Private-Party Equipment Purchase
Finance farm equipment purchased directly from another farmer, estate sale, or private auction. We handle the title work, lien releases, and lender.
Some of the best equipment deals in agriculture happen between neighbors. A retiring farmer selling out, an estate settling a farm, a producer downsizing after selling ground, an operation switching brands and moving the old fleet. These transactions happen at prices the dealer lot rarely matches, and a buyer willing to handle the paperwork can walk away with a quality machine at a number that leaves room in the budget. The obstacle for most buyers is that conventional bank financing was designed around dealer transactions, and private-party deals have enough differences that lenders who do not know equipment can fumble them.
We do private-party farm equipment deals regularly. We know how to verify title, coordinate lien releases, and structure the transaction so the seller is confident and the buyer is covered. The machine does not need to come from a dealer for us to finance it.
How a Private-Party Equipment Deal Is Structured
The process starts the same way a dealer transaction does: application, three months of bank statements, and the equipment details. The difference is in the closing mechanics. On a dealer deal the lender pays the dealer directly and the title transfer is handled by the dealer's business office. On a private-party deal, the lender pays the seller directly (or a third-party title service handles the funds and coordinates simultaneously), and the title transfer needs to be managed as a separate transaction.
If the seller has an existing lien on the machine, we coordinate the payoff of that lien as part of the purchase. The selling lender needs to be paid before they release the title, so the closing sequence matters: lien payoff first, clean title confirmed, then the buyer's loan funds and title transfers. We are familiar with this sequence and walk both parties through it to avoid the situation where someone expects money or a clear title before the other side has moved.
Payment to the seller after all conditions are met typically takes place within our standard one to two week funding window from approval. For private-party deals, the timeline from application to funded can sometimes be a few days longer than a dealer deal due to the title coordination steps, though straightforward transactions with clean titles and no liens often match the dealer timeline closely.
Refinance Programs
Farm Application-Only Financing
Finance farm equipment up to $400,000 with just an application and recent bank activity. No Schedule F package, no CPA statements, no long.
Bad-Credit (B/C) Farm Equipment Financing
Equipment financing for farmers with challenged credit. We work with B and C credit situations, low scores, prior bankruptcies, and short.
Equipment Leasing
Farm equipment leasing keeps payments lower and lets you upgrade at end of term. We work with tractors, combines, sprayers, and more.
Equipment and Transaction Types That Qualify
Most self-propelled farm machinery with a clean title qualifies for private-party financing. The most common equipment we see in private-party transactions includes Tractors from all major brands, grain combines with headers, self-propelled sprayers, forage harvesters, and skid-steer loaders. Larger implements with meaningful resale value, such as high-capacity planters and large tillage rigs, can also qualify when the purchase price reaches the $50,000 minimum.
Estate sales are a common source of private-party equipment deals and are fully financeable as long as the estate has clear authority to sell (which is a probate or estate administration question, not an equipment question). We have processed estate sales where the executor handled the transaction the same way a private seller would. The paperwork is a little different; the equipment is the same.
Equipment purchased at private auctions, as opposed to dealer auctions, follows a similar process but with an important timing note: most private auctions expect payment within 24 to 72 hours of the sale. Getting pre-approved before bidding is the only way to meet that timeline without paying cash. We can move through a pre-approval process quickly enough to have terms in hand before auction day. Ask us about that process if you have an auction coming up.
Farm Refinance Questions
Related-party transactions are handled on a case-by-case basis. Some lenders are comfortable with them; others are not. The key concern is whether the purchase price reflects a real market transaction. An independent appraisal can help establish market value and support the deal's legitimacy with the lender.
We can start the application before you have the bill of sale in hand, but a signed bill of sale with agreed purchase price is required before the loan can close. Getting that document executed before the lender issues final approval keeps the process clean.
The lender (or a third-party closing agent in some cases) issues payment directly to the seller, or pays off the seller's lien holder first and then the seller receives any remainder. The buyer never handles the loan funds; they go directly to clear the title and pay the seller.
Not required by us or by most lenders. An independent pre-purchase inspection is smart practice for your own protection and can help establish condition for the lender, but it is your call whether to arrange one. Many private-party buyers skip it when they already know the machine and its history.
Get pre-approved before you bid. We can often move through a pre-approval in a few days given your credit profile and general equipment parameters. Pre-approval gives you a firm dollar amount and a lender ready to fund, so the 48-hour window is workable. Waiting until after the gavel is difficult to time reliably.
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