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.
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.
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
- Find the equipment you would like to purchase, make negotiations with the supplier to get the best price.
- Submit an application along with any requested financial documentation to the lender.
- Review the terms of the equipment loan
- Make negotiations to ensure you are getting the best loan terms
- Sign the contract with fixed interest and terms and start utilizing the equipment to grow your farm business.
Chris Fuller went to the University of South Florida and has worked in the financial sector for over 20 years. He has extensive experience in all aspects of personal and small business lending, from personal loans, equipment finance to cash flow based solutions for small mom and pop businesses, and large corporations.