Agricultural business loan question

Board Topic: agriculture business wants to put up land and busi
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agriculture business wants to put up land and busi

Posted by: mina Aug 7 2004, 12:27 PM
what are my chances of finding a lender??
We are a 50 year old agriculture business (incorporated) and up until two years ago was fine. After tragedy and loss of our 8 year old son to unknown viral encephalitis and twice a change of office staff we need to correct what was the results of our hardship. The company is owned by a sole share holder. But do to our inability to focus on the business, things were neglected and
as a result we have poor credit scores. We have paid off a few large amount loans in the past. and up until a couple of years ago had perfect credit. We are hoping to borrow against our property and business. We did pretty good like i said in the past and we know we can bring in the same amout of sales again. we basiclly need alot of repairs on our greenhouses and operating capital.
have you any idea who could possibly lend against production also
??
we are a grower wholesaler in the flower industry. and wedding flowers is our specialty.
were could i possibly find a lender??
thank you for your time.

Posted by: loanuniverse Aug 7 2004, 06:42 PM
Mina:

I am sorry to hear about your family problems. Unfortunately, I can not answer direct questions about whether or not people can get a lender. However, I can tell you the following:

1- If you have tangible assets to pledge as collateral such as real estate, chances are you will be able to get a loan. It is a fact that a lot of non-mainstream lenders will lend solely on the basis of collateral at a high interest rate safe with the fact that the real estate is there to protect their down side.

2- A mainstream lender on the other hand will take a look at this by assessing your capacity to repay. This means that if things have been neglected for the last couple of years and you are showing losses there is very little chance that you will get a lender.


I know it sounds discouraging, but if I were in your position I would do the following:

a- I would find out how exactly has my personal credit been affected by pulling a credit report.

b- I would figure out my current financial position as well as that of my business.

c- Get an idea of what kind of capital expenditures are needed and figure out how to raise the financing.

d- Contact a couple of lenders. Do you have someone already with whom you work? I personally think that it is important to keep a relationship with a commercial lender at all times. Sometimes when business get big enough, they spread deposits and loans over a couple of banks/lenders and that is even better.


Like I mentioned before, giving money to a business that is loosing money is a though sell for a lender to make to his supervisor or loan committee, but loans like that have been known to be approved. If that does not work, you might want to start thinking about other resources that can be tapped such as private investors, family or even selling some of your assets.

Good luck.

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