Farm Equipment

Many kinds of farm equipment can be financed, including tractors, earth movers, plows, crop dusters and other types of agricultural equipment.

Some of the primary methods used in financing farm equipment include commercial hire purchase, chattel mortgage and asset lease. The option that works best for you depends upon your particular situation. The professionals at Platinum Direct Finance can assist you in determining which approach is ideal for you.

With a commercial hire purchase, the lender buys the farm equipment but hires it back to the customer for a stretch of time they both agree upon. This method gives the customer the full use of the agricultural equipment throughout the length of the agreement, even though he does not own the equipment outright. At the conclusion of the contract, the customer does have the option of taking ownership of the farm equipment if he has paid the full price along with interest.

The terms of a chattel mortgage require the lender to advance money to the borrower to buy the farm equipment. After doing so, the lender places a mortgage on the equipment, known as chattel in legal terms, as security. The customer is awarded the title on the farm equipment once he pays off the mortgage. The customer can make a cash deposit or trade in old equipment to initiate the agreement.

Under an asset lease, the lender buys the farm equipment and enters into a contract in which the customer leases the equipment, paying a certain amount of money each month for the right to do so. At the conclusion of the agreement, the customer has several options. He can take clear ownership of the agricultural equipment by paying a residual on the lease, re-finance and extend the lease or sell the equipment. One of the main advantages with this option is the fact that the equipment is not listed on the customer's accounting books as an asset and potential liability.

The terms of your financing agreement can vary significantly depending on a number of factors, including the specific type of farm equipment that is being financed, whether it is new or used equipment, and the kind of jobs you are performing with it. This is true no matter which financing product you choose. Flexible terms are often available.

Get started on financing your farm equipment by contacting the team of finance professionals at Platinum Direct Finance today.