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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