Want to improve the productivity out of your farm without having to sow and mow yourself? Nowadays, so many new equipment and farm machinery are coming into use to boost the crop productivity along with reducing the hard work of farmers. Having the proper equipment is crucial when it comes to farming. But purchasing modern farm equipment altogether can be very costly. That’s why a lot of farmers opt for farm equipment financing in Abbotsford and Surrey.
No matter, how tight your budget is, you can get access to the latest equipment via equipment financing, which eliminates the requirement for an upfront payment. Since financing companies in British Columbia has access to a wide network of lenders who are ready to provide amazing financing and leasing offers, you can get hands on to your choice of equipment.
The main benefit of equipment financing is that it allows companies to purchase the equipment they require by making consistent payments over time. The equipment’s entire cost or just a portion of it may be financed.
Benefits of Financing Farming Equipment in British Columbia
- Reduced monthly installments
The fact that it reduces your monthly payments is arguably one of the most advantageous aspects of financing your farming equipment. This not only gives you extra money every month, but it also enables you to spend it for other essential business costs. This might be particularly helpful when your cash flow is weak or during off-seasons. Lower monthly payments might also improve your money management by ensuring you have adequate money set aside for unforeseen costs.
- Flexible repayment terms
One of the main advantages of financing your farm equipment is that you will have a variety of repayment alternatives. This encourages more freedom to customize the loan to your unique financial circumstances. You can choose a payback schedule that fits your income trends, like harvest-cycle-synchronized seasonal payments.
- Avoids high upfront expenses
Instead of needing a sizable chunk of money all at once, farmers may decide to finance their purchases primarily so that the expense can be spread out over time. Farmers who are short on funds or who need to replace multiple pieces of equipment at once will find this useful. By enabling you to purchase essential equipment without sacrificing your working capital, financing helps in keeping the farm productivity competitive and operational.
- Tax advantages
Your loan’s interest may be tax deductible, depending on the kind of financing you obtain. This is quite advantageous since it lowers your total tax obligation and gives you more money to reinvest in your farming business. Furthermore, you might be able to deduct equipment depreciation under certain financing arrangements, which would result in even more tax savings.
- Maintain working capital
Many farmers may encounter cash flow issues as a result of the unpredictability of farming, which is exacerbated by weather patterns and shifting crop prices. However, you will gain from the preservation of operating capital when you finance your farm equipment. This is due to the fact that you won’t have to spend all of your money on single equipment.
- Buying Equipment Directly
The drawbacks of buying your equipment entirely include upfront costs, restricted cash flow, depreciation, and the heavy burden on maintenance and updates. Businesses should take into account their financial status, long-term objectives, and unique business requirements when choosing between financing equipment and buying it outright. Farmers can decide whether to finance or not by taking into account the following variables.
- The equipment’s cost
- Benefits for taxes
- Company’s cash flow requirements
- Cost of upkeep and upgrades
Conclusion
The primary goal of financing is to get new equipment for your company right away and then pay for it as you make money. This increases efficiency and productivity by enabling you to use the equipment immediately. To guarantee that a farm stays competitive and can successfully satisfy market demands, it is critical to provide prompt access to equipment for timely operations.
If you are looking for a reliable equipment financing and leasing company in British Columbia to get your farm equipment financed, Sandhu & Sran Leasing & Financing is here for you. For past many years, we are helping farm owners like you in getting the right equipment financed for their farm use. With our network of lenders, we get you approved for a profitable financing deal at the lowest rate possible. For more details, give us a call today.
