If your current tractor is no longer sufficient or it is time to upgrade your machinery, you do not necessarily have to postpone the purchase until you have the full amount available. One option is to lease a tractor and spread the cost over an agreed period.
However, before choosing machinery, it is important to consider more than just its price. Power, the range of tasks it will perform, the tractor’s condition, operating costs, and the seasonality of your business revenue can all influence which option will be the most suitable.
1. Start by Defining What Tasks the Tractor Needs to Perform
Starting your search based only on the brand, model, or price is not always the best approach. First, determine exactly what tasks you need the tractor for.
In autumn, these may include:
- plowing and other primary soil cultivation;
- disking;
- cultivation;
- sowing winter crops;
- fertilizer application;
- transportation;
- working with mounted and trailed equipment.
At the same time, it is worth looking beyond the next few months. If you are leasing a tractor for several years, it should be useful to your farm throughout the year.
Consider what tasks the machinery will perform in spring and summer, what equipment it will work with, what workload it will handle, and approximately how many operating hours it will accumulate.
This will help narrow your search and avoid paying extra for specifications your farm does not actually need.
You can learn more about agricultural machinery leasing and available financing options on the relevant ESKA Capital page.
2. New or Used Tractor: What Should You Consider?
A new tractor may mean a lower risk of unexpected repairs at the beginning, a manufacturer’s warranty, and more modern equipment. At the same time, its purchase price will usually be higher.
For this reason, a used tractor on lease may be a practical solution for some farms.
ESKA Capital considers financing not only new but also used machinery up to 15 years old.
When choosing a used tractor, it is important to consider more than its year of manufacture and price. Pay attention to:
- actual technical condition;
- operating hours;
- service and maintenance history;
- condition of the engine, transmission, and hydraulic system;
- availability of spare parts and service;
- compatibility with the required mounted and trailed equipment;
- market value and liquidity of the model.
A cheaper tractor does not always mean lower overall costs. If the machinery requires major repairs after purchase or is out of operation during peak fieldwork, the initial savings can quickly lose their value.
3. Do Not Allocate Your Entire Budget to Purchasing Machinery
When planning a purchase, it is important to consider more than just the cost of the tractor itself.
After purchasing it, the farm will still need funds for day-to-day operations.
Your budget should also account for:
- fuel;
- lubricants and technical fluids;
- seeds;
- fertilizers;
- crop protection products;
- scheduled maintenance;
- spare parts and possible repairs;
- labor costs;
- other operating expenses of the farm.
This is why leasing can be a convenient financing tool for agricultural businesses: instead of paying the full cost of the machinery at once, you can spread the expense over time and keep part of your working capital available for farm operations.
4. What Information Is Needed to Calculate Tractor Leasing?
If you have already found a specific tractor, you should have the basic information about the machinery available for a preliminary financing calculation.
This includes:
- make and model;
- year of manufacture;
- price;
- condition of the machinery;
- information about the seller;
- a link to the listing if the tractor was found online;
- preferred down payment;
- preferred financing term.
ESKA Capital can consider financing machinery that the client has found independently. This may be an offer from a dealer, specialized marketplace, company, or private seller.
Therefore, if you have already found a suitable tractor online, you can simply send the link to an ESKA Capital manager and discuss the possibility of financing it.
For a preliminary estimate of future payments, you can also use the ESKA Capital leasing calculator.
5. How to Plan a Payment Schedule Around Seasonal Revenue
For agricultural businesses, this is one of the most important considerations.
Cash flow throughout the year may be uneven. Periods of significant expenses related to sowing or harvesting campaigns alternate with periods when the business receives most of its revenue from selling agricultural products.
Therefore, when discussing agricultural machinery leasing, it is important to look beyond the amount of the monthly payment.
You should assess:
- when the farm has its highest expenses;
- in which months the main revenue is expected;
- what payment amount the business can comfortably manage;
- what down payment will not take a critical share of working capital;
- over what period it makes sense to spread the financing.
ESKA Capital offers the possibility of an individual payment schedule, allowing the financing structure to be discussed with the specific characteristics of the business in mind.
Financing is provided in Ukrainian hryvnia, and the lease term can be up to 48 months.
6. The Down Payment Should Also Be Considered in the Context of the Entire Season
A larger initial payment can reduce the subsequent financial burden, but at the same time it can use funds that may be needed for fieldwork.
A smaller down payment, on the other hand, allows the business to retain more funds at the beginning.
ESKA Capital offers financing options with a down payment starting from 0%, although specific terms depend on the machinery, the client, and the parameters of the transaction.
Therefore, it is better to assess not only the down payment or monthly payment separately, but the entire financing structure together with the farm’s future operating expenses.
7. Where Can You Find a Tractor to Lease?
There are two main options.
The first is to independently find the required machinery on a specialized online marketplace, from a dealer, company, or another seller and provide the details to an ESKA Capital manager to assess the possibility of financing.
The second is to browse the ESKA catalog, which features vehicles and equipment available for purchase.
This allows you to avoid limiting your search to one seller or one marketplace and select a tractor based on your farm’s actual needs and budget.
Tractor Leasing: Start with a Specific Business Need
Before purchasing a tractor, it is worth answering three key questions: What does it need to do? How much is the business prepared to spend now? What level of financial burden will be comfortable throughout the year?
Once you have the answers, you can move on to choosing a specific model and calculating the leasing terms.
If you have already found a tractor, send us the link and briefly describe the tasks you need the machinery for — we will discuss the possibility of financing it.
If you are still choosing machinery, browse the ESKA catalog, learn more about agricultural machinery leasing, and make a preliminary calculation using the leasing calculator.
To receive an individual offer, submit an application on the ESKA Capital website — our manager will help you calculate the financing terms and payment schedule.