The internet is full of advice for business owners. Most every city has chambers of commerce and business mentoring groups to support business growth. They all offer advice—some solicited, some not, some good, some not—on running your business.
In the competitive landscape of small and medium-sized businesses, growth and success are a result of doing things better, smarter, faster or different than other companies in your industry. Equipment financing can be one of most important decisions you make that has the potential to expand your business, and therefore its profitability.
Obtaining essential business equipment needed to spur growth and innovation often requires financing. Even if you have the best of credit, being approved for financing can be a time- and resource-intensive process. If you are on a budget, have a startup company and/or have blemishes on your credit report, getting approved for equipment financing can be difficult. But it’s not impossible with Global Financial & Leasing Services (GFLS) because we’re a story lender that considers your entire financial picture with Certified Lease & Finance Professionals who can offer advice on getting the most bang for your buck without straining your finances.
Making an Informed Equipment Financing Decision
Before deciding to finance a piece of equipment, make sure it’s the right one for your business and market. Here are a few points to research:
- The equipment’s leading manufacturers and vendors.
- Identifying the top suppliers can reveal who dominates the market and why.
- The unique features of each equipment option.
- Comparing features across different models and brands helps in assessing which equipment offers the best value or unique capabilities that suit your specific business needs.
- What current users say about the equipment.
- Reviews and testimonials can provide insights into reliability, user satisfaction and potential issues.
- This equipment’s performance compared to that of its competitors.
- Evaluate performance benchmarks and case studies to understand if the equipment outperforms its competitors in crucial areas like speed, efficiency or cost-effectiveness.
- Market trends influencing the availability and price of this equipment.
- Market trends can affect equipment costs and availability, impacting when and what to buy.
This testimonial from D.W. from Discovery Ultrasound is an example of the impact having the right equipment can make on a business.
“Thank you so much for all of your help and incredible speed. This new piece of equipment will be a game changer for my business. No one within 250 miles of me has one. I will crush my competition!”
This new equipment wasn’t merely an upgrade—it gave a strategic advantage, setting Discovery Ultrasound apart in a highly competitive market.
Have a Budget in Mind That Includes Soft Costs
When financing business equipment, it’s crucial to consider not only the hard costs like purchase price and interest rates but also the often-overlooked soft costs. Soft costs are indirect expenses such as legal fees, insurance, installation, training and maintenance.
These costs can significantly affect the total cost of financing. Understanding and managing these costs are important to avoid unexpected expenses. Soft costs vary depending on the equipment and financing option, so including them in your budget reduces the likelihood of being spending more than you expected.
Shop Wisely to Find the Best Deal on Equipment
There’s merit in financing pre-owned equipment to cut down on expenses. Also, leasing a piece of equipment can offer savings benefits, such as included maintenance, which helps avoid unforeseen costs in the future. Finally, timing purchases or leases during seasonal sales or fiscal incentives can result in savings.
Need Advice on Equipment Financing?
Obtaining the right equipment at the right price or affordable lease payment starts with research to make informed decisions. It’s about more than just acquiring new technology—it’s about strategically enhancing your operational efficiency and market position. Paying close attention to each phase of the financing process, your business can achieve substantial growth without stretching your finances too thin.
Related Reading: The 7 Secrets of Building a Trustworthy Relationship with Your Equipment Financing Lender
The GFLS team is here to answer your questions and help you get the most out of your equipment financing. We often say “yes” when others say no, offering you the financial support to move your business forward. Talk to one of our equipment financing experts and see why GFLS is a great equipment financing partner.