Tractor financing

Iulia Popescu

James has been absolutely fantastic throughout the entire funding process. He guided us with clear, straightforward advice and was always quick to respond to any questions we had. Thanks to his support, we were able to secure the funds we needed swiftly and without any unnecessary complications. His professionalism, efficiency, and deep understanding of the funding landscape made what could have been a stressful experience feel smooth and manageable. I would highly recommend Swoop—and especially James—to any business looking for reliable, expert support in securing finance.

Aug 5, 2025

Mr B

Simple- Helpful - Accurate

Aug 5, 2025

Jodie Marshall

At a time when I needed some extra funding for my business, I went to SWOOP. They were absolutely amazing. My business is a social enterprise, we so have a not for profit clause which often means mainstream lenders don't like to lend. But these guys found me a company willing to lend at an amazing rate and with amazing terms (better than any social investor I've come across). I gave them what I thought was an impossible task on the off chance, and they delivered! So impressed with their professionalism, friendliness and super quick turn around! Thank you SWOOP!

Aug 5, 2025

Neil Jones

Just when you need that additional business boost, Swoop have you covered. Fantastic turnaround from Adrian and team. They kept me fully informed from start to finish, and with a follow up to make sure everything went well and all is good. Fantastic, highly recommended.

Aug 4, 2025

susan allan

had an amazing experience with BEN nicest taxi driver ever . helped us with a stressful end to the night and couldn’t thank him enough staying with us until we were all safe . if anyone needs a taxi i would recommend ben with swoop .

Aug 3, 2025

Jack

Absolutely brilliant company to deal with. Farhan was extremely helpful, friendly and very efficient from start to finish and have helped us get funding with minimal interest rates which will help the company repay quicker and expand faster. Thanks so much Swoop

Jul 21, 2025

Canada Business Leasing

Love working with this group.

Jul 17, 2025

Lindsay

Cynthia made the process really easy, the customer service was great through out the whole process. Would definitly recommend talking with Swoop and Cynthia!

Jul 11, 2025

Jamal Ogungbola

Great experience from start to finish, helped us secure funding for a new dryer for an independent care home. Very grateful to Adrian and Nichola for their support throughout.

Jul 8, 2025

Darpan

Awesome Service! Very professional and quick processing .Thank you !

Jul 6, 2025

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Page written by Chris Godfrey. Last reviewed on December 4, 2024. Next review due April 6, 2026.

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Tractor financing – also known as equipment financing – is a type of business loan used to support the purchase of new or used tractors. This type of financing lets you use the equipment as you pay for the equipment. Buy one or more tractors without putting strain on cash flow.

There are two types of tractor financing:

Finance (also known as a tractor loan)

Tractor finance is a straightforward business loan. You make a down payment on the tractor and then pay off the balance of the purchase price, plus interest, with regular payments over a fixed-term contract. The equipment acts as security for the loan. When the agreement comes to an end, the tractor is paid for and yours to keep.

Lease

A tractor lease is really a long-term rental agreement. Because you are only financing some of the purchase price, leasing typically has lower monthly payments than a finance/loan. With a lease, you make a down payment and then pay a regular sum plus interest each month to use the tractor. At contract end you can either give the equipment back to the lender, renew the lease at a different cost per month, or buy the tractor for the fair market value – commonly known as a ‘balloon payment’.

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Where can I finance a tractor?

No matter if you are buying new or used and from a dealer or a private seller, there are several ways to finance your next tractor.

Financing from the dealership that sells you the tractor: This is certainly the most convenient financing option, but you will probably need strong credit to qualify. Be aware that dealership financing can often come with higher interest rates than other loan options. You may also be able to get a better discount on the tractor’s sticker price when you have your own financing deal in place – basically, you’d have the same leverage as if paying for the tractor with cash.
Banks and credit unions: A personal or business loan from a bank or credit union may come with the most competitive rates, but typically, these lenders have rigorous qualifying rules and usually want to see that you have been trading profitably for several years. Getting tractor finance from a bank or credit union may also take several weeks to complete.
Online lenders: These type of lenders tend to have more relaxed qualifying rules and will accept borrowers who have younger businesses. Applications are typically streamlined and will often give you an approval the same day, sometimes in just a few minutes. However, because they carry more risk by approving more borrowers, online lenders usually charge higher interest rates than banks and credit unions.

How do I get tractor financing?

You should shop around for different financing offers before settling on a deal. You can do this by approaching banks, credit unions and online lenders one by one, or you can use the services of a loan marketplace that will introduce you to a choice of tractor financing deals from different lenders. Some marketplace platforms can also give you advice and help you with the application process. This can be especially useful for business owners who have never taken out a tractor loan before.

Getting tractor finance – 4 easy steps:

Pre-qualify for finance: Complete an initial application form to get a ‘pre-approval’. This will allow you to shop for tractors as if you had the cash in your pocket.
Select your vehicle and complete the paperwork: Find your vehicle, get the loan finalised and notify the seller of your purchase.
Close the deal: The lender may give you the funds to pay the seller, or they may pay them direct. You pay your deposit and any administration fees.
Collect your tractor: Put your new workhorse to work.

What are the advantages of tractor financing?

Tractor financing can deliver a whole range of benefits:

Retain valuable working capital for use elsewhere in your business
Immediate equipment acquisition – may show as an asset on your balance sheet
Low or no down payment
Buy over time – pay for your tractor with affordable monthly payments
Preserve other credit lines

What are the disadvantages of tractor financing?

Tractor financing has few disadvantages:

Interest charges and fees will make the tractor more costly than paying with cash
If you lease and do not pay the end of contract balloon payment, the tractor goes back to the lender
You will need to budget for the payments, which adds to your administration load
You don’t own the tractor until it’s paid for at contract end – if you miss payments, the lender can take the tractor back

What information is required when applying for tractor finance?

Every lender will have their own documentation requirements, but standard finance application paperwork includes:

Tractor details including price and details of seller
Your business details and financial records as required
Preferred type of financing – loan or lease
Contract length request

What credit score is needed to finance a tractor?

Most lenders will want a minimum personal score of +640, although with some online lenders, it may be possible to get tractor finance with a score in the mid-500s.

Will tractor financing affect my credit score?

Many lenders will only conduct a ‘soft search’ when you apply for tractor finance pre-approval. This does not show on your credit report. Only when you close the loan does the lender report the debt to the credit reporting agencies. This may make a small initial dip in your credit score, but it should recover as you make payments on time. Tractor finance can actually help your credit score if you never miss a payment. However, if you do miss instalments, they will show as negative impacts on your credit report and may lower your credit score.

Get started with Swoop's business funding platform

Working with business finance experts can make all the difference when applying for tractor financing. Contact Swoop to discuss your borrowing needs, get help with your application and to compare top quality tractor financing from a choice of lenders. Get the vehicles you need without putting strain on cash flow. Register with Swoop today.

Written by

Chris Godfrey

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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