Farmers Business Network (FBN®), the global AgTech platform and farmer-to-farmer network, announced 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 3 weeks* as opposed to potentially up to 3 months. This product is a powerful 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 6 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).
This latest offering comes as FBN Finance continues to see rapid growth: the company also reported it has now surpassed $1 billion in total capital financed to borrowers. This milestone illustrates how the growing number of members rely on FBN to gain faster, less expensive, and more reliable access to capital to run and grow their operations.
FBN Finance provides farmers with a new avenue for financing, empowering them to access a network of lending partners that provide low rates and fair terms. These finance offerings are designed based on farmer feedback and tailored to fit FBN members' specific needs – ranging from land financing, operating lines, equipment financing, input financing, and more. Because of FBN's innovative data analysis, lending and underwriting decisions are optimized and expedited.
"We're always looking to provide our farmers with the most competitive options on the market, especially in this current climate of high interest rates and economic uncertainty," said Lammers.
Today's FBN Finance 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 its most successful Farmer2Farmer event ever in Omaha, Nebraska.