Find out how possessing character and capital can secure an ag land loan

Before working to secure an agricultural land loan, potential loan borrowers (loan borrower meaning an individual, organization or company using funds, materials or services on credit) should consider whether they have the 5 C’s of Credit, with the first two being character and capital.

Land lenders are looking for character, or the borrower’s reputation and standing in the local ag community, and capital, defined as the borrower’s personal investment in his or her agricultural operations. These factors help land lenders determine a borrower’s risk of defaulting on a land loan – and the stronger the individual’s character and capital are, the more likely they are to be approved for their desired ag credit.

Lenders will often conduct a background check of the borrower’s credit history to determine if he or she has missed any payments. This helps determine a borrower’s character and whether they are trustworthy and reliable to qualify for a loan. How the borrower conducts their business affairs during both the ups and downs is an important factor of a borrower’s credibility that ag lenders analyze.

A borrower’s capital is also taken into serious consideration. AgAmerica’s ideal borrowers do need to have equity in their land, and those interested in borrowing are proactive and evaluate their operations sooner rather than later to ensure they’re in a solid position before reaching out to a lender. By contacting us sooner, we may be able to help cut financing costs and/or payments to ensure the long-term success of the operation.

Building a Lender & Borrower Relationship

At AgAmerica, we’re committed to finding unique solutions for our clients, and we are committed to cultivating a strong relationship between lender and borrower. As the country’s premier land loan specialists, we help agribusinesses, big and small, grow and prosper with our low interest rates, long amortizations, and an outstanding 10-year line of credit.

Curious to learn more about how AgAmerica can meet your specific needs? Check out our ag calculator for farmers and ranchers and consider contacting us today.