Agricultural Machinery Finance

Yes. Sierra finances both new and used agricultural machinery. Used farm equipment holds its value well and most lenders on the panel will comfortably finance machinery up to 15 to 20 years old. The rate may be slightly higher on older equipment, but there are competitive options available across the full age range. We also handle private sale purchases, including the finance inspection and PPSR check.

With a chattel mortgage, you own the machinery from settlement and claim depreciation and GST input credits upfront. With a finance lease, the lender owns the asset and you make lease payments over the term, with an option to purchase or return the equipment at the end. The best structure depends on your tax position and how your accountant prefers to treat the asset. We recommend discussing both options with your accountant before deciding.

Most approvals come back within 24 to 48 hours of submitting the full application. Larger deals above $250,000 may take an extra day or two as additional documentation needs to be assessed. If you are buying at auction or need to move quickly on a private sale, let us know your timeframe upfront and we will work to meet it.

GPS guidance systems and precision ag technology can be financed, but not every lender treats them the same way. Some funders classify GPS systems and similar technology as ancillary equipment rather than a primary asset, which can affect the terms or the willingness to lend. Sierra places these deals with lenders who have specific appetite for agricultural technology and understand the value it adds to the operation.

Low-doc agricultural machinery finance means you can get approved without providing full financial statements. Instead, the lender assesses your application based on BAS history, bank statements, a clean ATO record, and a good repayment history on existing finance. Low-doc options are available for deals up to $500,000 depending on the lender and the strength of your overall profile. This suits farming businesses whose financials are not yet completed or who prefer a faster, simpler process.

Not necessarily. If you have been in business for at least two years, have a clean credit history, and can provide recent BAS statements or bank statements, many lenders will approve farm equipment finance without requiring full financials. For larger amounts or more complex applications, financials may be requested. Your broker will tell you exactly what is needed upfront so there are no surprises.

Yes. Private sales are very common in agriculture and Sierra handles them regularly. We manage the entire process with the seller, including arranging a finance inspection to verify the machine's identity (serial numbers, engine numbers, compliance plate), running a PPSR check to confirm the machinery is free of encumbrances, and coordinating payment through the lender at settlement. You do not need to deal with the paperwork yourself.

Not always. Manufacturer finance offers at 0% or very low rates can be genuinely competitive in some cases, and if they are, we will tell you to take them. However, the cost of the low rate is often built into the purchase price of the machinery. A higher purchase price at 0% can cost more overall than a lower negotiated price with a competitive broker rate. Dealer finance also tends to be inflexible, with fixed terms and no balloon options, which may not suit seasonal cash flow. It is worth comparing the total cost of both options before committing.

Sierra finances all major agricultural machinery brands including John Deere, Case IH, New Holland, Massey Ferguson, Fendt, CLAAS, Kubota, Deutz Fahr, MacDon, and Kioti. We also finance other brands and lesser-known manufacturers where the asset stacks up. The brand matters less than the overall deal, the asset condition, and your ability to service the repayments.

It depends on the nature of the credit issue. Minor credit defaults, such as a missed utility bill during an address change or a disputed phone bill, are common and most lenders understand the circumstances. More significant credit issues narrow the lender pool but do not necessarily prevent approval. Sierra works with specialist lenders who consider applications with impaired credit, and we present your situation to the right funder with context rather than letting a credit score tell the whole story.

Weather events are part of farming and lenders with genuine agricultural experience understand this. If your business has come through a drought or flood, the key is presenting your income across multiple seasons to show that the difficult period was an event, not a trend. Strong years before and after a weather event demonstrate business resilience. If you have crop insurance or have received government support payments during an adverse season, that information helps strengthen the application.

Yes, most agricultural machinery finance products allow additional repayments. Paying down the loan faster reduces the total interest paid over the life of the loan. However, given that farming cash flow is seasonal, it can sometimes make more sense to retain working capital during the year and make a larger lump sum payment after harvest. Your broker can help you decide the best approach for your situation.

Yes. Most lenders require comprehensive insurance on the machinery before they will release funds at settlement. This is standard across all equipment finance, not specific to agricultural deals. If you need a referral to an insurer experienced with farm machinery and equipment, we can point you in the right direction.