Start The principle of self liquidating debt

The principle of self liquidating debt

Two factors are involved: 1) the amount of funds available to pay debt obligations, and 2) the terms of repayment.

Farm operating, ownership and emergency loans are normal services of the FSA.

Banks of various types are a common source of farm loans, and usually provide short-, intermediate- and long-term loans for operating and real estate.

Insurance companies also have been sources of farm loans, usually of larger amounts, and long-term.

There are many other conventional and nonconventional sources of farm loans, from dealers and merchants to relatives and finance companies.

Even The Small Business Administration is a possibility for businesses with agricultural ties.

Determining the Amount of Credit to Use When you borrow money, consider the following issues for a sound credit program: Is the risk-bearing ability of the borrower sufficient to carry the risk and uncertainty involved with the loan?

Open account credit with the supplier is another source of short-term financing.

Working capital loans are for longer term assets, such as machinery, breeding stock, building renovations and additions.

Security is usually a lien on the real estate of the operation.

Conventional Sources of Credit for Farming The activity and availability of the lenders interested in agriculture loans varies substantially in Missouri.

Loans for operating expenses such as feed, seed, chemicals, fertilizers and feeder livestock should be considered as current operating expenses.