Agriculture needs hardworking sets of hands, hearts, and strong equipment. This much has been and continues to prove true in farming. Those who truly have a passion for cultivating Mother Nature’s crops and other greens know this to be unwavering. At least, with regards to farming as a source of livelihood.
We understand how much time and work it takes to finally establish your enterprise and get the production cycle process going smoothly. That’s the goal. To move you towards stability in an industry that’s essential to every Australian household, and to the economy.
That being said, your income and your gains should also be as much in the picture as the aspects mentioned above. At the end of the day, the reality is that income is what drives us to continue what we do. And in farming, the same can undoubtedly be stressed.
For this reason, we’ve come up with ways for you to continue developing your business, your skills, your machinery, and farming techniques for prosperous yields. And in the event that seasons and climates affect production, you’ll still be able to have a source of funding to ensure sustainable efforts.
What Is Equipment Finance?
Equipment finance is a specialized type of loan that’s meant for financing business equipment and machinery. Through either a lease, rental, or full-on purchase, you can acquire instruments that are essential for the furthering of the progress of your enterprise and of your farmland.
Capital is always that one immovable resource. Rather, it should remain immovable for a certain period of time until the flow of income becomes stabilized and easier to predict. However, when the need for machine replacement arrives at your front door, you’ll have to answer.
Yet instead of pulling funds from your capital, or even your profits, leave these as they are and go for equipment financing. You shouldn’t have to move your reserves. Keep your business plans and income schematics the way they are.
Alternatively, reach out to an equipment loan specialist or lender to assist you in finally getting the machinery you’ve been waiting to add to your farm’s roster.
Benefits Of Equipment Finance
1. Steady Cash Flow
We’ve tackled this in passing in the few paragraphs before. One of the major benefits of equipment loans is allowing you the freedom to continue regularly paying off business expenditures and letting cashflow reach a point of stability while still being able to spend on much-needed (and yes, oftentimes expensive) pieces of machinery.
Studies have shown that the first 4 years of a startup are the most challenging. They’re the make-or-brake of your venture. Therefore, taking care of your budget during this period is crucial.
Even after availing of the loan, you’ll still get to comfortably and consistently complete your repayments alongside your monthly expenditures.
2. Flexible Repayment Options And Interest Rates
It’s a known fact that farming and its operations are dependent on the weather, and operate within the bounds of seasonal changes. Though there are practices and innovations in machinery to allow production to continue in spite of these natural occurrences, startups and small farming businesses may have trouble coping with them.
This is where equipment loans are a kind of helping hand in these incidents. During periods when cash flow is steady, it will be tough to shell out for equipment upgrading or leasing, much less purchasing.
However, because there are a number of repayment plans to select from, you can choose that which will be best suited to your circumstances and current (and realistic) profit margin.
On the other hand, interest rates are versatile, too. Unlike regular loans, equipment finance has alternatives wherein the interest rates are at their lowest, and that they’re, more often than not, fixed. One less thing to worry about.
3. Experts In The Field
If you aren’t quite knowledgeable about what equipment to purchase, perhaps because of the slew of options, or maybe it’s that this is your first time to come across it in your business, lenders have their own experts, or have partnerships with such professionals in the industry.
They’ll be able to give you a variety of expertly verified pieces of machinery for you to have an easier time making your decision. Into the bargain, they also have access to information about ones that are of the latest upgrades and technological innovations for farming that’s efficient to a T.
The same goes for when you’ll have to return to your lender to seek advice about disposing or upgrading the very same machine. They can aid you in disposing of them while scouting for a new machine or exchanging them for another with better features.
Either way, it’s a win-win. They can even outsource it to another distributor or to another manufacturer so that you can exchange it for cash.