Farm Equipment Refinancing: How to Get Working Capital from Your Farm Equipment

If you’re a farmer, then you know that having the right equipment is essential to getting the job done. But what do you do when you need working capital and your equipment is already paid for? The answer is farm equipment refinancing utilizing an equipment sale-leaseback.

Farm equipment refinancing with an equipment sale and leaseback is a great way to get the working capital you need without taking on new debt. By using the equity you’ve already built up in your equipment, you can get the funds you need to keep your operation running smoothly.

Another huge benefit of an equipment sale-leaseback to refinance your farm equipment is that your credit history and credit score are not a determining factor in approval. Approval is almost entirely based on the value of the equipment.

If you’re interested in learning more about farm equipment refinancing, then read on for everything you need to know.

get cash from the equity in your farm equipment with a refinance
Refinance Farm Equipment

What is farm equipment refinancing?

Farm equipment refinancing is the process of taking out a new loan to pay off an existing loan on farm equipment. This can be done to secure a lower interest rate, to switch from a variable-rate loan to a fixed-rate loan, extend the loan term, or take cash out of the equity of your equipment.

With an equipment sale-leaseback for farm equipment, you can use the equity in your equipment without the need for financials or credit requirements.

How does farm equipment refinancing work?

The first step is to provide your list of equipment for review. After a broker reviews your equipment, they will find a lender that fits perfectly with your asset types. As mentioned previously, working with a broker is the best way to get the best program available.

After you have received a conditional offer, an inspection will be done on the equipment to confirm the condition, ownership, and location of the equipment.

The benefits of farm equipment refinancing with an equipment sale-leaseback

The main benefits of using an equipment sale-leaseback for farm equipment are:

  • Continue to use your equipment while taking cash out
  • No credit requirements
  • Past bankruptcy OK
  • Liens can be paid off as part of the finance package
  • Deal sizes from $10k to $5M

How to get started with farm equipment refinancing.

Submit a package to a broker and start the conversation.