If you’re reading this article, there’s a good chance you own an older post-frame building needing some TLC. Your pole barn is in fair condition, but it’s seen better days. You’ve thought about new post-frame construction but are still on the fence.
Unfortunately, pole barn costs have increased since the start of COVID-19. The lack of building materials amid the “Great Supply Chain Disruption” is to blame for the fluctuation in pole barn prices.
Depending on the scope of your pole barn repair and renovation project, you can give your existing post-frame building a new look for less money.
If you still need assistance, FBi Buildings has teamed up with Compeer Financial to offer capital lease financing options for pole barn repair and renovation projects.
This innovative partnership allows customers to upgrade their original post-frame building without the burden of high upfront costs.
Let’s delve into the details of this advantageous agreement and learn how it can benefit you!
Who is Compeer Financial?
Compeer Financial is a member-owned Farm Credit cooperative serving and supporting agricultural and rural communities. They provide loans, leases, risk management, and other financial services throughout 144 counties in Illinois, Minnesota, and Wisconsin.
Based in the Midwest, Compeer Financial supports the hopes and dreams of rural America. They offer specialized expertise and personalized service to farms of all sizes, crops grown, and livestock raised.
What is a Capital Lease?
A capital (or non-tax) lease is a type of financial agreement where the lessee obtains the use of an asset and agrees to make periodic payments.
Unlike an operating lease, a capital lease is treated as a purchase of the asset. Typically, the lessee assumes ownership of the investment at the end of the lease term. It is characterized by a $1 buyout option.
Capital leases are often used for long-term financing and offer significant advantages such as tax benefits and flexible payment plans.
The following sections discuss the terms and conditions of capital lease financing Compeer Financial provides for pole barn repair and renovation projects.
Capital Lease $1 Buyout Option Details:
1. Purchase for $1 at the End of the Capital Lease: The $1 buyout option empowers customers to take ownership of their post-frame building at the end of the lease term by acquiring it for a nominal amount.2. Comprehensive Construction Project Scope: A capital lease agreement covers a wide range of pole barn repairs and renovations, including:
- Post-frame building shell
- Concrete work
- Electrical installations
- HVAC systems
- Interior finishes
However, it’s important to note that certain exclusions apply, such as excavation (site prep), driveways, landscaping, and digging new wells or septic tanks.
Capital Lease Terms & Conditions:
1. First Lease Payment Due Later: The first lease payment is required upon completion for lease transactions, ensuring a seamless transition from the post-frame construction phase to the leasing arrangement.2. Flexible Payment Terms: Customers can customize monthly, quarterly, semi-annual, or annual payment terms that align with their cash flow preferences.
3. For Agricultural Use Only: The capital lease financing option is available for agricultural use only, with borrow eligibility determined by Compeer Financial.
4. Subject to Credit Approval: Customers seeking capital lease financing are subject to credit approval and conditions set by Compeer Financial.
What Are the Advantages of Capital Lease Financing?
Again, a capital lease agreement through Compeer Financial offers remarkable advantages tailored to meet the financial needs of customers wanting to repair and renovate their existing post-frame building.
1. Tax Benefits: Clients are treated as asset owners for tax purposes. This treatment allows them to leverage tax deductibility determined by their accountant’s recommendation.
2. No Down Payment Required: A notable benefit of capital lease financing is the absence of a down payment. The initial lease payment is due upon the completion of the pole barn renovation project.
3. Collateral Flexibility: Most transactions under the capital lease agreement offer collateral flexibility. This adaptability makes it easier for customers to get their dream post-frame building without spending large amounts of capital.
Why Should You Repair and Renovate Your Existing Pole Barn?
As you read this article, do you still find yourself at the crossroads of deciding between repairing and renovating your existing post-frame building or pulling the trigger on constructing a new pole barn?
Sure, Compeer Financial also offers agricultural loans for new post-frame buildings. You can easily sign a capital lease agreement for this reason. But that original pole barn in the backyard may still be full of life.
Here are two key indicators to know if your current post-frame building is a worthwhile investment or if starting anew is the better option.
1) Pole Barn Structural Integrity
First, structural integrity refers to a pole barn withstanding anticipated loads without breaking. Any post-frame building must resist vertical and lateral loads regardless of size and geographical location.
Your older pole barn may be salvageable if no structural components are bowing, sagging, or uplifting.
We recommend having a post-frame builder inspect your pole barn for structural damage. Some signs are more evident than others. A trained eye will scan every inch for weak links that may cause post-frame building collapse.
2) Extend the Pole Barn's Useful Life
Second, you can extend your pole barn’s useful life if the structural integrity is intact. Your post-frame building may look different from what it did in [insert year built], but simple pole barn repairs and renovations can make it look as good as new.
Moreover, you can repurpose your post-frame building. For example, you can repair and renovate your existing agriculture building by framing a portion for living quarters and adding an interior finish like drywall. You can also install a deck system or build a pole barn addition if more storage space is needed.
Editor’s Note: A post-frame builder with an in-house engineering team will tell you which structural upgrades must be made to extend your pole barn’s lifecycle while being code-compliant.
Get Started on Your Pole Barn Repair and Renovation Project!
FBi Buildings is committed to delivering exceptional pole barn repair and renovation services, including but not limited to:
- Gutter Leaks
- Rotted Columns
- Walk Door & Window Replacements
- Re-Roof, Re-Side, or Total Re-Skin
- Sliding Door Adjustments
- Interior Finishes (Ceilings, Insulation, Lofts & Walls)
Our dedicated team of experts has the knowledge, resources, and workforce to extend any post-frame building’s useful life or reconfigure it for a new purpose. Best of all, it does not matter who built the original structure!
In partnership with Compeer Financial, FBi Buildings is prepared to bring your vision to life. Please call (800) 552-2981 to see if you qualify for this exclusive financing option and take the first steps toward renovating your existing pole barn.
Additional Resources:
The Ultimate Guide to Pole Barn Repairs & Renovations
How Much Does it Cost to Reskin a 30’ x 40’ Pole Barn?
How Much Does it Cost to Reskin a 40’ x 60’ Pole Barn?
How Much Does it Cost to Repair Rotted Pole Barn Columns?
Do you have more questions about pole barn financing that aren’t covered in this article? If you need help designing and planning, please contact FBi Buildings at 800.552.2981 or click here to email us. If you’re ready for a price, click here to request a quote, and a member of our Customer Engagement Team will help you determine the next steps.