VIDEO: Farm equipment finance 101

By: Carene Chong, Video by: Guy Allen

Presented by

Buying farm equipment can be a daunting task for most especially with the amount of money involved. We spoke to Commonwealth Bank Managing Director of Asset Finance Bronwyn Yam at the AgQuip field days recently to find out what you need to know about purchasing and financing your next piece of equipment.

Investing in a new piece of farm machinery is a big commitment, as the price tag often goes into the six digit territory or even more. That is where equipment finance comes in to assist farmers in paying off their equipment over a period of time.

There are several options for finance available on the market. Some distributors or manufacturers offer finance direct for their products, and most banks offer equipment finance loans and options. In addition, there are a lot of finance companies specialising in equipment finance all across the country that can assist farmers with their purchase.

According to Commonwealth Bank Managing Director of Asset Finance Bronwyn Yam, one key thing about equipment finance that’s useful information for potential buyers is that there is no capital required upfront.

"What financiers usually do is take security 100 per cent over the equipment so it is a relief over the working capital," she says.

Another thing to consider is the financial structure of the business.

"There are different tax benefits whether you’re making a hire purchase or taking an equipment loan, so those are things that are worth discussing with your accountants or financial advisors before deciding what is the right thing to do," Yam says.

Yam also explains what sets Commonwealth Bank apart from its competitors in the market and why you should go to Commonwealth Bank for your equipment finance.

Visit our Finance page for more details about Commonwealth Bank’s equipment finance services and to calculate possible repayments.  

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