The decision to start a small business isn’t taken lightly. Running a small business is even harder. If we’ve been reminded of anything lately, it is how important small business is to the economy and employment. For owners of any-sized businesses, it’s difficult enough to prepare for known risks, much less those we cannot see coming. The good news is that preparing for known risks can put small business owners in a better position to handle the unknowns.
The Numbers Aren’t Always What They Seem
There are lots of statistics pointing toward imminent doom for small businesses. On the whole for small businesses, about 66 percent survive the first two years, 50 percent survive five years, and 33 percent survive 10 years. These numbers don’t indicate necessarily that the non-survivors failed because they could’ve been sold, merged or acquired. Statistics also indicate that small businesses fail fewer times now than they did a generation ago.
Why? Small business owners have access to resources and data that didn’t exist before. Technology plays a key role in being able to help use those resources and data in ways that help guide better decision making. As long as small business owners rely not only on their entrepreneurial nature, but also on the hard data available to plan and prepare for risks and change, they are more apt to succeed now more than ever.
Don’t let numbers alone throw you off or deflate your successes. Look at them objectively. For example, we work with many small business owners who’ve thought new equipment that would grow their business was out of reach because of the monthly lease payment. Come to find out, the additional revenue made from obtaining that equipment covered the payment and added to the bottom line.
Planning for Anything and Everything
Location (brick and mortar and/or online), budget, growth, products/services, workforce, culture and even exiting are just a few of the things small businesses owners plan for and adapt to on a regular basis. In fact, small businesses are better suited to change direction quicker than larger businesses are. After all, it’s easier to change a sailboat’s direction than it is to turn a cargo ship.
In the course of a small business’s lifespan, there may be challenges that arise that no one could’ve planned for; however, having planned for other processes provides the experience to better plan on the fly.
When worldwide or local incidents threaten your small business, reach out quickly to vendors and lenders. Global Financial & Leasing Services was founded during the Great Recession, helping business owners obtain equipment financing in their times of most need. Our team has worked with business owners during natural disasters. We are no strangers to working with small business owners during times of crisis to create a financial plan that works for them.
Credit Score Doesn’t Determine Your “Worth” or Chances of Success
When small business owners require financing for leased equipment, not having perfect credit or the personal funds to prove ability to pay it back is tough to overcome in the traditional financing channels. This puts business owners in a mindset that can lead to poor financing choices, and worst case, business failure. From an equipment financing perspective, these poor choices include, but aren’t limited to:
- Borrowing money to cover operational costs that don’t equally increase revenue
- Not calculating a loan’s true cost
- Applying for the wrong type of loan for the purpose needed
- Turning to short-term (high interest) loans or credit lines
- Throwing borrowed money at a problem that money alone cannot solve
The above are just a few common mistakes, which can be avoided with the right equipment financing partner. Our team works with small business owners in the early and established stages of their companies who have less-than-perfect credit, but do have a solid plan for growing their company. We look not only at the numbers and credit scores to help you get the equipment financing you need that makes sense for your future.
Use Equipment Financing to Steady and Preserve Cash Flow
Without steady cash flow, it’s impossible for a small business to succeed long term. Small business owners rely on steady cash flow to buy inventory, pay or hire employees and many other critical daily operations.
Financing equipment leases lets small business owners preserve cash on hand that might otherwise go toward purchasing equipment and deplete cash reserves. Cash on hand is extremely important to have in good and bad times. Even if an event occurs that doesn’t negatively affect your business, it might your customers who’ll then possibly pay invoices late.
Support Can Come from Unlikely Places
It is in everyone’s best interest to support small businesses, and for small business owners to choose financing partners who can help them better identify the reasons their companies could fail. That’s why our customers choose Global Financial & Leasing Services. When other lenders say no, we often say yes. And, when other lenders view you as a number, we look at your whole story and can help you better prepare for where you want to take your company’s future.