Farm equipment financing is available through our equipment financing network and can be arranged in the form of a loan or lease financing solution.
With farm equipment, there can be several different financing options to consider as agricultural equipment financing is a large industry with many lenders and leasing companies committing part of their available funds to this type of borrowing or leasing.
Most farm equipment manufacturers will offer some form of in house equipment financing solution, whether it will be through their own financing arm or through a third party arrangement of some sort.
And while the posted effective interest rate for manufacturer based financing can be very attractive, its going to be important to understand the cost of acquisition from the manufacturer or dealer with and without their financing as the net difference on the pricing of the asset can be substantial. Put another way, a cash purchase can be considerably different from an in house financed purchase. So if you’re getting the financing somewhere else, even at a higher interest rate, the net cost to you can be considerably cheaper at times, so its important to do the math before deciding on a manufacturer’s financing option.
Farm equipment financing options will also vary with the size of the capital requirement, the type of equipment, the time in business, and so on.
With respect to capital requirements, there are agricultural financing companies that will not consider any request under $250,000 and there are others that won’t look at anything over $150,000. So its going to be important to make sure you’re speaking to a farm equipment financing source that is best suited for the overall requirements of any specific financing request.
Especially for equipment leasing requests under $100,000, farm equipment loans and leases can be arranged within a day or two of a financing company receiving a completed application package.
For larger financing requests, the time period may be extended by a few extra days as its not unusual for a lender or leasing company to require more than one level of deal review for larger requests. But even for larger deals, the process is most often completed within one year of application.
Used farm equipment financing can also be arranged through both licensed dealers and private resellers.
The process for used equipment funding can also take a bit longer as the lender will typically do a market value assessment of the asset as well as perform background checks for registered security in the case of a private sale.
Equipment loans through banks will typically take the most time due to the nature of how banks manage these applications. That being said, the extra application time can be well worth it as banks and other main stream financial institutions also provide some of the lowest rates on equipment financing in the market.
The key to any farm equipment financing process is working with the lender or leasing company that can best meet your requirements in the time you have to work with.
If you have a farm equipment finance requirement, I recommend that you give us a call so we can quickly go through your situation with you and discuss available financing options.
Farm Tractor financing is provided through a host of manufacturing and private agricultural equipment financing sources.
Its not unusual for most major equipment manufacturers to have a farm tractor financing program for both new and used equipment that falls under their brand names. Some will even financed used equipment their dealers have taken in as a trade in.
While many of these program provide excellent rates and terms, it still a good idea to do some comparison shopping. The main reason being is to better understand the total effective net cost of your purchase.
In some cases dealers will increase the cost of the asset to offset the reduction in financing costs offered. If you’re overly focused on rate, you can end up spending a lot more on the asset than perhaps you could on the open market using an alternative financing source.
Most equipment financing and equipment leasing companies will be interested in financing farm tractors as they tend to be solid long life assets with a strong resale market. That being said, there can be wide differences between the different deals each equipment financing company is prepared to offer due to the type of the asset, the size of the financing request, the credit profile of the borrower, and so one.
So its a good idea to work with an equipment financing specialist who can quickly assess your needs and get you matched up with lenders or leasing companies that will be able to provide a competitive offer for what you’re looking for.
Equipment financing for new equipment can be at or near 100% of the cost of the tractor being acquired. For good used equipment, the rates can be slightly higher with more down payment required, and shorter repayment terms, but this will depend on the asset in question.
Because there can be such a large range in the cost of farm tractors, the will also be a varying appetite for any given deal by different equipment financing companies as many are restricted by deal size, either too big or too small.
If you have a farm tractor that you’ve got lined up to purchase, I recommend that you give us a call so we can quickly assess your requirements and help you put together a proper application package for the particular lenders or leasing companies your request for financing will be sent to.
Regardless if you’re just starting the buying process, got an accepted offer or bid in hand, or have already purchased a farm tractor for cash, I still recommend that you give us a call as we can help you locate and secure equipment financing for any of these situations.
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.
High Clearance Sprayers can be financed via loan or lease from a number of different financing and leasing sources we work with.
Because of the potential long term useful life of the asset, there are lots of strong financing opportunities for used high clearance sprayers as well.
The key difference between new and used, at lease in the current market, is that new equipment can be financed at or near 100% of the cost of the asset in some cases, where most used high clearance sprayers are going to need a down payment from 10% to 30% of the cost of the asset.
The lower interest rate facilities are always going to be provided by bank and other like institutional lenders through equipment loan or lease financing programs. Higher loan to acquisition cost ratios for low interest rate financing may only be 75% in many cases, even if the lender and provide the ag equipment financing through a government insured financing program.
Leasing companies, on average, will provide higher loan to value or loan amount to cost rations than institutional lenders, but rates will also be higher. And because of the self propelled aspect of these assets and the intention by most buyers to retain the asset for a longer period of time, an operating lease may not provide any taxation advantages over a capital lease or regular equipment loan.
If you’d like to better understand what type of high clearance sprayer financing your business will qualify for, the best thing we can recommend or suggest is for you to give us a call so we can go through your situation with you over the phone and provide immediate recommendations as to the types of financing is going to be available to you at a given point in time.
Applying for a pre-approval is also a good first step if you haven’t got anything lined up yet. This gets the financing process out of the way quickly, providing you with the rates and terms you can secure ahead of time, allowing you to focus on making offers or bids without having to worry about if the financing will be available or what the monthly costs are going to be.
Fertilizer equipment comes in a number of different makes, models, sizes, and shapes depending on the type of application and industry that requires fertilizer hauling, applying, or storing requirements.
Industries such as agriculture, landscaping, and golf utilize many different types of fertilizer equipment with the most diverse coming from agribusiness applications.
New or used fertilizer equipment can be financed by an equipment loan or lease. The key for used fertilizer equipment financing is the condition of the equipment at time of purchase and the projected remaining useful life of the asset. If the equipment has not been properly cared for and is in a poor state of repair, its unlikely to be able to be financed regardless of its age.
Fertilizer equipment can also have a massive range in purchase price depending if you’re requirements are for large scale commercial equipment for a farming operation, or a smaller scale commercial asset for applications such as landscaping or golf course maintenance.
Regardless of the dollars involved, fertilizer equipment assets of all sizes and shapes will likely be eligible for commercial and farm equipment financing or equipment leasing programs, especially for new equipment.
The choice of loan or lease largely has to do with the applicants need or desire to customize cash flow and maximize tax reduction strategies as from a pure financing point of view, both a loan and a lease work in a very similar fashion.
The biggest difference between the two types of financing is ownership. With an equipment loan, the borrower owns the equipment being financed. With an equipment lease, the leasing company owns the equipment being lease financed.
If you’re in the market for a certain type of new or used fertilizer equipment asset, we suggest that you give us a call so we can quickly assess you’re requirements and suggest different programs to apply for a pre-approval.
With the equipment financing out of the way, you can focus in on getting the best deal available, knowing that whatever you can locate can be purchased quickly due to a pre-approval for financing being in place.
Or if you have a purchase all lined up subject to getting financing approved, give us a call today and we can get an approval back to you in two business days or less depending on the amount required and the condition of the asset.