How to Get a Secured Loan on Crops

Step-by-Step Guide

1. 1

   Step 1: Investigate the range of lenders who provide secured loans on crops.

   Start with government agencies to identify any possibilities of obtaining government loans, since these often provide lending at very competitive rates.
   
   Also look to the private sector, especially organizations that are focused on offering support services to farmers of all types.
2. 2

   Step 2: Compile a list of viable lenders.

   Base your initial qualification of those lenders on information that is available online and through other media outlets.
   
   This will help to limit your list to lenders who have a history of approving secured crop loans in the amount you have in mind. , As the next phase of the task, delve into more specific information about each lender on your list.
   
   Look into the financial stability of the lender, as well as locating and reading consumer reports about how each lender interacts with its customers.
   
   This will give you some idea of which lenders have a reputation for honesty and integrity.
   
   Remove those who do not seem to be up to your personal standards. , Establish contact and obtain specific information on the qualifications that you must meet in order to submit an application and successfully receive a secured loan on crops.
   
   Keep in mind that while some lenders will accept just about any type of crop that has market value, others may be focused on approving loans secured with specific crops. , After evaluating the reputation and financial stability of each lender, along with policies and procedures used to consider applications, determine which lender is the most likely to provide the secured crop loan you need. , Many lenders will want to see histories of the past performance of the crops you plan on using as collateral for the loan, as well as the usual information on your assets, current liabilities, and other relevant financial information.
   
   In some cases, this may require up to 5 years of data.
   
   Include information such as sale prices and total sales volume related to the growing season from 1 year to the next.
   
   Make sure to include data about any extenuating circumstances that may have negatively impacted crop production in any one of those years. , Use the channels provided by your lender of choice, noting any information about the duration of the application processing.
3. 3

   Step 3: Get the background on each of those lenders.

4. 4

   Step 4: Approach the remaining lenders.

5. 5

   Step 5: Narrow your attention to the lender who seems to be the best fit for your situation.

6. 6

   Step 6: Prepare your support documentation.

7. 7

   Step 7: Submit the application and supporting documents.

Detailed Guide

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