When farming is your business, you need to keep going when conditions are optimal. Being down for repairs at a crucial time during planting or harvesting can cost you part or all of your crop and profits. Older machinery has a propensity for breaking down at critical times, as you are pushing hard to get the job done.
Consider agricultural equipment leasing when you need new machinery to stay competitive, but don’t have the cash needed for down payments and sales tax. Agriculture leasing frees up cash for other purposes and helps you budget your costs better. Set up lease payments to coincide with expected sales of crops, for even greater budgeting flexibility. At the end of the lease, you have options of extending the lease, buying the equipment at the residual value or simply returning the equipment. Read the fine print in your lease agreements and be sure you understand each clause before signing. The following advantages may convince you to lease your agricultural equipment:
1. Greater access to technological advances in machinery.
2. Less down time for repair work.
3. Increased productivity resulting in higher profits.
4. Reduced repair costs.
5. Entire lease expense may be tax-deductible.
Decide if you should lease or buy your farm equipmentThere are many useful sites on the Internet to help you decide whether you should lease or buy.
Get quotes for agriculture equipment leasing from several online sitesChoose reputable companies that have been in the agriculture equipment leasing and farm equipment financing business for a number of years.
Consider available payment optionsSet up your payments to coincide with seasonal inflows to free up your company's cash and credit.
Look for used equipment and compare financingYou may decide you would rather own the farm equipment you are using. Consider used equipment and agricultural equipment finance sources.
- Put together a balance sheet and business plan before filling out loan or lease applications for farm equipment leasing or purchasing purposes.
- Ask for customer references from each agriculture leasing company you are considering and check them before leasing.