Farmers Business Network, San Carlos, California, the global AgTech platform and farmer-to-farmer network, announced Feb. 14 the launch of its new bridge loan offering by FBN Finance, which provides farmers with yet another valuable solution when it comes to financing.
Closing a traditional land loan can be a lengthy process: typically taking up to 60 to 90 days to close, often due to the time it takes to complete an appraisal. A bridge loan is an expedited land loan that allows borrowers to secure financing and close on land purchases often on a much shorter timeline than more traditional land loans. The bridge loan acts as a “pre-approval” and enables the buyer to move forward in a manner similar to a cash buyer.
With a bridge loan from FBN Finance, a buyer could close on a purchase in as little as three 3 weeks as opposed to potentially up to three months. This product is a tool for buyers who are facing tight timelines on potential land purchases and want to be as competitive as possible. Additionally, the potential to close quicker is a strong negotiating tool and may allow a buyer to get a better price on their purchase.
"A bridge loan provides a powerful tool for farmers in an extremely competitive market," said Devin Lammers, president of FBN Financial. "We’re proud to empower farmers to get the capital they need faster, better compete against cash offers, and negotiate a better price on land deals through this powerful new solution."
Some of the benefits that bridge loans offer include:
• Shorter term timelines, no longer than six months. (Once completed, a loan advisor helps borrowers transition this loan to a traditional loan once the appraisal has been completed.)
• Loan amounts up to $2,000,000.
• Up to a 60% loan-to-value ratio (LTV).
FBN Finance recent news comes on the heels of several announcements: in recent months the company has launched its livestock partnership with Boveta Nutrition, its strategic collaboration with Greeneye Technology Precision Spraying System, and held a Farmer2Farmer event ever in Omaha, Nebraska.
