Of all the companies in the U.S., 72% of them use some form of financing when acquiring essential business equipment. On March 30, 2023, CBS News reported five million businesses launched in 2022. Since the pandemic started three years ago, there were 15 million new businesses launched in the United States, compared with 10 million in the three years pre-pandemic.
That’s millions of business owners trying to secure equipment financing to launch, expand and grow their companies. One of the most common questions new business owners ask is how much equipment financing will they qualify for? It’s a harder question to get answered for small and medium-sized businesses (SMBs). They often struggle to acquire financing for essential business equipment from traditional lenders, which is unfortunate considering SMBs employ the largest percentage of workers in the nation and are the backbone of the U.S. economy.
Global Financial & Leasing Services (GFLS) provides equipment financing solutions to a wide range of industries and companies, including startups that have less than two years’ time in business, established business owners with less-than-perfect credit and even startups with owners with below-good credit scores. GFLS can help with a financing/leasing plan that works for you. You tell us your story, and we listen. We are one of the few equipment financing companies who will advocate for you.
Through our equipment financing solutions, SMBs can acquire the equipment they need without paying for it upfront. Financing an equipment purchase versus an all-cash purchase comes with numerous benefits, including:
- Typically, getting 100% financing with no down payment
- Maintaining working capital to be used for other areas of your business, such as expansion or hiring more employees
- Benefitting from tax considerations associates with purchase financing
- Refer to Section 179
- Purchasing equipment that is revenue generating
- Financing additional soft costs such as sales tax, delivery and installation
- Building your Business Credit profile
Equipment Leasing and Financing Up to $1 Million for SMBs
GFLS does not use credit scoring to evaluate your credit submission. Our team aims to understand what happened in the past and what you have done to improve your financial performance going forward. We focus on your cash flow, character and the collateral. We often will approve an application when no one else will.
GFLS can approve equipment financing from thousands of dollars up to $1 million. However, the higher the amount, the more the risk, so you’ll want to be prepared with collateral, credit history and equipment value.
You may need to provide significant collateral to secure $1 million in equipment financing. If you default on the loan, the lender can seize the collateral to recover the loan amount. The value of the collateral should be equal to or greater than the loan amount.
Before applying for equipment financing, check your credit score and credit report for errors or issues. Address any errors or issues before submitting your application to increase your chances of being approved for financing.
Provide detailed information about the equipment you plan to purchase, including its value, condition and estimated lifespan. The lender may require an appraisal or inspection of the equipment to ensure its value.
If you’d like to learn more about equipment leasing and financing up to $1 million for an SMB, get in touch with one of our financing experts.