Figuring out financing is one of the big challenges every unexampled indoor husbandman faces . Like destruction and taxes , its well-nigh inevitable . According to research from software provider Artemis , indoor farmers ’ greatest challenge is observe financial support .
Contain ’s delegation is to change that , and in their work using technical school to better connect grower to marketer and lenders , they always get the same doubt : how do you up your odds of securing equipment leases ?
Contain put together this guide to aid anyone deal work with Contain up their odds of support . They trust it serve demystify the funding unconscious process in ecumenical , too .
1 . Where are you based?We work with growers across the U.S. and Canada , but our best loaner reporting is in the lower 48 .
2 . How long have you been farming?We work with destiny of startup farms . They ’re great . But those with at least a two - year account of mental process are more sympathetic to lenders . They ’re viewed as a safer bet . Occasionally , lenders are willing to consider the track record of a different kind of business as you finance your farm .
3 . Is your farm profitable?Naturally , loaner favour to work with profitable farm . That pronounce , they also understand that increasing a farm ’s scale will transform its economics , too . Do n’t count yourself out if you ’re still building towards the blackamoor .
4 . What lease size are you looking for?For a startup farm , we ’ve discover that it ’s beneficial to begin little , trade out your garden truck and then surmount to fit your customers ’ demand . A coarse misapprehension we see is new growers trying to set in motion with a large setup , more than $ 1 million in equipment . lender rarely back farms like this at the get - go .
5 . How much depository will you put down?Lenders generally want at least 20 % down , and up to 50 % . Of of course , gamey repository often mean low interest rate and , more often than not , better financial support odds .
6 . Do you have other collateral?Lenders care to see other collateral for the lease , such as land or an existing property — especially if you ’re a fresh grower . It ’s not always necessary , but it definitely helps .
7 . Do you have agreements with customers?We know that most Farmer deal produce without a anterior save accord but — at least where it makes sense for your line of work — lender always appreciate letters of purport , or even letters of support from customers . No coin bank has ever been mad because it got too many documents vouching for you .
8 . How does your credit look?A beneficial credit entry rating with no late bankruptcies usually translates into better leasing offers .
Want to aim your own odds of ascertain lease funding ? Take the quizhere .
For more entropy : Containwww.contain.ag
