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January 10, 2017

The Power of 10 to Back You Up: AgAmerica’s 10-year Line of Credit

AgAmerica’s 10-year line of credit is a common sense option for meeting the lending needs of those in the country’s agriculture industry.

Those in the industry know all too well about the ups and downs of running a successful ag operation— and that the lending needs of that operation could change on a dime. From machinery breakdowns and livestock vet bills to market changes and catastrophes like bad weather, a farmer’s or rancher’s need to borrow money or review all of their ag financing options can change quickly. That’s why AgAmerica created its unique, no-hassle 10-year line of credit: to give those in the ag industry the lending flexibility to meet any financial need their agribusiness might face without taking time away from the farm or ranch. Explore all the benefits and unique attributes of AgAmerica’s 10-year line of credit below.

A Line of Credit Explained

A line of credit (a.k.a., LOC) is a loan, which works like revolving credit until the end of the loan. Borrowers are extended a loan amount, say $5,000, and they can borrow as little or as much of that amount as they’d like— and they can use the money for whatever they choose.

Interest is only paid on the portion borrowed, and whatever amount the borrower repays goes back into the available credit, just like with a credit card.  If a borrower used $2,000 of their LOC, and then made payments totaling $1,000, the account would still have $4,000 of the original line of credit available for use. The interest rates for LOCs are generally more favorable than the rates of credit cards.

Lines of credit also typically offer flexibility in repayment. A borrower can repay what they’ve used in a lump sum or in monthly installment payments. The cycle of borrowing and repaying continues until the end date of the line of credit, which is established when the loan is taken out.

Unique Advantages of AgAmerica’s 10-Year Line of Credit

However, not all lines of credit are created equal, and the terms of the loan make all the difference as to whether the loan benefits the borrower or just the lender. As an agricultural lender, our 10-year line of credit has many distinct advantages over LOCs offered by other lenders, making it a valuable financial tool for many agricultural borrowers. Benefits of AgAmerica’s 10-year line of credit include:

  • Time. The 10-year lifespan of our line of credit is unique in the lending industry. Most LOCs are for a 12-month span, meaning the paperwork to get re-approved for the same LOC must be renewed year after year. AgAmerica’s 10-year line of credit is good for a decade.
  • No Cash Draw Limits: Other lenders will limit the number of times you can withdraw cash from your line of credit. AgAmerica’s 10-year line of credit has an unlimited cash withdrawal option.
  • No Non-Use Fees. Other lenders will charge you fees if you don’t withdraw money from your line of credit. AgAmerica’s 10-year line of credit has no non-use fees.
  • No “rest periods” or mandatory pay-downs. Other ag lenders will make borrowers “rest” their LOC, also called a mandatory pay-down, where the borrower must pay their balances down to $0 for a specific amount of time. AgAmerica’s 10-year line of credit has no mandatory pay-downs or “rest periods.”
  • Easy Repayment Terms. Unlike other ag lenders, AgAmerica’s 10-year line of credit offers easy repayment terms, such as interest-only payments, and repayment schedules (amortization) as long as 25 years to lower your payments.

Our 10-year line of credit is just one of many custom loan products that AgAmerica Lending offers to the nation’s farmers and ranchers to help them grow and succeed. Read success stories that others in the ag industry have had with our 10-year line of credit. Explore the details of our 10-year LOC and get verified here.

If you’re looking for other agricultural land loan or bridge land loan options, check out our land loan calculator and contact us with any questions you have.  We are here to provide you with the loan for agricultural land that best suits your needs.

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