Are lease rental payments deductible? 

A true or tax lease allows for the lessee to deduct rental payments for equipment used in the operation of a farm or business.  Certain leases can also be structured to allow you to take full advantage of the depreciation write off.

Where does the equipment come from? 

You choose the equipment that bests suits your operation from the vendor of your choice.  We provide the funds for you to acquire the equipment.

Can you lease pre-owned equipment? 

Yes, typically we try to work with equipment no older than 10 year of age but depending on the condition and type of equipment, exceptions can be made on equipment older than this.

How long are the lease terms? 

Lease terms typically range from two to seven years with most being either three, four or five years in length.  Terms are available for up to 10 years on select equipment.

What about a sale - leaseback? 

Sale – leasebacks are available but approval normally depends on the circumstances behind the request.

What type of equipment is eligible for leasing? 

Basically any type of equipment, new or pre-owned, used in a business can be leased.  This includes self-propelled, mobile and stationary equipment.  We have handled equipment requests that have ranged from traditional tractors / sprayers / tillage equipment to trailers to transport bees to plastic containers to handle produce to large scale grain bin / dryer set ups.

What are the criteria for approval?  

We handle both “A” and “B” credit but normally look for someone that has been in business for at least two years and has a satisfactory credit report.  If financial statements or footnotes are required, a good rule of thumb is a debt to asset ratio of 50% or less.

What about state sales / use tax? 

Sales or use tax is collected per the requirements of the applicant’s individual state.  If sales / use tax is due, it is normally collected over the term of the lease and added to each rental payment. In situations where sales tax is all due up front, it's possible for it to be capitalized into the cost of the equipment.

How long does it take for approval? 

If all of the information required is provided, a credit decision will be reached in 24 hours or less.  It may take slightly longer for larger size transactions or ones that require earnings information.

What type of payment is due up front? 

For monthly pay customers, either one or two monthly payments are all that is needed to start a lease.  Quarterly, semi-annual and annual payment structures are also available and typically the first payment is due in advance.  We also offer a very popular “harvest pay” program, where usually only 10% of the equipment cost is due at delivery and future annual payments then start after harvest.

I like to pay cash for equipment, why should I lease?  

There are many reasons to do so. Please refer to the “Benefits of Leasing” section on our web site.

If I need to provide earnings information, why are three years needed?

Farming, like may businesses, is cyclical and looking at a long term trend allows a better analysis of the profitability of a business.  Many times, all that is needed are just both sides of the 1040 and the Schedule F (for farm borrowers) for each of the years.  And remember, earnings are not needed until a certain level cost of equipment is reached.

Can I lease equipment that comes from a neighbor or an individual?  

Yes, we have the ability to handle “private party” sales.  A lien search will be conducted on the party selling the equipment to insure clear title to all parties involved.

How do I get started with a lease? 

Call us direct at 1-800-960-4456 to discuss your needs and get a free quote or simply complete and return an application to us at our toll free fax number of 1-800-500-9505.