East Coast farmer leverages land equity to increase operational liquidity.
Taking the time to understand the financing options available to you is the first step towards financial success and a thriving operation. The loan development process can be intimidating, confusing, and time-consuming, but can also pay off tenfold—especially when you partner with a lender who understands the specific financial structure needed for agricultural operations to excel.
The Challenge
An East Coast farmer realized his current financial structure was limiting the cash flow he needed to enhance and expand on his operation. He was the primary operator of nearly 5,000 acres of timberland. He realized his land rich yet cash-poor financial structure was inhibiting his ability to grow his operation and caused him to seek out alternative options that would provide the flexible liquidity he was searching for.
The Solution
AgAmerica reviewed his existing debt obligations and was able to reduce both his interest rate and payments through a $4MM, 30-year amortization loan product. While this already boosted his operational liquidity, AgAmerica was also able to secure a $1.5MM 5-year RLOC to supply him with instantaneous capital. Through this two-product loan package, the borrower had the capital required to fund upcoming sales, future expansions, and product development.
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