Business & equipment finance
Financing farm equipment: what to weigh up before you buy
26 September 2026 · 5 min read
Reliable machinery sits at the heart of a productive farm, from tractors and harvesters to sprayers, utility vehicles and irrigation gear. It's also expensive, and farm income rarely arrives in neat monthly amounts. That's why many farmers choose to finance equipment rather than pay for it all upfront.
Keeping cash in the business
Paying cash for a big machine can drain the working capital you rely on to get through a dry spell, a poor season or a dip in commodity prices. Financing spreads the cost over time, so cash stays available for inputs, wages and the unexpected, while the machine starts working straight away.
Repayments that follow the seasons
Some lenders can structure repayments around seasonal income, for example with larger payments after harvest or sale periods and smaller ones in between. Options depend on the lender, the equipment and your circumstances, so ask what flexibility is available before you sign.
Common finance structures
The main structures for farm equipment include chattel mortgage, finance lease, hire purchase and rental. They differ in who owns the equipment during the term, how GST is handled, whether there's a residual at the end, and how they're treated for tax. Your accountant is best placed to advise which suits your operation.
Questions to ask before you buy
- What will the machine cost to run and maintain each year?
- How long will it realistically last, and what might it be worth at the end?
- Could the same result come from upgrading or adding attachments to existing gear?
- How will the repayments sit alongside your seasonal cash flow in a poor year, not just a good one?
- How will the purchase be treated for tax? Ask your accountant.
New, used or private sale
Finance is often available for new and used machinery, from dealers and, with some lenders, private sellers. Older or private-sale equipment may need extra checks such as a valuation or proof of ownership, and lender appetite varies. It pays to line up finance before auction day or before you commit to a seller.
General information only
This article is general information only. It does not take your personal circumstances into account and is not personal credit, legal, tax or financial advice. Talk to your accountant about which finance structure suits your business and how it will be treated for tax. Funding options are subject to the asset, supplier, applicant and individual lender policy, and all finance is subject to lender assessment and approval.
The Finsterl view
We understand that farm cash flow doesn't run like a city payroll. If you're looking at new or used machinery, call the Finsterl Finance team on 1300 508 827 or send us an enquiry, and we'll help you find a structure that works with your seasons. Funding options are subject to the asset, supplier, applicant and individual lender policy.
Related finance
All finance is subject to lender assessment, eligibility criteria, terms and conditions. Rates and fees depend on individual circumstances.
Run the numbers
Will it pay for itself?
Estimates only, but a good place to start a real conversation.
Step 1 — the purchase
Finance the machine
Estimated finance repayment
$3,692.11 / month
Amount financed $180,000 over 60 months.
Step 2 — the upside
What could this asset add to your business?
Use a conservative figure — extra hours, jobs or output the asset makes possible.
Estimated monthly summary
Projected additional revenue
$14,000
Additional operating costs
− $5,970
Finance cost
− $3,692
Estimated net additional monthly profit
$4,338
Annualised $52,055
Annual revenue impact
$168,000
Annual operating + finance cost
$115,945
Annual net position
$52,055
This calculator provides estimates only and does not constitute financial advice, a finance approval or a guarantee of business performance. Actual repayments, costs and business outcomes may differ.
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