How Long Does it Take to Do Marketing for a Farm Loan Company?

Farm loan companies must market to farmers differently from traditional business customers. This requires tailoring a marketing strategy specifically

to their individual needs; for example, farmers might require loans for new equipment upgrades that increase efficiency and remain cost competitive in their fields of farming or livestock raising.

One of the key factors when applying for a farm loan is whether or not a borrower possesses the creditworthiness to repay their debts. A minimum credit score of 660 may be necessary in order to be approved, while additional considerations such as personal income and farm property value also come into play when determining how much loan money can be approved.

Larson suggests that those entering the farming industry should find a lender with expertise in agriculture to make the application process much simpler, as well as to secure commercial or agricultural loans from an institution that specializes in such loans.

Before beginning the loan application process, it is beneficial for borrowers to develop a farm business plan. This plan should help organize goals and needs while giving lenders an idea of what kind of money borrowers require in order to reach those goals. Financial projections over five years should also provide a complete picture of a borrower’s finances – including income/expense trends, tax burden, capital gains/losses, depreciation schedules and any collateralized assets available as collateralization of loans.

A business plan must also outline the types of products or services being produced and sold, along with details regarding pricing and distribution methods. This information allows borrowers to accurately value their offerings as well as estimate future revenue streams over time. Furthermore, they should include any off-farm household income which will support loan payments.

One key element of any farm business plan is its financial structure and organizational practices. A farm should use separate accounts for both business expenses and personal expenditures and keep records of all activities relating to its operation, in order to avoid miscommunication when filing taxes. Furthermore, they should identify markets for their products while showing they possess the capacity to supply those markets.

Finally, borrowers should be prepared to provide any additional information requested by their lender, such as copies of driver’s licenses, insurance policies or any other pertinent documents. In addition to considering Farm Service Agency or Small Business Administration loan programs to increase chances of financing. Lastly, farms should shop around between multiple lenders in order to get the best deal available.