Ag Loans: Choosing the Right Lender
Getting an agriculture loan can be difficult. You want to make sure the lender of your loan is someone you can trust to help you find the best options for you. Here are some things you can do to find a trustworthy long-term lender:
Make sure your values match up.
It’s important for your values and the lender’s to mesh to create a good foundation for a financial relationship. You should make sure the lender knows exactly what it is important and unique about your farm.
Be clear about what you want and what they can afford.
Lenders are not mind readers -- they don’t know exactly what you’re looking for in a loan, bank, or lender. You need to outline what kind of loan you are looking for, how much you need, what kind of interest rate you can afford and what kind of time period you are looking at to repay your loans.
Make sure the lender thoroughly understands the industry.
Sometimes you can’t choose a lender that deals specifically with the agriculture industry. If your lender isn’t familiar with farming, you will have to fill them in so they understand your farm is not a risk for them. Give your lender an outline of what you grow or breed, how your yields have been, and how you want to grow your farm. Understanding these points will give you a better opportunity to get the best rates.
While being proactive is always good, there are things your lender needs to have before you choose who to work with for a loan. According to Rural Finance, these are characteristics you should look for in a good lender:
- Good communication skills
- Decision-making skills
- Willing to be out in the field to gain a full understanding of the farm
- Able to detect inconsistencies
- Good listening skills
- Basic knowledge of agricultural skills
- Willing to work flexible hours
We understand the importance of a good farmer-lender relationship. If you need help with an agriculture loan, we will be there for you. Learn more about our services, here.
Posted on Mon, March 30, 2015
by Luke Riordan filed under