It may seem strange, especially when most farm operating loans are signed after the first of the year and even well into spring, but when you borrow farm operating capital matters - and it matters in a big way.
The fact of the matter is, the timing of many farm operating loans just isn’t ideal for most farming operations. Allowing only 12 months from receiving an operating loan to the loan payoff doesn’t cover the entire crop production cycle - or allow you to make financial decisions that could provide you with a bigger profit margin. That’s why many farmers face not having enough cash for their business when they need it.
Operating loans from FarmOp Capital can be secured early - beginning in late summer the preceding year - allowing you to do more than just get a jump on your financial planning for the upcoming crop year. In fact, it can mean significant savings on inputs. In years especially, when input prices jump, locking in early cash discounts can make all the difference.
What’s more, purchasing inputs early, in cash, means you may not have to take out additional loans from third-party creditors to cover the gap caused if your current lender can only provide 60% of your needed operating loan.
As an added bonus, accessing your operating loan earlier in the crop year means increased cash flow throughout the coming crop season.
In a nutshell, extended loan terms and more cash up front - up to 100% of the requested loan amount - means you get to grow your business at your pace.
See how a FarmOp Capital operating loan can help you achieve your goals. Click here to receive a personalized Quick Quote from FarmOp Capital.