Line of Credit or Long-Term Loan?
The first step is to identify your potential reasons for borrowing. Does business slow down at certain times of year, or go up and down in waves? If you’re concerned about cushioning your cash flow during down times or simply need money to fund day-to-day expenses, a working capital loan or revolving line of credit may be a good choice. If you put it in place now, funding will be available whenever you need it.
If you have a goal in mind that requires a lump sum of cash, consider a long-term loan instead. These types of loans are used for financing large projects that are paid off over set terms, typically for the purchase of equipment, property or a business expansion. You may use a long-term loan for building, buying farm land, acquiring another company or any other project that moves your business forward.
The Small Business Administration offers loan programs that make it possible for qualified small businesses to obtain financing that may not be available otherwise. The SBA offers financial assistance through participating lenders in the form of loan guarantees. Loans are available for most business purposes including purchasing real estate, machinery, equipment and inventory or for working capital.
We know that our farmers play a vital role in our communities and local economy. Whether you are looking to expand your operation or manage day-to-day operational expenses, we can provide the financing you need to run a successful farming operation. Successful farming can be complex. Choose a bank that is both a leader and a partner.
Farmer Mac Program
Farmer Mac brings more choices for financing farms along with strong risk management options including long-term fixed rate loans - an essential tool for managing farming expenses. When farmers know the amount of interest they will be paying on their real estate debt – and they’ve locked in the rate for the future – there is one less variable in farm planning. Farmer Mac has a wide range of loan products, and we will help you select the rate and terms that best match your financial needs. The bank completes the Farmer Mac application and approval process and then makes you a loan that Farmer Mac purchases. Other loans, checking and savings accounts that you have with us are not affected by the sale of your real estate loan to Farmer Mac. And we can answer any future questions you may have about the loan we have placed with Farmer Mac.