Insight Commercial Capital Launches Agricultural Finance Division
OCT 23, 2018 - 7:02 am
In response to financial challenges faced by Minnesota farms, Insight Commercial Capital launched a new Agricultural Finance Division.
The profitability of farming can fluctuate drastically year to year. According to the USDA, net farm income has decreased by 13% this year, while farm sector return on assets is now down to 2.3%, making 2018 the fourth lowest year since 1990. Insight designed its new agricultural program to help local farms weather lean years just like this.
Most Minnesota agricultural operations have strong assets, including vast tracts of land and valuable equipment and heavy machinery. But when revenue is down and incoming cash doesn’t cover annual expenses, strong assets don’t help. Next season may be profitable, but that doesn’t matter if a farmer can’t cover loan payments and banks foreclose on their land or equipment before next harvest.
Insight Commercial Capital’s new agricultural financing program is designed to help farmers through gap periods like 2018. The program offers low rates and rapid approval for financing across the agricultural sector. Special features include farm equipment financing, ranch loans, farm land loans, cattle loans, and financing for farmers with lower credit ratings.
Insight’s funding model also brings together a large network of agricultural capital sources in one lending platform. Lenders are placed in a competitive environment where they bid to offer farmers the best financing terms. This results in a larger lending pool, a faster approval process and lower rates for farmers. Insight’s staff then works directly with each applicant to help them evaluate offers and select the financing that will be best for their particular operation.
Saint Paul, MN-based Insight Commercial Capital is a commercial loan brokerage. They specialize in agricultural financing and farm loans.
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