Top 10 Forestry Equipment Financing & Loan Options (2024 Reviews)

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Considering that a 3rd of America is covered by forests, forestry equipment financing has become the need of many business owners and startups interested in developing the land. The forestry industry employs about 950k people, serving as one of the Top 10 manufacturing sectors in 45 states. So, businesses working in logging, lumber, or forestry industries often require expensive equipment. They can acquire forest management and production machinery by applying for loans. This way, they won’t have to make a major dent in their cash reserves. Let’s now look into the process of getting your forestry equipment purchases financed.

Types of Forestry Equipment Available

To start, let’s look into who can use forestry equipment financing. You may need this option if you happen to be:

• Forestry contractors and subcontractors
• Small and medium-sized enterprises in the forestry business
• New companies entering the forestry industry
• Well-established forestry business seeking business upgrades/expansion
• Timber producers and harvesters
• Sawmills and processing facilities

You can acquire the following pieces of equipment with these financing options:

• Skidders
• Harvesters
• Chippers
• Log loaders
• Delimbers
• Trailers
• Feller bunchers
• Sawmill machinery
• Reforestation tools
• Tractors and utility vehicles

Breakdown of the Top 10 Best Forestry Loans in the US

If you are worried about heavy equipment financing like forestry loans, consider the pros and cons of getting heavy machinery in the first place. This section explores the best forestry loan providers for logging/lumber businesses in America:

1. Swoop Funding

Swoop Funding connects businesses with different financing options tailored to the forestry industry. These solutions help your business get funded very quickly with flexible repayment terms.

2. John Deere Financial

At John Deere Financial, you can get flexible loans as per your equipment needs. However, they haven’t specified their credit score requirements. But John Deere offers competitive rates with customizable payment schedules.

3. National Funding

With a credit score of 600, you can get in touch with National Funding to get your forestry equipment financed. They don’t require any down payment and offer fast funding (which can be as quick as 24 hours). However, their annual revenue requirements can be pretty tough.

4. OnDeck

With OnDeck, you can get up to $250k for your forestry equipment. Even though they have higher APR rates (with a lien of business assets required), they offer same-day funding to even logging companies with poor credit scores.

5. Balboa Capital

At Balboa Capital, you can get half a million bucks to buy logging equipment. However, they need your forestry business revenue to be at least $100,000 a year. If you have this much annual revenue, their quick approval process and flexible loan terms will make your workers productive in no time!

6. Triton Capital

Triton Capital gives you forestry equipment funding of up to $500,000 with a credit score as low as 580. They offer funding in 1 to 2 days. However, you have to give them a personal guarantee along with a UCC lien.

7. US Bank Equipment Financing

You can get up to $1 million of 125% financing at the US Bank Equipment Financing. This lender will finance soft costs like taxes and installation with no blanket lien requirements as well.

8. JR Capital

JR Capital offers financing options involving up to $10 million. With a minimum credit score of 620 required, this lender lacks any solid down payment requirements. However, the con is that you have to commit for 3 years.

9. Trust Capital

This lender also offers financing options for forestry equipment that go up to $10 million. A credit score of 600 is required, offering you a fast approval process and tailored payment plans in return.

10. Funding Circle

Funding Circle lets you get up to $500k in forestry equipment financing. With a credit score of 660 required, you get flexible repayment terms and lower annual revenue requirements. The only con of this lender is that it demands a relatively higher credit score.

Types of Forestry Equipment Financing Options

• SBA Microloans: In America, the Small Business Administration (SBA) network of lenders can give you microloans of up to $50k. These loans don’t have very strict or severe qualifying rules, and your business may qualify without a good credit score.
• Business Grants: If you’re lucky enough, you can apply for business grants, which are like getting free cash to purchase forestry equipment. These funders don’t care about your credit score. However, small business grants are highly competitive. They have strict qualifying rules, so getting these grants isn’t always easy.
• Taking funds from retirement savings: While it’s generally NOT a good idea to use retirement funds to invest in equipment or in a business, consult your financial advisor to determine if you can take some funds from your IRA, 401k or other plan to finance your forestry equipment. It may, under certain circumstances, be a viable funding option.

Forestry Equipment Loans: Are You Eligible?

Did you know how expensive forestry equipment can be? Currently, standing at a market size of 300+ million, forestry equipment, such as machines and different tools, can easily set you back $8.5k to $13k, as per one estimate. That’s why financing options come in handy!

How do you check your eligibility for receiving forestry equipment financing? This section will cover the necessary eligibility criteria and application process for your understanding.

Eligibility Criteria

• Your credit score must be above 600 (personal FICO score). Some lenders, like Swoop and National Funding, may accept lower credit scores.
• You must be in business for at least half a year
• You need to present your business revenue for the last 6 months
• You should showcase your cash flow forecasts
• You need bank statements of your company going back half a year
• You should also show your business registration documents

Application Process

• Shop around and look into different lenders (consider the list of top 10 lenders shared above)
• Check the terms & conditions offered by each lender
• Compare different lenders and see who has the most flexible qualifying rules
• Approach banks, credit unions, online lenders, and others one after another
• Go to a loan marketplace to diversify your forestry equipment financing options
• Get advice from experts who can also help you with the usually complex and time-consuming application process

Financing Forestry Equipment: Pros and Cons

Choosing the Right Lender for Forestry Equipment Financing

Here’s how you should look into which lender works for you:

• Make sure that you’re working with lenders who specialize in financing forestry-related machines.
• Compare different loans. Don’t just sign off on the first quote you receive! Shop around.
• Check the variety of financing options offered by lenders, such as loans, leases, and tailored solutions, among others.
• Priorities working with lenders who offer a quick approval process (ideally 24 hours, but we know that rarely happens).
• Compare interest rates and repayment terms, among others.
• Look for lenders with flexible payment plans that can accommodate seasonal cash flow variations typical in forestry operations (as specified above).
• Read online customer reviews to check the reputation of your lender (and see how we at Sophisticated Investor have reviewed them).
• Understand the lender’s unique collateral requirements for securing financing; some lenders may require less stringent conditions than others.

If you need help understanding which forestry equipment financing option is better for you or your farmland venture, we provide amazing reviews of different lenders and their services.

Get in touch with Sophisticated Investor to learn more about your loan/leasing options in the United States. Take your forestry practice to new heights by purchasing or leasing the forestation equipment you need.

Forestry Equipment Financing: FAQs

Q. Can I get both new and old forestry equipment financed?

1. Yes, as we’ve stated above, some lenders let you purchase old forestry equipment via financing options, too.

Q. Which documents do I have to provide to get financing?

1. You have to present your tax returns, financial statements, business bank statements, and details regarding which forestation equipment you want to be financed (and why).

Q. How long does the approval process take place usually?

1. The approval process can take several days since the lender needs to verify your financial stability and repayment capability.