Tractor Equipment Financing and Leasing
Providing the best advice and solutions for small and medium-sized businesses looking for tractor financing and leasing opportunities.
Tractor Equipment Financing and Leasing
Charter Capital has been in the equipment financing industry for more than 40 years. We have worked with thousands of small to large farms that need compact tractor financing and leasing assistance, matching them with the best sources of funding available.
With more than 20 trusted lenders in our farm equipment financing network, we guarantee that we can find you an equipment financing partner who can support your business as you scale and evolve. We understand how important it is for a growing business to have a stable source of funding when the need calls for it. This is why the financing programs and partnerships forged through Charter Capital’s assistance are built to last for many years.
We can help you finance all models and sizes of tractor equipment for any type of business. We also provide support for all kinds of agricultural equipment. Whether you’re looking for installment loans, lease agreements, or commercial financing, Charter Capital can help.
With an experienced financial broker like Charter Capital by your side, you can be confident about acquiring the best types of tractor equipment from a local dealer that will support your growth needs. Contact us today to speak with our team about the best available tractor financing and leasing options.
Some of our customers...
- are interested in the lowest rate.
- are interested in a specific tax treatment.
- want to avoid breaching existing lending covenants.
- are interested in the longest term.
- are interested in getting reimbursed for equipment they have already paid for.
- want seasonal or other cyclical structures.
- want to finance software.
- want us to give the seller a deposit before the equipment is shipped.
All of our customers want a fair deal at a fair price and no surprises.
Tractor Equipment Financing and Leasing Options
Farm equipment consists of some of the most expensive machinery, with some priced by the thousands to hundreds of thousands. Because of this, small to medium farmers are often hard-pressed to find the extra funding they need to purchase equipment that will help them scale while operating their businesses. Compact tractors are an important part of many farms’ operations. Finding financing with flexible terms and a fair interest rate shouldn’t be a challenge. With Charter Capital, we can connect you with the right lender to ensure you get the tax advantages you’re looking for and a down payment that works for you.
Fortunately, there are now several options that farmers can consider to acquire their agricultural equipment needs. If you are a farmer looking to purchase equipment to support a new type of product or to replace near-retiring machines, the first question you should ask before you see your local dealer is this: are you going to finance the purchase, or are you going to lease it?
Equipment financing means you own the machine once the loan has been paid off. With a lease, you either give it back to your lender when the lease period ends or make a balloon payment to buy it for your agriculture business operation.
Let’s say you’re looking to finance a new John Deere tractor. Leasing may be the sensible option if you are looking to use the tractor for the short term or intend to upgrade it after several years. However, the disadvantage to leasing is that you can’t write your tractor off on your taxes. If you are buying a tractor that you would most likely need for the long haul, then financing it would be to your advantage.
Loan terms for tractors and other farm equipment typically range from two to seven years, depending on your arrangement with your lender. Charter Capital can help connect you with the lender that has the best financing or leasing terms, so you spend fewer resources and effort poring over paperwork and comparing offers and gain more time for actually growing your business.
Tractor Equipment Financing With Bad Credit
Having poor credit can limit your tractor financing options, making it difficult for you to move forward on your growth and expansion plans. In your search for the right financing provider, you will likely find lending agencies that guarantee loans regardless of your financial history or promise to have your back in exchange for something. Don’t fall into the trap too easily.
Getting approved for an equipment financing loan might be challenging for someone with bad credit, but that doesn’t mean it’s impossible. Here are some lender red flags that you should watch out for.
1. The lender guarantees 100 percent approval, regardless of your financial situation.
Part of the lending company’s protocol is examining your credit history to determine how much of a risk you would be. If a company promises to lend you the money you need without so much as glancing at your financial background, they’re not honest with you. There are lenders that do release funds even to those with bad credit, but they have to be upfront about the caveats.
2. The lender seems to be in a hurry to have you sign contracts.
A reputable lender will present several options to you and provide sound advice on the pros and cons of each choice. If you feel that the company is rushing you to sign the first deal that comes by, pack up and walk away.
3. The lender is asking you to pay them first before they help you.
These fees can come disguised as processing fees, application fees, or whatnot. Any provider that requires you to put money down first before anything is dubious. To ensure that you’re working with the right financing partner, here are some questions to ask before signing anything.
Equipment financing companies like Charter Capital can help you get the tractor loan you need, even if you have a bad credit history. Charter Capital can help look for lenders that provide the most affordable and sound arrangements for your situation so that you don’t end up with even more debt. Our mission is to help growing businesses weather challenging times, so we make it our goal to find the best financing partner who can support you every step of the way.
FAQs About Financing a Tractor
What factors should I consider when choosing a tractor financing option?
Consider the following factors:
- Interest Rates: Compare rates from different lenders to find the most affordable option.
- Repayment Terms: Look for terms that fit your financial situation, such as the length of the loan or lease and the size of monthly payments.
- Total Cost: Calculate the total cost of financing, including interest, fees, and other charges.
- Flexibility: Some financing options may offer more flexible terms or early repayment options.
- Ownership: Decide if you want to own the tractor outright or prefer a leasing option.
Can I finance a used tractor?
Yes, many lenders offer financing options for used tractors. However, terms and interest rates may vary compared to new tractors. It’s essential to compare offers and ensure the used tractor meets your needs and budget.
Can I pay off my tractor financing early?
Many lenders allow early repayment of tractor financing, but it’s essential to check the terms of your agreement. Some loans may have prepayment penalties or fees. Early repayment can save you money on interest, so consider this option if your financial situation allows.
What credit score is needed to qualify for tractor financing?
The required credit score can vary by lender. Generally, a higher credit score will help you qualify for better interest rates and terms. If your credit score is lower, you may still qualify but might face higher interest rates or need a co-signer.
Charter Capital is On Your Side
Contact the Charter Capital team today to start working together towards a brighter future for your farm business. We’re more than happy to share all the available tractor financing and leasing options with you.