Is Tractor Finance right for me?
When you choose to invest in your Tractor and Farm Equipment you have a few choices – either rent, finance or buy your tractor with cash.
However with the cost of both new and used Tractors and Farm Equipment on the rise again, buying outright with cash is not an option for most farming businesses. Even if they have spare cash, it is a lot of cash to tie up in a purchase that could be spread over terms of up to 7 years.
If you choose to finance your Tractor / Farm Equipment there may be several reasons that led you to this decision.
- Ownership – you may decide that owning the tractor at the end of the finance is the right thing to do, alternatively you may want to hand it back. Tractor Leasing or Farm Equipment Leasing may be appropriate in some circumstances.
- Tax savings – depending on the finance package chosen, there may be tax advantages in financing your next tractor.
- Choice of suppliers – when you choose to finance a tractor, you are free to choose your supplier and not limited to just one option that the dealer has.
- Fixed repayments – you are certain of your monthly commitments at the start of the facility, giving you certainty.
- Choice of either a New or Used tractor – with the rise in cost of used farm kit, the financing of used equipment is very popular.
Tractor Loan or Asset Finance
Although some farmers will use a Tractor Loan (Businessloan) to finance their tractor, it often makes more sense to use Asset Finance such as Hire Purchase to spread the cost of the tractor over the useful life of the tractor.
Can you help a Tractor and Farm Equipment Hire Company ?
Yes, whether you use tractors and other farm equipment as part of your business or hire them out to other businesses , we can help with your finance requirements.
Tractor Finance for Agricultural Contractors available?
Yes, definitely – over the years, we have helped several agricultural contractors finance the equipment they use on a daily basis.
We have helped Farmer and Contractors finance:
- Tractors
- Balers
- Hedge Cutters
- Combine Harvesters
- Toppers
- Post Knockers
- Telehandlers
- Trailers
Tractor Finance Calculator – Tractor Finance Deals
It’s very difficult to provide an accurate indication on the costs of financing Tractors and other farm equipment. Several variables including client financial strength, value and age of the Tractor together with amounts of deposit available all contribute to how our lenders price their facilities. Please get in touch for more information on pricing.
Some of our lenders will also consider clients that require tractor finance with bad credit or new start business.
We have also successfully helped Tenant Farmers with their Tractor Finance requirements.
Don’t forget as we have over 40 lenders on our panel we will often be more competitive with finance than a Tractor Dealer or Farm Equipment supplier.
Tractor Dealer Finance
If you are a Tractor Dealer or a supplier of farming equipment, we would love to talk with you as we may be able to offer your clients a finance option when purchasing equipment from you.
Do you only help finance Tractors and Farming Equipment ?
No, at Business Finance Direct we are a broker dealing with over 40 specialist lenders. Our lending panel lets us help businesses from a wide variety of sectors to get the finance they need for their purchases. We can help clients arrange finance for Vehicles, Machinery, Commercial Property and to assist with cash flow fluctuations. Short Term business loans are often used by farming clients to improve cashflow conditions.
Farming Client Case Study for a Welsh Farmer requiring Tractor Finance
The farmer client contacted us after being turned down by his bank for finance to purchase the used tractor, despite being a loyal bank customer for many years. According to his bank, they were unwilling to support any further lending for the business.
Luckily, we have a ‘can do’ approach to circumstances like this which we are unfortunately seeing more and more.
The rural farming sector is a specialist sector which many lenders don’t really understand. Receipts can be seasonal, depending on the farmers main source of income, whether it is from animal sales or from agricultural crops.
We took the time to listen to the farmer, understand his business and put a proposal together which we felt stood a good chance of approval.
The deal was approved to our panel of lenders, some of whom specialise in the Farming sector. It was no great surprise when the proposal came back sanctioned on terms which the farmer was pleased to accept.
The Farmer was overjoyed and took delivery of his used tractor shortly after the proposal was accepted and signed for.
We offer a Free, no obligation service so please do get in touch and let us help you.