Read how this Texas rancher lowered his rate on existing debt and secured a $1MM RLOC for operational improvements.

Traditional lenders are often constricted by excessive regulation and guidelines when it comes to financing agricultural operations. This can prevent landowners from acquiring access to the low rates available even with an optimal borrowing history.

The Challenge

A recreational ranch owner in Texas was referred to AgAmerica by his financial team to refinance existing debt with a different lender. He was a strong borrower and wanted to lower his rate and improve cash flow to provide funding for future operational improvements on his ranch. His financial team recommended AgAmerica, knowing that he would be able to maximize his principal and interest savings and, in turn, increase the working capital he was looking for.

The Solution

Because of AgAmerica’s industry knowledge and ability to provide flexible financing options, the borrower was able to refinance his existing loan with a $10MM 5-Yr ARM loan product. Due to his excellent record as a borrower, he was only required to sign a limited guarantee of 50 percent, rather than the industry standard of full recourse. This facility included interest-only payments for one year. To boost his immediate capital even more, AgAmerica also secured a $1MM 10-Yr Revolving Line of Credit (RLOC) for the borrower to use as needed for upgrades within his ranch operation.