Do you run your own farm and need a cash injection? Sometimes the only solution is to take out a loan for a farmer. It helps solve most of the farm’s financial problems. In this article you will learn where to find a farmer loan and how it differs from classic loans and credits.
Where to look for a farmer loan and why is it worth doing?
Running your own farm is not a simple task – the work is very demanding, and the crops are not always large enough. That is why farmers often fall into financial problems, especially in a situation where crops are very abundant in one year and not in the next.
Fortunately, lenders have noticed the needs of farmers and have prepared special offers for this market segment. It is worth paying special attention to non-bank companies, whose offer may be an alternative to loans taken from banks – some companies from the non-bank sector have prepared special offers for farmers. They can take out a loan online, and can also allocate the amount to any purpose depending on the needs, e.g. the purchase of fertilizers or new equipment.
For some people, it may seem problematic to find a loan dedicated to farmers, but for this purpose it is worth simply using the comparison websites available on the internet. Thanks to them, you can check information on many offers in one place.
Before you take a loan – assess your credit risk!
The financial market offer is very often consumer friendly, but that does not mean that we should take the maximum loan amounts that have been granted to us. It is worth assessing your credit standing and assessing how much loan we are able to pay back.
When it comes to calculating creditworthiness, by the lender, it starts with the analysis of invoices and bills received by the farmer. It is important that this gives the lender the most accurate and complete collection of information on sources of income – including additional information such as EU subsidies or partner programs. The presentation of estimated revenues will also be helpful.
Very often, lenders also want to learn about the farmer’s plans as to what the immediate future will look like. It is important here to have not only your vision, but also specific data that will prove to the lender that your plans will actually be realized. For example, if you estimate earnings, then do not just talk about revenues, but also about costs. In addition, you can include last year’s data as a comparison. Collecting all this information by you will make it easier for the lender to consider your loan application and will also help him determine the maximum amount he can lend you.
Documents needed to take a loan for a farmer
Regardless of whether you will apply for a farmer loan online or offline, you will need a complete set of documents. First of all, you must have documents that confirm your identity and prove that you run a business. In addition, information about your land is also important, including document confirming ownership, entry from the land register. Of course, you can’t forget about the basic document, which is your ID card. When applying online, the procedure is very simple. You go to the lender’s website and complete the application on its website – if you have a problem with some stage, you can always call the lender for help. At the stage of completing the application, it is very important to specify the loan amount and repayment time.
After completing and sending the application, you must wait for a response from the loan company. In the next stage you will get further instructions, most often or someone will call you to confirm your data, or you will be asked to perform a verification transfer. After the application has been approved, you will receive money to your bank account.