Farm loans define the vast majority of your farming operations. Your profit margins, your ability to expand, and even your chances of staying successful through the off-season rely on loan financing. That’s why many California farmers consider refinancing at some point during the life of their businesses.
Refinancing your loan can provide you with some extra cash flow that you can then invest into your farm. Learn more about how farmers use refinancing to their advantage with this rundown of the benefits of refinancing your California farmland.
Reduce Your Interest Rate
One of the biggest draws of refinancing is the chance to lower your interest rate, especially if you didn’t get the best loan rate to begin with. If your credit score has improved, if you’ve paid off other debts, or if your business has proven successful since your initial loan, there’s a good chance you can find a new loan with better terms. Shopping around and obtaining quotes or pre-approvals will allow you to compare options and see if refinancing will help you achieve a lower interest rate and save your business money.
Simplify and Consolidate Payments
If you have multiple loans out for your farm, refinancing could be a chance to consolidate your debts and make your payments much simpler. With the right loan terms and options, you can turn multiple debts into one, making your loans easier to track and budget for. This is also a great opportunity to look for helpful options such as flexible payments or fewer loan covenants. With a little research and the right financing partner, you can obtain a loan option that’s much more amicable to your business operations.
Increase Capital for Your Operation
One of the most important—and exciting—benefits of refinancing your California farmland is the extra capital you can get. The money you save by refinancing gives you a chance to further invest in your business. You can fund improvements to your land, invest in new equipment, or even expand your farm with new property or more employees. If you’ve been looking for ways to grow—or if you’ve experienced an increase in revenue and want to take advantage of it—refinancing can help your business reach new heights.
What can refinancing do for your business? Find out when you choose Farm Plus Financial for your California farm loans. Explore loan options and talk with our experts when you visit us online today.