Technological innovations available today make integrating state-of-the-art equipment vital for companies to remain competitive and grow. But what about business owners, especially those with less-than-perfect credit, who face challenges accessing the financial support needed to add or update their equipment? Rather than risk being left behind, they are turning to alternative lenders, like Global Financing & Leasing Services (GFLS) to help them finance the cutting-edge equipment they need to compete in their markets.
What kind of technological innovations are we talking about here? Well, of course, you know your industry and business better than anyone, and some tech innovations are better suited for certain industries. But, in general the top innovations involve artificial intelligence (AI), robotics and renewable energy.
Taking Advantage of Three Technology Innovations
- Artificial Intelligence (AI): AI systems optimize supply chains, predict consumer behaviors and automate redundant tasks, thereby enhancing efficiency and competitiveness.
- Robotics: Bringing precision, speed, and consistency to the workplace, robotics in the manufacturing, recycling, construction and mining sectors can reduce errors, increase productivity, decrease costs and help alleviate workforce and hiring issues.
- Renewable Energy: Embracing renewable energy, like solar or wind, not only reduces operational costs, but also appeals to the increasing population of eco-conscious customers.
The Financing Conundrum
The most significant deterrent for business owners, especially those with credit hiccups, from integrating these technologies is the initial capital requirement. Traditional banks often have rigid lending criteria, rejecting equipment financing applications from business owners who don’t have an impeccable credit record.
Lease Financing Can Be a Solution to Obtaining Technologically Advanced Equipment
If you’re unfamiliar with the term lease financing; it involves acquiring equipment on lease for a specified period, at the end of which businesses can buy, upgrade or return the equipment.
GFLS is a lender specializing in financing essential business equipment. This means the equipment itself becomes collateral. A win-win for both parties: your business gets its needed equipment, while we’re able to approve more equipment financing loans. In fact, we started tracking application in 2017, though we were founded in 2009. We reached the $1 billion application mark in 2023 and in the same year are receiving 12% more applications on a monthly basis than we did during our record year in 2022.
RELATED READING: With Small Business Loan Approval Hard to Come By, Alternative Financing Offers Hope
Three Reasons Business Owners are Financing Their Business Equipment
- Flexible Terms: Lease financing’s payment terms make it easier for business owners to manage cash flow. Meaning, you know what payment to expect and can budget accordingly
- Up-to-date Technology: One of the most significant advantages of leasing is the ability to upgrade. As technology evolves even more, businesses can adapt without significant reinvestment.
- Preserve Credit and Cash: By opting for lease financing, business owners can keep other lines of credit open and preserve cash for different operational needs.
The Role of AI in Financing Decisions
Interestingly, AI can be instrumental in the financing world. Lenders using AI can get a comprehensive evaluation of a business’s financial health, considering industry trends, financial history and digital presence. Such insights can lead to more tailored and advantageous financing terms. However, the GFLS team finds AI can only tell part of your story.
RELATED READING: The Role of Relationships in Equipment Financing Approval
Build a partnership with a lender who makes credit decisions based on your business’s whole picture. While other lenders use an AI-assisted scoring model, GFLS also looks at:
- Your business’s cashflow
- Your time in business
- The type of equipment for which you’d like to finance a lease
- The reason(s) your credit is blemished
GFLS provides equipment financing solutions with no hard cap on the amount for a wide range of companies and a wide range of credits with no minimum FICO score requirement. If you have been shut out of the credit market, let our team peel back the layers of your credit history to reveal value and create a structure that will work for you. Ready to learn more? Let’s talk about the possibilities of helping your business grow with tech-driven equipment. Or, get started today by filling out an online application.