Different Ways To Get Financing for a Tractor
posted on Monday, November 1, 2021 in Financial Tips
Farmers must make wise decisions when buying new farming equipment, especially tractors, because of their importance in farms. A good way to get financing for this purchase is by applying for tractor loans.
Whether you’re getting a brand-new tractor or a secondhand one, these loans typically last according to the financing type you’ll apply for. Here are three ways to get financing for a tractor.
- Through a Dealership – A dealer can offer financing with low interest rates. But sometimes, this can only apply to a portion of the loan. Having an established financial record and a down payment is not required but is needed to qualify for the best terms available.
Customers should have a good credit score and are already operating for at least two years. Sometimes, dealers would only offer this option for brand-new tractors, so make sure to do more research before going. When getting tractor loans through dealerships, payments would sometimes last for up to five years.
- Through USDA – The United States Department of Agriculture (USDA) has many loans that are accessible to farmers. Some of the tractor loans you can get are offered by the USDA Farm Service Agency (FSA). For example, their direct operating loan can cover basic farm expenses and equipment purchases. The repayment period for this loan can last for seven years.
The USDA operating microloan also covers the necessities required to operate a farm. It can be used to pay for start-up expenses and other purchases. This loan can even be used to buy small equipment and is payable for 12 months.
- Through Reputable Agricultural Lenders – Agricultural lenders today have a variety of loans that can help you secure the tractor you need. Some financial institutions and lenders can cover new and used equipment with terms that can last from 2 to 7 years.
If you are interested in getting the best deals, Community 1st Credit Union offers great loans with attractive rates. Contact us if you need more clarification about our agricultural and tractor loans.
When it comes to your farm, you deserve the best tractor you can rely on for years. Learn more about our different loans by scheduling an appointment with one of our C1st representatives today.