The Ultimate Guide to Equipment Finance for Agricultural Machinery and Equipment Manufacturers

The Ultimate Guide to Equipment Finance for Agricultural Machinery and Equipment Manufacturers with Emu MoneyThe Ultimate Guide to Equipment Finance for Agricultural Machinery and Equipment Manufacturers with Emu Money

As an Agricultural Machinery and Equipment Manufacturer in Australia, you understand the importance of having the right tools and machinery to ensure efficient operations and productivity. However, acquiring new equipment or upgrading existing machinery can be a significant financial investment. This is where equipment finance comes into play. Equipment finance offers a practical solution for Agricultural Machinery and Equipment Manufacturers who are looking to acquire or upgrade their equipment but may not have the immediate capital to do so. By spreading the cost of equipment over time, manufacturers can preserve their cash flow and allocate their funds towards other business needs. With equipment finance, you can access a wide range of financing options tailored to your specific requirements. Whether you need to purchase machinery, vehicles, or other essential equipment, there are financing solutions available to suit your needs. These options may include leasing, hire purchase, or equipment loans, allowing you to choose the best option that aligns with your business goals. The benefits of equipment finance for Agricultural Machinery and Equipment Manufacturers are manifold. Firstly, it enables you to stay up-to-date with the latest technology and advancements in the industry. This ensures that your operations are efficient and competitive, resulting in increased productivity and profitability. Additionally, equipment finance offers flexible repayment terms, allowing you to choose a repayment schedule that suits your cash flow patterns. This ensures that your business can continue to operate smoothly without any financial strain.

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What is Equipment Finance?

Equipment finance is a financial solution that allows Agricultural Machinery and Equipment Manufacturers to acquire the necessary machinery, vehicles, and other equipment needed for their operations. It is a means of financing the purchase, upgrade, or leasing of equipment without having to pay the full amount upfront. Equipment finance is typically provided by financial institutions or specialised lenders who are well-versed in the specific needs of the agricultural industry. These lenders understand the unique challenges and requirements faced by Agricultural Machinery and Equipment Manufacturers, allowing them to offer tailored financing options. The process begins by identifying the equipment needed for your manufacturing needs. Whether it's tractors, harvesters, irrigation systems, or other essential machinery, you can apply for equipment finance to cover the costs. The lender will assess your eligibility and determine the terms and conditions of the financing arrangement. The financing options available may include equipment loans, hire purchase agreements, or equipment leasing. Each option has its own intricacies, repayment terms, and conditions. The specific terms will depend on various factors including the cost of the equipment, its expected lifespan, and the financial stability of your business. The repayment method for equipment finance is typically structured with regular instalments over a specified period. This allows you to manage your cash flow efficiently and allocate your funds to other business needs. The interest rates and fees associated with equipment finance will also be outlined in the agreement. Overall, equipment finance provides Agricultural Machinery and Equipment Manufacturers with the means to acquire the necessary equipment to enhance productivity and stay competitive in the industry. It offers convenience, flexibility, and financial stability, ensuring that you can access the equipment you need to drive your business forward.

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Top 10 Types of Equipment Agricultural Machinery and Equipment Manufacturers Can Purchase With Equipment Finance

Agricultural Machinery and Equipment Manufacturers can acquire a range of essential equipment through equipment finance. This includes tractors, harvesters, and irrigation systems, enabling them to perform tasks like ploughing, harvesting, and ensuring proper water supply. These equipment investments enhance productivity and efficiency in agricultural operations.

Here are some common types of equipment Agricultural Machinery and Equipment Manufacturers can purchase with equipment finance:


Tractors are essential for Agricultural Machinery and Equipment Manufacturers to perform various tasks such as ploughing, seeding, and pulling heavy machinery.


Harvesters are specialised machines used for harvesting crops such as wheat, corn, or rice. They efficiently cut, thresh, and collect crops in a single operation.

Irrigation Systems

Irrigation systems are vital for maintaining crop health and productivity. They ensure that plants receive adequate water supply, reducing the risk of drought-related damage.


Sprayers are used to apply fertilisers, herbicides, and pesticides to crops. They help control pests, diseases, and weeds, ensuring optimal crop growth and yield.

Seeders and Planters

Seeders and planters play a crucial role in sowing seeds accurately and efficiently. They ensure uniform seed distribution and proper seed depth, leading to successful crop establishment.

Hay Balers

Hay balers are used to compress and bale hay for storage or transport. They facilitate efficient handling and storage of fodder for livestock.

Grain Dryers

Grain dryers remove excess moisture from harvested grains, preventing spoilage and maintaining quality. They help Agricultural Machinery and Equipment Manufacturers to store grains for an extended period.

Silage Equipment

Silage equipment, including forage harvesters and silage waggons, is used to harvest and store green fodder for livestock feed. It helps preserve nutritional value and prolongs feed availability.

Livestock Handling Equipment

Livestock handling equipment, such as chutes, sorting systems, and squeeze gates, assists in safely handling and managing livestock during various husbandry practises.

Dairy Equipment

Dairy equipment, including milking machines, milk storage tanks, and milk cooling systems, facilitates efficient milk production and processing for dairy farmers.

Top 10 Ways Agricultural Machinery and Equipment Manufacturers Use Equipment Finance For Growth

Agricultural Machinery and Equipment Manufacturers can leverage equipment finance to drive growth in various ways. This includes expanding manufacturing capacity, upgrading technology, enhancing productivity, diversifying product offerings, and expanding into new markets. Equipment finance facilitates sustainable growth and enables manufacturers to stay competitive in the industry.

Here are some common reasons Agricultural Machinery and Equipment Manufacturers use equipment finance for growth:

Expanding Manufacturing Capacity

Equipment finance enables Agricultural Machinery and Equipment Manufacturers to invest in additional machinery and equipment, allowing them to increase production capacity to meet growing demand.

Upgrading Technology

With equipment finance, manufacturers can upgrade their equipment and machinery to incorporate the latest technology, improving efficiency, output quality, and reducing operational costs.

Enhancing Productivity

By using equipment finance, manufacturers can invest in specialised machinery and equipment that streamline processes, automate tasks, and improve overall productivity.

Diversifying Product Offerings

Equipment finance provides the opportunity for manufacturers to diversify their product offerings by acquiring new equipment that allows for the production of different types of agricultural machinery.

Optimal Maintenance and Repair

Agricultural Machinery and Equipment Manufacturers can use equipment finance to ensure regular maintenance and timely repair of their equipment, maximising its lifespan and minimising downtime.

Meeting Regulatory Compliance

Equipment finance enables manufacturers to invest in equipment that meets the latest regulatory requirements, ensuring compliance with safety and environmental standards.

Expanding Geographic Reach

Manufacturers can utilise equipment finance to access equipment needed for expanding their operations into new regions or markets, increasing their market share and revenue streams.

Supporting Research and Development

By using equipment finance, manufacturers can invest in research and development equipment to enhance innovation, develop new product lines, and stay ahead of industry trends.

Improving Quality Control

Equipment finance allows manufacturers to acquire advanced equipment that enhances quality control processes, ensuring consistent product quality and customer satisfaction.

Sustainable Practices

Agricultural Machinery and Equipment Manufacturers can use equipment finance to invest in environmentally friendly machinery and equipment, promoting sustainable practises and reducing their carbon footprint.

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Advantages of Equipment Finance for Agricultural Machinery and Equipment Manufacturers

Equipment finance for Agricultural Machinery and Equipment Manufacturers in Australia brings several advantages, enabling them to secure the necessary equipment for their operations. Here are some of the advantages:

Increased Access to Modern Equipment

By opting for equipment finance, Agricultural Machinery and Equipment Manufacturers in Australia can overcome the challenge of high upfront costs and gain access to the latest machinery. This allows them to upgrade their equipment regularly, ensuring increased efficiency, productivity, and staying competitive in the market.

Preservation of Working Capital

Equipment finance enables Agricultural Machinery and Equipment Manufacturers to preserve their working capital. Instead of tying up their funds in purchasing machinery outright, they can use equipment financing to spread the cost over time, freeing up capital for other business needs like hiring skilled labour, research and development, or expanding their operations.

Tax Benefits and Asset Management

Equipment finance offers tax advantages, allowing manufacturers to deduct their lease or loan repayments as business expenses. Furthermore, by utilising financing options, businesses can establish a predictable budget and plan for equipment replacement or upgrade, reducing the risk of unexpected costs associated with equipment maintenance or obsolescence.

Flexibility and Scalability

Equipment financing grants manufacturers the flexibility to adjust their equipment needs as their business grows or changes. They can easily add or upgrade equipment without the need for large upfront investments. This scalability ensures that businesses can adapt to market demands, seize new opportunities, and stay at the forefront of technological advancements.

Disadvantages of Equipment Finance for Agricultural Machinery and Equipment Manufacturers

When considering equipment finance for Agricultural Machinery and Equipment Manufacturers in Australia, it's important to be mindful of a few considerations. Here are a few potential disadvantages to think about:

Financial Commitment

Equipment finance requires a financial commitment from Agricultural Machinery and Equipment Manufacturers in Australia, as they will be obligated to make regular repayments over a set period. This consideration requires businesses to carefully assess their cash flow and ensure that they can comfortably meet the repayments without putting undue strain on their finances.

Interest and Fees

When opting for equipment finance, manufacturers need to consider the interest rates and fees associated with the financing. While these costs enable access to necessary equipment, they add to the overall expense of financing and should be factored into the financial calculations and decision-making process.

Ownership Limitations

In some cases, equipment finance agreements may come with ownership limitations. The equipment may be leased or financed with certain restrictions on modification or resale, which can potentially affect the manufacturer's ability to fully customise or control the equipment as they desire. It is essential to review and understand such limitations before proceeding with equipment financing.

Commitment to the Equipment

Equipment financing requires manufacturers to commit to the equipment for the duration of the financing agreement. While this can be advantageous in terms of consistent access to equipment, it may limit the flexibility to upgrade or switch to newer models or technologies. Careful consideration should be given to the lifespan and future needs of the equipment to ensure alignment with the financing term.

Equipment Financing Alternatives for Agricultural Machinery and Equipment Manufacturers

Agricultural Machinery and Equipment Manufacturers in Australia have alternatives to equipment finance such as equipment leasing, rental services, equipment sharing or co-ownership, and government programmes and grants. These alternatives provide flexibility, cost-effectiveness, and access to necessary equipment without the long-term financial commitment.

Here are some common alternatives to equipment finance:

Equipment Leasing

Equipment leasing is a popular alternative to equipment finance for Agricultural Machinery and Equipment Manufacturers in Australia. It allows businesses to access the necessary equipment without having to purchase it outright. Instead, the equipment is leased for a specified period, and the manufacturer pays regular instalments to the lessor. This option is ideal for businesses that require equipment for a short period or want to test the equipment before committing to a purchase.

Equipment Rental

Similar to equipment leasing, rental services provide Agricultural Machinery and Equipment Manufacturers the option to temporarily use machinery without the long-term commitment of owning or leasing. This alternative is ideal for manufacturers who have sporadic or seasonal equipment requirements, providing them the convenience and cost-effectiveness of accessing equipment on-demand.

Equipment Sharing or Co-ownership

In certain cases, Agricultural Machinery and Equipment Manufacturers can explore collaborations or partnerships for equipment sharing or co-ownership. This alternative allows manufacturers to pool resources and share the costs and benefits of owning and utilising machinery. It can be beneficial for businesses with complementary needs or non-competing operations, offering cost savings and enhanced equipment utilisation.

Government Programs and Grants

Agricultural Machinery and Equipment Manufacturers in Australia can explore government programmes and grants specifically designed to support equipment acquisition. These programmes often provide financial assistance or favourable terms for equipment financing, promoting technological advancement, innovation, and sustainability within the sector. By leveraging these initiatives, manufacturers can reduce the financial burden and expedite the procurement of necessary equipment.

Equipment Finance Repayment Calculator

To estimate your monthly repayments and the total cost of the loan, input the loan amount, loan term and interest rate into the calculator below. This helps you plan your budget and choose the most suitable loan terms.

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Frequently Asked Questions

Still have questions about equipment finance?

These helpful FAQs will help you find the answers you need. If you can't find what you're looking for, you can request a callback below.

What is the interest rate on equipment finance
Can I finance used equipment?
What is the typical term for equipment finance?
Do I need to provide a down payment?
Can I get equipment finance with bad credit?
Are there any tax benefits to equipment finance?
Can I pay off my equipment loan early?
Can I lease equipment instead of buying?
What is the difference between a lease and a loan?
What happens if the equipment breaks down?
Can I refinance equipment finance?
Is equipment insurance required?
Do I need a good business credit score for equipment financing?
Can I include installation, maintenance, and other costs in my loan?