Used Agricultural Equipment Financing in McKinney, Texas — Find Your Path

Scan the situations below, pick the one that matches your operation, and click through — each guide covers rates, requirements, and the application steps for that specific path.

What to know before you choose a lender

Used farm equipment financing in McKinney, Texas draws from the same national lender pool as the rest of the country — Farm Credit associations, USDA FSA direct loans, SBA 7(a), community banks, and specialty ag lenders — but the Texas market has a few practical wrinkles. Collin County's peri-urban growth means some conventional lenders treat smaller working farms here as higher-risk, which makes program selection more consequential than it would be in a purely rural county.

The four lanes, at a glance

Lender type	Typical APR (2026)	Best for	Minimum FICO
Farm Credit System	7–9%	Established operations, larger loans	~660
Bank / captive finance	6–10%	Good-credit buyers, dealer purchases	680+
SBA 7(a)	8–11%	Businesses needing longer terms, up to $5M	640+
USDA FSA direct	Below market	Beginning farmers, credit-challenged	No hard floor

Down payments. Plan for 10–25% down on most equipment loans. FSA direct loans can go lower with adequate collateral, but conventional lenders rarely go below 10% on used iron regardless of credit strength.

Collateral. Agricultural equipment is self-collateralizing — the machine secures the loan — which is one reason lenders in this space can be more flexible than unsecured business lenders. That said, FSA requires a 125% security margin, meaning the collateral value must exceed the loan amount by at least 25%.

Debt-service coverage. Most lenders require a minimum 1.25x DSCR — your net operating income must cover annual debt payments by that margin. They'll also review 12 months of bank statements to verify cash flow seasonality, which matters for row-crop and livestock operations with lumpy revenue.

Credit score splits the field

At 680+ FICO, you have full access to Farm Credit, bank equipment loans at 6–10% APR, and SBA 7(a) up to $5,000,000 with terms to 10 years on equipment. Operations in Amarillo and Albuquerque with similar credit profiles follow essentially the same national program matrix.

At 640–679 FICO — the fair-credit range — expect to pay 1–3 percentage points above what a prime borrower pays for the same loan. SBA 7(a) remains available at that band. USDA FSA direct operating loans underwrite on repayment ability rather than score alone, making them the primary route for applicants below 640.

What trips people up

Two issues sink otherwise solid applications. First, lenders cap loan amounts against appraised value — not purchase price. A combine harvester financing deal that looks clean at the auction price can fall apart if the independent appraisal comes in 15–20% lower. Get an appraisal or at least a dealer valuation before you apply, not after.

Second, SBA 7(a) has a 24-month time-in-business requirement. New farm operations that don't clear that threshold need to route toward USDA FSA beginning-farmer programs instead. The FSA direct loan timeline runs longer — up to 60 days — compared to 30–45 days for SBA, so plan accordingly if you're working against a planting-season deadline.

Tax consideration

On the purchase side, used equipment acquired and placed in service in 2026 can qualify for Section 179 expensing up to $1,220,000, which changes the lease-vs-buy math for most commercial operations. The McKinney, TX farm financing programs breakdown walks through how equipment depreciation interacts with operating loan structures for Collin County farms specifically. If you're also weighing real estate against equipment priorities, the McKinney agricultural lender comparison covers which programs allow you to bundle land and equipment under a single facility.