Leasing, insurance and credit

Leasing is one of the most advantageous financial instruments for purchasing agricultural machinery.

Why is leasing advantageous?

1. Lower start-up costs

Unlike buying on credit or using your own funds, leasing requires a smaller down payment. This allows farmers to direct their free resources to other needs, such as buying seeds, fertilizers, or developing their business.

2. Flexible payment terms

Leasing companies often offer individual payment schedules, for example, taking into account the seasonality of farmers' income. This reduces the financial burden during periods when income is minimal.

3. Preservation of working capital

Leasing helps avoid large one-time expenses, saving money for everyday operations or unexpected expenses.

4. No balance sheet encumbrance

The leased machinery remains on the balance sheet of the leasing company until the moment of redemption. This improves the company's financial performance, which is important when applying for loans or subsidies.

5. Service

In many cases, the cost of leasing includes the cost of maintenance and insurance of equipment, which reduces risks and additional costs.

Leasing allows farmers to effectively update their technology fleet, reducing the financial burden, maintaining liquidity and ensuring competitiveness.

Insurance is a risk management tool that helps farmers minimize financial losses and maintain the stability of their business.

Why is insurance beneficial when buying agricultural machinery?

1. Protection from unexpected expenses

Agricultural machinery is often exposed to risks such as breakdowns, fires, thefts, accidents, or natural disasters. Insurance protects the owner from significant financial costs for repairs or replacement of machinery.

2. Financial stability

In the event of damage to or loss of machinery, insurance covers losses, allowing farmers to continue working without having to urgently look for money for restoration.

3. Ensuring liquidity

In the event of an insured event, the funds are paid by the insurance company, which avoids the diversion of working capital of the business.

4. Mandatory requirement for lending or leasing

Many financial institutions require agricultural machinery insurance as a condition for providing a loan or lease. This protects both the borrower and the lender.

5. Reduced recovery costs after an emergency

In the event of major accidents or natural disasters, equipment recovery can be expensive. Insurance minimizes these costs, which is especially important for small and medium businesses.

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A loan is an effective tool that helps farmers invest in the development of their enterprise, maintaining a balance between expenses and income, and providing access to modern equipment.

Why is a loan beneficial when buying agricultural machinery?

1. Access to the necessary equipment without large initial investments

A loan allows you to purchase equipment without diverting significant funds from turnover. This is especially important for those whose income often depends on seasonality.

2. Flexible repayment terms

Banks often offer loan programs adapted to the seasonal income of farmers. For example, you can provide for a payment deferral or a flexible schedule that corresponds to agricultural cycles.

3. Favorable rates on government programs

There are programs to support the agricultural sector that offer subsidized loans with reduced interest rates.

4. Possibility to get a loan on preferential terms

Banks and financial institutions often cooperate with equipment manufacturers, offering special lending programs with minimal rates or bonuses, such as free service.

5. Ease of receipt

The procedure for obtaining a loan for agricultural equipment is often simplified, and for farmers there are specialized offers that take into account their unique needs.

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