If you are in need of fresh capital to purchase farm equipment that you badly need, farm equipment loans are the best option. Farm equipment credit is friendlier than traditional credit lines since there is clear collateral, i.e. the equipment.
When looking for loans, be wary of options and lender strategies. These loans are easy to secure, so there is no need to make rash judgments.
A bank, a government lender, or an equipment financing company for the purchase of farm equipment or technologies such as farmmortgageloan.com typically provides farm equipment loans.
Ordinarily used by small businesses and farms, it is a good solution to preserve cash by spreading out the cost of the equipment for up to 10 years at rates between 6-9%.
You can easily obtain farm equipment loans in as short as a week, with 5-20% down payment at loan amounts between $10,000 and $500,000.
Requirements-wise, equipment loans are easier to secure compared to traditional loans. For farm equipment, many lenders ask for standard requirements like basic business and personal information, invoice for the equipment, and at least three months of bank statements.
It is already good to go from there, but some lenders would ask for additional documents such as business tax returns (up to three years), profit and loss statement, business balance sheet, and proof of business licenses.
As with type of lenders, it is important to be wise in your choice. You can secure farm equipment loans from numerous loan provider types. The typical, general lender, such as SBA lenders, local banks, and dealers, would offer farm equipment loans as a part of a product line, so choices are fewer and generalized.
Specialized lenders, such as farm lending companies and equipment financing companies, have more options.
You can also check the DA’s Farm Service Agency also has the Farm Loan Program offering opportunities to family-sized farmers and ranchers.