Running a successful farming business requires reliable and efficient farm machinery and specialized farm equipment. If you are expanding and are in need of more agricultural equipment, or you lost an old piece of machinery, you may need to use equipment financing.
Fortunately in Canada, there are lenders who are familiar with farm equipment financing and can help you get the machinery you need.
What type of farm equipment can I finance?
Depending on the type of farm that you own, the equipment you require can range in size and expense. The right amount of financing can help your purchase almost any type of farming equipment you need, including:
- Utility vehicles
- Greenhouse equipment
- Fencing and enclosures
- Sprayers and applicators
- Ventilation and lighting systems
The benefits of financing your farm equipment
Here are some reasons why more and more farmers are choosing to finance new and used farm equipment rather than buy it outright.
Maintain the integrity of your fleet
The government gives financial benefits to the agriculture industry, known as subsidies. These subsidies are based on the commodity prices of crops, and as we all know, commodity prices fluctuate.
The team at Blue Capital believes that even because crop prices fluctuate, it shouldn’t affect your business being able to add higher quality equipment to your operations. This is especially important when you have an old farm machine that quits on you, and you need to replace it quickly.
Add advanced equipment to your lineup
As technology and mechanical engineering continue to improve, more advanced farming equipment is available on the market. Newer equipment can be more efficient, effective and even cheaper to run than the machine you are currently using on your farm.
A new machine could dramatically improve the overall performance of your agriculture business and is definitely worth the investment. You can always take advantage of new technology if you choose to finance your equipment.
You never have to worry about the upfront cost, and you can continue improving your farm’s productivity with better, high-quality equipment. Obtain the equipment you need without your working capital taking a big hit.
Lower your tax bill
Some of the farm equipment that you finance can be tax-deductible. Blue Capital knows how hard farmers work and you should know the potential tax benefits you get from leasing equipment.
Save your money
Even if you do have the capital to purchase new farm equipment, it’s better to save it and finance the equipment instead. Farming can be unpredictable due to weather patterns and fluctuating crop prices, and you may experience cashflow shortages. Equipment financing gives the option to free up capital to spend on other expenses.
How to finance farm equipment
As with any type of product, the market fluctuates for farm equipment. Before you decide to make a purchase, do some research on the current market and how it may be affecting the cost and availability of equipment.
For example, ask your broker if the price is likely to change in the next few months. If the price will go down in a few months and you can wait that long for new equipment, it may be worth the wait. But if now is the best time to buy considering price and availability, you shouldn’t keep waiting.
Blue Capital Equipment Finance is a nationwide finance brokerage, and we have years of experience helping businesses grow with equipment financing. We can help you easily get approved with zero down payment options and low-interest rates. Blue Capital also offers seasonal payments for farm equipment. Call the Blue Capital team today to find out!
We have multiple finance options and can help you find the right loan for farm tools so that you don’t have to let old, and unreliable equipment slow you down. You can utilize our wide network of farm equipment dealers to find your business’s next piece of equipment.