Best Farm Equipment Financing Options

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.

Loans for your Farm Equipment

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 washout. 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.

How Farm Equipment Loans Work

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.

Financing Approval

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.

Starting the Financing Process

  1. Find the equipment you would like to purchase and make negotiations with the supplier to get the best price.
  2. Submit an application along with any requested financial documentation to the lender.
  3. Review the terms of the equipment loan
  4. Make negotiations to ensure you are getting the best loan terms
  5. Sign the contract with fixed interest and terms and start utilizing the equipment to grow your farm business.

If you are confused and unsure of which option is better, here are five questions to ask yourself.

  1. Do I have enough upfront cash for a down payment? This is oftentimes required if you are interested in buying farm equipment.
  2. Can I make the purchase with cash? If you have enough money to buy the equipment outright it could be advantageous in the long run. Not only are you gaining full ownership of the equipment from the start, but you are avoiding interest payments.
  3. What are the terms of the loan that is being offered to me? This includes everything from the interest rate to the amount of time you have to pay back the money.
  4. Can I save money every month by opting for a lease? Generally speaking, lease payments are smaller than loan payments. This may be an important detail if you are trying to keep your expenses under control.
  5. Will you want to trade in your farm equipment in the future? With a lease, once the term runs out you can turn the equipment in and walk away. At this point, you can opt to deal with the same company and sign another lease agreement for updated equipment.

When you answer these five questions you will find it easier to decide between leasing farm equipment and taking out a loan.

Regardless of which option you choose, it is important that you focus on two things:

  1. Getting the equipment necessary to keep your farm running at optimal efficiency.
  2. Making sure that you are 100 percent comfortable with the financial side of the deal.

We have helped people get farm equipment loans for:

  • Tractors or Mowers
  • Seeders
  • Planters
  • Drills
  • Pumps
  • Mulchers
  • Transplanters
  • Fertilizers
  • Balers
  • Combines
  • Chisel Plows
  • Cotton Pickers
  • Seed Drills
  • Sprayers
  • Harvesters
  • Tillers
  • Rollers
  • And much more…

Contact us using the form to the right and we will find the best financing option for your farm.

Kayleen M
Kayleen M
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American Business Credit exceeded my expectations! They were so helpful from the very beginning of the process to the end. Everyone I came into contact with were very professional and had valuable incite to help me with any hesitations and questions that I had. I am very impressed with the service they provided. Craig Johnson was my main advisor through this process and I would high recommend him based on his expertise, guidance, and service he provided to me as a client. Any financial needs I have in the future I will be a returning customer of American Business Credit. Thank you Craig for all your hard work.
Derek J
Derek J
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American Business Credit was extremely knowledgeable, professional, and helpful from start to finish. My loan processor Craig was extremely helpful, answering all of my questions as they arose. They delivered the exact results promised during our first call in a timely manner. Highly recommend.
Eduard A
Eduard A
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I am so glad I found ABC, every company or lender I talked to told me we needed to have revenue on our business to get a loan, well we are a start up, and need the loan to get started generating revenue. ABC was able to get us funded at great rates in a short amount of time. I definitely plan on using them again as our business grows!
Erik R
Erik R
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Amazing! Kina Jackson was sooooo helpful and made the process a breeze! We weren't sure what we could get as a start-up and needed a ton of equipment to get our business going. Kina dug deep and found us what we needed to fund our equipment needs and we can't thank her enough! Thanks again Kina and American Business Credit! Stop by the store next time you're in Vegas! - Erik Rogers, Veg-In-Out Market
Cassandra M
Cassandra M
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Kina was amazing to work with. As a new business owner and limited credit history, she really went to bat to ensure my business plan was heard by the lenders, so they felt confident in investing with me. Highly recommend!!

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