Agri-One Financial offers intermediate or equipment financing. Loan proceeds can be used to purchase new equipment or can be used to refinance their equipment line. Loan terms are tailored to meet the cash flow requirements of each individual operation.
We prefer to offer equipment loans to those customers with whom we also have a real estate loan relationship, or to customers pledging real estate as collateral. We may limit the territory to areas that we can serve directly from our office or through selected correspondents.
The following guidelines are to be used for determination of eligibility for the Equipment Loan Program.
Key Criteria for Eligible Loans
- Equipment loans can be made for the purchase of capital items or refinance of capital items, Machinery & Equipment.
- Loan to Asset Value cannot exceed 70%. It will be possible for the 30% customer investment to be paid from the operating loan (OL) if the OL shows the ability to pay in full by maturity date.
- Perfected liens will be taken only on financed capital items. VIN numbers are to be included on executed documents
- Above-average management history
- Acceptable 24-month credit history with a minimum credit score of 675
- Current ratio of at least 1.20:1
- Debt/Asset of 45% or less
- Debt Coverage of 1.25 or better
- Term of the Loan will not exceed 7 years for new equipment purchases and 5 years for used equipment or the refinance of equipment. The term of the loan cannot exceed the useful life and value after normal depreciation of the capital item.
- Scheduled Principal and interest payments on at least an annul basis sufficient to pay the loan in full by maturity. No balloon payment loans.
- The variable interest rate index will be the prime as published in the Wall Street Journal.
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