About lender
Farm Credit Canada is a federal commercial Crown corporation. It is a lender that specializes in financing agriculture and food businesses. The company has already invested more than $44 billion in the Canadian agricultural sector and has more than 100,000 customers all over the country. FCC was founded over 60 years ago and has the expertise and connections to help customers’ businesses. Among their customers are crop input suppliers and retailers; equipment manufacturers and dealers; feed processors; wholesale, storage and distribution; grain handling and logistics. Also, FCC offers customers different types of investments.
FCC offers a vast number of financial solutions. Generally, there are two industries that the company finances: agriculture and food and beverage. FCC offers:
FCC Credit Line
FCC Credit Line is a revolving, pre-approved loan that provides money for working capital. This type of loan doesn’t require any down payments and can be used for inputs, supplies, fuel, fertilizer, seed, and feed purchases. It has an open variable rate, and customers need to make interest-only payments.
FCC Advancer Loan
Real property loans
Personal property loans
1-2-3 Grow
Cash Flow Optimizer
Flexi-loan
Start Now-Pay Later
Equipment Financing
Leasing
Transition Loans
Input Financing
Loan Insurance
Starter Loan
Capacity Builder
Construction
Moreover, special loans are crafted for women, young farmers, young entrepreneurs, customers with a significant US dollar revenue, and environmental solutions.
Features
FCC specializes in exactly providing agriculture businesses with different financial products. They provide their services to crop input suppliers and retailers, equipment manufacturers and dealers, feed processors, wholesale, storage and distribution, grain handling and logistics, and others.
The company provides customers with various financial products, whether lines of credit, loans, equipment financing, or leasing, so customers who run their agriculture businesses can find the most suitable option. Also, there are unique solutions designed for women entrepreneurs and young farmers. Moreover, the company has a particular type of loan for customers who are new to this industry and wish to start their businesses.
What’s more, FCC also finances the food and beverage industry and provides loans to abattoir and meat processors; commercial bakeries; ethnic and specialty foods; food and beverage equipment; food processors and manufacturers; frozen foods, canning, and milling; grain and oilseed processing; packaging; seafood; wholesale and distribution; wineries and distilleries.
Customers also can use some online tools that would help them to clarify possible payments. For example, customers can find mortgage, equipment loans and equipment lease calculators on the company's website. With the help of this tool, they can see how much they should pay monthly or annually.
Pros and cons
Pros
The company offers a lot of different types of lines of credit;
Customers who are new to the industry can be approved for up to $150,000;
There are several options for women entrepreneurs and young farmers;
The company also provides equipment leasing;
Customers can apply for any financial product online;
The company finances in both: the agriculture and food and beverage industries;
Sustainable environment-friendly solutions;
Customers can apply for insurance coverage to protect their businesses.
There are still several disadvantages that can impact customers' decisions.
Cons
The company’s specialization is too narrow;
There is no sufficient information about rates, eligibility, and conditions on the company's website.
Loan conditions
To apply for one of the financial products provided by FCC, customers need to choose the required service and contact the company.
As the company has many different financial products, there are entirely different conditions for each. For example, some solutions require experience in running a business. However, there are some basic requirements that customers must fit in anyway. For example, they must be over the age of majority in their province and be Canadian citizens. Generally, all of these products require agriculture or food and beverage businesses. Also, customers need to provide several documents such as a net worth statement for each borrower, past income tax returns and/or accountant-prepared financial statements dating back three years, government-issued photo ID, recent pay stub, or written employer verification (for off-farm income).
The company's products have different rates, terms, and repayment options. Generally, FCC offers customers to repay monthly; however, these terms can be adjusted.
For example, equipment financing implies a zero down payment for loans under $100,000 or a 10% down payment for loans under $500,000, with variable or fixed finance rates. In addition, there are no prepayment penalties.
Pre-approved lines of credit allow you to finance land or buildings. The conditions suggest interest-only payments and extended disbursements.
Livestock financing is performed within customized pre-approved limits. As a result, a reasonable down payment, no prepayment penalties, and competitive rates can attract customers.
Methods of loan funding
The company provides different financing types, and funding methods can be different too.
