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.