5 Smart Tips for Successfully Refinancing Your Farm
Anyone who’s in the farming business knows that it’s important to expect the unexpected. Despite our efforts to keep our farming operations protected, they remain vulnerable to economic and environmental forces beyond our control.
This has been especially true in recent years as tariffs and climate change shake the foundations of the agricultural industry. In times like these, farmers across the country begin to look for solutions that will keep their businesses afloat. Thankfully, farm refinancing from MSF agriculture can provide such a solution in an easy and affordable manner.
In this article, we’ll discuss when you should consider a farm refi, and some simple tips for getting started.
When Should You Consider Refinancing Your Farm?
From start-up capital to operational upgrades, running a farm requires a great deal of individual short-term investments. Therefore, it’s a top priority for farmers to pay for existing debts as well as to meet unexpected financial obligations. A farm refi can provide you with the financial flexibility that you’ll need to achieve this balance.
You may also want to consider a farm refi if you’d like to:
- Consolidate your debt into one low interest payment
- Arrange a flexible payment schedule that’s more amenable to your business operations
- Expand your current farming operation
Tips for a Successful Farm Refi
Once you’ve decided to refinance your farm, it will be time to meet with a lender. Here are a few key tips to help get you started:
- Work with a lender who knows the agriculture industry. This will ensure that you find solutions catered to the complexities and challenges of the modern farming business.
- Remember the “5 c’s of credit.” Capacity, capital, collateral, conditions, and character. These are the five most crucial qualities that lenders analyze when deciding whether or not to approve a loan. The stronger you’re able to be in each of these dimensions, the higher your chances will be for approval.
- Be open and honest in your communication. Trust is also a crucial element in any farm refi arrangement. You can demonstrate your trustworthiness by being upfront with lenders about the challenges and opportunities that your business is facing.
- Know your credit score. You should expect any lender to scrutinize your credit score before approving a refinance for your farm. In general, lenders require a minimum credit score of around 620 for a farm refi.
- Gather all of your paperwork. Locating and organizing all of your farm’s financial paperwork will make the farm refi process go much more smoothly.
Refinance Your Farm Today With MSF Agriculture
MSF Agriculture is proud to be an expert lender with deep roots in the farming and agricultural industry. Our unique background enables us to provide truly practical financial solutions to farmers in an ever-changing business landscape. To learn more about our services or to get started with a farm refi, please contact us today!