The agricultural industry has access to many financial instruments that facilitate the purchase of machinery.
Leasing of agricultural machines
Leasing is currently a very popular form of financing because it does not involve significant amount of own fund. Leased machines remain the property of the leasing company, while the lessee, who pays off the installments, uses the machine. This is a good solution for intensively developing farms in which the funds can be used for other purposes. Leasing does not limit the possibility of obtaining a traditional loan.
A leasing loan
It is a financial instrument that was created for farmers wishing to purchase an agricultural machine with the support of EU subsidies. It is analogous to traditional credit, but it is provided by leasing companies, not banks. The leasing loan takes into account the amount of the received EU subsidy, it is easier to obtain than a loan and carries tax benefits as well.
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