Finance and lease are still on hand for new and used farming and agricultural machinery and equipment, however leasing and financing level for the first part of 2010, was principally flat for most United Statesbusinesses.
Even though we are going through tough credit times, farming and agricultural machine and equipment financing and leasing is still accessible for the good credit applicant and as well for the not so good applicant. We are going to talk about the accessible finance and lease programs in general to give you an idea that money is still on hand for start up and seasoned businesses.
First we are going to begin with the applicant with great credit. That would be an candidate with 680 or higher credit and time in business that exceeds three years. The applicant should not have any past bankruptcies and should have low debt ratios. This applicant can qualify up to ,000 to ,000 application only programs. Also, this gives the good credit candidate a good opportunity to acquire a great lending rate. If the applicant desires more than ,000 to ,000, they will have to give more documentation to qualify. This would include two years prior years business and personal income tax returns and the summary page of your last three months business bank statements.( high average bank balances are looked at favorable) A personal financial statement might be required as well as interim financial statements. A copy of the purchase order detailing the acquisition would be required as well
Buyers with personal credit scores between 650 and higher still have a good chance to acquire their desired acquisition. They should have a minimum of three years in business without prior bankruptcies. Low debt to income ratios are also looked at favorable. Also, some lenders still might offer application only programs and anything beyond the minimum application only levels would need the same documentation as above.
With the second tier credit described above, the rates will be somewhat higher than A Credit with great heavy construction equipment financing and leasing opportunities open.
Applicants with Credit scores between 600-650, there are many farming and agricultural machinery and equipment financial programs available without faultless credit. Even though there may be some dings on the applicant's credit, there are still machinery, equipment financing and leasing deals out in the financing market. There won't be application only programs but abundance ofinstitutionswill look at you. Once again, strong healthy bank balances with time in business with profitable operations showing on your tax return is a big plus Usually, full documentation information is necessary. The front money in these financial programs can run anywhere from 10-20% where as the first two programs can run as low as the first two payments..
There are other banks that are not credit driven, but are story book driven. They work with start ups and seasoned businesses without flawless credit. They are more cash driven, and need some additional requirements to qualify. These banks rates are higher than the programs described above but gives the candidate alternatives that might nor be obtainable somewhere else..
There are other lenders that are not credit driven at all but look at the free and clear assets that are available to the lender. Most banks like machinery, bulldozers, trucks, excavators, etc that have retained a good value. These are cash poor applicants but have good qualified assets that the bank will qualify. These institutions have their own blueprint to work out a financing. base. One should call to find out the particular details (Copies of free and Clear Titles are required).These finance and lease programs can finance up to ,000,000 or more based upon qualified assets.
In this recession, many institutions have had to focus on their repossessed farming and agricultural machinery and equipment inventories instead of usual business due to cash flow demands, out of balance credit lines with their own lenders, and challenging with other lenders for the small supply of buyers in the market place.
In the past better times, there were many application only programs up to 0,000 and 0,000. This meant there were no financial statements, tax returns or bank statements required. Today, there are less application only lending programs on hand, or the available programs require more information and their rate factors are higher than before. Due to problems in the industry, many institutions have gone back to more conventional lending wants. .
These lending changes have a remarkable impact on usual business for marginal credit buyers, start up businesses and more established businesses. One interesting area that has arisen out of this economic downturn is dealer/special financing. With all the repossessions in the market place today, buyers still have a distinctive business opportunity to acquire a farming and agricultural repossession with a credit score as low as 550. Farming and Agricultural machinery repossessions can be acquired with very little or no money down, sixty months to repay, regardless of age, and more favorable financing terms than conventional lending
Since new business capital is hard to obtain, it is suggested that the start up and seasoned business explore the repo markets. This could be a pleasing in the combination of both price and financing.Keep in mind, there are finance and lease programs that go into the millions for larger applicants, obvious they will require full documentation packages.
If conventional isn't available to you for whatever reason, please check out the repossession farming and agricultural machinery and equipment market and see what deals you may be eligible for.
Happy hunting for your farming and agricultural equipment and machinery acquisition and its related lending.