Factoring Services and Business Loan Insights

Qualifying for a farm loan depends on a variety of factors, and lenders may have different specific requirements.

Here are some of the best ways farmers can improve their chances of obtaining a loan:

Strong Credit History: Maintain a good credit score by paying bills on time and managing debt responsibly.  

Solid Business Plan: Having a detailed business plan demonstrating the viability and profitability of the farm operation is essential.  

Financial Documentation: Lenders will want to see proof of income, such as tax returns, balance sheets, and cash flow statements.  

Experience and Management Skills: Demonstrating experience in farming and strong management skills can increase your chances of approval.

Collateral: Having assets to pledge as collateral, such as land, equipment, or livestock, can make you a more attractive borrower.  

Loan Programs: Explore government-backed loan programs, such as those offered by the USDA Farm Service Agency, which may have more flexible eligibility requirements.

Strong Relationship with Lender: Building a good relationship with your lender and providing clear communication can be beneficial.  

Realistic Loan Amount: Requesting a loan amount that is appropriate for the size and scope of your farm operation is important.

Debt-to-Income Ratio: Maintain a healthy debt-to-income ratio to show lenders you can manage your finances effectively.

Up-to-Date Records: Keeping accurate and up-to-date records of your farm's financial performance probably ought to be of paramount importance, if you are attempting to impress a lander that you will be a responsible steward of the money he lends you.

Contact us today to get your Loan Program started.

Underestanding SBA Loans for Small Businesses

One name that stands out from all the rest is the SBA. In actuality the SBA does not make any loans. It provides guarantees to lenders that if there is a default they are guaranteed that their funds will not be lost. The SBA provides over 10 different types of loans. The main thing of interest here is that they lend from about $500.00 up to $5.5M. Finding a bank which offers loans such as these might be hard to come by. However with the backing of the SBA any small business startup would be given a chance.

Conventional loans can provide you with flexibility and higher loan amounts, but that comes at a price of stronger credit worthiness, stronger collateral and larger down payments. While SBA loans allow lower down payments, better interest rates and offer guarantees to the lenders via government programs but then that comes with longer waiting times, stricter eligibility and a whole lot more paperwork.  

Added to all this is the fact that SBA have strict guidelines about the use of their funds. Since this a Government program focused on promoting job creation and economic growth while supporting small business. The guidelines are strict and the funds are generally utilized for activities such as real estate acquisition, equipment purchase,  working capital and all things related to the health of the business.

While all lenders have closing costs these costs can vary wildly and they certainly add up. Fees such as appraisal fees, origination fees, title insurance, legal costs and other fees, can come to quite an impressive amount. The SBA limits the fees that lenders can charge, thereby reducing the financial burden on borrowers. Also more good news to borrowers as the SBA offers fee waivers for specific loan programs such as the SBA 7(a) loan program for certain eligible borrowers.

To see if your loan qualifies for SBA funding make that call today and see what they are funding.

When seeking a Business Loan a term that you might have heard is a non-recourse loan’. What exactly is it? What does it. mean and how does one go about applying for one? Well let’s examine what is a Non Recourse Loan.

These are special types of loans where the borrower's financial risk is limited to the collateral that is pledged as security for the loan and nothing more. Unless between yourself and the lender something is worked out that offers the lender more than the collateral that is already securing the loan itself; then that collateral is the only thing at risk.

Another advantage is that there is easier access to the capital that the business needs, with limited personal financial constraints. As a whole with all things provided they can be easier to qualify for and most times a whole lot faster to obtain. This is mostly used by startups and companies with limited cash and limited company assets.

The first thing that you will get to know about non- recourse loans is that they are priced at premium rates. Interest rates are higher than regular collateralized loans. This is so since the lenders are taking on more risk than they would normally accept, they usually charge a premium to compensate for that risk.

The lenders usually hold the principals to stricter qualification requirements also. A Bio is required of everyone with 20% or more in the company, with details of their experience and years in the intended field. Work experience is scrutinized, credit is checked and any item not seen in  the best light is made to be accounted for. Often they must provide collateral with excellent value. Collateral usually being real estate.

Projects that deal with Large scale building enterprises such as Apartment housing, Mining, Large scale Land Development and other such large projects are the ones most likely to interest lenders in that category. Oil, Green Energy and any other massive capital intensive venture have benefited from some of these loans.