Top 5 Mistakes Farmers Make When Financing a Tractor (and How to Avoid Them)

Financing a tractor might seem straightforward, but small missteps can cost big. Avoid these five common errors when arranging your next loan or lease.

1. Wrong Term Length

Never exceed the tractor’s productive life—match term to usage.

2. Ignoring Cash Flow

Repayments must fit harvest timing, not banker schedules.

3. Not Comparing Structures

Each model—chattel mortgage, lease, loan—affects ownership and tax differently.

4. Underestimating Maintenance Costs

Include service and downtime costs in repayment planning.

5. Skipping a Specialist Broker

Work with experienced equipment finance brokers for better rates. Start via BK Brokers today.