How to Purchase Inputs with an Input Loan or Operating Line of Credit

Purchasing inputs is one of the most important and vital decisions you’ll make every year for your operation. But how do you pay for your inputs? 

When you’re buying inputs, you’re weighing many factors like flexibility in your financing options, cash flow management, low interest rates and overall cost savings. So how do you make the right decisions for your operation when it’s time to start buying inputs every year?

In the past when you shopped on FBN Direct® for inputs, you had the option to pay for your purchase with cash, credit cards or an input loan offered by FBN®. 

Now, you’ll be able to select an additional financing option directly at check out: an operating line of credit to purchase your inputs, plus unlock 0% interest financing on those inputs for qualified farmers.* 

FBN® Finance’s flexible financing options give you the power to purchase inputs and do much more for your operation. Let’s look at the difference between input loans and operating lines of credit.

What are input loans?

When you apply for an input loan with FBN® Finance, you’ll go through a straightforward application process that can be approved in one business day. 

Input loans currently only apply to FBN Direct input purchases. These loans are non-revolving lines of $10,000 - $300,000 with a fixed rate. One advantage of using an input loan is that there are no payments due until January 1, 2024.

And if you close by January 20, 2023, you’ll get 0% interest on qualifying purchases of FBN Direct inputs. The qualifying purchase requires that you make a minimum purchase of $50,000 by December 23, 2022, or a $75,000 minimum purchase by January 20, 2023, to qualify for 0% interest on FBN Direct inputs purchases all season long. 

What’s an operating line of credit?

Operating lines of credit are fixed rate, revolving lines of $250,000 - $1 million. FBN® Finance operating lines can be used for many approved ag operating expenses and are not limited to only purchasing inputs.

With an operating line of credit, you can buy inputs from FBN (or other vendors), pay for rent or labor, cover the cost of equipment or repairs, or finance other qualifying expenses.

When you close by December 9, 2022 you’ll qualify for 0% interest on FBN Direct input purchases all season long. The qualifying purchase requires that you make a minimum purchase of $45,000 by December 9, 2022. And you’ll be able to defer payments with your operating line until March 1, 2024. 

Which financing option is right for you?

This table outlines the main differences between the two financing options available. But you also have a third option. 

Upgrade your input loan with an operating line from FBN Finance to do even more. Qualified farmers who are approved for both loans will have up to $1.3 million in total spending power! 

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Learn more about input loans and operating lines of credit and get started with your application today. 

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Copyright © 2014 - 2022 Farmer's Business Network, Inc. All rights Reserved. The sprout logo, “Farmers Business Network” and “FBN” are trademarks, registered trademarks or service marks of Farmer's Business Network, Inc.

Financing offered by FBN Finance, LLC and its lending partners. Terms and conditions apply. To qualify, a borrower must be a member of Farmer’s Business Network, Inc. and meet all underwriting requirements. Interest rates and fees will vary depending on your individual situation. Not all applicants will qualify.

Terms and conditions apply. Land financing offered by FBN Finance, LLC, provided in connection with Farmer Mac and our underwriting partners, and is available only where FBN Finance, LLC is licensed. To qualify, 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.

*Qualified farmers who are approved and close an Operating Line of Credit through FBN® Finance of $250,000 to $1,000,000 between September 1, 2022 - December 9, 2022, make a minimum purchase of $45,000 from FBN Direct® and payoff the balance in full by March 31, 2024 are eligible to receive a promotional interest rate of 0% when using the Operating Line of Credit  to finance purchases of input products made through FBN Direct® between September 1, 2022 - August 31, 2023. Qualifying input products include crop protection, adjuvant, crop nutrition, seed, animal health and livestock feed. Advances on the FBN® Finance Operating Line that are not for the purchase of input products from FBN Direct® will be charged interest at the stated (non-promotional) contract rate in the Operating Line of Credit loan agreement.*

Approved farmers who close a FBN® Finance Operating Line and make a minimum $45,000 purchase from FBN Direct® by December 9, 2022 will receive the benefit of automatic qualification for the 0% Club from FBN Direct®. The 0% Club offers qualified farmers a promotional rate of 0% interest on purchases of input products only made through FBN Direct® between January 21 - August 31, 2023. Qualifying input products include crop protection, adjuvant, crop nutrition, seed, animal health and livestock feed. 

*Payments for all amounts owed under the associated FBN® Finance Operating Line of Credit are due March 1, 2024.  If the total balance for all amounts owed is not paid in full by March 31, 2024, interest charges on all purchases of input products made through FBN Direct® between September 1, 2022 - August 31, 2023, using an Operating Line of Credit through FBN® Finance will be imposed from the purchase date at the stated (non-promotional) contract rate in the Operating Line of Credit loan agreement.  

FBN Finance, LLC commercial operating lines of credit are offered by FBN Finance, LLC and are available only where FBN Finance, LLC is licensed. 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 products are registered for sale or use, if applicable. If applicable, please check with your local extension service to ensure registration status. Nothing contained on this page, including the prices listed should be construed as an offer for sale, or a sale of products. All products and prices are subject to change at any time and without notice. Terms and conditions apply.