If you’re looking for farm credit loans to expand your thriving agricultural business, then let’s first congratulate you. It means your venture is poised to grow further with additional funding. This is even sweeter if you bootstrapped your way to where you are right now.
However, as farmmortgageloan.com stated, making a strong case for your loan application can be difficult and nerve-wracking. This is especially true if you’re doing it for the first time. After all, this deal can serve as the launching pad for your business to boost production and increase profit.
To answer important questions and impress your prospective lender, make sure to do the following:
State Your Goals
Make sure you have an ironclad plan before speaking with a lender. You should know exactly what you need the money for and how much you have to borrow to achieve it. Your business plan would help the other party capture your vision. Financial and production goals, as well as the land and facility’s availability, are among the most important things you need to show to your prospective lender.
Show Off Demand for Your Crops
Dreaming big inspires confidence, but lenders don’t make decisions without concrete evidence, like your record of sales. You ought to demonstrate the demand for your crops or livestock to get a favorable response during negotiation. Farm loan programs usually have providers, so they’re no stranger to the AG business and understand better which products are sought-after in particular places.
Depending on what you grow and sell, explain your unique strategy to scale up your production. When planning to conquer new markets, make sure you know the strengths and weaknesses of other local producers. Make sure to highlight your edge over them, as well.
Prepare Your Financial Records
No lender is comfortable to loan a large sum to a farmer without a history of profits. Explain where you sourced your initial capital to build your AG venture from scratch, and how you overcame financial challenges. Make sure everything you do with your money is well documented. Bring your balance sheet, income and cash flow statements, and proof of insurance with you.
Securing a farm loan is hard. But if you have a big idea and a solid plan to make it happen, a discerning lender can take a change on you.