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 It can be a smart option for businesses that want to stay agile and avoid owning outdated equipment.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.
