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The most important factors to consider when financing farming equipment

When it comes to agricultural equipment financing, there are a lot of important factors to consider. After all, you’re not just investing in some piece of machinery – you’re investing in the future of your farm! That’s why it’s so important to make sure you choose the right financing company and the right type of lease or loan.

Not sure where to start? Don’t worry, we’re here to help! In this blog post, we’ll discuss the most important factors to consider when financing agricultural equipment.

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Is financing or leasing equipment a good fit for your farm operation? 

The answer to this question depends on a variety of factors, including the type of equipment you’re looking to lease, the size of your farm, and your credit score. That said, leasing can be a great option for many farmers, as it often offers lower monthly payments and shorter terms than loans. These are some of the main benefits benefits of leasing farm equipment:

  • Leasing farm equipment is a great way to get the machinery you need without having to spend all your savings.
  • You may lease agricultural equipment for a low price, making it easier than ever to finance your farm’s future!

There are also emotional benefits related to equipment leasing:

  • You’ll have peace of mind knowing that you’re investing in the future of your farm.
  • You’ll be able to sleep soundly at night knowing that you’ve made a wise decision for your farm’s future.
agricultural equipment leasing

Types of agricultural equipment leases

When it comes to farm equipment leasing, there are a few different options to choose from. The most common types of leases are: operating leases, and capital leases.

Operating leases

With an operating lease, you pay a monthly fee to use the equipment. At the end of the lease term, you have the option to buy the equipment or return it to the leasing company.

Capital leases

With a capital lease, you’re essentially financing the purchase of the equipment. This means that at the end of the lease term, you’ll own the equipment outright.

How to choose the right agricultural equipment financing company?

When it comes to farm equipment leasing, it’s important to do your research and find the right company for you. Here are a few things to consider when choosing a farm equipment leasing company.

Good reputation and experience in agricultural leasing industry

Companies with a good reputation in farm equipment leasing like Finco can provide you a good leasing experience and good service because they know what they’re doing. 

Types of farm equipment financed

You’ll want to make sure they have a good understanding of the types of equipment you’re looking to lease.

In normal circumstances, you can finance a wide variety of farm equipment, including balers, grain bins, grain handling equipment, harvesting equipment, watering machines, livestock equipment, ploughs, seeding equipment, sprayers, steel structures and tractors. This is why farm equipment for lease is an excellent option for any kind of farmer.

Farm equipment financing options and terms

You want to make sure you’ll get the best deal for your business. Remember that equipment financing terms are the specific details of your leasing. These will include the monthly amount payments, the length of the financing, and the overall amount.

It’s important to understand the equipment financing terms before signing any paperwork, as they will affect how much you pay for the equipment in the long run.

Customer service

The best equipment financing companies, like Finco, are responsive and have a good reputation.Contact us to get a customized leasing solution for your future farming equipment.

farm equipment financing

Leasing for farmers

Agricultural businesses have special needs. That’s why the best farm leasing companies, such as Finco, offer special and very advantageous programs for farmers. If you want to know which program best suits your project, contact us!

Agricultural equipment leasing vs buying: which one is best for your business?

As a general rule, leasing will always be a better option. It offers several benefits over buying farm equipment. Here are the main advantages.

Reduced upfront costs

When you lease agricultural equipment, you typically pay a lower upfront cost than if you buy the equipment. This is because the lessee (you) agrees to pay for the use of the equipment over a set period of time, rather than all at once.

Lower monthly payments

In addition to a lower upfront cost, farm equipment leases typically have lower monthly payments than financing a purchase. This is because the lessee only pays for the use of the equipment, not the full value of the equipment. 

Flexibility

Farm equipment leases are typically shorter than loans for purchasing agricultural equipment. This means that you have the flexibility to upgrade your equipment more frequently if your needs change.

Tax benefits

In some cases, you may be able to deduct the cost of your farm equipment lease from your taxes. Consult with a tax advisor to see if you qualify for this benefit.

FAQs about farm equipment leasing

Differences between leasing and equipment loans

They’re both a great way to get the newest technology and tools for your farm without having to pay the entire cost upfront. You can avoid making a large purchase and spreading out the payments over time can help keep your cash flow healthy.

The biggest difference between leasing and equipment loans for agricultural equipment is the financing terms. When you lease, the monthly payment is usually lower than with a loan. This means that your payments will be lower each month, making it easier to budget.

What is the leasing payment schedule?

The leasing payment schedules are typically made up of fixed payments and a residual value at the end of the contract. This residual value guarantees that the equipment will be returned in the same condition as when it was leased.

How hard is it to get tractor financing?

It can be difficult to get tractor financing, as agricultural equipment leasing is a specialized field. There are farm equipment leasing and financing companies like Finco that can help you get the tractor financing you need.