Category Archives for Agriculture Equipment Leasing

Round Baler Lease Financing

“Round Baler Leasing For New And Used Models”

Round baler leasing options are available through a number of our equipment leasing sources.

Equipment leasing can be a preferred for of farm equipment financing due to the potential high level of leverage that can be secured, lease structure flexibility, and payment flexibility.

With respect to leverage, round baler leasing from a farm equipment leasing source can be at or near 100% of the asset cost with only first and last payments required for strong credit applications.

Compared to bank equipment loan options which are more in the range of 75% financing of the asset amount, equipment leasing can provide considerably more leverage which helps you avoid draining your available cash reserves.

Lease structure is also an important consideration as a lease can be set up as either an operating or capital lease.

A capital lease functions very much like a loan in terms of payments and tax destructibility with a nominal purchase price at the end of the lease term.

With an operating lease, the asset does not have to be acquired at the end of the lease term while there can still be options in place for a purchase.

Operating leases are also considered operating costs.  So if you have a short lease term, you can effectively right off the asset faster for accounting and tax purposes than you could if you were purchasing the asset with a loan or capital lease.

From a payment point of view, agricultural businesses that require round baler lease financing may require seasonal payments to match up with their cash flow cycle.  This can also be accomplished with an equipment leasing facility.

Round Baler Lease Financing For Both New And Used Models

Round Baler financing can be arranged on both new and used balers.

The key with used balers is the condition of the unit and estimated remaining useful life.  Typically the asset needs to have considerable remaining useful life above and beyond the projected lease term.

Used equipment can require larger down payments than new, but for assets in good condition that are less than 5 years old, the leverage that can be secured can still be as high as 90% of the asset purchase price.

There can be several round baler lease financing options available for either new or used units.  To find out which ones are the best fit for your requirements, I suggest that you give us a call so we can go through your situation with you and review different financing scenarios.

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Forage Harvestor Leasing

Does Your Business Need To lease Finance a New or Used Forage Harvestor?

Forage harvestor leasing is a very common method of financing farm production equipment due to the variety of features this type of ag equipment financing offers.

Leasing financing is available for both new and used forage harvestors.   As the equipment increases in age, the rates are going to increase along with the required down payment and the lease term will likely be shorter.

But for used forage harvestors in good condition and considerable remaining useful life, the difference between new and used leasing terms can be minimal.

One of the other benefits of equipment leasing for seasonal businesses is that repayment terms can be structured in monthly, quarterly, semi annual, and annual payments, depending on the situation and the financial qualifications of the lessee or borrower.

Get Forage Harvestor Leasing That Meets Your Business Needs

Because of the size of the capital investment involved with larger cropping equipment such as forage harvestors, the farm business operation prefer to enter into an operating lease to try and reduce the lease payments as much as possible and have a larger option to purchase amount at the end of the lease term.

Operating leases can also be used to accelerate the write down of equipment by having a repayment period over a shorter period of time in order to generate a greater expense claim for tax purposes.  This type of tax planning and cash flow strategy should always be discussed with a qualified accounting adviser before proceeding.

A capital lease with a nominal purchase buyout at the end will work very similar to an equipment loan in terms of the amortized repayment and accounting treatment.

If you have a new or used forage harvestor identified for acquisition, please give us a call so we can quickly assess your financing requirements and provide relevant leasing options for your consideration.

Financing approvals for these types of assets are typically secured within two to five business days of receiving a complete application package.  We will help you put together an application package that properly supports your request and get it in front of the most relevant lenders as quickly as possible so you’re not wasting any time getting the financing in place.

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Grain Bin Leasing

Does Your Business Need to a Lease New Or Used Grain Bins?

Grain Bin Leasing is available from a number of different lease financing sources for both capital and operating leases.

What’s interesting about grain bins that can make them ideal for an operating lease is the fact that you can expense or write off the acquisition costs faster as an operating expense versus claiming depreciation and interest costs.

With most equipment, the write off rate is high enough that there tends to not be a lot of difference between a loan versus operating lease option or a capital lease versus operating lease option.

But because grain bins are a structure by accounting and taxation definitions, the depreciation rate is much lower due to their longer term useful life.  And even though a grain bin is not technically a piece of equipment, leasing companies like these types of assets, especially hopper bins or anything that is set up or designed for easy relocation.

So, if you are looking for additional expenses for your up coming year end, an Ag operating lease can afford you the ability for a faster write off of the grain bin acquisition cost and save you tax dollars in the process, provided that any lease you commit to would qualify as an operating lease according to the applicable taxation and accounting rules.  Make sure you check with your accountant or tax adviser before signing up for anything to make sure the lease offer will properly qualify as an operating lease.

Get Transport Trailer Equipment Leasing That Meets Your Business Needs.

If you don’t need the accelerated write off, then either a capital or operating lease can do the job for equipment lease financing grain bins.  A capital lease may have a slightly higher interest rate, but the overall tax paid will probably be lower due to the absence of a balloon payment at the end of the lease term.

Used grain bins can also be lease financed and although the rates and terms may not be quite as good as for new equipment, this can still be an excellent financing option.

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Grain Bin Leasing Needs.

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Livestock Equipment Leasing

Do You Need To Lease Livestock Equipment?

Livestock equipment leasing covers everything from corrals to feeding and watering systems.

Here is just a small list of some of the more common livestock equipment items that get lease financed on a regular basis by Canadian Leasing Companies.

Livestock handling equipment, Beef cattle handling equipment, dairy cattle handling equipment, bison handling equipment, swine handling equipment, poultry handling equipment, Squeeze chute, shoulder holder, maternity pen, loading chute, portable handling system, Texas shed, cattle feeder, double header calf table, calving trimming chute, calving enclosure, panel access squeeze chute, crowding tub, palpitation cage, hydraulic squeeze chute, round pen, feeding equipment, cattle guard, waterers, livestock penning, water tank, horse stall.

We provide this abbreviated equipment listing to just to give you a
better idea of what can be leased for your livestock operation. If you have an item that doesn’t show above, then give us a call and we’ll find out right away if it will qualify under one of the equipment leasing company programs we work with.

The basic rule of leasing is that the more common the asset is in terms of new units being sold every year and the presence of a sold used equipment market, the better the rates and terms that you’re going to be able to secure.

Get an Equipment Lease That Meets Your Business Needs

For instance, most used livestock handling equipment can be financed. However, the rates and terms may not be quite as good as for brand new. But if you’re getting a good deal on used equipment, the pricing benefit will likely offset any additional cost of financing.

And for the most part, 100% financing is available for most of the more common agricultural equipment items, making lease financing an excellent source of capital that is cash flow friendly in comparison to the amounts of money you may have to put down for other forms of financing for other assets.

For smaller cost items, you can also purchase them in bulk or separately, but still combine them into the same equipment lease. If several larger items are required, we can spread the financing requirements among leasing companies to reduce their risk and increase your access to capital.

Regardless of your situation, we welcome the opportunity to try and find an livestock equipment leasing solution that fits your business requirements.

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Grain Handling Equipment Leasing

Do You Need to Secure a Lease For Grain Handling Equipment?

Grain handling equipment leasing for commercially based businesses like farming or agricultural production, feed preparation, and food processing is available for the following list of assets. This is not meant to be an all inclusive list, but an overview of the most common types of grain handling equipment that gets approved for financing on a regular basis by Canadian based leasing companies.

Chain conveyor, grain pump, straight chain conveyor, incline chain conveyor, drag chain conveyor, round bottom conveyor, belt conveyor, bucket elevator leg, grain auger, screw conveyor, grain hopper, swing hopper, bin sweep, grain vac, grain vacuum system.

If you have an item that is not on the list, please give me a call and we can still see if there is lender interest in that specific asset.

In general, equipment leasing will be easier to secure for good rates and terms if the equipment being financed has a solid and well established resale market for used equipment.

So basically, the easier it is to sell used grain handling equipment items, the more likely it will be to finance similar items in new or used condition. The reasoning for this relates to a leasing companies comfort in their own ability to dispose of equipment they own that came to them at the end of a lease term or through lease default.

Grain handling systems can be leased as well as individual items. With larger capital requests, there will be more application information required and any funding approvals may also require additional security covenants to offset the higher level of risk perceived by a leasing company.

Get a Equipment Lease That Meets Your Business Needs

One of the great advantages of agricultural equipment lease financing for smaller amounts is the high probability of securing 100% financing for the equipment purchase price. And if there are delivery and installation costs, they can be added to the lease approval as well effectively providing more than 100% financing.

Even for larger capital requests, the loan to purchase price ratio can still be very high, allowing you to minimize your down payment and therefore retaining more cash for other operational and cash flow requirements.

If you’re looking at leasing a specific piece of grain handling equipment or even an entire system for your operation, please give us a call so that we can quickly review your requirements and provide relevant equipment leasing options for your consideration.

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