Agriculture and agri processing
Farming finances against land and machinery, and the operating requirement is concentrated into planting and harvest. Both halves need planning well ahead of the season.
How the balance sheet reads.
Equipment and quota carry appraisable value and finance on longer terms than most sectors.
The operating line has to be in place before input costs are incurred, not when the invoice arrives.
Agricultural specialist lenders understand the cycle, and the file usually goes further with one of them.
What usually does the work here.
WHERE IT GETS DIFFICULT
- The Canada Small Business Financing Program excludes farming. Different programmes apply.
- Commodity price movement between the facility and the harvest is a genuine underwriting risk.
- Equipment and vehicle financingDriven by asset value, commonly $25,000 to $5,000,000 Finance sized against the asset itself, for machinery, fleet and production systems, including sale and leaseback on equipment you already own.
- Working capital and lines of credit$50,000 to $2,000,000 Revolving credit sized against deposits, receivables and inventory, for the gap between paying suppliers and getting paid.
- Commercial real estate financingDeal dependent, commonly $500,000 upward Purchase, refinance and construction financing on commercial property, arranged through licensed mortgage brokerages.
A agriculture and agri processing file, read properly.
Tell us the amount and the purpose, and we will say what is realistic in this sector.
No lender hears your name until you say so.
A request emailed to twenty lenders leaves twenty records. The next one to see it reads the declines before they read the deal, and a file that looks shopped is priced as one. So the list is built with you, approved by you in writing, and nothing leaves this office before that.
- Call
- 416-841-8468
- Hours
- Weekdays, Toronto time