Keep Your Cash

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As the 2018 planting season is upon us, many farmers are prepping for tighter cash flow. According to the Wall Street Journal, “Farm incomes are expected to hit their lowest point since 2006 and borrowing costs are rising, federal data shows, as a deepening slump in the agricultural economy enters its fifth year.” With incomes expected to be down, farmers are working to safeguard their cash and bank lines while budgeting carefully with rising costs on the horizon. Mitigating that loss as much as possible is in the best interest of the farmer. What is the best way to go about this?

“By providing significant benefits in the preservation of working capital and cash flow management, leasing converts a big cash payment into a flexible payment structure matched to earnings. Leasing improves your cash flow because it offers 100% financing and payments that are fully expensed.” – Paul Pfannenstein Vice President of Business Development

In a year where profits may be low, it’s good to have option. Traditional bank financing requires large down payments and startup cost of the loan taking a large portion of funds which could be put towards feed bills and crop inputs. These costs are certain and are ones that cannot be put off or financed out.

Let’s get the conversation started about your financing options that work best for you and your business. 800.471.2122 Email

WSJ Article