![]() One solution when experiencing financial difficulty could be AgAmerica’s transitional farm loans, which provide a short-term solution for borrowers with lower credit scores who often wouldn’t qualify for conventional loans. These interest-only loans can provide immediate cash flow relief to rebuild a more financially resilient operation. In addition, they provide flexible use of funds to empower farmers to make the best decisions for their operations. Securing Transitional Farm Loans with Bad Credit Speak with a Relationship Manager to learn more about minimum credit score requirements. For most AgAmerica loans, the minimum credit score requirement is 680, which is below the national average credit score. However, our Relationship Managers speak with each farmer on an individual basis to learn more about their unique needs and financial history. As a result, exceptions to the credit score minimums can be made on a case-by-case basis with our custom loan packages. ![]() AgAmerica’s Flexible Farm Operating LoansĪs an alternative land lender, AgAmerica’s loan services are not restricted by the confines of traditional lenders-providing AgAmerica with greater flexibility when building custom loan packages. Like most lenders, AgAmerica sets a minimum credit score for many of our loan packages. While traditional banks often lack options for borrowers with low credit scores, AgAmerica offers alternative financing solutions. Factors That Affect Your Credit ScoreĪt this point you might be wondering how credit scores are determined. The answer is that a variety of financial factors are taken into account. These factors include:īecause farmers often cannot rely on consistent paychecks, upfront financing is an important tool for giving them timely access to working capital for input costs. Lenders use this credit score range when determining credit risk and interest rates. Understanding what your score says about your credit history gives you a better understanding of the financing options available to you. Understanding Credit Scoresįair Isaac Corporation (FICO) credit scores range from 300 to 850. The infographic below depicts the standard range of FICO credit scores and what they mean. Before learning more about alternative financing options for farm loans with bad credit, let’s first establish the scale on which credit scores are evaluated. When seeking financing for farmland, it is important to understand how your credit score can impact your farm loan options.Ĭredit scores measure the likelihood that a borrower will repay debts as agreed. Therefore, understanding how lenders use credit scores is helpful when farmers are interested in securing capital for their operation. Because AgAmerica is an alternative land lender, we have more autonomy than traditional financial institutions when it comes to our financing and use of credit scores.
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