Get-qualified before you apply for a baling loan. Our free business capital search engine will allow you to see the funding programs and lenders that are available to you and then you choose those you wish to apply for.
A baling loan is made to farmers and agribusiness entities that are in need of purchasing baling equipment. This loan is specially designed to finance the cost of baling farm equipment to help a farmer bale hay, feed and other items for which a baler is used.
Special Purpose Loan
A baling loan is a special purpose loan that is designed specifically to fund the purchase of a baler. The terms and conditions of a baling loan are structured around the purchase. If a farmer has other needs for farm equipment, such as tractors, they must use a different type of agricultural loan.
Types of Baling Loans
A borrower of a baling loan should have good credit and not be in default of any other types of loans. These loans are offered by private lenders such as banks and finance companies and are underwritten to ensure that the lender will be repaid in a reasonable period. A baling loan may be for a few years or written as a declining balance loan (one that diminishes over time as the value of the equipment diminishes. A declining balance loan can be in place for as long as 25 or 30 years.
Secured Baling Loans
Lenders may seize the assets of the loan in the event of default. This securitization of the loan protects the lender’s interest in the event that the borrower defaults on the loan. If a default were to occur, the lender may simply repossess the baler that was purchased with the baling loan and attempt to sell it in the open market to recover their investment.Credit is the lifeblood of your business, especially for small or new startup companies. BusinessFinance.com assists entrepreneurs to get started purchasing equipment, building your inventory and expanding your business.
Some important items to know to finance your are:
- How much money do you really need?
- Do you know your exact FICO scores?
- How do you plan to repay the loan?
- Who is going to borrow the money? You personally or another legal entity?
- What assets can you pledge to secure your loan?