Farm Loans with Bad Credit
Agriculture business loans for farmers who need funding to maintain or grow their farms or ranches. Borrow between $5,000 and $850,000 to keep your farm growing.
Easy Farm Funding for Farmers and Ranchers Across the USA
Business Finance Source™ understands the day to day financial obstacles farmers and ranchers face. Our understanding of the farming industry allows us to evaluate each farm loan application we receive from farmers with compassion and understanding. Whether you want to expand your farm or maintain your current farm, we can provide you with the funding you need.
Types of Farm Loans At Business Finance Source™
Business Finance Source™ offers six different types of farm financing, select the one that suits your needs best.
Unsecured Farm Loans
Suitable for farmers who need funding for various farm purchases and renovations without providing collateral.
Farm Equipment Financing
Suitable for farmers who want to purchase machinery or upgrade existing farm equipment to make it easier to operate their farm.
Farm Cash Advances
Suitable for farmers that accept credit card payments for the sale of farm produce, products, or services and want to sell a portion of their future credit card sales in exchange for a lump sum of money.
Farm Real Estate Loans
Suitable for farmers who want to purchase farm property, agricultural land, pasture land, and other types of agricultural property and land.
Farm Lines of Credit
Suitable for farmers who need a revolving line of credit to pay for farm-related operating expenses like livestock feed and salaries with the ability to clear the line of credit at the end of each month.
Farm Working Capital Loans
Suitable for farmers who have a gap in their farm’s working capital and need funding to replenish it, with the ability to repay the loan over six to twelve months.
Understanding Farm Industry Loans
What Is A Farm Business Loan?
Despite how well farmers budget and manage their finances, negative cash flow periods do happen. Farmers with less than perfect credit can find it very difficult to get bank loans and financing.
A farm loan is a financial product for farm owners and ranchers that have poor credit. The loan gives farmers the finance they need to run or grow their farms, even with poor credit.
Who Can Apply For A Farm Loan?
Farms all types can get farm financing from alternative lenders. Examples of eligible agri-businesses include:
- Agricultural Farms of any size
- Crop farmers and producers
- Fruit and nut tree farming
- Cattle and dairy ranchers
- Agricultural nurseries
- Hydroponic farms
- Forestry
- Equestrian farms
- Poultry farms
- All types of livestock farms
What Can Farm Loans Be Used For?
Farm Equipment Loans
Farming is difficult without reliable equipment and machinery. Farm equipment loans make it easier for farmers to buy the equipment they need to make life easier. The loan may be used to buy brand-new, used, or specialized agricultural equipment, such as:
- Tractors
- Farm cultivators
- Irrigation systems
- Silos
- Specialized farm machinery
- All types of new or used equipment farm machinery
Farm Working Capital Loans
Running a farm involves a lot of daily expenses. A farm working capital loan gives farmers access to funds to cover daily operating costs. The loan can be used to buy feed, seed, fuel and lots of other expenses including:
- Purchasing Supplies
- Purchasing livestock
- Purchasing crop seed and fertilizer
- Surviving bad weather that effects crop production
- Rebuilding after typhoons and natural disasters
- Refinancing an older farm loan
- daily upkeep and farm maintenance costs
- Hire more help
Farm Land and Property Loans
Without enough land or the appropriate facilities, scaling a farm can be a challenge. An agricultural land loan can be used to buy land and other things such as:
- Covering land rental costs
- Making improvements and repairs to land
- Expanding a farm by purchasing more land
- Improving or constructing farm buildings
Farm Loan Benefits And Drawbacks
Benefits
- Farm loans help to pay for farm operating expenses until livestock sale time or harvest time.
- Farmers with poor credit can still access the vital capital they need to keep their farm afloat.
- A farm’s growth is no longer stifled by a lack of funds or capital.
Drawbacks
- Applying for any loan with poor credit will incur higher interest rates because lenders take on more risk.
- In cases where a farmer’s credit rating is very poor, lenders may require collateral as security.
- Higher interest rates can eat into farm profit margins.
Farm Loan FAQs
A farmer with bad credit will have difficulty getting a loan from a traditional lender. USADA’s Farm Service Agency can assist farmers with bad credit in securing funding. The agency guarantees the lender to pay back a part of the loan if the borrower defaults. Unlike most lenders, Business Finance Source provides farm loans with bad credit.
Yes. You can reduce the tax burden on your farm by deducting the interest you accrued on your farm loan.
No. Banks rarely give loans to farmers with poor credit unless they are backed by large amounts of collateral.
Obtaining debt financing for the purchase of a new farm is very difficult. Rather than debt financing, consider business equity financing instead.