All You Need to Know About Financing Farm Equipment

Whether you want to boost efficiency, increase production, or upgrade your old machinery to the latest model, you’ll benefit from purchasing farm equipment. However, agricultural equipment can be expensive, especially various latest models from popular brands. Conversely, financing a machine can help you bring it home without breaking the bank. Below are a few tips to help you navigate the process of securing farm equipment financing—so keep reading to learn more!

Improve Your Credit

Your credit score can help secure a great loan for your farm equipment, so raise your credit score to get the best possible deal! However, remember that this can take time, so start early and apply for loans only after you’ve increased your score to 650 or 700. You can raise your credit score by removing old debts, especially those affecting your credit.

Research Your Options

Another thing to consider when financing farm equipment is research. Various lenders, such as banks, credit unions, and lending institutions, provide financing solutions. Don’t just select the first financier you come across. Instead, you should apply at 5 to 6 places and compare the rates to ensure you get the best deal that suits your unique financing needs. If you prefer customization, you can speak with our finance experts at Jasper Tractor Store.

Seek the Right Loan

Farm equipment loans can be secured or unsecured. A secured loan comes with more favorable terms and a longer tenure than an unsecured loan. This type of financing option is often easier to obtain, as the lender will use your equipment as collateral, meaning they can repossess your machine if you falter on repayments.

On the other hand, unsecured loans have shorter tenures and higher payments. In this arrangement, the lender won’t use your equipment as collateral, but remember that this type of loan is more difficult to obtain than secured loans. Determine which of the two you are more comfortable with, then submit your application.

We hope you find this financing guide handy. If you need more advice or assistance to set up a payment plan for purchasing your dream farm equipment, contact Jasper Tractor Store. Our physical location is in Jasper, GA, and we proudly serve those from Cartersville and Ellijay!