Financing Your Farm Equipment Purchase
In order to complete tasks around your farm expediently, you need to have the right pieces of agricultural equipment on-hand. When it comes time to replace equipment or acquire a new machine, you may want to consider using financing options to complete your purchase, because not everyone will have the ready cash on hand to buy an expensive piece of farm equipment outright. FInancing can help to make it easier to afford the equipment you need on a budget.
Gary's Power Equipment in Winchester is your New Hampshire farm equipment dealer, serving Swanzey and Battleboro. Here are the answers to a few questions you may have about the ins and outs of financing your agricultural equipment purchase.
Why Look Into Financing?
Using financing for a big-ticket purchase like farm equipment can be a smart choice for many buyers because of the flexibility it allows. Financing can help you to obtain the agricultural equipment you need sooner rather than later, and you can even get a better-quality model by paying in monthly installments rather than having to have all the money available right up front. Most long-term financing options do require you to make a down payment of at least 10% to 20% of the total purchase price, so keep this in mind when looking into financing options.
When Do You Need the Money?
Loan applications can take many weeks to be approved, so it’s best to start the process as soon as you know you need to use financing. Get your business records prepared and make sure that your credit is up to snuff before you start applying for loans. Check around to see where you can purchase equipment using financing options and ask potential lenders how long it may take to be approved for the loan. The higher a down payment you can save up in advance, the better, since this will lower the cost you have to pay over time in installments.
How Long Do You Intend to Use The Equipment?
It’s important to think about the length of time you intend to use your piece of farm equipment when considering financing. You don’t want to end up paying more than what the machine is worth over time if you’re going to use the equipment for as long as possible. Monthly payments combined with an up-front down payment are the best option for long-term financing.
If you only want to use the equipment for a short period of time, you could consider looking into an operating lease instead. This avoids the down payment and only requires you to pay the monthly cost as long as you have the lease.
When you’re ready to investigate financing options near you, talk to the finance department here at Gary’s Power Equipment. Our friendly staff can help you determine which options best meet your needs so that you can complete your farm equipment purchase smoothly and quickly. Check out our fine selection of new and used farm equipment for sale at our Winchester, NH, dealership location. Gary’s Power Equipment proudly serves the cities of Battleboro and Swanzey, NH.