Ten Steps to Loan Readiness
August 8, 2017 - Author: Mike Jordan, Retired Farm Service Agency Farm Loan Manager
The following ten steps are provided to guide the growth of farming operations that have been in business for at least several years.
- Perform Cost/Benefit analysis
- Run "what if" scenarios
- Develop expansion plan
- Meet with lender
- Plug loan payments into expansion plan
- Complete loan application
- Respond to loan approval or disapproval
- If favorable decision: close the loan
- Obtain loan funds and necessary assets
- Plan your work and work your plan
These are all critical elements that must be in place before undertaking growth. Trying to grow the farm without addressing these elements greatly reduces the chances of success.