Get pre-qualified before you apply for a compacting 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 compacting loan is used to help a farmer purchase a compactor.
Compacting Loan Borrowers
A compacting loan can be extended through a variety of sources. These include banks, the federal government, a state or local farm co-operative or a private lender. The private lender that makes compacting loans available should specialize in underwriting and providing compacting loans.
Terms and Conditions of a Compacting Loan
The terms of a compacting loan may be short or long-term, depending on the financing needs of the farmer. A compacting loan can be for a period of 1 to 2 years or as long as 25 or 30 years. The length of a compacting loan and other terms and conditions are set forth in a loan agreement. The loan agreement is the understanding between the compacting loan borrower and lender.
Compacting Loan Interest Rates
Compacting loan borrowers with excellent credit ratings will qualify for loans that have the best interest rate. A better interest rate means that the cost of the loan will be less than a loan made to a borrower with a poor credit rating. The difference in loan costs can be several hundreds of dollars. A borrower with a poor credit rating should consider obtaining a co-signer to lower their interest rate.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?