Operating Lines Of Credit For Farmers & Ag Businesses
As a local agriculture bank active in our rural South Dakota and Iowa communities, we recognize the unique challenges and risks our farming friends and neighbors experience. In fact, many of our seasoned agriculture lenders grew up on farms or currently tend land or livestock themselves. It’s this first-hand knowledge that lets farmers know they’re in good hands for ag financing at Rivers Edge Bank. A farm operating line of credit, also known as a farm operating loan, provides flexibility in the off seasons as you continue to plan for your future.
From a lively discussion on market trends to informed advice on agriculture loans that can keep your business moving forward, we aren’t just here to lend, we’re here to be a friend you can trust with important business decisions. We are a reliable ag finance partner and resource for local farmers. An ag line of credit is just one opportunity we offer to create more possibilities and enhance your potential by increasing cash flow for your business.
How Does An Ag Line Of Credit Work?
An ag line of credit works like a credit card: once you’re approved, you can access funds as needed to cover daily expenses. Interest only accrues on used funds, so there’s no downfall to having an ag line of credit in your business’s back pocket.
Amidst fluctuating markets and unpredictable weather patterns, farmers deal with a lot of uncertainty, but one thing you can be sure of is our ag lenders having your back for all the ups and downs. A farm operating line of credit serves as a stabilizer with revolving credit that can be paid back as you go, allowing you to withdraw funds instantly up to your allotted amount as often as you need. Variable rates provide added flexibility as you make payments that line up with current market trends. Along with competitive rates, we offer flexible repayment options, including monthly, quarterly, semi-annual and annual payment schedules based on your operating needs and credit structure. Loan advances can be set up automatically, done online or by calling your banker.
We work with you as your dedicated ag financing partner to design a solution that best fits your business and your future goals. Enter your numbers into our ag calculator online to get a good idea of what to expect from your farm operating loan.
Types Of Expenses Covered By A Farm Operating Line Of Credit
From fertilizer to feed, livestock to labor and a number of other regular business expenses, an agriculture line of credit can be a lifeline to your business as you keep up with day-to-day costs while still leaving room for growth in your future. A farm operating line of credit covers various types of expenses, including but not limited to:
- Livestock
- Equipment
- Rent
- Fertilizer
- Feed
- Seed
- Repairs
- Working capital
Compared to a one-time equipment or real estate loan, a line of credit doesn’t have to be put to use for one specific purpose. The initial limit on your line of credit likely won’t be as much as you’d receive for a single lump-sum loan, but you can access a line of credit repeatedly and spread it to address multiple needs for your business. Critical expenses don’t have to be out of reach once you’ve secured convenient, reliable ag financing from Rivers Edge Bank.
What Is The Difference Between An Ag Line Of Credit & A Loan?
The main difference between an agriculture line of credit and loan is that a loan provides a lump sum for larger, planned expenses, while a line of credit offers revolving funds for operating costs. Borrowers only pay interest on the amount used and can reuse available credit. Lines of credit offer more flexibility in terms of what they can be used for and repayment, but loans typically meet higher borrowing needs and provide a more predictable repayment schedule over a set period of years. Lines of credit typically must be renewed each year.
At Rivers Edge Bank, we have a variety of ag financing solutions available whether you need an agriculture loan to fund new farmland or an operating line of credit to increase cash flow. Both options fulfill different needs and can be used in tandem to support your operational goals.
Benefits Of Operating Lines Of Credit As An Ag Financing Solution
Farm operating lines of credit make it easier for farmers to manage cash flow year-round, with revolving capital available to support ongoing needs and flexible repayment opportunities aligned with your earnings. Cash flow ensures you can pay for everyday expenses and emergencies that arise even in the off season. Credit cards offer similar flexibility, but a line of credit carries higher limits and lower interest so you can access the funds you need and owe less. As an added benefit for Rivers Edge Bank customers, your farm operating loan is entirely in your hands with online banking for ag financing.
Manage Your Ag Financing Online
Capitalize on the ease of online banking to fully take control of banking and your business. Transfer funds and make payments at your fingertips using your phone or computer. Customize alerts to stay informed about your accounts, transactions and security. Best of all, fully integrate all of your ag financing and business banking needs online and access key features like Mobile Deposit, Bill Pay and eStatements to manage multiple facets of your business from one secure location online. Safe, convenient and empowering, online banking with Rivers Edge Bank gives farmers all the tools they need to be successful both in the field and behind the scenes as you successfully navigate your business.
Connect With An Ag Lender At Rivers Edge Bank
Gear up for an exciting future for your farming business with Rivers Edge Bank as your local ag lender in South Dakota and Iowa, ensuring nothing gets in the way of your growth plan. Utilize a farm operating line of credit for peace of mind during the off season, and see how flexible ag financing improves your ability to plan for the future and ultimately explore exciting endeavors for your business. Call your local Rivers Edge Bank to learn more about our full suite of agricultural services, or connect with a lender to get started.
Find An REB Location