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Farming Finance, Agriculture and Farming Loans
When evaluating farming
loans it's the overall finance package that is put
together that has to suit. Avoid paying large broker fees
if you don't need to. With Business Loan Advice, our fees
are seldom above 1% of the total loan. If you prefer to
lease, please click to get our farm
equipment leasing section
Retain Ownership. Instead of raising funds
by selling part of your farm, livestock or property, you can retain
the current ownership. The lender is only entitled
to an interest return on its business loan, not a percentage of the profits
or a share in the company that an investor would expect. Better Cash Flow. A loan gives you access
to capital with minimal up-front payments and the flexibility
to design a loan schedule that suits your needs. You can organize
your loan schedule to match your payments with the projected
cash flows from the proceeds of the funds this will help you
minimise the drain on your working capital. Borrower is legal owner of equipment. If
you decided to take a business loan against your equipment, unlike some
other forms of financing you remain the legal owner of the equipment. Financial Flexibility. The proceeds from
the business loan can be used for almost any purpose including paying
off current debt to avoid higher interest rates, short repayment
term, or pending balloon payment. A loan for commercial use also allows you to
preserve your cash and working capital. Maximize Financial Leverage. Normally you
can use your refinance most of your assets, real estate, commercial
equipment and vehicles, to arrange for a commercial mortgage or loan and may free up
cash flow for other pressing needs. Simplified cash flow management. Loan schedules
are preset, making cash management more predictable. Tax advantage. Interest payments on your
loan are tax deductible and are made with pre-tax money. Purchases
financed with profits, in contrast, are made with after-tax money
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