Your first tractor, financed.

Tractor finance for an established operator is straightforward — three years of financials, a clear security asset, and most lenders are comfortable. For a new or young farmer buying their first piece of significant plant, the path is harder. Most major bank asset finance divisions will simply decline without a sufficient trading history.

The approach that works is to find lenders who assess the application differently: what is the equity position, what is the business plan, what does the paddock produce, and is the asset serviceable from projected farm income. New versus used matters too — used equipment carries lower lender confidence on security value, and that affects both the lender appetite and the loan-to-value ratio.

Chattel mortgage is generally the right structure for a tractor purchased as a business asset — full input tax credit on the GST component, and depreciation on the whole purchase price. Hire purchase may suit operators who prefer lower ongoing payments with a final balloon. We will work through the options with you before approaching lenders.