Plant and machinery finance Ireland: construction and agri

For finance and tax purposes, plant and machinery is equipment your company uses to carry on its trade, such as diggers, cranes, loaders, production lines, packaging machines, forklifts and tractors. Buildings are not plant. Lenders prefer machinery with a strong second-hand market, because it holds its value and is easier to recover and sell if needed.

Most companies use hire purchase, to own the machine at the end, or a finance lease, to spread VAT across rentals. Share the supplier quote, your latest accounts and bank statements with lenders that fund construction equipment. Excavators, loaders and dumpers from well-known makers are easier to finance than specialist kit. Match the term to how long the machine will earn money on site.

It varies by lender, asset and your company's accounts. Many lenders ask for a deposit on hire purchase, and some fund the full cost for established companies buying machinery that holds its value. A trade-in can sometimes count towards the deposit. Leases usually ask for one or more rentals in advance instead. A larger deposit lowers the repayments and the total interest.

Yes, with many lenders. They look at the machine's age at the end of the term, its condition, hours used and resale value, and may ask for an independent valuation or inspection. Most do not publish a fixed age limit. Well-known makes with a strong second-hand market are usually easier to finance than older or specialised machines.

Usually 12.5% a year over eight years for plant and machinery your company owns or buys on hire purchase, under section 284 of the Taxes Consolidation Act 1997. Qualifying energy-efficient equipment on SEAI's Triple E register can get a 100% first-year allowance instead. Your accountant will confirm what applies to your machine.

Yes, some lenders offer seasonal, stepped or low-start repayments, so payments are higher in busy months and lower in quiet ones. This suits agriculture, agri contracting and construction, where income is uneven. You still repay the same total plus interest, so check the full schedule and make sure the busy-month payments are realistic.

Up to about 7 years with some lenders, or the machine's useful life if that is shorter. Lenders match the term to how long the machine will keep its value. A longer term lowers monthly repayments but raises total interest, and your company may want to replace the machine before it is paid off.

Sometimes, if your company will own and use it in Ireland. Lenders check the supplier, the invoice, the import and VAT treatment, and that the machine can be identified and recovered if needed. Buying from overseas can bring extra costs, such as freight and customs, which may not be included in the finance.

If payments are missed, the lender can repossess and sell the machine. If the sale price is less than what you owe, your company remains liable for the shortfall plus costs, and a director's guarantee can be called on. Contact the lender early: many will discuss a revised schedule before taking action.

Tractors and farm machinery are usually funded on hire purchase or leasing. If your farm trades through a limited company registered in Ireland, tell us what it needs and we will tell you whether a lender on our panel may consider it. AIB and Finance Ireland both finance farm machinery, and many dealers have finance partners. Farmers trading as sole traders or partnerships cannot apply through us. Our guide to finance for farm companies sets out the options.