How to Quickly Access Working Capital with AgAmerica’s Accelerated Loan Program
In 2018, AgAmerica conducted an in-depth consumer insights study with the help of an experience design firm. We performed this analysis in order to better understand the financial needs of the farmers and ranchers we proudly serve. Through this study, AgAmerica found that the most used words by farmers to describe the lending process indicated a general unease when it came to obtaining financing for their operation.
When seeking a quick approval loan for farming, the lengthy list of documentation requirements is often the biggest deterring factor. In fact, the documentation process is where a quarter of all applicants trying to secure financing decide not to move forward.
In a time when cash is king and essential to the resiliency of an operation, the difficulty in obtaining adequate financing is an obstacle all too many farmers face. While the loan process often drags on for months with mountains of paperwork, farmers are blocked from accessing the capital needed to continue providing sustenance for our nation and the world. Only two percent of our population provides for the entire nation, meaning our American farmers have an enormous weight on their shoulders to maintain financial security and keep food on our plates.
Taking this realization and feedback into consideration, AgAmerica developed the Accelerated Loan Program to simplify financing and streamline the loan process for our nation’s farmers and ranchers. As an alternative land lender and central servicer, we’re able to customize flexible loan packages to suit the specific needs of an operation and promptly provide access to necessary capital. Through the Accelerated Loan Program, AgAmerica minimizes the number of documents required and expedites the agricultural land loan approval process.
How to Qualify for a Quick Approval Farm Loan
Qualifications for our quick land loan approval process are adaptable to each unique situation. General farm loan requirements we assess include:
- Loan amount between $50,000 and $2,500,000;
- 25-acre minimum; and
- A credit score of 680 or higher.
It’s important to note that these guidelines are subjective to each situation, with possible flexibility available along with a variety of loan term options. Loan terms can range anywhere from 5 to 30 years with a maximum loan to value (LTV) ratio of 75 percent. Adjustable and fixed rates are available depending on what best fits the situation.
Advantages of Using the Accelerated Loan Program
The Accelerated Loan Program is a data driven product with an average 48-hour approval window. “[It’s] happening in residential lending and now we’re doing it in ag lending, revolutionizing the industry,” says AgAmerica’s CEO, Brian Philpot. This innovative ag lending solution benefits the farmer in several ways.
Less Documentation Required
Rather than the standard 12 common documents needed for a land loan, AgAmerica’s Accelerated Program applicants can provide as little as three documents to determine eligibility.
- The Accelerate loan application;
- Three most recent year-end federal tax returns; and
- A current balance sheet or financial statement.
Additional documents may be required on a case by case basis. However, our experienced relationship management team is available and will work with you directly to provide assistance throughout the document-gathering process.
Once documents are received, the approval process can happen in as soon as 24 hours. The closing process is streamlined as well—with land appraisal taking up a majority of the time—and have closed in as little as 30 days from when the application process began.
Flexible to Specific Needs
AgAmerica’s singular focus on agricultural land means we are not limited by the same regulations as traditional lenders. It allows us to customize flexible loan packages to fit the borrower’s unique needs. Whether you’re looking to refinance existing debt, purchase property, or obtain operational credit, we keep your farm goals in mind when formulating your custom loan in order to make these goals achievable. We offer fully amortizing loans where borrowers have the option to set up payment schedule on a monthly, quarterly, semi-annually, or annually basis.
No Prepayment Penalties or Annual Fees
AgAmerica is in it for the long haul when it comes to helping farmers and ranchers achieve financial success. All loan products at AgAmerica have zero prepayment penalties or annual fees attached, aside from a one-year lockup period for the Accelerated Loan Program. Once you’re a part of the AgAmerica family, you can rest assured you will be working with a team who understands the volatility of the industry and works hard to meet your financing needs through unpredictable circumstances.
Online Loan Application Process
AgAmerica collaborates with digital applications to enable farm and ranch operators to apply virtually for financing online, sign documentation, and monitor loan status from the comfort of their own home. At AgAmerica, we heavily prioritize data security for both our employees and clients as we continue creating new efficiencies to make the financing process as stress free for applicants as possible. All data on servers and workstations is encrypted and our network is protected by multiple layers of security including firewalls and certificates. Employees go through reoccurring cyber security training to ensure all information provided stays protected and secure.
Accelerated Loan Program Helps American Farmers Build a Stronger Financial Foundation
“AgAmerica had by far the easiest process with the best customer service that we have ever been involved in. Nothing is easy in life but dealing with a great loan company makes it a little easier. We will definitely be using AgAmerica for all of our future business needs.”
– AgAmerica Client
In good times and tough times, farmers and ranchers are the backbone of our civilization and work tirelessly to continue providing this essential service. When farmers thrive, so do the American people. AgAmerica’s mission isn’t simply to finance loans, it’s to find the best solutions available and ensure agricultural operations are set up to succeed for future generations to come. Our commitment to creating a financial structure that is resilient in an ever-changing world is evident in the success stories of our American Farmers.
Here are a few ways our dedicated team of Relationship Managers stepped in to advocate for American agriculture.
Row Crop Farmers Refinance to Drop Interest Rate and Boost Revenue
A soybean and corn farming couple in Indiana, with an initial 8.5 percent interest rate on existing debt, was able to refinance through the Accelerated Loan Program and cut their rate down to 4.5 percent. This additional cash flow was used as funding for their poultry egg operation which further boosted operational revenue.
Cattle Rancher Lowers Payments and Secures an Operating LOC
Feeling pushed out by his current lender and struggling to meet payments, a Colorado rancher used the Accelerated Loan Program to refinance debt, lower payments, and secure operational credit for his cattle ranch expenses.
North Carolina Farmer Converts High-Interest Debt and Cuts Rate Down Over 60 Percent
A cotton and sweet potato farmer turned to AgAmerica for assistance on an existing loan with a high interest rate of 12 to 14 percent. After converting his loan into a pivot product which cut his interest in half, his financial structure improved. We were then able to obtain approval for the Accelerated Loan Program, further dropping his interest rate below 5 percent for a 30-year term.
The AgAmerica Difference
“The people at AgAmerica Lending enhance the process by keeping it simple and quick. Interaction and communication are the right buttons to push when dealing with your financial needs from a lending institution.” – AgAmerica Client
At AgAmerica Lending, we prioritize innovation and efficiency. As a leading agricultural land lender, we take a hands-on approach to revolutionizing the industry in a way that best meets the needs of our farmers and ranchers. These needs can often fluctuate over time, so we maintain lasting communication and transparency with our clients to ensure their financial structure continues to evolve along with it. The diversity of our products enables customizable solutions that are specific to each borrower’s unique situation. Through the Accelerated Loan Program, we’ve been able to expedite financing for farmers and set their operations up for future success.