Agricultural machinery finance helps Australian farmers and agricultural businesses purchase tractors, harvesters and other essential equipment without paying the full cost upfront.
The purchase is repaid over an agreed term, allowing the business to keep more working capital available for fuel, labour, seed, fertiliser, livestock, maintenance and other seasonal expenses.
The Asset Finance Shop (TAFS) is a specialised asset finance broker with access to more than 80 bank and non-bank lenders, an internal credit team, a 93% approval rate and approvals available in as little as 24 hours for eligible applications.
When comparing tractor loans, it is important to look beyond the advertised interest rate. The repayment schedule, deposit, finance term, balloon payment, documentation requirements and lender’s approach to seasonal income can all affect whether the loan suits your agricultural business.
This guide explains how agricultural machinery finance works in Australia and what farmers should compare before financing a tractor, harvester or other farm equipment.
Agricultural machinery finance is commercial finance used to purchase equipment for farming and other agricultural business activities.
It can be used for:
Finance can be available for new and used machinery purchased through a dealer, private seller or auction, subject to lender criteria.
The lender will assess both the agricultural business and the equipment before approving the finance.
Tractor finance allows the agricultural business to purchase the machinery and repay the cost over an agreed period.
The process generally involves the following steps.
Start by considering what the equipment will do for the business.
Ask:
You can discuss finance before selecting the exact tractor or harvester. The lender will require the final equipment and seller details before settlement.
TAFS begins with a soft credit check that leaves no mark on your credit file.
The internal credit team can then review:
The application is assessed against the criteria of more than 80 lenders before a formal submission is made.
Agricultural lenders do not all assess applications in the same way.
Some are better suited to established farms with full financial statements. Others may consider low doc applications, seasonal income, used machinery, private sales or newer agricultural businesses.
TAFS compares suitable options based on the business, machinery and purchase method.
The repayment structure should reflect the farm’s cash flow and the working life of the machinery.
Depending on the lender, the structure may include:
Not every lender offers every structure. The available options will depend on the application and current lender criteria.
Once a suitable option has been selected, the formal application is submitted to the chosen lender.
After approval, the lender completes its final checks and prepares the finance documents. Once the conditions have been met, payment is made directly to the machinery dealer, auction house or private seller.
The main finance product TAFS arranges for tractors, harvesters and other agricultural equipment is a chattel mortgage.
Under a chattel mortgage:
A balloon payment leaves part of the finance amount until the end of the term. This can reduce regular repayments, but it also creates a larger final payment.
The business may be able to claim the GST on the purchase price, along with eligible interest and depreciation deductions. Speak with your accountant about the tax treatment that applies to your circumstances.
Farmers can access agricultural machinery finance through several types of providers.
Banks offer equipment and commercial finance for agricultural businesses.
They can be suitable for established farms with strong financial information, a clear trading history and an existing banking relationship.
Some lenders focus on agriculture, equipment and commercial assets.
Depending on the lender, options may be available for:
Some manufacturers and machinery dealerships offer finance through an aligned lender.
This can be convenient when purchasing equipment from that supplier. However, the available option will generally be limited to the lender or product connected with the dealership.
A specialised asset finance broker can compare options across a broader panel of bank and non-bank lenders.
TAFS has access to more than 80 lenders and uses an internal credit team to review each application before making a formal submission.
This gives farmers the ability to compare suitable lender and repayment options without approaching multiple providers separately.
The lowest advertised interest rate is not always the best tractor finance option.
Farmers should compare the complete finance structure and how it fits the agricultural business.
Ask for a clear breakdown of:
A lower regular repayment may result from a longer term or a larger balloon payment.
Compare the full structure rather than focusing only on the monthly repayment.
Farm income is not always received evenly throughout the year.
Revenue may depend on:
Selected lenders may offer repayment schedules that better align with the farm’s income cycle.
The right structure can help the business avoid carrying large repayments during quieter periods. Availability will depend on the lender and strength of the application.
A deposit is not required for every agricultural machinery finance application.
Some eligible businesses may be able to finance the full purchase price. Other applications may require a contribution depending on:
A trade-in may also be used as the business’s contribution.
A balloon payment can reduce regular repayments by leaving part of the debt until the end of the finance term.
Before selecting a balloon, consider:
The balloon should reflect the machinery’s expected value at the end of the term.
A larger balloon can improve short-term cash flow, but it leaves more debt outstanding for longer.
The finance term should suit both the business and the machinery.
A longer term can reduce regular repayments, but it also keeps the debt outstanding for longer.
Consider:
Lenders may limit the available term for older machinery.
Different lenders have different requirements for agricultural machinery.
These can include:
A lender suited to a new tractor purchase may not be the right lender for an older harvester purchased privately.
The equipment and seller should be considered alongside the applicant’s financial position.
The documents required will depend on the lender, amount financed and business history.
An established agricultural business may be asked for:
Selected lenders may offer low doc agricultural machinery finance using recent bank statements and other supporting business information.
Low doc does not mean no assessment. The lender must still be satisfied that the business can afford the repayments.
Many farmers purchase machinery from other agricultural businesses, private sellers and auctions.
These purchases can require additional checks, including:
Choose a finance provider that understands how to manage the transaction through to settlement.
TAFS can coordinate the required information between the buyer, seller and lender.
Agricultural equipment purchases can be time-sensitive.
A tractor may be required before planting, a sprayer before the next application window or a harvester before the season begins.
Before choosing a provider, ask:
TAFS can arrange approvals in as little as 24 hours for straightforward applications with the required information available.
Tractors and harvesters can both be financed through a chattel mortgage, but lenders may assess them differently.
Tractors generally have a broad range of uses across farming operations.
The lender may consider:
Tractors can be financed when purchased new or used through dealers, auctions and private sellers.
Harvesters and headers are often higher-value and more specialised.
The lender may consider:
An inspection, valuation or additional financial information may be required for older or higher-value harvesters.
Yes. Used agricultural machinery can be financed when purchased through:
The lender may require:
The machinery’s age and condition can affect the available lenders, deposit requirements and finance term.
Yes. Selected lenders will finance tractors, harvesters and other machinery purchased privately.
The lender will generally need to confirm:
An inspection or valuation may also be required.
Private-sale purchases can take longer than straightforward dealer transactions, so it helps to collect the machinery and seller information early.
Auction pre-approval may be available for eligible agricultural businesses.
A pre-approval can help the buyer understand the amount they may be able to borrow before bidding. Final approval will still depend on the machinery purchased and whether it meets the lender’s requirements.
Before bidding, remember to allow for:
Auction houses can have short payment timeframes. Completing the initial assessment before bidding can help reduce delays.
A newer agricultural business may still qualify for machinery finance.
Selected lenders will consider shorter trading histories based on the strength of the complete application.
They may assess:
Additional evidence may be needed to show how the equipment will generate income and how the repayments will be met.
Low doc agricultural machinery finance may be available through selected lenders.
The lender may use:
The required documentation will depend on the lender, amount financed and overall application.
For an initial assessment, you may need:
Later in the process, the lender may request:
Larger or more complex applications may also require Business Activity Statements, tax returns or financial statements.
Straightforward tractor finance applications can be approved in as little as 24 hours after the required information has been supplied.
The process may take longer when the purchase involves:
Preparing the business and machinery information early can help prevent delays.
Before proceeding, ask:
The best agricultural machinery finance will depend on the farm’s cash flow, financial position, equipment, purchase method and preferred repayment structure.
Compare the rate, regular repayment, total amount repayable, term, balloon payment, deposit, documentation and seasonal repayment options.
TAFS can compare suitable options through access to more than 80 lenders.
Tractor loans are available through banks, agricultural lenders, manufacturer-aligned providers and specialised asset finance brokers.
A broker can compare options across a broader lender panel rather than offering finance from one provider.
Yes. Used tractors can be financed when purchased through a dealer, private seller or auction.
The lender will assess the tractor’s age, condition, operating hours, value and remaining working life.
Yes. Harvester financing is available for eligible agricultural businesses.
The lender may require additional financial information, an inspection or a valuation for older or higher-value equipment.
Not every tractor finance application requires a deposit.
A lender may finance the full purchase price for eligible applicants. A deposit or trade-in may be required for older machinery, newer businesses or applications with limited supporting information.
Yes. Attachments and implements can often be included in the same finance facility when they form part of the purchase.
This can include loaders, buckets, mowers, seeders, spreaders and other equipment used with the tractor.
Yes. Sole traders can apply for agricultural machinery finance.
Lenders may assess ABN history, farming experience, bank statements, farm income, credit history and the equipment being purchased.
Approvals can be available in as little as 24 hours for straightforward applications.
Settlement timing will depend on lender checks, equipment details, seller requirements and completion of the finance documents.
TAFS can help Australian farmers compare tractor loans, harvester financing and other agricultural machinery finance options through access to more than 80 lenders.
Start with a no-obligation assessment and a soft credit check that leaves no mark on your file. Contact The Asset Finance Shop or apply online at www.tafs.com.au.
The Asset Finance Shop (TAFS) is a commercial asset finance brokerage based in Sydney.
Information on this page is general in nature and doesn't take your personal circumstances into account. Speak to a TAFS broker for options tailored to your business, and to your accountant regarding tax treatment.