Farmers seeking cheaper farm machinery finance for equipment exhibited at recent field days are welcome to seek quotes from Business Finance Australia. The return of these great industry events after a 2 year break due to COVID, has reportedly seen a huge interest in machinery and equipment sales. The Henty Machinery Field Day (HMFD) held in September reported massive attendances and outstanding results for exhibitors. Case in particular is reported as recording good sales over the three days of the event.
While many operators use these events to place orders for new machinery, others choose to weigh up the features and benefits of different models and arrange finance after the event. Then proceed to make the purchase. For potential buyers in the process of making those post-field day buying decisions, sourcing the cheapest interest rate finance could be key to realising the optimum benefits in profitability, output and productivity from the new machines.
Showcase: Award-winning Machinery
Buyers may be considering the purchase of equipment which received a highly-coveted award at the HMFD. These awards attract great attention and showcase some of the innovative new machinery which is on the market. This year’s awards included the Ezy Feeder, See & Spray Select and MacDon’s Flex Draper.
The See & Spray Select by John Deere was awarded a Highly Commended recognition. It can be fitted to the JD 600 series and 400 series sprayers as original equipment and offer more efficient operation with consistent application while minimising waste.
The Machine of the Year gong was awarded to the FD2 Flex Draper from MacDon. A machine which delivers greater speed, capacity and flexibility for better harvesting outcomes. Packed with MacDon technology features such as the cutting system which is high-speed and a deeper deck for starters.
One of the most highly sought awards is the one for the best Australian built and designed machine. The 2022 award in this category was presented to Daniel Draper for his Ezy Feeder. Daniel hails from West Wyalong where he developed this multi-purpose, dual auger machine in his business. Originally launched in 2004, the machine has been further upgraded, tweaked and developed to the model which one this award.
These awards are judged by a team of experts and as such, may provide operators with an indication of what is considered some of the best farm machinery on the market. But with all asset acquisitions, the full benefit of the equipment to the operation may not be realised if the finance for the purchase is not also an ideal match for the business.
That is where we assist farmers with farm machinery finance at better rates and with personal attention to negotiating loan conditions and finance terms that will work for the business. Especially in regard to finance repayments working for businesses with seasonal cash flow considerations.
Farm Machinery Finance Solutions
The banks are a traditional source of business finance for many operators and especially for farming and agricultural. In the past, those in regional areas may not have had as extensive access to the lending market as businesses in urban areas and capital cities. But with online connectivity, digital resources and the expansion of the non-bank lending sector, all businesses have greater accessibility to a large lender market.
But knowing which lenders are offering the best loans for farming machinery and finding the time to request quotes from many of them can be a major challenge. Interest rates on equipment can vary across lenders and also for different industries. So simply checking out the general rate displayed on a lender website may not provide an accurate guide for estimation and budgeting purposes.
Business Finance Australia supports businesses to overcome this challenge through our broker-style service. We offer access to many lenders and the expertise to source the
cheapest loan offer from across a vast section of the market.
We tailor the loan to suit the business, paying particular attention to some of the unique requirements of farming and agricultural businesses with seasonal outputs and income.
One of the major decisions that the operator needs to make however, is in regard to which finance product is best suited to their operation and will deliver the best financial outcome. We strongly recommend that the accountant is brought in to assist with this decision as many of the aspects relate to accounting issues.
The choice of farm machinery finance products include:-
- Machine Leasing
- Commercial Hire Purchase for Machinery
- Chattel Mortgage
- Rent-to-Buy
While the decision as to which loan type to select will be based on individual business objectives, we draw special attention to Chattel Mortgage, which is also known by some banks and lenders as Equipment Loan. Currently, this type of finance is suited for businesses that would like to also take advantage of the temporary full expensing tax measure. This accelerated asset depreciation measure expires at the end of this financial year, so not many more months to get acquisitions finalised.
Another reason for prompt purchase decisions – interest rates. The recent
RBA interest rate decision, which included a statement about further rises could be expected, should be motivation to move promptly with finance decisions.
If new farming machinery is on your agenda, speak us for quick attention for finance requirements.
For farming machinery finance contact Business Finance Australia on 1300 000 033
DISCLAIMER: THE SPECIFIC PURPOSE IN PROVIDING THIS ARTICLE IS FOR GENERAL INFORMATION ONLY. IT IS NOT INTENDED AS THE SOLE SOURCE OF FINANCIAL INFORMATION ON WHICH TO MAKE BUSINESS FINANCE DECISIONS. BUSINESS OWNERS WHO REQUIRE ADVICE OR GUIDANCE AROUND THEIR SPECIFIC FINANCIAL CIRCUMSTANCES ARE RECOMMENDED TO CONSULT WITH AN ADVISOR OR ACCOUNTANT. NO LIABILITY IS ACCEPTED IN REGARD TO ANY MISREPRESENTATIONS OR ANY ERRORS RE ANY DATA, SPECIFICS, POLICIES AND OTHER INFORMATION AS SOURCED FROM OTHERS.
