Running a successful agricultural operation in Australia requires access to the right equipment—whether it’s a reliable tractor, a modern harvester, or specialised machinery for seeding, irrigation, or livestock handling.

But with farming equipment often coming at a high cost, many primary producers turn to farm machinery finance to maintain productivity without sacrificing cash flow. The good news? There are flexible, tailored finance options designed specifically for farmers and agribusinesses.

In this guide, we’ll explore how farm equipment loans work, what types of machinery you can finance, and how to access competitive funding that supports your farm’s growth.

Table of Contents

• Why Finance Farm Machinery?
  
• Types of Agricultural Equipment You Can Finance
  
• Farm Machinery Finance Options Available
  
• What Lenders Look for in a Farm Loan Application
  
• How Capital Plus Finance Can Help
  

Why Finance Farm Machinery?

Purchasing new or upgraded farm machinery is a major investment, and paying upfront isn’t always practical—especially when your income depends on seasonal harvests or market cycles.

Here’s why financing makes sense for many Australian farmers:

✅ Preserves cash flow for daily operations
✅ Spreads the cost over manageable monthly repayments
✅ Allows for faster upgrades to newer, more efficient machinery
✅ Access to tax deductions through depreciation and interest (consult your accountant)
✅ May help scale production during peak farming seasons

With the right loan structure, your machinery can start delivering value before it’s fully paid off—improving efficiency, yield, and profitability.

Types of Agricultural Equipment You Can Finance

Farm machinery finance can be used for a wide range of new or used agricultural assets, including:

🚜 Tractors (standard, compact, utility)
🌾 Harvesters (grain, cotton, sugarcane, etc.)
🌱 Seeders, planters, and sprayers
🚛 Farm utes, trucks, and trailers
🧑‍🌾 Livestock handling equipment and feed systems
💧 Irrigation systems and water tanks
🏗️ Grain silos, storage bins, and fencing
🌾 ATV/UTVs for farm transport
💨 Windmills, pumps, and other off-grid power sources

Note: Many lenders will finance both new and second-hand equipment, and some allow for private sales—ideal for buying from another farmer or auction.

Farm Machinery Finance Options Available

Depending on your farm size, business structure, and financial situation, there are several equipment finance solutions to consider:

1. 🚜 Chattel Mortgage (Business Equipment Loan)
   This is the most common option. You own the machinery outright, and the loan is secured against the asset.
   

Benefits:

• Fixed interest rates and repayment terms
  
• Full ownership from day one
  
• Potential tax benefits, including GST input credits and depreciation (check with your tax adviser)
  

2. 📄 Low Doc Farm Loans
   Ideal for farmers who may not have up-to-date financials or are recently established.
   

• May require only BAS statements or bank records
  
• Faster approval but potentially higher interest rates
  

3. 🛠️ Equipment Lease or Hire Purchase
   You pay regular instalments to use the machinery, with the option to buy it at the end of the term.
   

• No upfront capital required
  
• Good for short-term needs or when regularly upgrading equipment
  

4. 🚜 Seasonal Repayment Plans
   Some lenders offer flexible repayment schedules that match your cash flow—e.g., quarterly, half-yearly, or post-harvest terms.
   

• Ideal for grain, livestock, or orchard operations with uneven income
  
• Helps avoid strain during off-peak months
  

What Lenders Look for in a Farm Loan Application

While each lender has different criteria, most will consider the following:

📄 Business and ABN history (preferably 1–2 years or more)
📄 Financials or BAS statements showing income and expenses
📄 Credit history and existing liabilities
📄 Asset and liability position
📄 Purpose and type of machinery (new, used, private sale, etc.)

To improve your approval chances:

✅ Keep business records updated
✅ Demonstrate consistent income over recent seasons
✅ Prepare a quote or invoice for the machinery you wish to buy
✅ Be transparent about existing debt

How Capital Plus Finance Can Help

At Capital Plus Finance, we’ve worked with Australian farmers and agribusinesses across the country to secure affordable, flexible machinery finance.

Whether you’re upgrading your tractor, investing in harvest-ready equipment, or expanding into new crops, we can help you:

🌾 Compare farm equipment loans from over 40 trusted lenders
🌾 Access low doc or seasonal repayment options tailored to agriculture
🌾 Finance second-hand machinery or private sales
🌾 Understand tax benefits and depreciation rules
🌾 Structure repayments to match your farm’s cash flow cycle

👉 Ready to grow your agribusiness with smarter machinery finance? Contact Capital Plus Finance today: https://capitalplusfinance.com.au/

About Capital Plus Finance

Capital Plus Finance is a Sydney-based finance broker specialising in vehicle, equipment, and business loans for Australian SMEs. From tractors to transport vehicles, we help farmers and rural business owners get the equipment they need—fast, affordably, and with expert support.

Visit capitalplusfinance.com.au to learn more and get started.