October 26, 2020

Buy a Horse Farm With Horse Loan Financing  

By adminbacha

Buy a Horse Farm With Horse Loan Financing  

The recent downturn of the American economy has also signaled a shortage of lenders willing to invest capital to all but the most pristine of creditors. While many Americans do not have a perfect credit rating, there are several exceptions to this trend,    slickcashloan.com  one of the most pivotal being the rate of borrowing for American farmers.

The amount of capital being lent to small farms has been increasing each year, even as the economic forecast has gone south. The reason behind this is the utility of corn — that bio fuel companies need endless quantities of the crop in order for research, development, and production. While this boom has been extremely helpful for corn farmers, the trickle down affects small farms of every stripe, and most banks today are more than willing to invest money into family farms growing other crops or animals like horses.

The most important consideration for any bank upon lending is probability of return. For that reason, farmers with very poor credit scores are still unlikely to procure rates in decent quantities or with decent interest rates. Thus, while a party without financial strength will be unable to get a decent value on farm or horse loans, average or above average credit should be more than enough for a strong, low interest rate against any borrowed money regardless of if the funds are used to buy horses or farms. Nonetheless, it is important for farmers — like any financial customer — to present a strong plan to banks for a return on their investment, otherwise banks may be unmoved by the request and deny it.

Banks operate on the principle of risk management, which is why poor credit scores are often rejected outright; so what these farmers invest in is less important than the plausibility of a return with interest (hence why non corn farmers are perfectly eligible). If the party is borrowing against their mortgage or home ownership, it’s important that the house in question is in solid quality and on a good sized plot of land. Recent production and profits are also taken into account, as well as other interests such as proximity to other farms, housing developments, cities, or businesses.

As such, once a loan is given, there’s no limit to what it can be spent on so long as the investment is a profitable one. Many farmers use borrowing to buy horses and farms, as these can bring in considerable profit on their investment. Foals, for example, may cost only a few thousand dollars if they are not from a specific bloodline, but can be sold for ten times that amount once they reach maturity and prove capable of being trained. In the past finding horse loan financing has been a little tedious in that not many lenders advertise that they offer “horse loan financing”. Reason being, most lenders don’t specialize in the lending of funds for the sole purpose of providing someone with money to buy a horse(s).