Industry | Agriculture
Agricultural Finance in South Africa
Harvest Opportunity with Smart Finance Solutions
In order to grow your business, you need to grow your assets. Agricultural asset finance gives farmers the solutions they need to grow and expand their enterprise, without compromising on capital and quality.
In South Africa, farmers are faced with many challenges, from tough economic conditions to climate change. Instead of presenting farmers with more challenges, agri asset finance solutions awards them with opportunity.
For your agricultural businesses to thrive, you need to invest in the right assets using the right finance solutions.
Agri Asset Finance – For All Your Farming Equipment
Using agricultural asset finance, farmers can invest in the machinery, equipment and vehicles they need in order to grow.
Farmers can finance a wide range of assets which include:
- Tractor and Power
- Soil Cultivation
- Fertilising and Pest Control
- Hay Making
- Smart Applications
Through specialised business finance services, that are already familiar with the agricultural industry, these industry-leading assets can be acquired from renowned suppliers who already have relationships with the solutions provider. Whether farmers are looking to expand their existing fleet of equipment, or they are looking to increase their productivity with smart, modern mechanised solutions, asset finance may be the solution best suited for their budget requirements and desire to grow.
Agricultural Asset Finance from Merchant West
Personalised Agricultural Asset Finance Solutions
Merchant West has worked with agricultural businesses in South Africa for over 20 years. Merchant West Asset Finance has built expertise in the financing of new and second-hand agri equipment as well as specialised equipment. We understand your need for simple finance solutions which will give you the assets you need to grow your business without the fuss. We have built strong relationships with agricultural asset suppliers which gives you the opportunity to get the best deal from globally renowned brands. You will also be given one dedicated portfolio manager to provide you with uncompromised service, giving your business the personal attention it deserves.
With Merchant West as your financial specialist, you:
- Deal with dedicated experts who understand your industry
- Get customised agri asset finance solutions tailored to your business’ needs and cash flow
- Have a variety of smart options to choose from
- Keep up to date with the latest agricultural equipment
- Feel safe and secure with fixed and structured payments
- Enjoy tax benefits with some of our finance options
- Get access to financial advisory services from experts with over 780 years of combined experience in the asset finance industry
- Realise all the benefits of asset finance
A Summary of the Agri Asset Finance Products Available at Merchant West
Business Focussed Finance
Operating Lease – Agricultural asset financing can be done via an operating lease. An operating lease is complete off balance sheet funding which allows for zero depreciation. The interest is also calculated on the capital amount excluding VAT. There is no ownership of the asset at the end of the period, farmers therefore pay for the use of the asset and not the depreciation. Note that there are also operating lease options available with ownership.
Instalment Sale – An instalment sale is whereby ownership is automatically transferred to the business once the final instalment has been received. Unlike with an operating lease, this method is treated as on balance sheet funding and the depreciation can also be written off.
Sale and Leaseback – With a sale and leaseback, farmers can sell the asset(s) back to us and rent it back over the remaining lifespan. This allows farmers to still have use of the asset while freeing up cash.
Contact Merchant West for more information on bespoke agricultural asset finance solutions, tailored to your industry and structured for your ambition.