About Agricultural Equipment Finance
Equipment financing refers to the credit, including leasing, government loans, and other small business administration loans, which are disbursed to different businesses in the automotive, construction, agriculture, and other industries. It also includes sale and leaseback, which help individual customers raise cash for equipment purchase by selling off collateralized existing equipment.
The interest rate on the credit depends on whether a customer has opted for equipment loan or lease, but the maturity term depends on the equipment's life. In case of loan, once the credit is repaid, the instrument or machine belongs to the buyer. If it is leased, then the funder or the financial institution is the owner of the equipment, but the buyer can use it during the lease period.
Technavio’s analysts forecast the global agriculture equipment finance market to grow at a CAGR of 3.61% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global agricultural equipment finance market for 2016-2020. To calculate the market size, the report considers total financing of agricultural equipment offered to the end-users in the Americas, APAC, and EMEA.Technavio's report, Global Agricultural Equipment Finance Market 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
Technavio Announces the Publication of its Research Report – Global Agricultural Equipment Finance Market 2016-2020
Technavio recognizes the following companies as the key players in the Global Agricultural Equipment Finance Market: Agricultural Bank of China Ltd., BNP Paribas SA, JP Morgan & Chase Co., Deere & Co., and Wells Fargo & Co.
Other Prominent Vendors in the market are: KeyCorp, PNC Financial Services Group, and Banc of America.
Commenting on the report, an analyst from Technavio’s team said: “Banks are currently dominating the agricultural equipment finance market. The credibility that comes with banks has made it a preferred choice of finance for the majority of the loan-seeking individual customers. Banks are highly regulated, and therefore, become a reliable choice for customers. Since the credit market is still recovering from economic slump of 2008, we expect the interest rates to be low during the forecast period. The fall in the interest rate adds to the weightage given to banks for being a potential financer; low interest rate attracts more small farmers in particular as it helps them hold on to their cash balances and exhibit growth to investors.”
According to the report, renting an equipment is a cost effective option for farmers as it enables them to use the latest machinery without incurring huge expenses. The growing number of rental dealers is encouraging financing companies to fund well-maintained quality equipment. These factors have propelled the expansion of the renting business.
Further, the report states that shortage of skilled workers in agricultural firms is one of the biggest challenge faced by the agriculture industry.
Agricultural Bank of China Ltd., BNP Paribas SA, JP Morgan & Chase Co., Deere & Co., Wells Fargo & Co, KeyCorp, PNC Financial Services Group, Banc of America.
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