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Asset Funder Lease Financing for Farmers

Asset Funder Lease Financing for Farmers

Agricultural lease financing makes a lot of sense for farmers who have to be careful not to waste any of their precious resources and to help keep their farm's cash flow moving.

Deciding whether or not to purchase their essential farm equipment outright can be a difficult decision, especially when that means spending all of your available cash reserves. Some farming assets carry a very expensive price tag so that could mean draining your finances to the tune of thousands of pounds.

There is another option that farmers can consider when looking to purchase essential assets that are needed to enable them to run their farm successfully. This option is to consider lease financing for their essential equipment and farm assets.

Financing farm machinery keeps more money in the bank

By choosing lease financing farmers can feel more secure about being able to leave enough money in the bank to cover any extra unexpected emergencies that may occur, such as fixing a vehicle breakdown or paying for urgent repairs and spare parts for a piece of essential farm machinery.

With a good lease financing agreement, a farmer will only need to make a small upfront payment to secure funding and with a flexible lease, the balance can be paid off in manageable chunks over an agreed repayment length of time that can be comfortably met each month.

If you are a farmer that is deciding between leasing brand new farm equipment or possibly buying older, second-hand farm equipment outright, then lease financing your most essential and costly pieces of farm equipment could be better because using new equipment over old, less reliable equipment will give you a better level of productivity and efficiency.

Why farmers often overlook alternative finance options

Many farmers will overlook lease financing options because it is still considered traditional to own your farm equipment outright. While good quality farm machinery and vehicles can last for many years, purchasing second-hand equipment can work out more costly in the long run due to the extra service and maintenance costs involved in sustaining that equipment.

While most farmers consider breakdowns, damage repairs and parts replacement as quite a normal part of maintaining their farm assets and equipment, in some cases lease financing their equipment can mean that the service and maintenance costs are covered by the asset supplier.

It is worth checking the small print to see what's included in the leasing agreement as most equipment suppliers will want to maintain their assets and will be happy to take care of its upkeep while being leased to you.

Reduced risks during economic downturns

Most farmers do prefer to live within their means and carry an element of risk-aversion when it comes to their finances. However, while living through times of economic uncertainty, leasing equipment doesn't carry the exact same risk as other types of financing.

In fact, leasing farm assets will give farmers access to the very latest models and more cutting-edge technology that can help them to be more efficient and economically streamlined during lean times. By accessing new farm machinery and vehicles, there are fewer risks of breakdowns or being able to source replacement parts for broken machinery when compared to using older, less efficient equipment that may be using obsolete parts that would be difficult if not impossible to replace.

What leasing options are open to farmers?

Through Asset Funder, farmers can access different financing options. Depending on your individual circumstances and the type of farm you operate, it would be worth talking to our friendly team at Asset Funder to find out what your best options are.

The most popular finance options open to farmers are usually lease financing or hire purchase, so, for example, you could talk to us about financing the essential farm assets that you need to be able to operate.

We have worked closely with many farmers over the years and have funded many farm assets, including:

  • Tractors
  • Combine Harvesters
  • Farm Vehicles
  • Milking & Dairy Equipment
  • Biomass Boilers
  • Forestry Machinery
  • Solar PV

While you will not technically own the farm assets you have financed, you will be able to use those assets just as if they were your own.

What is very appealing for a farmer with a dynamic business that needs a good cash flow is the flexibility that lease financing offers. Asset Funder will work with you to work out a tailored repayment plan that will match your farm's cash flow – and will not drain your cash reserves dry.

You should also talk to us about the tax benefits that you may be able to claim against your lease financing. With favourable tax incentives, it can be more cost-effective for your farm business to choose asset financing rather than go for complete ownership.

Secure the finance you need for your farm

We understand that as a farmer you not only need to keep your farm ticking over at a productive rate and complete your everyday tasks, but you also need to look at ways to improve your farm and make your business grow.

By discussing your needs with our experienced team at Asset Funder you will be able to finance everything you need to operate your farm in the most cost-effective way possible. Whether you are looking at buying livestock, farm vehicles and machinery, or farm supplies such as feed, grains and seeds, we can help you! We will have the type of financing options you need.

We can offer you:

  • Simple quick application
  • Fast seamless process
  • No hidden charges
  • Flexible repayment structures
  • Choose a repayment structure to suit your needs

By sourcing our specialist lease financing your will be able to access your needed farm asset quickly and seamlessly with minimal outlay and with an agreement put in place that will not be a burden on your farm's cash flow. Contact our friendly team at Asset Funder today to discuss your needs. We are here to help!

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