In Canada we rely on farms to provide half the food we eat. To keep our shopping baskets full, farmers must squeeze maximum production from every acre that they manage.
Automation is the best answer to this challenge, but agricultural machines, technology and plant are not cheap. How can Canadian farms obtain the equipment they need to grow when margins are shrinking, and farm finances are under heavy pressure? Step forward Farm Equipment Financing – special plant and machinery loans to help Canadian farmers buy the equipment they need without increasing strain on cashflow.
Read on to discover more about Farm Equipment Financing and how it puts farmers in the driving seat.
Ever since the first steam traction engines arrived on farms in the 1850’s, mechanical invention has expanded farm productivity, with more output per acre year on year. Modern Canadian farms are now unrecognisable from the farms of 100 years ago. They’re bigger, more productive, and grow a greater diversity of crops and animals. Mechanisation is behind this expansion and it’s the reason why today’s farms produce more than $134.9billion in products and services every year.
Unfortunately, the need for continual growth impacts farm finances. Despite record food demand, many Canadian farmers are receiving less for their production as margins continue to dwindle. Buying the necessary farm machinery, plant, and technology to stay competitive is essential, but further strain on cashflow must be avoided. This is where agricultural equipment finance makes sense. Borrow to buy the plant and machinery to keep your farm on the cutting edge. Pay for the equipment with the crops and animals you grow with the equipment.
Typical farm equipment finance includes:
A form of hire purchase to pay for new plant and machinery. Use the purchased item while you pay for it. You own the equipment at the end of the term. The asset acts as security for the loan.
Similar to above, except the loan is a long-term hire, with the equipment going back to the lender at the end of the term. Because you are not buying the equipment, leasing usually means you pay less per month. Once again, the asset acts as security for the loan.
Technically, this is not an agricultural equipment loan, but a development loan may be used to pay for new construction or re-development of existing farm structures and the equipment they need to make them function. Ideal for silos, grain sheds, feed stores, cattle shelters, chicken sheds, barns and crop storage sheds. May require added security.
For when you wish to pay for your equipment now, but do not want to increase strain on cashflow. Cover almost any day-to-day farm expense. Pay for seed, supplies and services, distribution costs, maintenance expenditures and more. May be obtained with or without security.
Farm equipment financing is designed to work with the unique finances of the Canadian farming industry. Loan schedules and payment plans may be arranged to suit the farm’s cashflow, easing the strain on funds going out when seasonal income is slow. Use the latest and most efficient equipment to grow production, counter labour shortages, diversify your output, increase your profits.
Finding the right agricultural equipment financing for your farm starts here. Contact Swoop to discuss your needs and to discover which loan works best for the unique circumstances of your farm.
To secure agricultural equipment financing you will usually be asked for:
Lenders will also carry out standard credit and security checks.
Agricultural equipment finance is a niche area, with different rules of application. Borrowers seeking this type of loan may find themselves forever searching and making applications to lender after lender. The delays this can create could harm your farm’s ability to meet your customers’ needs. Instead, working with a broker, who can access farm equipment loans from a wide range of lenders is a better way to go. No more cold calls and endless demands for information. Simply tell us what you need and leave the rest to us.
Automate your way to success. Farm now, pay later. Get the best rate, the best terms and the right agricultural equipment financing for your needs. Contact Swoop today.
Swoop was a good solution, because I was able to access cash that I badly needed, but more importantly I was able to do it quickly.
Owner, F45 Maple, Canada
Daire made it happen! There is no doubt that Swoop sped up the process and found lenders that worked to our time scale rather than the other way round
Joint owner, F45 Virginia
Swoop was actually very helpful in helping us get our initial fundraising in place. Swoop was able to connect us with investors, with grant financing options and debt financing options.
Founder, SingleKey
Pedja was amazing. Super supportive, understanding of our needs and wasn't pushy at all. We've been going back and forth with Swoop for over a year inquiring about different financing options and they were patient until we were ready!
F45 Multi-studio owner
Written by
Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.
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