Taking your startup to the next level involves making strategic decisions about how and when to invest in essential business equipment—equipment that can give your company an edge over competition, bring efficiencies to services or operations and more.
But for many startup owners, there isn’t a clear path to obtaining that essential equipment, especially if it’s a time sensitive purchase or lease (traditional lenders are notorious for taking weeks to months to approve equipment financing applications) or they have less-than-perfect credit (big banks often reject all but the most qualified applicants).
Having access to equipment financing is essential for startup business owners who must overcome budget constraints and/or credit blemishes to scale their operations and accelerate growth.
There is a way around these challenges, and that is to work with a story lender, like Global Financial & Leasing Services (GFLS). Unlike traditional lenders and big banks, a story lender makes credit decisions based on a comprehensive view of your financials and credit history, not just a credit score.
GFLS empowers startups, offering substantial funding ranging from $50,000 to $5,000,000. We’re a direct lender with a variety of resources at our disposal. Our network, which includes over 200 private and public banks, allows us to offer financing solutions that many traditional banks cannot. Our team understands that every startup has its unique challenges, whether it’s past bankruptcies, student loans, tax liens or less-than-perfect credit. Our approach is to work with you, not against you, in overcoming these challenges so you can use equipment financing to scale up your startup.
Equipment Financing’s Role in Taking Your Startup to the Next Level
Investing in the right equipment can drastically improve efficiency, increase production capacity or even allow your startup to expand into new markets. However, the upfront cost of such equipment can put growth out of reach or significantly delay it for many credit score-challenged startup business owners. Here’s where equipment financing comes into play, enabling startups to acquire essential business equipment without taking on immediate financial burden.
Be Strategic When Exploring Your Equipment Financing Options
Should you lease or buy? The rule of thumb when deciding between leasing versus buying your essential business equipment is that leasing usually makes more sense for high-tech or rapidly evolving equipment to avoid obsolescence, whereas purchasing may be more economical for long-term essential machinery.
Related Reading: Lease to Own vs. Loan to Buy: Making the Best Equipment Financing Decision for Your Business
Is your lender willing to be flexible? There are lenders, like GFLS, who offer customizable payment plans that can be tailored to your startup’s cash flow patterns, easing the pressure during lean periods. Our team is human, too, and we understand what it’s like to have the opportunity to scale up a business, but not necessarily the financial power to do so. At GLFS, we frequently work with startup business owners to help them scale up faster than they ever thought possible.
Preserving Your Cash by Financing Equipment is Just One Advantage
Equipment financing isn’t just about preserving cash. It can also:
- Offer tax advantages since lease payments may be deductible as business expenses.
- Include maintenance agreements, reducing the risk of unexpected repair costs.
- Free up capital that can be used for other strategic investments, such as marketing or research and development.
Common Mistakes to Avoid When Considering Financing Equipment
Work with a lender, like GFLS, who is committed to helping startup business owners make decisions in the best interests of their companies. This can protect against over-leveraging yourself with excessive debt. We help you understand the complete terms of financing, including interest rates and total cost of ownership. And remember, forecasting the ROI that the new equipment will bring is essential to validate your investment.
Effective equipment financing is more than just a financial decision—it’s a strategic move that can define a startup’s short- and long-term success. By thoughtfully integrating financing into your growth strategy, you can ensure your startup remains agile and responsive to market demands.
Equipment Financing is Still About Relationships
Building a trustworthy relationship with your lender is not just about securing funds; it’s about creating a partnership that supports your business’s growth and adapts to its changing needs, both now and in the future.
We’re looking forward to building a relationship with you and meeting your financing needs. We are here to 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.