Agricultural Machinery Finance

Finance for tractors, headers, harvesters, sprayers, and farm equipment matched to lenders who understand seasonal income.

Agricultural machinery finance is a different conversation to standard equipment finance. Farming income is seasonal, asset values behave differently, and the lenders who genuinely understand agriculture are not the same ones who finance excavators and trucks.

Sierra Finance is a Melbourne-based equipment finance broker with access to 50+ lenders, including funders with dedicated agricultural lending teams. We structure farm machinery finance around the way your business actually earns, with most approvals back within 24 to 48 hours.

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Our Lenders

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What Our Clients Say About Us

 
 
 
 
 
 
 
  
 
 
 
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 Andrew Beckwith profile picture 
 
 
 Andrew Beckwith 
 
 
 
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Sierra Finance recently assisted me in obtaining a number of vehicles for my commercial transport business. I dealt with Lawrence - he efficiently arranged for financing at competitive rates, provided a great service and enabled me to get my fleet on the road in no time. Thanks again.
  
 
  
 
 
 
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 oksana pashoulia profile picture 
 
 
 oksana pashoulia 
 
 
 
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I had an excellent experience with Lawrence from Sierra Finance. He was incredibly professional, knowledgeable and helpful throughout the entire financing process. He made everything simple to understand, answered all my questions promptly, and guided me to the best options for my needs. I felt confident and well taken care of from start to finish. Highly recommend if you're looking for reliable and trustworthy financing services!
  
 
  
 
 
 
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 David Leahey profile picture 
 
 
 David Leahey 
 
 
 
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Lawrence was fantastic all the way through! A real professional and achieved a great result for me. Would highly recommend!
  
 
  
 
 
 
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 Josh Harris profile picture 
 
 
 Josh Harris 
 
 
 
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Lawrence at Sierra Finance was incredible from start to finish! From the first phone call to settlement day, they made the entire process so simple and stress-free. They turned my dream of expanding my business into a reality and secured a very reasonable rate for me. Highly recommend them to anyone looking for finance.
  
 
  
 
 
 
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 Freddie Twigg profile picture 
 
 
 Freddie Twigg 
 
 
 
 Google star 1Google star 2Google star 3Google star 4Google star 5 
I recently had the pleasure of securing a business loan through Sierra Finance, and I couldn't be more satisfied with the experience. From start to finish, the team demonstrated exceptional professionalism, making the entire process smooth and stress-free.

How Agricultural Machinery Finance Works

The most common structure for agricultural machinery finance is a chattel mortgage. You own the equipment from settlement, claim depreciation and GST input credits upfront, and make fixed repayments over an agreed term. For most farming businesses purchasing a tractor, header, or harvester to run in their own operation, chattel mortgage is the standard choice.

Where farm machinery finance differs from other equipment finance is in repayment structuring. Farming income is seasonal. A broadacre cropping operation might bring in 70 to 80 percent of its annual revenue in a two to three month window after harvest, then run lean for the rest of the year. Standard even monthly repayments do not suit that cash flow pattern.

Sierra structures seasonal repayments where the lender allows it. That means reduced payments during the off-season, with larger payments scheduled after harvest when the money is actually coming in. Not every lender offers genuine seasonal structures, so knowing which funders will do it (and which ones just talk about it) matters.

Other finance structures are available depending on your situation. A finance lease suits operators who prefer to keep the machinery off their balance sheet or plan to upgrade on a regular cycle. Commercial hire purchase works similarly to chattel mortgage with slightly different accounting treatment. Operating leases suit situations where you need a piece of machinery for a specific season or contract rather than permanently. Balloon or residual payments are also common across all structures, particularly on higher value machinery, to keep regular repayments manageable.

Loan terms typically run from 3 to 7 years. The right combination of structure, term, and balloon depends on the specific asset, how your business earns, and what your accountant recommends for your tax position.

Agricultural Machinery Finance

What You Can Finance with Agricultural Machinery Finance

Sierra finances the full range of agricultural machinery and farm equipment. That includes tractors from compact utility models through to large broadacre machines, headers and harvesters, sprayers (both self-propelled and trailed), balers, seeders and planters, disc tillers and ploughs, spreaders, loaders, grain handling equipment such as augers and field bins, and silos.

We finance all the major agricultural machinery brands including John Deere, Case IH, New Holland, Massey Ferguson, Fendt, CLAAS, Kubota, Deutz Fahr, MacDon, and Kioti, along with other brands where the asset stacks up.

New and used farm machinery are both financeable. Agricultural equipment holds its value well, and a properly maintained tractor or header can have decades of productive life. Most lenders on the panel will comfortably finance used agricultural machinery up to 15 to 20 years old with the right funder. Older than that is still possible but narrows the lender pool. The best rates are typically on equipment under five years old, but there are competitive options across the full age range.

Hours matter as much as age on agricultural machinery. A 10-year-old tractor with 3,000 hours is a very different proposition to the same model with 12,000 hours. Lenders with genuine agricultural experience assess hours as a key indicator of remaining useful life, not just the year of manufacture.

You can purchase from a licensed dealer, a private seller, or at auction. Private sales are common in agriculture and Sierra handles the full settlement process with the seller, including PPSR checks, finance inspections, and coordinating payment through the lender.

Deal sizes for agricultural machinery finance typically range from $20,000 for smaller implements and used tractors through to $500,000+ for new headers, large tractors, and multi-unit purchases. Deals above $250,000 can require additional documentation and may take an extra day or two for approval, but they are routine.

Who Agricultural Machinery Finance Is For

Agricultural machinery finance is for any business that needs to purchase farm equipment and wants to preserve working capital rather than paying cash outright. That includes broadacre cropping operations, livestock producers, dairy farmers, horticulture and viticulture businesses, mixed farming operations, and agricultural contractors.

Sierra Finance works with established multi-generational farming operations upgrading or expanding their fleet, younger operators purchasing their first major piece of machinery, family trusts and partnerships investing in equipment, and new entrants to agriculture with relevant industry experience.

Entity structures in farming are often more complex than other industries. Family trusts, partnerships, and multi-entity structures are common, with the farm in one entity, the machinery in another, and the land in a third. Not every lender handles these structures well. Placing the deal with a funder who is comfortable with farming entity structures avoids unnecessary requests for personal guarantees or additional security that should not be required.

For borrowers with limited documentation, low-doc agricultural machinery finance options are available. If your financials are not up to date, or you are between harvest seasons and your most recent BAS shows a quiet quarter, there are lenders who will work with BAS history, bank statements, and a clean ATO record rather than requiring full financial statements. Low-doc farm equipment finance is available for amounts up to $500,000 depending on the lender and the strength of the overall application.

Start-up farming businesses with a deposit or some form of security can also access agricultural machinery finance. If you have industry experience, a clear plan, and can demonstrate capacity to service the repayments, there are lenders on the panel who will consider the application.

Why Use a Broker for
Agricultural Machinery Finance

The most common mistake farmers make when arranging their own machinery finance is going to their local bank branch. The banker runs the numbers off the most recent BAS, which happens to be a quiet quarter between harvests, and either declines the application or offers terms that do not reflect the actual strength of the business. That credit enquiry is now sitting on the farmer's file, making the next application harder before it has even started.

A broker who understands agricultural finance presents the full picture of the farming business, not a snapshot from the wrong quarter. That means showing lenders the annual income cycle across two to three years of BAS or tax returns, demonstrating that the quiet quarter is a normal part of the seasonal pattern, and placing the application with a lender who already understands how farming income works. The goal is a clean approval first time, with no wasted credit enquiries and no unnecessary document requests.

The other advantage of using a broker for farm machinery finance is lender matching. Unlike excavator finance or truck finance where most lenders have standard appetite, agricultural assets attract genuinely different levels of interest from different funders." Some funders have dedicated agricultural lending teams and actively want farming business. Others treat farm equipment the same as any other machinery and do not account for seasonal cash flow in their assessment. Knowing which lenders genuinely understand agriculture, and which ones will cause problems, is where a broker adds value on these deals.

Dealer finance is also worth considering carefully. Manufacturer 0% or low rate finance offers from the likes of John Deere Financial or CNH Industrial Capital can look attractive, but the cost is often built into the purchase price of the machinery. A higher purchase price at 0% can end up costing more than a lower negotiated price with a competitive rate through a broker. Dealer finance also tends to offer limited flexibility on loan structures, with fixed terms, no balloon options, and set repayment schedules that may not suit seasonal cash flow.

Sierra compares the full market across 50+ lenders to find the right combination of rate, structure, and repayment flexibility for each deal. If the dealer offer genuinely is the best option, we will tell you to take it. But more often than not, the total cost of the deal is lower when the purchase price and the finance are negotiated separately.

Get a Free quote on Farm Machinery Finance

Talk to a broker who understands agricultural equipment and seasonal income. No obligation, fast response.

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How Agricultural Machinery Finance Works with Sierra Finance

Step 1: Tell us what you are buying

Call or enquire online with the details of the machinery you are looking to purchase. We will ask about the asset, the purchase price, your business structure, and how long you have been operating. This usually takes five to ten minutes.

Step 2: We find the right lender Based on your situation

We match your application to the most appropriate lender on our panel. For agricultural deals, this means a funder who understands farming income patterns, is comfortable with the asset type, and offers the structure and terms that suit your cash flow. We handle the full application and submission process.

Step 3: Approval and settlement

Most agricultural machinery finance approvals come back within 24 to 48 hours. Once approved, we coordinate settlement with the dealer, private seller, or auction house. For private sales, we arrange the finance inspection, PPSR check, and payment to the seller. You collect your machinery and get back to work.

Agricultural Machinery Finance FAQs

Can I get agricultural machinery finance with seasonal income?
Yes. Farming income is seasonal by nature and the lenders Sierra works with understand this. We present your income across the full annual cycle rather than a single quarter, and structure repayments to match when your business actually earns. Seasonal repayment structures, balloon payments, and interest only periods are all options depending on the lender and the file.
What deposit do I need for farm machinery finance?
Many agricultural machinery finance files require no deposit at all. Whether a deposit is needed depends on the age and value of the equipment, the strength of your application, and the lender's requirements. Some lenders will fund 100% of the purchase price for established farming businesses with a clean credit history. Startup operations may need a deposit or other form of security.
Can I finance a used tractor or header?
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.
What is the difference between a chattel mortgage and a finance lease for farm equipment?
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.
How long does agricultural machinery finance approval take?
Most approvals come back within 24 to 48 hours of submitting the full application. Larger files 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.
Can I finance GPS and precision agriculture technology?
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 files with lenders who have specific appetite for agricultural technology and understand the value it adds to the operation.
What is low doc farm machinery finance?
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 files 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.
Do I need financials or tax returns to get farm equipment finance?
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.
Can I finance agricultural machinery from a private seller?
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.
Is 0% dealer finance always the best option for farm machinery?
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.
What agricultural machinery brands can Sierra finance?
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 file, the asset condition, and your ability to service the repayments.
Can I get farm machinery finance with bad credit?
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.
How does drought or flood affect my ability to get agricultural machinery finance?
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.
Can I make extra repayments on my farm machinery loan?
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.
Do I need insurance before settling agricultural machinery finance?
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 files. If you need a referral to an insurer experienced with farm machinery and equipment, we can point you in the right direction.
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Get a Free Quote on Agricultural Machinery Finance

Talk to a broker who understands farm equipment and seasonal lending. No obligation, fast response.