture based on respect

We know what a difference a day can make for companies that need to get excavators on the job. Start the application today and the GFLS team will move heaven and earth to approve your excavator financing in as few as 24 hours. Have a question about heavy construction equipment financing? Contact our team for answers.

Monitor

Monitor’s Profile of Global Financial

by Company NewsIndustry News

The Monitor daily, an Independent Voice of Equipment Finance, recently did a spotlight on Global Financial.

Since its launch in 1974, the Monitor has evolved into the leading independent trade publication in the equipment finance and leasing industry. Employing a unique content delivery format, each issue includes timely articles authored by industry specialists and regular features, which are a hallmark of the magazine.

Click to open .pdf version of the profile.

Business Profile Global Financial

Man driving a crane to lift-up some equipments

Why Equipment Financing Companies Ask for Additional Documentation

by FinancingIndustry News

It’s Not a Hoop to Jump Through. It’s a Means to Approve Your Financing Application.

Equipment Financing Global FinancialLet’s save you some time. If your credit score is 750 or above, feel free to read another blog. This one doesn’t pertain to you because typically your equipment financing will be approved based on your application alone.

If your credit score is below 750, and especially if it’s much lower, stay with us. Chances are that along with your application, that an equipment financing lender, like Global Financial & Leasing Services (GFLS), will ask for additional financial documentation. Worst case scenario is that your lender doesn’t ask for you additional documentation and simply rejects your financing application. Simply put, don’t look at gathering paperwork as a hoop your lender is asking you to jump through, but rather as a means to get you the funding you need for equipment.

There are two reasons equipment financing lenders ask you for more documentation along with your application.

  1. They want to help you prove your income and your credit worthiness.
  2. They want to help you prove that you have the ability to repay the lease.

The following are the most common financial documents lenders might ask for if additional documentation is required.

Personal and business bank statements from the past three months

Bank statements let lenders visually verify income and provide a general overview of how you handle your finances. If your statements include negative balances and overdrafts, that sends a red flag to lenders that you could have a better handle on managing your finances.

What can you do if your bank statements aren’t going to help your application? Change your focus from getting equipment financing to improving your bank statements. Keep positive balances and avoid overdrafts. Think of the overdraft fees you’ll save. Then, revisit equipment leasing once your financials are in better shape.

Year-end P&L statements and balance sheets from the past one to two years

Profit & loss (P&L) statements and balance sheets are common business financial documents. They offer an excellent overview of a company’s financial health, which is what lenders need to see when deciding whether to take a risk on lending you money for business equipment.

Personal and business tax returns for the past one to two years

Like P&L statements, tax returns show financial strength, and they are seen universally as a legitimate reporting tool. Expect lenders to compare numbers between your P&L statements and balance sheets to your tax returns. If the figures don’t “add up,” lenders will see this as a red flag.

Personal financial statements from the company’s principals

Personal financial statements from your company’s principals might be requested, especially if the they are personally guaranteeing the equipment financing. The statements include assets, such as homes, cars and income, as well as debts, such as mortgages, car loans, etc. Personal financial statements show the principals’ net worth and ability to financially guarantee the loan.

Collateral

Lenders may ask if you hold any assets that can be used for collateral against your equipment financing. If you have an asset, documentation of ownership and worth will be required.

Current vendor quote or invoice for the equipment being financed

The equipment quote or invoice verifies the financing amount matches the sales price.

READ: You Need to Package Your “Story Credit”

Along with your credit score, how much additional documentation you’re asked to provide also depends on the amount of the financing you’re requesting. The higher the amount, the more documentation you might be asked to submit. Regardless of the amount, the more documentation you can provide when asked, the better overall idea the lender has of your financial situation. And, that can make a difference when it comes to approving your equipment leasing application.

If you want to learn more about the equipment financing application process, our team is happy to answer your questions.

equipment-financing

Why Equipment Vendors Outsource Customer Financing to Global Financial & Leasing Services

by Industry News

In-house Financing Can Increase Equipment Sales by 30 Percent.

Global Financial Equipment FinancingFarm, medical, construction, restaurant, printing, manufacturing, and logging equipment is a heavy financial investment for business owners. More times than not, the only way for business owners to acquire the costly equipment necessary to sustain or grow their business is through financing.

As an equipment vendor, offering customers financing is a sure-fire way to sell more equipment. However, the world of equipment financing isn’t without complications, including:

• Building and maintaining relationships with financial institutions
• Taking on the risk of financing customers who are a credit risk
• Investing internal time and resources in reviewing applications and verifying applicants’ financial documentation
• Missing out on potential equipment sales and revenue by not financing lower tier credit buyers

Partnering with Global Financial & Leasing Services (GFLS) helps equipment vendors close 30 percent more sales. More importantly, we help you close those sales at no risk to you and without using any of your internal resources.

Could GFLS be the Financing Partner You Need?

If you answer yes to any of the following questions, it’s time to talk to the GFLS team about becoming your equipment financing partner.

Do you currently work with a lender who only finances equipment for AAA-rated buyers?

If the answer is yes, then you could be missing out on a significant number of sales. It has become more difficult for larger financial institutions to approve financing applications for those with “B-type” and “C-type” credit. GFLS specializes in lower tier credit ratings, which expands your pool of buyers to increase your sales.

Are you seeking a partnership with an equipment financing partner who specializes in less-than-perfect credit applicants?

GFLS has a long, successful of financing “B-type” and “C-type” credit because our system looks at the applicant’s “story” and additional lease documentation, allowing us to approve more applications. Great for us, but even better for you. Once the equipment financing application is approved, GFLS pays you for the equipment in full via wire or ACH. The risk is ours, and the sale is yours.

Are you concerned that approving lower tier credit applicants will take too long and cost your team sales?

GFLS’s equipment financing process is simple and fast, even when additional documentation is requested for review. Our team stays in constant communication with applicants, keeping decision turnaround time under 48 hours in most cases.

Would you prefer your financing program be branded under your company’s name?

Offering “in-house” financing is an effective marketing strategy that you can use to increase your market share and differentiate your brand from competitors. GFLS can design financing applications and a seamless process to match your brand standards. Our team then works behind the scene to handle the credit approvals.

Thirty percent more sales without financial risk to you or using your resources is possible by partnering with Global Financial & Leasing Services as your main financial lender or backup financing provider. Our long-standing relationships with publicly traded financial institutions makes GFLS a perfect partner when you want to not only approve “A-type” credit applicants, but “B-type” and “C-type” credit as well. Talk to our team about the possibilities.

Close-up of businessperson give agreement document with graph da

You Need To Package Your “Story Credit”

by FinancingIndustry News

Important To Submit Good Credit Packages 

Package your story creditSales people are typically “coin operated,” which is to say that they are motivated by money. With that said, it is sometimes surprising to me how many sales people don’t understand the importance of submitting a good credit submission package. The reason for that might be for many of the small transactions, credit scoring drives the credit decision. The only thing the sales person needs to supply to the funding source is a completed and signed credit application and a vendor quote/invoice.

Then again, there are the larger transactions that require additional information, such as financial statements and tax returns. In larger transactions, with credit worthy accounts, nothing much more than those basic items is required. The financials (and/or tax returns) tell the “Story” for the credit committee. The Scoring solution requires minimum input from the sales person, and for the larger transactions the financials and tax returns speak for themselves. However, when the transaction is a “Story Credit,” things seem to become challenging for the sales person. This is where many sales people fail to properly “package” the opportunity to obtain the desired results from the funding sources.

What qualifies as a “Story Credit?”

If the credit submission fails either of the above credit reviews, then likely it now qualifies as a “Story Credit” submission. Here the sales person needs to identify why did it not pass the credit review at the bank. For small and mid-sized businesses (SMBs), the principals of the business will most likely be required to provide their personal guarantee on the financing. When their credit is pulled, the most frequent reason a bank declines the application is a legacy issue. Those legacy issues include foreclosures, bankruptcies, tax liens, short sales, student loan delinquencies, etc. An issue that occurred just six -months ago can negatively affected the borrowers/lessee’s FICO score. The borrowers/lessee’s FICO score might now be 710, but they had a short sale in 2014. To get these credit submissions approved, someone has to find out about the borrowers/lessee’s “Story.”

How does someone tell the “Story?”

If you want to get this opportunity approved, this is where the work begins. You, the sales person with the opportunity fulfills the roll of “Packager.” You need to ask questions of the borrowers/lessee and share that information with your funding source. What happened, how did it get resolved? If it did not get resolved, where does it stand now? Why did they file bankruptcy? If they did not file bankruptcy, but were severely delinquent with a number of creditors, what did they do and why? Are they now caught up or nearly caught up?

So, what is the funding source looking for? Typically, character of the principal, today’s cash flow and to assess the value of the collateral.

The character of the principal is a good starting point. When they faced adversity, how did they handle it? Did they file bankruptcy because of the divorce and walked away from all their creditors? Did they file bankruptcy and entered into payment plans with their creditors, paying everyone eventually all the money they owed? Assuming everything else is okay, the difference in the action one person took versus the other might mean one get approved and the other declined.

Sometimes, the opportunity is based on being awarded a contract or contracts. As a packager, the lease broker, it is important that a copy of these contracts (signed preferred) be included in the credit submission. Then there is the possible mismatch. The contract is for two years and the lessee wants a five-year financing term. Is there any explanation on how that is going to work out?

We had applicants come into our office several years ago who wanted to get a loan. They were local and since they had a credit “issue” on their credit report, it was their intention to make a good impression. We learned in that meeting that they entered into a loan on equipment with a bank several years earlier. Subsequent to that loan, as so many others did in the down turn, the vendor went out of business. We were told that since the vendor went out of business, they elected to stop paying the bank. Since the vendor would no longer service the equipment, they did not feel they needed to continue to pay the loan. The character of this applicant was clear, this was a business we did not want for our portfolio. We bid him good luck finding a lender for his financing needs. We have seen the lessee who has current or former tax liens. When you know they exist, or existed, you want to obtain the payment plans or document the closure if they have been paid off.

We entertain start-ups and they are never easy. This is where the Packager should be asking a lot of questions and submitting a “Transaction Summary” with all the information they have learned. We require the lessee complete a “Start-Up Questionnaire.” One question is “Do you have a business plan?”, if so include it. I am always amazed when the question is answered with a “Yes,” but the business plan is not included with the credit submission. Then there are those that submit a business plan, and it only contains the details of their idea for the business. No financial projections, no costs identified and no revenues, etc. I guess those folks are hoping for the best and they love the idea no matter if they can pay the bills or not. It is not uncommon for the principal to state on the Questionnaire that they have invested X dollars into the business and not include the details on where it came from nor how it was used. Those are basic details us, as lenders, want to know about and you, as the Packager, will want to include in your submission.

Global Financial & Leasing Services (GFLS) was created in 2008 for the purpose of serving these small and mid-sized businesses (SMBs). GFLS has the capability to fund a wide range of businesses. In addition to its own bank lines, GFLS has established its own equipment lease fund. Now, as a funding source, we are able to peel back the layers of a credit request to uncover value and create a structure that will work to assist SMBs secure equipment financing with or without credit blemishes. We know that not every less-than-perfect credit story may fit into the credit boxes used by banks and other financial institutions, but GFLS believes a company’s character is more than its credit rating. In closing, a good Packager is more successful with their submissions and makes more money.