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.
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.
Grain handling equipment financing most typically required by farming and agriculturally based businesses is provided by a number of lenders and leasing companies that collectively cover off a wide variety of this class of asset including the following items:
Incline chain conveyor, bin sweep, round bottom conveyor, grain pump, bucket elevator leg, grain vacuum system, straight chain conveyor, screw conveyor, swing hopper, grain auger, drag chain conveyor, grain vac, belt conveyor, chain conveyor, grain hopper.
This is not meant to be an all inclusive list so if you have a type of grain handling equipment that requires financing and that is not on the list, please give us a call so we can quickly determine if there is a lending or leasing source available for the asset in question.
Used grain handling equipment can also be financed through our approved lending and leasing sources. For used equipment, the financing rates and terms can vary based on equipment age, condition, and type. That being said, in many cases, you can still secure very comparable to new rates and terms for a lot of used equipment items.
Part of the reason for the good supply of used agricultural equipment financing is due to the strong resale market for grain handling equipment. Lenders and leasing companies are more inclined to finance used assets, and finance them more aggressively if they have a high level of confidence in their own ability to liquidate the asset for a reasonably predictable costs in a reasonable predictable period of time if required.
For new or used grain handling equipment, if you have not started the equipment purchasing or origination process, we recommend that you give us a call so we can get you pre-qualified for financing ahead of time and get the equipment financing process out of the way so you can focus on the equipment acquisition while knowing what amount of financing you can secure and the related equipment financing rates and terms.
If you already have an accepted offer or bid, we can quickly process your application for what you have lined up and help you get the deal closed in the time allowed.
Even in cases where you may have acquired grain handling assets for cash, we can still refinance the purchase up to 6 months after the purchase and return all or most of your original cash outlay to you so that you can inject it back into the business cash flow and utilize it for other purposes.
Livestock equipment financing can be obtained from stalls and trailers to watering and feeding systems.
To give you an even better idea of the types of livestock related equipment that is already pre-approved for financing with various lenders and leasing companies, here is a list of some of the more common assets in this category that get financed on a regular basis.
Hydraulic squeeze chute, double header calf table, Beef cattle handling equipment, swine handling equipment, livestock penning, panel access squeeze chute, crowding tub, poultry handling equipment, portable handling system, feeding equipment, cattle feeder, calving enclosure, Texas shed, Livestock handling equipment, Squeeze chute, maternity pen, palpitation cage, dairy cattle handling equipment, loading chute, horse stall, calving trimming chute, cattle guard, bison handling equipment, shoulder holder, waterers, water tank, round pen.
If you’re looking at livestock equipment that isn’t on this list, please give us a call and we will quickly determine if its something that our lender partners will look at financing.
Used livestock equipment can be financed, but may require a larger down payment than a new purchase with slightly higher rates and shorter terms. That being said, used equipment financing amounts and terms depend a lot on the particular asset and the amount of useful life that remains. So in some cases, the rates and terms can be very similar to a new asset purchase of the same type of livestock equipment.
If you haven’t picked out the asset you plan to acquire yet, give us a call so we can get you qualified for a pre-approved loan or lease. This will make the purchasing process go that much faster with the equipment financing application process out of the way and will also provide you with the amount of financing available to you and the related rate and terms.
If you’ve recently purchased an asset, we can get it refinanced up to 6 months post purchase, allowing you to put the cash from the purchase back into the business cash flow.
Regardless of your farm livestock equipment financing need or where you’re at in the purchasing process, give us a call so we can quickly assess your requirements and provide you with relevant livestock equipment financing options to consider.