The benefits of farm machinery finance
There are any numbers of reasons that your customers might opt for farm machinery finance. The level of flexibility regarding payment periods is naturally quite attractive: when it’s possible to pay installments over months and years, that unaffordable, top-of-the-line combine harvester suddenly seems like a realistic purchase.
If they favour ownership, a hire purchase agreement will allow them to use it as they pay for it. Where the initial upfront cost of an outright transaction might seem off-putting, this kind of arrangement allows the end-user to spread the cost over a period of time – while still taking full possession of the machine.
If they’re happy to forgo ownership, an operating lease requires minimal upfront costs and the item is returned to the company at the end of the contract – giving them the flexibility they need to lease a superior model as it arrives on the market. Agriculture is a fast-evolving industry, and this kind of arrangement allows your end-users to keep up with it.
These agreements are not perfect for every customer: they’re long-term commitments, and every farmer will have their own requirements and circumstances to consider. That said, they broaden possibilities far beyond cash purchases or simply not investing in new equipment at all.