How to Compare Financing Options for Your Inputs
As you get ready to buy your inputs for the season, you may be considering financing options that will let you pay for your purchases on a schedule that fits your financial needs.
Financing can be a great way to let you purchase now and match payments to your cash flows, but it’s important to make sure you look at all aspects of financing offers before choosing one.
You'll want to consider things like rate, term, and whether or not financing is restricted to specific products or bundles.
Terms to Know
Understanding the basic terminology of financing will help you understand what you’re looking at as you make your decision.
Annual Interest Rate
The rate paid if a loan was carried at that rate for a full 12 months. Sometimes rates can change over the term of your loan; make sure you’re comparing rates over the time period you plan to keep the loan.
Length of the loan.
WSJ PRIME Rate
The Wall Street Journal surveys 30 large banks about their current prime rate, which is the rate at which they lend money to their qualified customers. (1)
The PRIME rate is then used by many financial institutions to determine their rate for lending money to customers.
This is the fully loaded cost of a product, including the financing cost.
[READ: How to Purchase Inputs with an Input Loan or Operating Line of Credit]
When comparing financing options, it’s important to look at things like rate and term to get a true idea of which program will work best for you.
Think about when you’ll be ready to pay for your inputs and calculate the overall cost of what you will pay between the time you purchase and the time you’ll be paying. You should also check to see if financing is available on all products and if you have to bundle specific products to be eligible.
New Customer Financing Program
If you’re new to FBN or have not recently ordered from FBN Direct®, take advantage of the New Customer Financing Program.
You could get 0% financing for 30 days from the date of your first qualifying purchase, plus the ability to lock in 0% interest through August 31, 2023 by spending a minimum $20,000 on all product categories or $5,000 on livestock products within 30 days of your first purchase. (Terms and conditions apply; see program information for details.)
[VIEW: The FBN 2023 Crop Protection Guide]
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*Terms and conditions apply. Price subject to change.
Terms and conditions apply. FBN Finance, LLC commercial operating lines of credit are offered by FBN Finance, LLC and its financing partners, and are available only where FBN Finance, LLC is licensed. Terms and conditions apply. All credit is subject to approval and underwriting and additional documents may be required to verify information on your application. Interest rates and fees will vary depending on your individual situation. Not all applicants will qualify.
Equipment financing provided by Ritchie Bros. Financial Services, Ltd. and TCF National Bank. Land financing provided in connection with Farmer Mac. Input financing provided in connection with our financing partners. To qualify for a financing offer, a borrower must be a member of Farmer’s Business Network, Inc. and meet the underwriting requirements of FBN Finance, LLC and its lending partners. All credit is subject to approval and underwriting. Interest rates and fees will vary depending on your individual situation. Not all applicants will qualify.
FBN Direct products and services and other products distributed by FBN Direct are offered by FBN Inputs, LLC and are available only in states where FBN Inputs, LLC is licensed and where those