Agricultural Finance Costs
Farm business loans vary in costs and structure. One common element is interest, which will be charged on the borrowed funds. The interest rate is quoted per annum and usually calculated daily. Payments, depending on the terms of the finance, may be due weekly, monthly, or half-yearly.
Depending on the type of finance, you may be offered variable or fixed rates. Variable rates can mean lower interest rates but are less predictable than fixed rates.
Agriculture business loans may have set-up fees or early repayment charges. Check with the lender for all costs involved with borrowing.
How long does it take to secure agriculture finance?
Agricultural finance can be arranged in a few weeks or may require several months. As with any form of business financing, applicants for agriculture finance should have all their accounts in order and ready for inspection. Business plans, the last three to five years of certified accounts, bank statements and details of assets and liabilities may be needed.