The multi-billion-dollar farm equipment industry is on the rise. Are you going to get involved? Are you already working on a farm that requires the use of heavy equipment? If you answered yes to either question, you know just how important the right equipment can be. This is oftentimes the difference between success and failure. It is oftentimes the difference between doing things the right way and just getting by.
Although many people lump “farm equipment leasing and loans” into one category, these are two entirely different approaches.
When you lease farm equipment you are doing nothing more than paying the lessor for the use of the asset.
When you take out a loan, though, you are paying a little bit every month so that you can eventually own the equipment in the end.
There are pros and cons to both approaches.
As you know the farming industry can be unpredictable. There may be years where your business is booming and others where it is a complete wash out. When having to depend on mother nature and the economy to secure your financial situation there can be some difficulties. With this said many farms do not have large amounts of cash laying around to allow them to make much needed equipment purchases. This is why Farm Equipment Loans are a great option for your business.
Rather than scrambling to put together the capital needed to pay for farming equipment you can turn to your business bank or equipment financing companies to meet your needs. With a small down payment you can walk away satisfied that you will be able to get the equipment you need. With fixed interest rates and repayment terms you will be able to make low monthly payments while utilizing the equipment to keep your farm operating smoothly.
Depending on the life of your farming business you may need to put your personal credit on the line to obtain financing. Lenders are looking for a clean credit history for approval. If you or your farming business have a poor credit history you may require a cosigner and/or a larger down payment for approval, you may also face high interest rates. By submitting the proper financial documentation you could receive financing approval within 2 business days.
When you answer these five questions you will find it easier to decide between leasing farm equipment and taking out a loan.
Contact us using the form to the right and we will find the best financing option for your farm.