As we enter this year’s growing season, you may be looking at a new piece of farm equipment. Whether you want to invest in cutting-edge equipment to improve your yield or replace worn-out implements, Lake Region Bank’s commercial lending team is here to help you understand your loan options. Let’s take a closer look at the different types of farm equipment financing.
Ag Equipment Loan from Lake Region Bank
Lake Region Bank offers conventional farm operating loans and ag equipment loans to qualified farmers and ranchers. Our products can help you afford your investment in precision ag technology, a new plow, tractor, combine, or any other piece of ag equipment.
How an Ag Equipment Loan Works
An ag equipment loan from Lake Region Bank is similar to any other commercial loan. We offer competitive interest rates, flexible amortization, and local support from our friendly commercial lenders. You can learn more about them and our other ag loan products on our blog.
Who Is Eligible for an Ag Equipment Loan
To determine your eligibility for an ag equipment loan, we’ll take a look at your credit history as well as your operation’s business plan that outlines your goals, expected income, and expenses. We’ll need to see your tax returns and financial statements. These documents help us understand if a conventional ag equipment loan is the right choice for you, or if another program may be a better fit.
The Bottom Line on an Ag Equipment Loan
If you have good credit, a strong business plan, and your documents show a healthy financial history, you will likely qualify for a conventional ag equipment loan. But if you have poor or no credit history or are just starting out on your farm or ranch, we may recommend other financing options.
Farmer Mac Equipment Loan from Lake Region Bank
Lake Region Bank can offer ag loans through Farmer Mac. Farmer Mac is designed to provide long-term credit for farmers and other agribusinesses. Working with Farmer Mac means we can offer more farmers and ranchers competitive loan programs.
How a Farmer Mac Loan Works
Farmer Mac lending programs are for farmers and other agribusinesses. These loans offer flexible rates and terms, quick preliminary approval, and monthly, semi-annual, or annual payment options with no prepayment penalties.
Who Is Eligible for a Farmer Mac Loan
You apply for a Farmer Mac loan through Lake Region Bank or another approved lender. While Farmer Mac lends the money, we service the loan for the life of the loan. That means you work with Lake Region Bank’s local, friendly lending team and can come to us with your questions or concerns. The loan process is similar to the application for an ag equipment loan.
The Bottom Line on a Farmer Mac Loan
If you are looking flexible terms on your equipment loan, a Farmer Mac loan may be a good option for you. Our lending team can explain Farmer Mac loans and your other loan options to you.
There are many different types of loan products that can help you purchase farm and ranch equipment. Our local lending team is here to help you understand your options and help you determine which one is the best fit for your needs and financial situation. For friendly, knowledgeable support, get in touch with our commercial lenders today.
