Services
Leasing
Leasing offers a wide array of benefits and our team can help determine if leasing will work for you.
We lease farm equipment, grain storage, center pivots, farm buildings and more!
Benefits of Leasing:
100% Financing – A Frontier Farm Credit lease can preserve working capital and avoid an initial down payment. All that is due is the first lease payment.
Tax Benefits – There are distinct tax advantages to leasing as well. Lease payments are often fully deductible, and may allow you to write off an expense more quickly. Tax laws seem to change every year and there are lots of options for accelerated depreciation right now, but leasing still can offer some steady write-offs through lease payments. Or if accelerated depreciation is desired, we can structure a lease to allow that, and still get the other benefits of leasing.
Lower Financing Costs – With the appropriate lease structure, we can offer up to a one-percent discount on fixed lease rates under today’s (2011) tax laws. Right now is also a good opportunity to lock some very low rates.
No Mortgages (Fixture Leases) – Leasing does not require additional collateral and is only secured by the leased asset, therefore no mortgages are required. This also saves on loan costs over a typical real estate loan.
The next time you are considering capital purchases, be sure to check all of your options.
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