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Tuesday, February 5, 2013

Loan or Lease?

Not sure which is best for your operation?  Ask ArborOne, we can help you see the benefits of both.

We understand the nuances of agricultural financing and can offer you a variety of financing options to best meet those needs.  We offer conventional loans as well as leases for many agricultural necessities - vehicles, tractors, equipment, buildings, barns, and more.

Not to be overlooked, a lease can be a valuable option by providing tax advantages, little or no down payment, and lower monthly payments.  Often, the real value for a farmer lies in the use of the asset and not the ownership.  Conventional loans have benefits, too, most notably that the asset is owned and can be reflected on your balance sheet.

A loan offers...
- payment timing and terms structured to fit your operation
- owned facility/equipment are your assets
- asset is depreciated on your tax return
- patronage from ArborOne is earned based on the amount of interest you pay

A lease offers...
- working capital and a preserved operating line
- improved cash flow with lower payments
- maximized tax benefits with accelerated write-off
- possible 100% financing

Talk to your ArborOne relationship manager about which option may be best for you.

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