Livestock farming is big business in Canada – with 46,000 live stock farms working to provide meat and dairy throughout the country.
However, with big business come big expenses, and in an industry where margins are notoriously tight and seasonal cash flow problems persist, spending large sums on herd replenishment, feed, and veterinary bills can stretch farms to the limit. Fortunately, this is where cow and livestock finance can help – fast, affordable loans to meet working capital needs, or pay for large-scale investments such as milking sheds, feed processors, and vehicles. Read on to discover more about this agricultural funding and to find the best livestock finance for your farm.
Cow and livestock finance are loans that farmers can use to pay for the important tools and products they need to raise and process live animals, particularly beef and dairy herds. The funding can pay for short-term costs, such as buying cattle, sheep, pigs and chickens, and paying for feed and medical services, or it can pay for investment costs such as plant, machinery and shelters. Depending on the type of loan and the purpose for which it is used, livestock loans may be short-term, paid back in 1 – 7 years, or long-term, with repayment plans over 1 – 25 years. Some loans require no security (collateral), while some may require a charge over land, buildings, or other capital assets.
Farmers should consider livestock finance for the following reasons:
Attempting to achieve these goals from pure cashflow may be difficult or even impossible, but they are essential for long-term success. Livestock finance removes fiscal uncertainty and allows farmers to grow their business according to a plan.
Livestock finance falls into two main categories:
Short-term farm loans to cover seasonal cashflow dips. Use them to pay for almost any farm expense – animals, wages, fuel, feed, vets, energy, etc. Pay the loan back over 1 -7 years. May be available with or without security.
Longer-term loans to pay for large-scale investments such as sheds, plant and machinery. This funding will usually be provided as a commercial mortgage, development loan, or asset based lending. In all cases, the asset performs as security for the loan. Repay over 1 – 25 years depending on the type of loan.
Like many things in life, the sooner you act, the better. Leaving financial issues until the last minute can turn a problem into a crisis that can cause long-term harm to your business. Applying for a livestock loan to expand your farm or plug gaps in erratic cashflow is simple: Gather the items in the checklist below, then contact Swoop to get the process started.
To apply for livestock finance, you will typically need:
Cow and livestock finance is a niche lending sector, with different rules of application. Farmers seeking funding may find themselves forever searching and making applications to lender after lender. The delays this can create could cause your farm to lose important business and let your competitors get ahead. Instead, working with a broker, who can access livestock finance from a wide range of lenders, is a better way to go. No more cold calls and endless demands for information. Simply indicate your funding needs, tell us about your farming plans, and leave the rest to us.
Don’t follow the herd. Take the lead. Get the best rate, the best terms and the right livestock finance for your needs. Contact Swoop today.
Swoop was a good solution, because I was able to access cash that I badly needed, but more importantly I was able to do it quickly.
Owner, F45 Maple, Canada
Daire made it happen! There is no doubt that Swoop sped up the process and found lenders that worked to our time scale rather than the other way round
Joint owner, F45 Virginia
Swoop was actually very helpful in helping us get our initial fundraising in place. Swoop was able to connect us with investors, with grant financing options and debt financing options.
Founder, SingleKey
Pedja was amazing. Super supportive, understanding of our needs and wasn't pushy at all. We've been going back and forth with Swoop for over a year inquiring about different financing options and they were patient until we were ready!
F45 Multi-studio owner
Written by
Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.
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