Helping Us Collect Financial Information To Support Loan Requests
The more organized and complete records the farmer provides, the quicker a loan decision can be made. That’s the simple logic of underwriting. In STEP 3 we outlined your role in helping us collect supporting documentation for the loan. It is not your obligation to chase all the documentation that may be needed for a loan decision to be made. But many producers have excellent records, that are on-hand, and they are willing to share them – knowing they are a necessary step to obtaining credit. If you have the opportunity to gather this information for us, it can greatly speed the loan decision time.
Here is a list of standard documents that are associated with a loan request:
- Current balance sheet on the farm operation (not more than 60-days old)
- 3-years federal tax returns.
- Projected production and yield estimates for the current crop year.
- 5-year historical production history.
- A copy of the most recent appraisal on the property (if available)
- Prior 3 year balance sheets of the operation.
Again, after your referral our loan underwriters have the responsibility to collect documentation needed to support the loan. However, you can provide great assistance by collecting any of these documents that are available.
When you send a loan referral to AGRIfinancial, an underwriter will contact you to learn more about the deal, and to discuss whether any of this documentation has been provided.
Sometimes farming operations can be very complex and involve a number of entities. In those instances, we may need documentation on all the entities. In such situations, it will be better to alert the underwriter to the nature of the farm operation. The underwriter can then directly work with the farm operation to determine exactly what documents will be needed. Clarity upfront about the nature of the farm operation can head-off frustration later on (caused by unawareness of other partners or interests).