Agricultural Financing

Agricultural Financing

Agriculture financing with an alternative lender is the fastest manner for farmers to secure funds for his or her agribusiness. The fees and term are dependent on the performance of the business. The amount of working capital that may be borrowed is dependent on the month-to-month deposits. Otherwise, there is very little paperwork involved. This is the main reason why the application process is so quick. Click link to learn more about Alternative Financing Advantages.

Click below to see different industries, business strategies, and how to get started.

Business Loans

Agricultural financing is unrestricted business loans made to established farmers that can be used to purchase seeds, fertilizer, poultry, and livestock. Alternatively termed short term farm operating loans, funds can be used to cover labor, power and water consumption costs of various plants and animals. Farmers can upgrade machinery, computer systems and storage facilities with agriculture financing. The importance of a farm having operational funds cannot be understated. Without adequate working capital, a farm operation will not have cash on hand to cover vital expenses. Additionally,  not having enough operating credit or adequate working capital is the number one reason for default and bankruptcy for farmers.

 

Working Capital

Working Capital

Working capital is essential to maintain farming equipment such as tractors, plows, seeders, combines, crop dusters are expensive to maintain. Mentioning fuel, seed, fertilizer, equipment maintenance, or seasonal hired contractors.  According to the USDA working capital requirements over the next several years the agricultural businesses will consequently adjust working capital for most farm products. Conversely, this is creating the need for farmers to increase their business cash flow.

Loans for Bad Credit

Agriculture financing with an alternative lender provides business loans for bad credit.  The number one requirement with conventional lenders is having a credit score above 680. According to a report published by Credit donkey, credit score statics across the country for Millennials age 22 to 35 years is 634.  Generation X adults ages 35 to 51 came in at 655. It also shows roughly 45 million adults don’t have any credit scores.  US Treasury reports denial rates have been roughly above 80% over the past several years with SBA lending.  The truth is most businesses won’t qualify a small business loan through a bank.

Agricultural Financing

Unsecured Business Loans

Agricultural Financing

Unsecured business loans require no collateral. Since creditors take a greater risk, unsecured business loans regularly include higher rates than a secured loan. Contrary to a long term bank loans which interest rates are amortized over years. Unsecured business loans and structure into fixed micro payments with short payment structure. Depending on the amount, unsecured business loans payback generally range from 2 to 12 months. This is one of the quickest and easiest ways to get working capital without the hassle of a traditional loan.

Click below to see different industries, business strategies, and how to get started.