“We have dealt with Mr. Yochem since 2008 and have financed and leased several projects through his company. They immediately get the ball rolling as soon as we have initial communication on a request. The financial institutions he uses seem to relate well to agri-businesses. They understand the irregular cash flow of agricultural operations and schedule payment terms accordingly. They are concerned about the items they finance and make sure the customer is satisfied with the equipment as well before funding anything.”

Gene W.
Newton Grove, NC

Leasing Equipment: The FAQ

You have questions. We have answers.

Are rental payments deductible on a lease?
Yes, a true or tax lease allows you to deduct rental payments for equipment used in the operation of a farm or business. We can also structure your lease to allow you to take full advantage of the depreciation write off.

Where does the equipment come from? 
You choose the equipment that bests suits your operation from the vendor of your choice. A leasing company simply provides the funds for you to get your equipment.

Is leasing available on used equipment?
Yes. Typically, we try to work with equipment no older than 10 years of age, but depending on the condition and type of equipment, exceptions can be made for much older equipment.

How long are the lease terms? 
When it comes to leasing farm equipment, terms typically range from 2–7 years with most being 3–5 years. Terms are available for up to 10 years on select equipment.

What type of equipment is eligible for leasing?
Basically any and all types of equipment, new or pre-owned, can be leased. This includes self-propelled, mobile and stationary equipment. We have handled equipment requests that have ranged from traditional tractors, sprayers and tillage equipment to trailers to transport bees to plastic containers for handling produce to large-scale grain bin/dryer set-ups.

What are the criteria to be approved for farm equipment leasing?
We handle both “A” and “B” credit but normally look for someone who has been in business for at least five years and has a satisfactory credit history. If financial statements or footnotes are required, a good rule of thumb is a debt to asset ratio of 50% or less.

How long does it take for approval?
If all of the information required is provided, a credit decision can be reached in 24 hours or less. It may take slightly longer for larger size transactions or ones that require earnings information.

What type of payment is due upfront on a lease?
If you want to pay monthly, either one or two monthly payments are all we’ll need to start your lease. Quarterly, semi-annual and annual payment structures are also available if you prefer, and typically, the first payment is due in advance. We also offer a very popular “harvest pay” program, where 10% of the equipment cost is due at delivery and future annual payments then start after harvest.

How does state sales/use tax figure into a lease?
Sales or use tax is collected depending on the requirements of your state government. If sales/use tax is due, it is normally collected over the term of the lease and added to each rental payment. In situations where sales tax is all due upfront, it's possible for it to be capitalized into the cost of the equipment.

I like to pay cash for equipment. Why should I lease?
There are a number of reasons! Just check out our Benefits of Leasing page.

If I need to provide earnings information, why are three years needed?
Farming, like any business, has its ups and downs. Looking at a long-term trend gives us a better idea of your business. Most of the time, however, all we require are both sides of the 1040 and the Schedule F (for farm borrowers) for each of the three years. And don’t forget — we won’t even ask about your earnings until a certain cost level for your equipment is reached.

Can I lease equipment that comes from a neighbor, individual, or auction company?
Yes, we have the ability to handle private party sales. A lien search will be conducted on the party selling the equipment to ensure clear title to all parties involved.

How do I get started with a lease?
Call us directly at 1-800-960-4456 to discuss your needs and get a FREE quote.
Or simply complete and fax an application to us at our toll free fax number: 1-800-500-9505

Still have questions about leasing equipment? Call or email Darryl Yochem today!

fax: 1-800-500-9505

Cameron Financial - Equipment Leasing & Financing Specialists

Physical Address: 3200 West End Avenue, Suite 500, Nashville, TN 37203
Physical Address: 4030 Wake Forest Road, Suite 300 • Raleigh, NC 27609