Finance and Lease Farming and Agricultural Machinery and Equipment, New and Used, Leasing and Financing Programs Update, Part1

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Finance and lease are still open for new and used farming and agricultural machinery and equipment, however leasing and financing size for the first part of 2010, was basically flat for most United States Industries.

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 also for the not so good applicant. We are going to talk about the obtainable finance and lease programs in general to give you an plan that money is still on hand for start up and seasoned businesses.

First we are going to begin with the applicant with fantastic credit. That would be an candidate with 680 or higher credit and time in business that exceeds three years. The candidate should not have any past bankruptcies and should have low debt ratios. This candidate can qualify up to $50,000 to $75,000 application only programs. Also, this gives the good credit applicant a good opportunity to acquire a great lending rate. If the applicant desires more than $50,000 to $75,000, they will have to provide more records 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 purchase would be necessary. as well

Applicants with personal credit scores between 650 and higher still have a decent opportunity to get their desired acquisition. They should have a minimum of three years in business without former bankruptcies. Low debt to income ratios are also looked at favorable. Furthermore, some institutions still might offer application only programs and anything beyond the minimum application only levels would want the same documentation as above.

With the second tier credit described above, the rates will be a little higher than “A” Credit with enormous heavy construction equipment financing and leasing opportunities on hand.

Applicants with Credit scores between 600-650, there are many farming and agricultural machinery and equipment leasing programs available without flawless 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 leasing market. There won’t be application only programs but loads ofbankswill 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 mandatory. The front money in these banking 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 financial institutions 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 require some additional requirements to qualify. These institutions rates are higher than the programs described above but gives the applicant alternatives that might nor be obtainable somewhere else..

There are other institutions that are not credit driven at all but look at the free and clear assets that are obtainable to the lender. Most financial institutions 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 lenders have their own blueprint to work out a financing. base. One should call to locate out the particular details (Copies of free and Clear Titles are required).These finance and lease programs can finance up to $5,000,000 or more based upon qualified assets.

In this recession, many banks have had to focus on their repossessed farming and agricultural machinery and equipment inventories instead of standard business due to cash flow demands, out of balance credit lines with their own lenders, and competing with other lenders for the small supply of buyers in the market place.

In the prior better times, there were many application only programs up to $250,000 and $150,000. 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 banks have gone back to more conventional lending requirements. .

These lending changes have a awesome impact on ordinary business for marginal credit buyers, start up businesses and more mature 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 unlike business opportunity to obtain a farming and agricultural repossession with a credit score as low as 550. Farming and Agricultural machinery repossessions can be obtained with very little or no money down, sixty months to repay, regardless of age, and more favorable financing terms than conventional financing.

Since new business capital is hard to obtain, it is suggested that the start up and seasoned business investigate the repo markets. This could be a gratifying 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 leasing.

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Article Source: http://depositarticles.com/

J.M Luna has over thirty years experience in the financial field. This includes financing and leasing, hard asset money and commercial lending. U.S Corporate Capital Leasing assists the start up and seasoned businesses for all its farming and agricultural financing and leasing needs. www.cclgequipmentleasing.com/lease_equipment.htm www.cclgequipmentleasing.com

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