The recent downturn in the US economy has also signaled a shortage of lenders willing to invest capital in all but the most pristine creditors. While many Americans do not have a perfect credit score, there are several exceptions to this trend, one of the most important being the debt ratio of American farmers.

The amount of capital lingering on small farms has increased each year, even as the economic forecast has gone south. The reason behind this is the utility of corn: that biofuel companies need endless amounts of the crop for research, development, and production. While this boom has been extremely helpful for corn farmers, the trickle down affects small farms of all kinds, and most banks today are more than willing to put money into family farms that grow other crops or animals. like horses.

The most important consideration for any bank when lending is the probability of repayment. For that reason, farmers with very low credit scores are unlikely to get rates in decent amounts or at decent interest rates. So while an unfinancially strong party won’t be able to get decent value in farm or horse loans, average or above-average credit should be more than enough to get a solid, low interest rate against any money lent, regardless of whether the funds are used. to buy horses or farms. However, it is important that farmers, like any financial client, present a solid plan to the banks to get a return on their investment, otherwise the banks may not accept the application and deny it.

Banks operate on the principle of risk management, which is why low credit scores are often rejected outright; then what these farmers invest in is less important than the plausibility of a return with interest (thus non-corn farmers are perfectly eligible). If the party is borrowing against their mortgage or home ownership, it is important that the home in question be of good quality and on a good size lot. Recent production and profits are also taken into account, as well as other interests such as proximity to other farms, developments, cities or businesses.

As such, once a loan is made, there is no limit to what can be spent, as long as the investment is profitable. Many farmers use the loans to buy horses and farms, as these can generate considerable returns on their investment. Foals, for example, can cost only a few thousand dollars if they are not of a specific bloodline, but can sell for ten times that amount once they reach maturity and show they can be trained. In the past, finding horse loan financing has been a bit tedious because not many lenders advertise that they offer “horse loan financing.” The reason is that most lenders do not specialize in lending funds for the sole purpose of providing someone with money to purchase a horse(s).

That said, you can get the financing to buy this beloved animal through unsecured loans, unsecured financing, installment loans, second mortgages, and more. Since the animal industry is not directly affected by the performance of any economy, most lenders are still lending funds to those looking to purchase animals and the beauty of this is that lenders don’t really care what they are spent on. funds. your concerns are strictly your ability to repay the loan.