What is Farm Equipment Loans and How to Qualify For One?
What is Farm Equipment Loans?
Farm equipment loans are small business loans that provide farm owners with working capital to purchase necessary equipment. Whether you need a tracker, sprayer, filed cultivator, shredder, cutter, plow, or baler, farm equipment financing can be used to purchase a variety of farm equipment.
Because new and innovative equipment is essential to keep your operation running and take your farm business to the next level, small business funding can often be the difference between your farm’s success and failure.
Benefits of Farm Equipment Financing
Save your time and energy
Boost productivity with new and innovative equipment
Keep your operation working efficiently
Get farm equipment without a down payment
No collateral requirement
Maximize your tax savings
Both startups and established businesses can apply
Better estimate your cash flow needs
Upgrade your agriculture technology as new equipment and futuristic solutions become available
Qualification Requirements for Farm Equipment Loans
Though qualification requirements for a farm equipment loan may vary from lender to lender, here are the most common requirements your lender may ask when applying for one.
6 months in business
A credit score over 570
Equipment quote from a vendor
Since equipment purchased serves as collateral, you don’t need to provide any valuable assets to secure the farm equipment financing. You can also qualify for an amount of up to 100% of equipment value with interest rates from 4% to 40%. Farm equipment loans generally have term lengths from five to six years.
Documents Needed To Apply for Farm Equipment Financing
Credit score
Voided business checks
Bank statements
Business tax returns
Driver’s license
Equipment quote
How to Apply for a Farm Equipment Loan?
From banks to alternative lenders to financial institutions, there are plenty of options when it comes to applying for farm equipment financing. But if you need immediate funds with a simple loan application and less documentation, applying through an online funding marketplace like Smansha, Lendiio could be your best option.
Applying for a farm equipment loan with this lending marketplace is fast and easy. You just need to fill out one simple application that won’t take more than 15 minutes. After successfully filing your application, you can compare a variety of farm equipment loan offers from 40+ lenders and choose one that best fits your current financial needs and budget.
At the online funding marketplace, you’ll get help to choose the best farm equipment loans. Once approved by one of the alternative lenders, you can get the capital you need in as little as 24-48 hours.
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