AGRIfinancial Services offers annual operating loans. Loan proceeds can be used to fund input expenses or the entire cash flow needs of the customer, including term debt payments and family living. Loan terms are tailored to meet the cash flow requirements of each individual operation.
We prefer to offer operating loans to those customers with whom we also have a real estate loan relationship, or to customers pledging real estate as collateral on the operating loan. We may limit the territory to areas that we can serve directly from our office or through selected correspondents.
Key Criteria for Eligible Loans
- Source of repayment (crops, livestock, other income) generally taken as primary collateral
- Crop insurance required when crops secure the loan
- Must have real estate loan with us or pledge real estate as additional collateral
- Loans generally written on an annual basis
- Above-average management history
- Acceptable 24-month credit history with a minimum credit score of 675
- Current ratio of at least 1.20:1
- Debt/Asset of 45% or less
- Debt coverage of 1.25 or better
- Loan amount cannot exceed 65% of projected crop or livestock income