In the world where many feel like they are simply a number, there’s a unique approach that values people’s stories just as much as their credit score. It’s called “story lending” in the financing industry.
A lifeline for business owners whose credit scores aren’t perfect, story lenders offer more than just equipment financing; they provide a partnership based on understanding each applicant’s story.
Having story lenders as an option is so critical in equipment financing. Not only to be of service to those whose credit took a hit for reasons that may have been out of their control, but to also show that understanding business owners’ unique challenges and goals still matters today.
Traditional Banks Leave Many Behind
Many business owners with less-than-perfect credit scores often find themselves rejected by traditional banks. These institutions tend to stick to rigid credit models that don’t consider the full story behind a business owner’s journey, struggles and potential. This narrow view can unfairly shut down opportunities for those who’ve experienced a rough patch. And frankly, who hasn’t?
Story lenders set themselves apart by really looking at the “why” behind the numbers—maybe a tough economic phase, unexpected market changes, an untrustworthy partner or personal emergencies impacted their personal lives or their business. By learning the why behind a credit score, story lenders can see potential and risk in a fuller, more personal way. This approach not only recognizes the resilience and real potential of entrepreneurs, but also builds a relationship based on trust and mutual understanding. And what business owner couldn’t use another supporter in their corner, especially one specializing in financing?
What is a Story Lender?
At the heart of the story lending philosophy is building relationships, not just conducting transactions. Unlike traditional banks, where interactions often feel impersonal, story lenders engage deeply with business owners.
Here’s what makes this relationship-centric approach so beneficial for business owners who need financing:
- Personalized Financing Solutions: Understanding each business’s unique challenges and needs helps story lenders create financing solutions that truly fit with what the business needs to grow and thrive.
- Flexibility in Terms: Story lenders often provide more flexible terms, recognizing that many businesses, especially in sectors like manufacturing or construction, experience ups and downs. This could mean customized repayment plans that better match the business’s cash flow.
For example, Global Financial & Leasing Services recently had an opportunity where the applicant brought us an existing credit approval structure and asked if we could do better. The existing credit approval required a large 30% down payment (first payment). We were able to credit approve with a much smaller first payment.
- Support Beyond Lending: Story lenders often go beyond just financing; they offer guidance and advice, acting like business advisors. This can be a game-changer for small business owners who might not have a mentor or advisory networks.
This kind of in-depth support not only helps businesses financially, but also boosts their long-term success, contributing to stronger local economies and communities.
The Value of the Story Lending Approach in Today’s World
In today’s often impersonal business environment, the story lending approach brings a crucial human touch to finance. This approach is especially valuable today because it:
- Encourages Diverse Economic Participation: By backing businesses that might otherwise struggle to get financing, story lenders help create a more diverse and inclusive economy.
- Drives Innovation and Entrepreneurship: With more story-based financing, businesses can implement innovative ideas and technology that might seem too risky for traditional lenders.
- Builds Stronger Communities: Businesses that get this kind of support often stay loyal to their lenders and their communities, resulting in local growth and more business collaborations.
The story lending approach to equipment financing is more than a financial service; it’s a belief in the power of human connections. Story lenders enable a broader range of entrepreneurs to achieve their dreams and contribute to a fairer, more prosperous economic landscape. The human side of equipment financing isn’t just an alternative—it’s a vital evolution in how we should support and understand business today.
Global Financial & Leasing Services is a Proud Story Lender Since 2009
Global Financial & Leasing Services (GFLS) is a veteran-owned company, founded in 2009 and based in Scottsdale, Arizona.
GFLS was founded to meet the equipment financing needs of small to mid-sized businesses all over the United States. We provide equipment financing solutions for a wide range of companies and a wide range of credits. Our customers, ranging from startups, emerging businesses, private equity-backed companies, “C” and “D” types, turnarounds and those with less-than-perfect credit, seek to finance the equipment they need to launch, expand and/or grow their companies. We specialize in making credit decisions based on the potential of the applicant, not a credit score. We look to uncover value and create a structure that will often work for the situation.
We can provide equipment financing solutions for a large variety of equipment types including, but not limited to manufacturing, health, medical, surgery centers, wound care, dental, construction, commercial landscaping, restaurant, food/beverage manufacturing, farming, recycling, automotive, printing, sanitation, mining, oil & gas, cannabis and many more.
We are here to often say “yes” when others say no, offering the financial support to move businesses forward. Talk to one of our equipment financing experts and experience the story lender difference in equipment financing.