Machinery Finance Leader Champions Cash and Technology for Growers and Contractors
Sydney, April 10, 2021
They say “cash is king”, but for most farmers the saying should be “cash FLOW is king”. As the finance arm of CNH Industrial, a global leader in the industrial goods sector, CNH Industrial Capital couldn’t agree more. With a strong presence at a local level they have a robust understanding of the challenges currently faced by Australian farmers and contractors.
As a major lender to the Agricultural Industry for over 38 years, CNH Industrial Capital has introduced a range of flexible finance solutions tailored to the local industry and, according to Aaron Bett, National Sales Manager, Agriculture, it’s all designed to help customers address challenges and remain abreast of technology.
“If you think about the Australian agricultural industry, we operate in a very difficult market, with variable returns, seasons and income. The last few months are a real demonstration of this, with flooding in far north Queensland, extremely dry broadacre areas and very unfortunate bushfires down south,” said Aaron.
Financing machinery with CNH Industrial Capital spreads cash flow across the life of the machine and in turn puts cash back into the business. Aaron further explained, “When you have such high variability of returns, cash flow is important for operating. It’s a tough industry to be involved in and freeing up cash helps farmers meet these challenges”.
It may sound like a no-brainer but CNH Industrial Capital have taken consideration of cash flow one step further, with repayments structured around the customer’s industry. “Cane growers make their repayments every 6-months when they get paid for their sugar; grain growers pay when they receive their grain cheque; and dairy farmers make repayments monthly. Even contractors are able to structure their repayments to fit with their industries.”
CNH Industrial Capital products can also include finance for the service, warranty and maintenance costs of a machine – this means the total cost of ownership for the machinery purchase can be known for the term of the loan.
Sometimes unexpected interruptions can be more than just a breakdown. Back-to-back droughts, bushfires and family tragedies are just a few examples, and that’s when CNH Industrial Capital’s human side really shines through. Having offered finance to the Australian market since 1979, they have a reputation industry-wide for helping farmers out as much as possible and reviewing situations on a case-by-case basis.
“We know what bad years can be like so we’ll talk to our customers and work with them to find a good solution. Wherever possible we’ll let the customers ride it out, and most times they have enough equity in their machines for that to happen,” said Aaron.
According to Aaron, CNH Industrial Capital is one of the only machinery finance companies that allows customers to exit the contract early without incurring early termination fees. This is another particularly important reason to consider machinery finance – technology.
“It’s crucial for farmers to update their machinery regularly. It’s often not about the actual machinery wearing out but the need to reinvest in equipment to keep up to date with the changes in technology and the newest farming methods,” said Aaron. “Many broadacre farmers right now are making combine purchase decisions – if they haven’t already – and are no doubt aware of how quickly technology is moving at the moment. Many efficiency and productivity gains come from technology advancements year-on-year, and the best way keep technology up-to-date is to keep reinvesting.”
Aaron finished by saying, “Our understanding of the need for flexible finance solutions is built upon nearly 40 years in the Australian Agriculture industry. Our our aim is to collaborate with every customer to understand their unique goals, challenges and outlook to tailor financial packages that meet their individual needs and circumstance.”
CNH Industrial N.V. (NYSE: CNHI /MI: CNHI) is a global leader in the capital goods sector with established industrial experience, a wide range of products and a worldwide presence. Each of the individual brands belonging to the Company is a major international force in its specific industrial sector: Case IH, New Holland Agriculture and Steyr for tractors and agricultural machinery; Case and New Holland Construction for earth moving equipment; Iveco for commercial vehicles; Iveco Bus and Heuliez Bus for buses and coaches; Iveco Astra for quarry and construction vehicles; Magirus for firefighting vehicles; Iveco Defence Vehicles for defence and civil protection; and FPT Industrial for engines and transmissions. More information can be found on the corporate website: www.cnhindustrial.com
Marketing and Sales Support Manager
CNH Industrial Capital Australia Pty Ltd
Tel: 1800 807 934