Our client recently purchased a used New Holland square baler from Turney Group to replace their older, less efficient machine. This upgrade was crucial for improving operational efficiency and reducing ongoing costs related to downtime, repairs, and external services. Despite the baler being pre-owned, we successfully arranged financing over a 7-year term.
To match the client’s cash flow needs, we structured the deal with annual payments due in February each year, following the crop sale, along with monthly payments throughout the rest of the year. This flexible payment plan allows the client to manage their finances while benefiting from a more reliable and efficient baler.
Why does financing a better New Holland square baler make sense for your business? Here’s how it can transform your agricultural operations:
1. Boost Revenue Potential
New Service Opportunities: Modern farm implements allow you to expand your service offerings, such as precision tillage, soil preparation, and custom planting services, opening up new revenue streams.
Increased Job Capacity: With reliable and efficient equipment, you can complete more work in less time, enabling you to take on additional contracts and work on larger plots of land without delays.
Improved Profit Margins: Owning your own tillage and planting equipment eliminates the need for costly rentals and reduces dependence on third-party services, meaning more profit from each project.
2. Enhance Efficiency and Productivity
Save Time: New farm implements are designed for speed and precision, allowing you to finish tasks like tilling, planting, and soil management more quickly and with less labor.
Flexible Operations: Owning your equipment means you have full control over your schedule, avoiding delays caused by rental availability or scheduling conflicts.
Advanced Features: Modern implements come with features like GPS-guided planting systems, adjustable depth controls, and better fuel efficiency, optimizing performance and increasing productivity.
3. Enjoy Financial and Cost Advantages
Tax Benefits: Financing equipment like tillage and planting tools often qualifies for tax deductions, lowering your taxable income and improving cash flow.
Build Equity: Instead of paying for rentals, financing allows you to build ownership in valuable assets that can retain their value over time, unlike non-equity rental payments.
4. Promote Long-term Business Growth
Stronger Brand Image: Owning high-quality farm implements demonstrates your commitment to professionalism and efficiency, building client trust and attracting repeat business.
Operational Independence: With your own equipment, you can respond quickly to the changing needs of your farm and your clients, ensuring you’re always ready to take on urgent or time-sensitive jobs.
Financing new farm implements is a smart investment in the future of your farm. From expanding service capabilities to increasing efficiency and boosting profitability, this decision sets the stage for sustained growth and long-term success.
