In a survey conducted by Tractor Zoom and DTN/Progressive Farmer, 79% of farmers indicated that submitting financial information to secure farm equipment financing was somewhat to very cumbersome. While the process of locating, printing, or completing the right financial documents can be quite painful — and requirements can vary from lender to lender — prepping your information ahead of applying for ag equipment financing can help expedite loan processing and distribution of your funds.
Whether you’re looking to secure a farm equipment loan for a new piece of equipment, trying to figure out how to finance a used tractor, or considering a refinance on your existing equipment, collecting the below information ahead of time is sure to save you time and unnecessary headaches.
Information around the equipment you are looking to purchase is integral to the loan process. Your lender will need to know what exactly you’re looking to finance, as well as from where and how much before any application can be started. Once you’ve selected a piece of equipment you’d like to buy, finding and detailing this information should only take a few minutes.
Quick Tip: If you’re looking to purchase equipment from an auction, be sure to begin the application process ahead of the auction date because most auction payments are due on the day of or within 48-hours of the sale. When it comes to financing auction equipment, some lenders may require a lien search to ensure the equipment is free of debt or other obligations before releasing funds.
You know what you want to buy and from whom but how do you want to finance it? Some of this may be at your discretion, so identifying your principal, down payment, or preferred loan terms ahead of the application process can also help speed things up.
Quick Tip: When considering your loan terms, it can be helpful to utilize a free, equipment loan calculator to see how your loan payments may fluctuate based on your loan amount, term, or rate type. Going through this exercise may help you pick the loan terms that are best for your operation and finances.
Ag equipment financing can be secured as an individual applicant or as a business entity. More information may be required if you’re submitting an application as a business because financial documentation is required to determine a credit decision. Some lenders recommend including at least one individual applicant – even when applying as a business entity – to help expedite a credit decision and disbursement of funds.
Quick Tip: While the above list outlines some of the more common details or documents you may need to begin an application for farm equipment financing, it’s important to check with your equipment financing company to confirm exactly what documents they may require (or more importantly, what you don’t need to worry about). Because requirements vary from lender to lender, running this checklist by your banker first will put you on the right track to securing your equipment lease or installment loan in record speed.
If the above process still keeps you up at night, you may consider comparing interest rates and terms on equipment loans from some of the industry’s leading lenders on Tractor Zoom.
Tractor Zoom helps facilitate farm equipment financing with some of the industry’s leading farm equipment lenders – all online. The added ability to locate and secure financing on the equipment you’re looking to buy or value in one place, make for a more streamlined and transparent buying process. Additionally, the benefit of featuring multiple lenders allows equipment buyers to choose the terms, rates, or lender features, like an instant loan decision, that work best for them.
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