Forage harvesting equipment can be financed through an equipment loan or an equipment lease through the financing programs offered by our lending and leasing sources.
For new forage harvesting equipment purchases, the equipment financing can be at or near 100% of the purchase price. With new equipment, the financing percentage will vary with the age and remaining useful life of the the asset or assets in question.
But even for used equipment, the rates and terms can be very similar to what you can get for new in many cases.
Its also not uncommon for agricultural equipment financing to be done in the form of an equipment lease due to the different flexibility a lease can afford the borrower or lessee.
For example, if you have a large tax position and want to increase the amount of deductible expenses you have, a short term operating lease may be an option to accelerate the write down of the asset. Or if you have a cash flow crunch in the near term, you could also look at an operating lease with a larger balloon payment at the end of the repayment term in order to minimize your monthly cash outlay.
From an equipment financing prepayment point of view, both equipment loans and equipment leases can be structured for monthly, quarterly, semi-annual, and even annual payments. This will vary with the type of equipment, amount of financing required, and the financing profile of the borrower or lessee.
For situations where you want to purchase the asset at the end of a lease term for a nominal purchase price, a capital lease would likely be the best fit and would function very similarly to an equipment loan in terms of repayment and accounting treatment of the financing and the payments made.
In order to determine if a forage harvesting equipment loan or lease, and the different terms and conditions you can choose from, is the best fit for your situation, the best thing to do is to speak with an equipment financing specialist and go through your requirements with him.
If you have a unit already picked out and need to get the financing in place, give us a call so we can quickly assess your requirements and provide you with the best available equipment financing options for your consideration. Once you decide on program that fits your needs, we will help you get a representative application together and get it submitted right away to the financing companies so no time is wasted in getting the financing arranged.