What Is a Farm Equipment Loan?
As a farmer, you know that having the right equipment is crucial for running a successful operation. From tractors and harvesters to hay balers and plows, the right equipment can make all the difference in maximizing your yields and minimizing your labor costs.
But buying equipment outright can be prohibitively expensive for many farmers. That's where farm equipment loans come in.
What Is a Farm Equipment Loan?
A farm equipment loan is a type of loan specifically designed to help farmers purchase the equipment they need to run their operation.
Whether you're looking to buy new equipment, update existing equipment, or replace outdated equipment, a farm equipment loan can help you spread out the cost over several years, making it easier to manage your cash flow.
Advantages of Farm Equipment Loans
One of the biggest advantages of farm equipment loans is that they allow you to make a significant purchase and spread out the expense over a few years. This means that you can invest in the equipment you need to improve your operation without having to pay for it all upfront. You may also be able to expense the interest on your taxes, which may be financially beneficial.
Another advantage of equipment loans is that they are considered intermediate debt on your balance sheet. However, equipment is considered an immediate asset on your balance sheet. This can help to improve your creditworthiness and make it easier to obtain future loans.
Why Should Farmers Consider Farm Equipment Loans?
Farm equipment loans can help you purchase the equipment you need to improve efficiency in your operation, without putting a strain on your current budget or cash flow. By spreading out the cost of the equipment over several years, you can ensure that you have the equipment you need to run your operation smoothly and efficiently, while also maintaining a healthy cash flow.
[READ: When Should You Buy vs. Lease Farm Equipment?]
Farm Equipment Loans from FBN® Finance
FBN equipment loans have terms of up to seven years and require:
a minimum loan amount of $10,000,
a 20% down payment, and
the equipment to be 14 years old or newer.
Financeable equipment includes:
Interested in learning more about farm equipment loans? With an average of 15+ years’ experience each in Ag finance, FBN loan advisors are ready to walk you through the details of this type of loan, explain the application process and make sure you get the financial solution that best fits your needs.
Click here, complete the brief form below, or call 866-619-3080 to speak to a member of our team today.
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Financing offered by FBN Finance, LLC and its lending partners. Terms and conditions apply. To qualify, a borrower must be a member of Farmer’s Business Network, Inc. and meet all underwriting requirements. Interest rates and fees will vary depending on your individual situation. Not all applicants will qualify.