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What's the best way to acquire equipment?
There are as many answers to that question as there are contractors. The decision on how to finance equipment acquisition should be based on the individual needs of your business. Fortunately, John Deere Credit has the insight that can help - the kind that leads to real financial solutions.
What financing options does John Deere Credit offer?
We offer a number lease and installment loan products, as well as an equipment line of credit and PowerPlan™, a commercial line of credit. To determine whether a lease or a loan is the solutions for you, we suggest you take a few moments to complete the Lease or Loan Assessment.
When comparing all these options, what should I be looking for?
At the very least, you'll want to ask yourself the questions below.
Before you lease:
- What's the total cost of leasing?
- Besides the cost, how does leasing compare to an installment loan?
- Is it important for me to own this equipment?
Before you finance:
- What's the total cost of finance?
- How much do I need for a down payment?
- What are the monthly payments?
- Is it important for me to own this equipment?
Before you rent:
- How long do I need the equipment?
- What are the rental payments?
- What kind of service and support can I expect?
Before you pay cash:
- Is this going to deplete my reserves?
- Could I find a better use for my cash?
- Have I given the other options enough consideration?
What other factors should I consider?
Here's a list for starters:
- Tax issues
- Impact on finance ratios
- Interest charges
- Transfer of risk
- Cash flow issues
- Total cost
- Use vs. ownership
- Time Value of Money
- Off-Balance-Sheet financing
- Protecting bonding capacity
- Avoiding pre-payment penalties
- Concerns about fees and extra charges
These, of course, are just a few of the concerns you might have before you acquire equipment. Many of these concerns will exist at the same time, at different priority levels. The goal in every situation is to match your specific needs to the correct finance solution-a customized solution. And that's where John Deere Credit can help.
What's the most popular option?
Since John Deere began finance equipment more than 160 years ago, we've processed more installment loans than any other option. However, that trend is shifting. In recent years, the construction industry has seen a dramatic increase in using leasing as a finance solution.
Why all the interest in leasing?
According to our research, contractors lease for five key reasons:
- Cash flow issues. In most cases, leasing requires less money up front, and produces a lower monthly payment.
- Total cost. When you consider the Time Value of Money, you'll generally save money by leasing.
- Tax benefits. You'll want to consult your tax advisor to be certain, but in many cases, lease payments are tax-deductible.
- Off-balance sheet financing. Leased equipment does not appear on your balance sheet as either an asset or liability (operating leases only).
- Bonding issues. The stronger financial ratios that come from leasing might help increase your bonding capacity and let you compete for more and larger jobs.
How can I evaluate my needs?
John Deere Credit suggests "Situation Analysis", a process that helps you identify and prioritize your specific business needs, then helps us develop the appropriate finance or lease program. All it requires is some basic information from you, in the form of a short survey.
If I fill out your survey, what will you do with my information?
John Deere has a strict policy of not sharing this information with any non-Deere vendor or business. Any information you provide will be strictly confidential. By supplying information to John Deere Credit, you are neither committing nor obligating yourself to any finance program or product.
Where can I sign up?
It's easy-just give us your e-mail address.
Will John Deere Credit finance other equipment?
John Deere Credit will finance most equipment sold by your dealership.
- Current and used John Deere equipment
- In addition, John Deere Credit will finance other current and used complementary equipment for your construction and forestry business, for example:
- Compaction equipment
- Pavers
- Screeners
- Crushers
- Trailers
- Skidders
- Feller Bunchers
- Harvesters/Processors
- Log Loaders
- Forwarders
- Delimbers
- Cranes
- And more
In addition, we can even refinance equipment you have financed on other John Deere Credit contracts. We can roll them into a single note to help improve your cash flow.
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