AgDirect Equipment Financing Review

Pros

• Suited for small businesses
• Low interest rates
• Loans and leases available
• Strong mobile apps
• 1 -2 days to funding

Cons

• Opaque borrower qualifications
• Only serves agribusiness

What Is AgDirect?

AgDirect is an Omaha, Nebraska-based equipment financing program offered by a network of specialized lenders called Farm Credit Services of America, which includes participating Farm Credit System (FCS) Institutions.

FCS was established by the United States Congress to provide financing to agricultural businesses, rural homeowners, and related businesses at competitive rates. Because of the specialized nature of the FCS, AgDirect will only be of interest to agricultural businesses.

Services Offered By AgDirect

AgDirect specializes in equipment financing. Borrowers can purchase new or used equipment from dealerships, private parties, or auctions. Equipment leases are also available. AgDirect also offers refinancing options.

In addition to its website, AgDirect has handy mobile apps for iOS and Android that feature loan calculators, quotes, and more.

While AgDirect offers plenty of options for agricultural businesses seeking funding for equipment, it’s not going to benefit businesses seeking more traditional and flexible funding — a factor that is reflected in our rating.

Borrower Qualifications

AgDirect doesn’t list any explicit borrowing qualifications, with a program representative saying they’ve funded businesses with credit below 600. Likewise, new businesses can also qualify for financing through AgDirect. However, the longer you’ve been in business and the healthier your credit rating is, the better rates and higher amounts you’ll probably be able to qualify for.

AgDirect does require that its financing is in the first lien position for the equipment you’re buying, so if you’re under a blanket lien from another lender, a subordination will need to be signed by that lender.

Unfortunately, this lack of transparency had a negative impact on our rating for borrowing qualifications.

Rates & Fees

Here are the terms for buying new or used equipment through AgDirect:

AgDirect’s rates are based on the current Prime rate plus or minus a fixed spread based on your lending profile. In general, AgDirect’s rates will be higher for smaller loan amounts and longer repayment terms.

Some purchases have a shorter maximum term length, capped at five years rather than seven:

• Titled equipment
• Non-titled equipment bought at auction
• Non-titled equipment under $10,000 bought at a dealership

Special lease programs are also available.

Application Process

AgDirect’s application process is a little different depending on where you’re purchasing or leasing the equipment.

If you’re buying from a dealer, you’ll ask the dealer for AgDirect financing. The dealer will complete and submit your application, at which point a credit decision will be made, usually while you’re still at the dealership. If you’re approved, the dealer will provide the financing documents, often within the same day. After you’ve signed and returned the documents, you’ll get your funds.

You’ll need the following to complete your application at a dealership:

• The equipment’s serial number
• Purchase order
• Title (if applicable)
• Contact and tax information
• Valid driver’s license for all applicants

If you’re buying from an auction, you’ll need to contact AgDirect directly at least two days before the auction. AgDirect will return a credit decision, usually within a few hours. You can then bid on the equipment, after which you’ll get forms from AgDirect to complete the process.

Finally, if you’re buying from a private party, you’ll contact AgDirect directly, get a credit decision, fill out the appropriate forms, and then get your funds.

You’ll need the following to complete your application for buying from an auction or private party:

• Valid driver’s license for all applicants
• Bill of sale
• Funding instructions
• Seller’s name and address

To simplify the process, you can apply for financing for new or used equipment through a dealership, private party, or auction through the AgDirect website or AgDirect Mobile app.

Sales & Advertising Transparency

AgDirect provides a lot of information upfront about its financing options, as well as tools for estimating your payment, which is a lot more than most equipment financers provide.

The only place AgDirect comes up short is in painting a clear picture of who qualifies for financing and who doesn’t.

In addition to its website, AgDirect also frequently posts updates on its social media profiles.

Customer Service & Technical Support

AgDirect’s primary method of contact is over the phone. Luckily, there are a few different numbers that will take you right to the department you need to reach without hitting too many dead ends. If you don’t need a response right away, you can also email the company or complete an online form.

User Reviews

There aren’t a lot of reviews for AgDirect online, although there are a few that are mostly positive. The company earns a rating of 4 out of 5 stars (based on 14 reviews) on the App Store, 3.7 out of 5 (based on nine reviews) on Google Play, and 3.2 out of 5 (based on a single review) on Trustpilot.

Negative Reviews & Complaints

Here are some issues you may run into with AgDirect:

• Unclear borrowing requirements
• Poor customer support
• Some glitches on mobile app

Positive Reviews & Testimonials

Some reasons to check out AgDirect include:

• Low rates
• Plenty of financing options, including loans and leases
• Purchase new or used equipment from dealers, auctions, or private parties
• Fast decisions and funding

Final Verdict: Is AgDirect Worth It?

AgDirect is a convenient way to purchase agricultural equipment and should probably be somewhere near the top of an agribusiness’s options. The standout features are good rates and impressive speed of funding.

On the downside, nontransparent borrowing requirements make it difficult to determine if you qualify before applying.

Despite this, AgDirect is an easy and affordable way to get the equipment you need — whether it’s new or used, purchased from a private party or an auction, or financed with a loan or lease. Overall, we rate AgDirect 3.9 out of 5 stars and recommend it as a lending option for agribusinesses.

Looking for more agricultural lending options? Check out our list of the best agricultural loans.

If you need equipment but don’t run an agribusiness, you can check out our list of the best equipment financing companies to find an option suitable for your business.

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