| The recent downturn of the American economy has | | | | outright; so what these farmers invest in is less |
| also signaled a shortage of lenders willing to invest | | | | important than the plausibility of a return with interest |
| capital to all but the most pristine of creditors. While | | | | (hence why non corn farmers are perfectly eligible). If |
| many Americans do not have a perfect credit rating, | | | | the party is borrowing against their mortgage or home |
| there are several exceptions to this trend, one of the | | | | ownership, it's important that the house in question is in |
| most pivotal being the rate of borrowing for American | | | | solid quality and on a good sized plot of land. Recent |
| farmers. | | | | production and profits are also taken into account, as |
| The amount of capital being lent to small farms has | | | | well as other interests such as proximity to other |
| been increasing each year, even as the economic | | | | farms, housing developments, cities, or businesses. |
| forecast has gone south. The reason behind this is the | | | | As such, once a loan is given, there's no limit to what it |
| utility of corn -- that bio fuel companies need endless | | | | can be spent on so long as the investment is a |
| quantities of the crop in order for research, | | | | profitable one. Many farmers use borrowing to buy |
| development, and production. While this boom has | | | | horses and farms, as these can bring in considerable |
| been extremely helpful for corn farmers, the trickle | | | | profit on their investment. Foals, for example, may cost |
| down affects small farms of every stripe, and most | | | | only a few thousand dollars if they are not from a |
| banks today are more than willing to invest money into | | | | specific bloodline, but can be sold for ten times that |
| family farms growing other crops or animals like | | | | amount once they reach maturity and prove capable |
| horses. | | | | of being trained. In the past finding horse loan financing |
| The most important consideration for any bank upon | | | | has been a little tedious in that not many lenders |
| lending is probability of return. For that reason, farmers | | | | advertise that they offer "horse loan financing". |
| with very poor credit scores are still unlikely to procure | | | | Reason being, most lenders don't specialize in the |
| rates in decent quantities or with decent interest rates. | | | | lending of funds for the sole purpose of providing |
| Thus, while a party without financial strength will be | | | | someone with money to buy a horse(s). |
| unable to get a decent value on farm or horse loans, | | | | With that being said, you can obtain the financing to |
| average or above average credit should be more than | | | | purchase this beloved animal by way of no-collateral |
| enough for a strong, low interest rate against any | | | | loans, unsecured financing, installment loans, 2nd |
| borrowed money regardless of if the funds are used | | | | mortgages and more. Since the Animal industry is not |
| to buy horses or farms. Nonetheless, it is important for | | | | one that is directly effected by any economies |
| farmers -- like any financial customer -- to present a | | | | performance, most lenders are still lending funds to |
| strong plan to banks for a return on their investment, | | | | those looking to buy animals and the beauty of this is |
| otherwise banks may be unmoved by the request and | | | | that the lenders don't really care what the funds are |
| deny it. | | | | being spent on, their concerns are strictly your ability to |
| Banks operate on the principle of risk management, | | | | repay the loan. |
| which is why poor credit scores are often rejected | | | | |