With the constant evolution of farming technology, upgrading your business machinery is key for maintaining efficiency and staying ahead of the competition. Upgrading farming technology comes with many benefits, ranging from improved operational and financial efficiency to more streamlined business growth.
That said, new farm machinery can add up to some substantial costs for a business. Here, we delve into more detail about the various benefits of farm upgrades, and how machinery finance can make those more accessible to you.
Efficiency gains – Perhaps one of the biggest arguments for investing in new farm machinery is the enhanced efficiency it will provide. Dated equipment can often cause production delays, as well as racking up maintenance bills and using up more resources. Newer technology, meanwhile, will optimise power and fuel usage, freeing up time and energy to cover more ground, optimising production.
Technological innovations – Keeping up with the latest advancements in agricultural technology also allows you to cut down on manual work, while boosting precision at the same time. Farm upgrades such as harvesting automation or GPS-guided tractors allow you to make major improvements – from optimising planting to forecasting harvest yields and monitoring the health of crops.
Warranty periods – Servicing, repairs and part replacements are a natural part of the machinery lifecycle, but when you have older technology, you’re running the risk of delays with sourcing the elements you need, or a hefty bill because your warranty has run out. New farm machinery saves you all the trouble, providing several years of support and reduced service costs. Plus, the latest industry equipment will likely come with superior diagnostics tools which help do away with downtime so you can meet your production targets.
Cost effectiveness – While farm upgrades might mean paying quite a bit upfront, you could be saving money in the long run. Between reduced downtime, increased productivity, and lower spend on repairs, your bottom line could quickly prove that it’s worth the investment. Plus, your new farm machinery will be using less resources, and have a longer lifespan – no need to shell out on a replacement in a couple of years.
Here are a few reasons why you should consider asset finance as an option:
Asset finance has become an increasingly popular solution for business owners who are looking to spread the upfront costs of farm updates. It’s a great way for farmers to keep hold of their capital while still taking advantage of the latest technological improvements.
By spreading the payments across multiple instalments, agricultural businesses can maintain a steady cash flow for other key operation needs. Meanwhile, you’re reaping the benefits of the latest innovations, so that your dated technology isn’t failing you in an increasingly competitive field.
Machinery finance is also quite versatile, meaning it can be adapted to meet your business requirements. If you only need the new farm machinery for a defined period, leasing can give you access to premium agricultural technology. Meanwhile, those searching for a longer-term financial arrangement can look into options such as hire purchase, which means you’ll have the option to own the equipment once the last instalment is paid.
By making the switch to new farm machinery, you will hopefully see improvements to both cost and performance efficiency, which can positively affect your profit margins.
Our asset finance solutions have been designed to let farmers leverage the benefits of new technologies without disrupting their workflow by allowing you to spread the costs of agricultural equipment over a longer time period.
T&Cs will apply, subject to status and affordability. Any asset used as security may be at risk if you do not repay any debt secured on it.