Many banks and finance companies will extend finance for the purchase of farm machinery. However, in many cases, the guidelines make it difficult for farming operators to receive the best deals on machinery finance. Seasonal and cyclical income factors may affect your chances as may the perceived risks from natural disasters and other major climate factors and unforeseen environmental elements.
For a more individual and tailored approach to finance, many businesses seek the services of a professional finance broker to handle their loan arrangements. A finance broker provides a comprehensive range of services to both businesses and individuals for the purchase of many goods and assets.
In selecting which broker will best serve your interests, here’s a few tips:
- Ensure your broker is independent of any association with a bank or finance company but is accredited with many. With the resources to canvass loan offers from a wide range of sources ensure you are receiving the best offer.
- Ensure your broker has experience and expertise in the agriculture and farming sector. This can be seen as a somewhat specialised area, with special considerations required for the applicant. A broker with proven experience in the industry will have the better contacts with lenders who also specialise in farming loans.
- Ensure the broker will tailor your finance deal to suit you, not just to suit the bank.