Financing Your Farm Equipment Purchase

Every farm needs tools in order to be successful, but most pieces of farm equipment are pretty expensive. If you’re trying to start a farm or add new equipment to your existing agricultural operation, you may want to make use of financing options to ensure you get the farm tools you need at a rate you can afford. Here are some things to consider when it comes to farm equipment financing.

Determine Your Budget

Before you begin shopping, it’s helpful to sit down with your finances to determine what you can afford to spend on a monthly payment, in addition to the amount of money you can put towards a down payment. Down payments are typically 10% to 20% of the total purchase price. Don’t forget to factor insurance costs, maintenance fees, and implements into your budget.

Examine Your Options

Typically, farm equipment loans can be either secured or unsecured. A secured loan uses the farm equipment itself as collateral, which means that it can be repossessed in the event you default on your payments. However, secured loans often offer higher borrowing amounts at lower interest rates. An unsecured loan doesn’t require collateral, but the amount you can get may be lower and it may come at a higher interest rate.

You can check with your current banking institution to see whether they offer financing options for farm equipment. Also, the finance department here at Twin Hills Equipment is ready and waiting to assist you with your farm equipment purchase. Contact us online or visit our dealership in Byhalia, MS, to discuss your financing options and check out our great selection of new and used farm equipment for sale. We have over 75 years of experience in the farming industry, so we can answer any questions you may have. Twin Hills Equipment proudly serves the greater Memphis, TN, metropolitan area as well as all of Marshall County, MS.