Equipment financing

[ga.prime]

At the bank I use, if you have a CD on deposit there, you can get a loan up to the value of the CD at 1% point above what the CD pays. Or buy a new tractor and pay zero interest.

 

[Farm Fence Solutions]

I just sold a post driver that was financed through John Hanson at US Bank. He was pleasant to work with, and had a fair rate.
931-738-9503
Says he can work nationwide.

 

[ga.prime]

Hook, I got something in the mail last week from Ga. Farm Bureau about financing. Didn't look very close because I'm not in the market for it, but on the surface looked like pretty low rates.

 

[ddd75]

open a tractor house mag up.. look in the back..

i think they call it big iron financing or something..

 

[jltrent]

Who do you folks use? Found a private party used tractor that fits my needs exactly. I could pay for it outright, but don't want to dig into those funds.

As stated before if you want to conserve your funds then get a loan against them as that will give you the best rate. For the bank it is zero risk and when I worked in the banking business we went 2% over CD face rate.

Credit Unions have good rates as banks are for-profit, while credit unions are nonprofits and can offer usually better rates on loans. If you have a good home town bank usually they will try to work with their good customers and go below sheet rate.

 

[Farm Fence Solutions]

At the bank I use, if you have a CD on deposit there, you can get a loan up to the value of the CD at 1% point above what the CD pays. Or buy a new tractor and pay zero interest.

So you mean to tell me that the bank will loan you your own money back at 1%? It'd take some volume, but they're on to something!

 

[Nesikep]

When I bought one of my cars, I had JUST gotten myself out of credit card debt, my work was booming and I was working stupid overtime. I went to my bank and got a line of credit, Prime plus 2 I think it is.. was it the best rate I could get? well,.. maybe not, but they didn't care what I bought with the money either and it's always available. I paid the car off then moved back to the farm, bought my truck with money from there, then paid it off over 2 years. 10 years later I still have $18,000 I can use whenever and for whatever I want.

Personally, I'd get the line of credit for liquidity but pay cash for the item, then you have no interest payments unless you need to dip into those funds.

 

[Nesikep]

Wow, you were incredibly fast to take my advice!.. fast bank too!

Hope the tractor treats you well

 

[Named'em Tamed'em]

I used. Ag Direct. They beat the Case rate by. 2%

 

[Stocker Steve]

[As stated before if you want to conserve your funds then get a loan against them as that will give you the best rate. For the bank it is zero risk and when I worked in the banking business we went 2% over CD face rate.

Credit Unions have good rates as banks are for-profit, while credit unions are nonprofits and can offer usually better rates on loans. If you have a good home town bank usually they will try to work with their good customers and go below sheet rate.

Sheet rate applies to what kind of bank customer ?

Does an individual or an ag operaton ever get loans at prime rate, or is it just for big corporations?

 

[jltrent]

[As stated before if you want to conserve your funds then get a loan against them as that will give you the best rate. For the bank it is zero risk and when I worked in the banking business we went 2% over CD face rate.

Credit Unions have good rates as banks are for-profit, while credit unions are nonprofits and can offer usually better rates on loans. If you have a good home town bank usually they will try to work with their good customers and go below sheet rate.

Sheet rate applies to what kind of bank customer ?

Does an individual or an ag operaton ever get loans at prime rate, or is it just for big corporations?

Depends, when I was a Loan Officer, Branch Manager in the mid/early eighties we were provided a sheet rate to go by and from there we could either go up or down. It was and individual thing, based mostly on these five C's: Character, Capacity, Capital, Collateral, and Conditions. A good customer that everything checks out, good history, etc. if the sheet rate was 8% on a new tractor (farm equipment loan) it wasn't out of the norm to reduce to 6.75% as the risk was lower. Have a good relationship with your banker and it never hurts to ask for a better rate also. To you it is considered a debt, to the bank it is on their records as and asset, banks want good assets. It is very interesting to review banks quarterly call reports as I do this all the time online. I am pretty much familiar on how to read them and what to look for.