Grain Bin Financing
Does Your Business Need Financing For New or Used Grain Bins?
Grain Bin financing for farm or agricultural applications is available in the form of term loans and equipment leases. Even though a grain bin is technically a structure, they can still be financed through an equipment lease provided that they have a metal or wooden floor that allows then to be movable. Hopper bottom bins mounted on concrete pad can also qualify for equipment lease financing.
Used grain bins are a bit harder to finance and will depend largely on the condition and type of bins.
Because grain bins are classified as buildings for accounting and income tax purposes in most jurisdictions, the depreciation rate and capital cost allowances are spread over a longer period of time. This may not make any difference to your tax planning if you’re marginally taxable, but if you are in a significant tax position, you may want to consider financing new grain bins under an operating lease.
An Agricultural operating lease will allow you to accelerate the write off of the asset as it will technically be owned by the leasing company. Just make sure to check with your accountant or tax preparer as to the proper lease structure to qualify as an operating lease before signing a leasing commitment.
Get Grain Bin Financing That Meets Your Farm Business Needs
Assuming the cost of financing is similar, there will not likely be great deal of difference between an equipment financing term loan or an equipment capital lease with respect to writing down or deducting the cost of your grain bin acquisition for tax purposes.
Before you even start pricing out grain bins, we recommend that you call us up to get pre-approved for financing so you’ll know exactly how much you are approved for, and the related terms. With the financing process out of the way, you can then focus on getting the best deal and closing it fast.
If you already have an accepted offer or bid for new or used grain bins, we can quickly process your application for what you have been able to arrange and help get your financing in place quickly.
Even in the event that you have purchased one or more grain bins recently for cash, you can still refinance the purchase up to 6 months after the date of purchase and return all or most of your original cash back into the business cash flow.