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Agriculture is constantly evolving, which is why AgDirect® works to help you make the right decision for your operation when it comes to financing your next tractor, combine or ag equipment.

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Financing Solutions

Structuring plans and managing risk

Published on 4/17/2020

Producers depend on equipment dealers to provide them with a wide range of services before and after the sale. In today’s challenging economic environment, securing the right financing options is just as important as equipment selection, operator training and ongoing maintenance and repairs.

Terms and payment schedules were less of a concern when farm income was up and producers had cash to spend. Now, that’s no longer the case. Structuring the right payment plans starts with strong dealer-customer relationships.

“Financing is a great way to remove the focus from the overall cost and break it down into smaller amounts that will work for the customer’s operation and cash flow requirements,” says Ben Edwards, general manager at Kayton International Inc.

“We have always focused on customer needs and try to evaluate how our business decisions will affect customers before implementing them. In the long-term this creates an interdependence between us and our customers.”

Securing the right financing solutions also protects producers from a risk management standpoint by preserving their purchasing power and allowing them to align payment schedules with their cash flow.

Common challenges and collaborative solutions

While producers are familiar with the resilience and financial savvy needed to endure economic uncertainty, dealers can help them evaluate their equipment purchases by recognizing common challenges and recommending financing options that best fit their individual needs.

For example, low cash flow is one potential problem producers may face. According to Edwards, there are many different financing options that can be used to satisfy customer cash flow needs.

“Leasing is a great way to reduce annual payments, especially when adding to your equipment fleet,” he says. “Additionally, low-rate financing and interest waivers have been successful tools for closing deals when trying to meet cash flow requirements.”

Another way dealers can help customers gain a competitive edge includes utilizing relationships with financial institutions and manufacturers.

“We like to introduce our representatives to the customer so they can build rapport and understand the customer’s operation,” says Edwards. “This collaborative approach helps us work as a team to come up with plans that best fit the customer’s needs.”

Through partnerships with equipment financing programs like AgDirect, producers can take advantage of flexible financing options and technology that streamlines the financing process.

“At AgDirect we strive to help our customers obtain the lowest rate possible and offer applications that improve ease of use and enhance the overall customer experience,” says Alex Bauer, AgDirect territory manger in Nebraska.

“Using digital tools like electronic signatures and the AgDirect Mobile App, producers can calculate loan and lease payments, get an immediate response and authorize documents remotely no matter how many hours away they are from the nearest dealership or if there are multiple partners in different locations who must sign.”

AgDirect offers competitive rates and terms for both new and used equipment purchases. Learn more about AgDirect equipment financing options by locating your nearest AgDirect territory manager or contacting the AgDirect financing team at 888-525-9805.

Learning Center

Agriculture is constantly evolving, which is why AgDirect® works to help you make the right decision for your operation when it comes to financing your next tractor, combine or ag equipment.

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