Farmers rely on the full functionality of agricultural equipment every day, emphasizing the importance of machinery to the success of their business. Over time, equipment like harvesters, tractors, tillers, and a variety of other agriculture machinery will require replacing to stay competitive. However, getting the latest equipment is not always within a company’s budget.
Fortunately, commercial equipment financing offers a multitude of advantages that enable farmers to harvest their crops on time without spending a large lump-sum of hard-earned cash on their machinery.
Agricultural Equipment Financing: The Whats and Hows
Equipment financing involves the specific use of a loan to purchase farm equipment and assets for your business. Agricultural equipment financing solutions provide the capital required for your company to grow through the purchase of necessary equipment.
The equipment itself serves as collateral for the loan, and you can use the equipment as you make your monthly payments.
Benefits of Seeking Financing for Equipment
Immediately Use Your Equipment
Revenues for crop cycles can only go so far since the business will only boom with the latest harvest. Because of this, farmers need reliable equipment at all times without the threat of interruptions or machinery breakdowns.
Going through the traditional loan approval process consumes both time and money. Equipment financing offers an expedited and convenient way to keep your farm running and improve your profitability.
More Affordable Payments
Compared to traditional loan payments from financial institutions, agricultural equipment financing offers competitive rates, flexible terms, and oftentimes is more affordable. In terms of equipment leasing, this option provides more customized terms and allows farmers to make more affordable payments over the years.
Keep Up With The Latest Technology
Equipment leasing enables farmers to use current machines for a shorter time, allowing them to choose the latest technology for their business’s purpose. Apart from keeping your operations moving along, it enables farmers to gain hands-on experience with the recent technologies in farming.
Low Impact On Cash Flow
A large down payment and the debts tied up to machine ownership can be expensive for small farmers, which is why optimal cash flow is a common struggle among them. Agriculture equipment financing enables farmers to free up their working capital so they can use it on other projects, which promotes new opportunities and more business growth.
Agricultural equipment financing relieves you from the monetary load of getting quality farming equipment ASAP. With this financial option, you don’t need to put your business on the line with lump-sum equipment purchase that can take months before they bring a return on your investment.
If you need agricultural equipment financing or want to learn more about our equipment financing services, get in touch with Regents Capital Corporation.