Equipment Financing When Ordering Farm Equipment

Farm Equipment Financing

Who finances farm equipment?

Even though farm workers comprise less than 2% of the U.S. workforce, they collectively generate more than $200 billion per year in food commodities. To attain this staggering level of productivity — and ultimately put food on the table for hundreds of millions of people at home and abroad — farms, whether they are family-owned or corporately-owned, require the right agricultural equipment at the right time, and the right price. That is where agricultural equipment financing enters the picture!

In this article we will discuss:

  1. What are farm equipment loans?
  2. Is used farm equipment financing available?
  3. Are bad credit farm equipment loans an option?
  4. Equipment financing for farming: 7 best tips for acquiring farm credit
  5. What is agdirect- farm credit?
  6. Where to find equipment farm financing: banks, dealership & online lenders
  7. What you require to apply for farm equipment financing or leasing
    • Minimum Requirements
    • What you’ll need to provide to apply
  8. Apply with Top Financial Resources
  9. Farm machinery that can qualify for equipment leasing and financing
  10. Frequently asked questions about farm loans

What are farm equipment loans?

Farm Equipment Loans

Farm equipment loans are small business loans that offer farms the financing they require to buy farm equipment. After a farm uses the proceeds of farm equipment financing to buy the equipment they need, that equipment will act as collateral for the very loan used to buy it. Since the equipment is the most necessary yet the most expensive part of a thriving agricultural business, farm equipment loans can often be the difference between a farm’s success and failure. Beyond even choosing whether or not to take on debt in the kind of a farm equipment loan, though, is the decision of where to get that farm equipment loan from. The lender you choose will determine the repayment terms, loan amount, and interest rates that come attached to your farm equipment financing.

Farm equipment loans can help you grow your business by:

  • Enabling you to stay in the field and out of the shop: New equipment is less likely to need costly repairs or break down. Besides, farm equipment in good condition keeps your operation working efficiently. Utilizing technology in your operation: Invest in mobile computing and tablets devices to manage your operation when you are in the field. You can also upgrade your precision agriculture technology as new equipment and solutions become available.
  • Utilizing technology in your operation: Invest in mobile computing and tablets devices to manage your operation when you are in the field. You can also upgrade your precision agriculture technology as new equipment and solutions become available.
  • It is an affordable solution for equipment: Farm equipment leasing enables you to get new farm equipment without a down payment.
  • Enables you to maximize your tax savings: The Section 179 deduction enables most farmers to deduct 100-percent of their equipment costs in the same year. When financing, depreciation is based on the term of the lease; you can speed up depreciation and enjoy tax write-offs.

Is used farm equipment financing available?

Used Farm Equipment  Financing

Can I finance a used tractor?

Used farm equipment financing is absolutely an option. It might come as a surprise—used equipment acting as collateral is likely riskier for the lender since it will not be worth as much if they have to liquidate it in the case of a default. With that said, used tractor loans are pretty common. Almost any farm bank, equipment financing company or government entity includes used farm equipment financing in their overall farm equipment financing product. Of the farm equipment loan sources, we highlight Top Financial Resources; they can finance used farm equipment, but your odds will be high if you request it and the used farm equipment in question is in good shape.

Bad Credit for Farm Equipment Financing

Are bad credit farm equipment loans an option?

If you are seeking farm equipment loans with bad credit, you can start with us, Top Financial Resources, since we will provide you with working capital, whether you have poor personal credit score or even have filed previously for bankruptcy. That is as long as you have been in business for at least six months, and your business generates sales in excess of $8,500 per month. In over 90-percent of cases, if you meet these two requirements, we can provide you with funding. If you still do not meet those requirements, though, you can start improving your personal credit before taking on a farm equipment loan. After you reach that 600 thresholds, then consider contacting our managers through 1-(800)-260-5126.

Equipment financing for farming: 7 best tips for acquiring farm credit  

Tips for Equipment Financing For Farming

  1. Do Your Homework: It is vital for you to research the farm equipment you want to purchase carefully; not just to ensure that it fits your farm’s business plan, but also so that you take into consideration all costs of ownership that might exceed the initial purchase price (such as gas, maintenance, electricity, etc.).
  2. Confirm your procurement options: Some companies that offer equipment financing in the agricultural industry impose restrictions on which vendors you choose. It is not in your best interest to partner with such an equipment financing and leasing company. It is essential that you have the freedom to choose the vendor you want and be empowered to bargain accordingly (i.e., vendors who know you have a restricted pool to choose from are likely to exploit this limitation).
  3. Factor in the tax benefits: You should make excessive use of two different kinds of tax deductions, which are not accessible through farm credit leasing. The first is associated with the depreciation of your asset( or assets); the second is the interest payments on your loan. Speak with your financial advisor or accountant to get the details, and then prepare for a surprising and significant break from good ol’ Uncle Sam.
  4. Remember that slow times could be ideal: If your business is a little (or maybe more than a little) on the slow side, then you can be assured that belts are tightening for vendors who sell farm equipment. As such, instead of reducing or pausing your investment plan, it could be the appropriate time to head in the other direction — since you will be able to negotiate an attractive deal and get the assets you require to increase your farm’s capacity, productivity, and profitability.
  5. Make sure you choose a loan duration that allows an affordable repayment: Whereas your total cost of borrowing is mainly based on the prevailing interest rate, the scheduled repayment amount (generally monthly) will be determined by the loan duration. Your best move is to opt for the shortest loan duration that — and this is the critically significant part — enables you to make affordable payments. You do not want to be spread thin and forced to raise extra capital just to serve your financing expenses.
  6. Consider augmenting your equipment loan with a business line of credit: A revolving business line of credit is generally like a credit card. You pay interest on the amount of money you borrow (not the full amount available). Provided the line is revolving, then the repaid money is available to you again and again. Having a readily accessible business line of credit is smart for covering unforeseen short-term expenses that might be related to your farm equipment purchase. For instance, you might be required to cover some post-purchase modifications, purchase additional insurance, and so on.
  7. Consider replacing the equipment vs. repairing: Farm owners do not need to be reminded that “a penny saved is a penny earned.” Nonetheless, there are times when repairing farm equipment does not make sound financial sense, mainly if the equipment in question is several years old and is not as efficient, productive, or capable as modern versions. As such, do not just concentrate on how equipment financing can help you buy new assets. It might be just as wise — or necessary — to replace existing assets.
  8. Remember you have many financing options including sba loans, john deere tractor loans, bank loans and other financing programs from online lenders.

What is agdirect- farm credit?

AgDirect equipment financing program

AgDirect equipment financing program is available at your equipment dealer,at auctions (online or traditional), and accessible for private party equipment purchases. Powered by Farm Credit, AgDirect is built from the ground up to serve all ag equipment financing needs. You will find attractive financing rates and the most ag-friendly terms in the business, along with options to lease, buy, or refinance. With farm equipment financing from online lenders such as Top Financial Resources you can expect offers:

  • Fast and easy application process
  • No prepayment penalties
  • Delayed payments up to one year
  • Variable or fixed rates
  • New or used equipment
  • Flexible loan payment programs
  • Buy, lease, or refinance
  • Quick credit decisions
  • Excellent credit services
  • Up to a 10-year term on pivots
  • Financing terms from 2-7 year
  • Low monthly payment

Where to find equipment farm financing: banks, dealership & online lenders

What you require to apply for farm equipment financing or leasing?

Traditionally, banks are the first place business owners look to secure funds. Nonetheless, a lengthy and sophisticated loan process is not good for small businesses that require financing fast, regardless of the competitive terms and repayment options banks and credit unions might offer. Equipment dealers, marketplaces, online lenders fill the void justify by conventional banks with lower qualification thresholds and rapid financing that offers farmers fast capital. The difference means getting a loan for your business in hours rather than weeks.

What you require to apply for farm equipment financing or leasing?

With Top Financial Resources, you will need the following qualifications and documentation to get started on your farm equipment loan:  

Minimum Requirements:

  • 500+ FICO score
  • 4 months in business
  • $100,000 in annual revenue

What you’ll need to provide to apply:

  • Basic information about you and your business
  • Your four most recent monthly bank statements, lease agreement, and a voided check from your business bank account

Apply with Top Financial Resources

We can help you find a farm equipment loan. At Top Financial Resources we offer various business financing options. Through an easy application, you can: 

Save Time

At Top Financial Resources, we know you do not have time for hours of paperwork. Begin the lending process by filling out our straightforward and secure online application. Moderately, users can apply in less than 5 minutes. You could receive pre-approval in less than 24 hours. 

Have your funding processed faster

As business owners, we understand the importance of the speedy provision of capital; thus, we do everything within our power to ensure your funding process is fast, simple, and hassle-free. But to avoid delays and receive your funding as fast as possible, you have to promptly provide all requested documentation to us.

Get expert advice 

Sometimes it can be overwhelming to find farm financing. Top financial resources assign each account a dedicated business advisor to guide you through the financing process. With your business advisor’s help, you can assess your funding options and make the best decision.

Improve your cash flow

Business finance can improve cash flow in many ways – by keeping your costs minimal upfront, you can make sure that your business has access to capital that can be utilized for various other needs.

Farm machinery that can qualify for equipment leasing and financing

Types of farm equipment that can qualify for equipment leasing and financing

Here are types of farm equipment that we provide loans and leases for:

  1. Grain cart
  2. Tillage equipment
  3. Truck financing 
  4. Tractor financing
  5. Solar panels
  6. Sprayers
  7. Milking parlours
  8. Tractors
  9. Balers 
  10. Digital tools such as monitoring sensors

We can discuss agriculture financing solutions for other equipment. We also provide other agricultural loans such as term loans, merchant cash advances and business lines of credit.

Frequently asked questions about farm loans

Here at Top Financial Resources, we hear many of the same questions from customers regarding farm operation loans. We have composed this list of frequently asked questions (faq) as a resource for current clients and potential customers alike. The purpose of this table is to answer some of the most faq relating to our equipment financing options.

How do I begin the application process? After speaking with one of our loan specialists, you will receive an application. To begin the application process, apply online through our website and submit the financial reports and documents. 
What types of farm financing programs are available? Here at Top Financial Resources, we provide various types of loans: Farm equipment financing and leasing,  real estate farm loan,  line of credit, among others.
I have leased my land to a farm operator and don’t work the property myself. Can I qualify for your farm loan? Yes, at Top Financial Resources, all types of property owners, investors, and farmers are all eligible for our farm equipment loans.
What are your interest rates? Interest rates vary based on the loan product you choose. Kindly contact a loan specialist to receive current interest rates.
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