Why Select Our Local Bank for Ag Equipment Loans?
May 19, 2022
Tractors. Cultivators. Plows. Planters. Backhoes. Landscape rakes. The cost of typical agricultural equipment that you need for the farm or ranch can quickly add up. That’s why many farmers and ranchers along the Texas Gulf Coast turn to our bank for ag equipment loans.
Equipment loans spread the cost of the equipment over a period of time (usually five years), which leaves additional working capital available in your business so that you can maintain cash flow. This way, you can cover other necessary operating expenses such as seed, fuel, fertilizers, chemicals, and labor costs while waiting to generate cash flow.
Find out more about why we think you should work with Texas Gulf Bank to obtain financing for your big-ticket equipment purchases.
Ag Equipment Loans Provide You With Flexibility
As your agriculture business grows, you want to ensure that your equipment can keep up. That small compact tractor that you’ve had for years and years might not fit the bill anymore. In order to get more done on the farm or ranch, you may come to the point where you need to upgrade to a heavy-duty compact tractor.
Alternatively, you may need additional equipment to support added responsibilities on the farm or ranch. Having access to new or multiple pieces of ag equipment can provide you with the resources you need to till the land, cultivate the crops, and perform other duties before sundown.
But, the price tag for upgrading your equipment is steep. Even used equipment can command big dollars. Because agricultural equipment can be very expensive, you should consider a loan to provide you with the flexibility you need to obtain the necessary equipment without undermining your operation.
We Simplify the Process of Applying for an Ag Equipment Loan
As a local, independently-owned bank, we work closely with our ag customers along the Texas Gulf Coast. Our goal is to help our customers tap into the full capabilities of their land by having access to the equipment they need for farming and ranching activities.
We have substantial lending capacity and we make lending decisions at the local level. In other words, the folks who understand your business are also the ones making decisions about whether to provide you with financing. Unlike at other banks, you don’t have to jump through hoops trying to appease decision-makers in another part of the country who do not understand the intricacies of the ag business.
When you apply for an agricultural equipment loan through our bank, you will instantly appreciate the local feel of our bank. To get started on the loan application process, we ask that you provide us with the following information:
- Description of the equipment that you would like to purchase through our bank.
- Information that vouches for your history of operating a farming or ranching business.
- Equipment listing for current equipment that you own or lease.
- Financial reports that capture the health of your ag business for the past two years.
- Business and individual tax returns for the past three years.
- Financial standing of the individuals who will guarantee the equipment loan.
- Credit reports that provide us with good credit indicators for both the business and the guarantors.
We may also request that you complete our Farm Plan form that indicates the recent and future use of your land for farming and ranching purposes. This will help us match the purpose of the equipment purchase with the expected use of the equipment.
Our team will review your completed application, validate that you have the credentials to pay back the loan over time, and inform you of our lending decision.
If approved, the equipment loan is amortized over a typical 5-year term with monthly principal and interest payments. You will be informed of all the details about your approved equipment loan so that you understand what your monthly payment will be.
Then, you can complete the purchase of the equipment and begin putting the equipment to use on your land.
Because of our extensive experience providing financing to farmers and ranchers, as well as our streamlined application process, you can expect to receive access to funds much faster than at other banks. We are confident that you will enjoy working with our team to support your purchase of new ag equipment.
Get Started with Texas Gulf Bank for an Ag Equipment Loan
Whether it’s time to upgrade your tractor or purchase a new cultivator to till the soil on your land, you can rely on Texas Gulf Bank to help finance an expensive equipment purchase.
We encourage you to get in touch with our locally-based lenders to discuss your equipment needs. Ready to apply for an ag equipment loan? You can get started by completing the contact form below. We look forward to seeing your business grow!
All Loans Subject to Credit Approval