Forward-thinking business owners understand the necessity of having access to financing options to support their company’s growth. There are a lot of articles stating how difficult small business loans are to obtain today. Even though the specific statistics vary depending on the source, the trend is crystal clear. The number of small business loans being approved through traditional lenders, like big banks and credit unions, continues to decline and alternative lenders, like Global Financial & Leasing Services (GFLS), offer hope for approval. In fact, we trademarked the phrase, “When other lenders say no, we often say yes.”
If you’ve been turned down for equipment financing by traditional lenders, statistics prove you’re not alone. Being denied funding doesn’t have to be the end of the story (or your business) though. Alternative lenders, like GFLS, are stepping in and bringing with them advantages you would never get with traditional equipment financing.
The Most Common Reason Businesses Fail is Cash Flow Problems
Capital shortage is a significant challenge for small businesses, with the majority of failures attributed to running out of funds. Knowing the importance of having capital, business owners often seek financing options to obtain essential business equipment and keep their cash reserves for other purposes. It’s no surprise, then, that 43% of small businesses applied for loans last year, reflecting the rising demand for external capital at the same time when traditional lenders are denying a higher percentage of financing applications.
According to Fundera, institutional lenders boast the highest approval rate at 66%, but alternative lenders are not far behind, with an approval rate of 56.8%. Alternative lenders, like GFLS, evaluate your business holistically, considering factors besides your credit score to determine your loan eligibility.
GFLS Can Bridge a Gap When 100% Equipment Financing Falls Through
Less than half of small business owners have their financing needs fully met, and GFLS can step in to fill the gap. We work with all kinds of equipment financing situations, such as businesses that receive partial funding, are starting up, face loan rejections or choose not to apply due to existing debts or less-than-perfect credit. Partnering with GFLS opens up opportunities for securing the funds you require, helping your business start off or remain on a successful path.
The average amount of a Small Business Administration (SBA) loan is $107,000. If you’re in an industry, like construction, healthcare, manufacturing, logging & forestry or printing, obtaining essential business equipment requires far more than $107,000. GFLS can fund equipment financing amounts of up to $1 million, and sometimes a higher amount. Applications requesting credit over $75,000 require our team review your complete financial picture.
Alternative Lenders Help Businesses Grow
Approximately 70% of small businesses carry outstanding debt. It’s common to leverage equipment financing options to support business operations, expansion and investments. While a less-than-perfect credit score usually means a denial, GFLS takes a holistic approach, considering a broader set of criteria. This increases your chances of securing funding even if you have existing debt burdens or insufficient credit history.
Our team works with small businesses owners who apply for essential equipment financing—equipment necessary to expand operations, pursue new opportunities or gain a competitive edge. By using an alternative lender, you open up a world of opportunities, ensuring that your company has the equipment it needs. Take advantage of alternative financing, drive your business’s growth and achieve success in today’s tight traditional lending environment.
GFLS is an established direct lender with the unique ability to finance almost any business seeking to acquire equipment. We have been providing equipment financing solutions since 2009 and have the ability to help business owners and startups who have been turned down by the banks. If you have any questions, please get in touch.