Invest in Your Farm’s Growth: Tips to Secure the Ag Loan You Need
It’s planting season. This is the time of year that farmers are sowing hope for the future, investing everything they’ve got into the future harvest, praying for just the right amount of rain, just the right amount of heat, and just the right amount of sun to bring up a plentiful crop.
Farmers know how to weigh these investments in their land, but sometimes it can be difficult to know how much to invest—or where to get the funds—to take your farm to the next level. If just a little extra capital can get you the equipment, supplies, building, or land you need to be successful this year and into the future, here are some tips to keep in mind before you stop by the bank:
Have a plan.
When you come into First National Bank of Sycamore to meet with one of our ag lenders, one of the first things we’ll want to do is hear what you plan to do, and why. It’s really all about telling your story—what makes this investment worthwhile for the bank? What’s it going to do for your business and your family? How do you plan to use this loan?
We love this part of the loan process because it allows us the opportunity to get to know more of the farmers in the area and learn how the landscape of our region is growing. It’s exciting to be a part of your vision for the future.
Establish your capacity.
Once we have an idea of what you’re trying to accomplish, we’ll want to review documentation you provide that can account for your current operations. These documents are usually things like a cash flow statement, farm balance sheet, and/or your business history. It’s important for you and for us to make sure there’s a clear pathway for loan repayment so that you don’t get yourself into a bind by over-borrowing. We’ll also talk about what assets you can pledge as collateral in the event that you have to default on a loan.
Bottom line: We aren’t here to stick you with a huge loan you can’t afford; we’re here to help you make sound decisions about your financial investment in your business.
Build relationships.
Like we said earlier, the heartbeat of our business is getting to know the people we serve and helping them make their businesses and communities better. The best part about coming into the bank is being greeted by someone who knows your name and is ready to help you achieve your goals, now and for years to come.
It’s planting season—if now’s the time for you to grow your business, call or stop by to talk with one of our ag lenders at First National Bank of Sycamore. We can’t wait to celebrate the harvest with you.
