SproutAg provides financing services for farm machinery and equipment to agricultural business, including family-owned farms and business and food industry businesses.
Looking for asset finance? Wanting to connect with finance specialists with experience in farm machinery loans? Contact SproutAg to understand your options.Book a Consultation
With farming being such an intense and demanding occupation, it’s absolutely essential that farmers and their employees have access to the very best possible equipment and machinery. Better machinery means more efficient and effective farming processes!
With this in mind, quality farm machinery finance is always something that both new and experienced farmers should be thinking about.
Whether you’re starting up your first farm and building your inventory from scratch, or, you and your family have worked the same land for generations, you will need access to the best machinery and financing options available. But many farming businesses – both new and established – simply aren’t in a position to be splashing out huge sums of money on new, state-of-the-art machinery and equipment - which is where SproutAg comes in!
Our team helps farming businesses, big and small, to obtain financial advice and secure a well-planned farm machinery loan. Our specialists can assist businesses in navigating the process of applying for farm machinery loans, choosing between variable or fixed interest rates, and answer any questions they may have about their finance.
We all know that living in the country is markedly different from living in the city or the suburbs. Rural communities and ways of life are usually completely different from urban ones.
But regardless of where you’re from, many people falsely believe that traditional banks and lending institutions are the ideal places to go to when it comes to finding a rural loan. In reality, this is far from being the case.
Most banks don’t have the specialised knowledge of rural communities and industries required to swiftly and effectively assess a rural loan application. The impact on such applications is that they are likely to be rejected – as they very often are.
Naturally, this can be a source of great frustration and confusion for those who require loans for their businesses and/or homes in rural areas. Fortunately, there are specialist financial institutions dedicated to serving rural communities and businesses available on the Australian market for those individuals who know where to look!
The Sprout team can work directly with you and agribusiness-friendly lenders to give you the best options on the market and the best chances of securing the funding you need.
Many in finance, including major banks, don't necessarily understand the challenges, risks and benefits of agricultural businesses and how they operate. On the other hand, not many agribusiness owners can easily navigate the financing processes, as they can be quite involved with lots of paperwork and red tape.
Working with an experienced team of specialists who understand the needs of agribusiness and know how to talk to financial specialists is immeasurably valuable. Our team understands the needs of agribusiness and how to speak to financial specialists to secure that funding.
No one should miss out on the chance to create the best business they can because of a little red tape! SproutAg works closely with you to ensure you find the right financial help and have the best chance of approval.
If you’re interested in investing in new equipment for your new or established farm, simply get in touch with one of our friendly and knowledgeable team members!
Our team can help to understand your options, and connect you to the right specialist and personalised loan advice that your business needs.
SproutAg specialists in agricultural finance – if you’re looking for farm machinery finance, contact our team today to request a quote.
Machinery finance is essentially a loan to fund business assets in a range of different industries. You can finance a wide range of equipment from heavy machinery to new technologies, and even office supplies. The success of your application is dependent on a variety of factors including savings, cash flow, assets, access to collateral, and risk factors.
When it comes to obtaining farm machinery finance, many people falsely believe that they can simply go to their bank or any other financial institution and apply for a loan.
In fact, because the vast majority of financial institutions don’t employ people with specialist knowledge of the agricultural industry, they’re usually unable to accept applications for loans for farm equipment from even the most experienced, reputable and financially secure farmers.
Instead of applying for loans from these organisations, farmers should always look for finance experts who specialise in the agricultural industry.
Their understanding of the nature and challenges of the industry will enable them to swiftly and easily assess the risks and benefits, allowing them to provide their customers with the farm equipment financing they need in order to achieve both their short and long-term goals.
Farm Machinery Finance can also preserve the working capital for farm businesses which enables those family farm operations to use the capital for things such as planting crops, livestock trading and general operations.
Farm machinery finance is a type of business loan that helps businesses get access to that equipment. They obtain it through a financier, often on a finance lease basis or Chattel Mortgage, with the equipment used as collateral for the loan. This means that the financier or your business retains actual ownership of the machinery and the applicant doesn't need to invest a large amount of capital, but can still use the machinery as part of their operations.
The short answer is yes, machinery is considered a "fixed asset" as it is involved in the operation of a business. Fixed assets are considered to be both 'tangible' and 'long-term' assets (an asset with a useful life beyond one year).
This will depend on the amount of finance you're approved for, the loan terms, and the financial provider you secure your finance through (in many cases, equipment financing terms can average between 4 and 6 years).
There are potential tax benefits to consider when it comes to financing as well, as there is potential for the interest portion of the loan repayment to be tax-deductible. To be eligible for this, all your borrowed funds should be used for business purposes. It's best to get financial advice on any potential tax deductions or obligations as a result of machinery financing.
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