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Best Farm Loans to Consider in 2024

Farm loans help farmers keep their businesses running by providing capital that allows them to replace equipment, fund startup costs, or hire more workers. If you’re in need of an farm loan or line of credit, our expert guide can help.

Best Farm Loans
Christopher Murray
Personal Finance Expert

Reviewed by: Sarah Brooks, Personal Finance Writer and Editor

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Farmers have to look at their finances differently. Depending on weather and the seasons, a farm could be in full-swing one month, but not so much the next. Plus, many farmers rely heavily on seasonal workers and expensive equipment to run their businesses. 

The best small business loans for farms provide relief when equipment breaks, when farmers need to secure more land, and so much more. To make your life easier, farm business loans are offered by a number of different lenders.

Best Farm Loans to Consider in 2022

When it comes time to choose the right loan for your farm, there are many things you’ll want to consider before signing. In this review, we highlight the terms, rates and fees of each lender and explain what makes them a good option. We also share potential downsides of each lender, and provide a rating methodology you can use to select the best option for your needs.

 

Best Farm Loans for 2024 - Full Overview

Best Overall
Lendzi logo
4.5

Lendzi - Best for Businesses With High Revenue

4.5
Factor Rate
Starting at 1.10
Loan Amounts
Up to $4 million
Min. Annual Revenue
$180,000
Key Features
  • Borrow up to $4 million in working capital
  • Min. credit score: at least 500
  • Min. time in business: 6 months
  • Equipment financing up to $2 million
  • Business line of credit up to $250,000
  • See your options without hurting your credit
  • Flexible terms: 3 to 15 months
  • Excellent customer reviews on independent review sites
  • Get funding in as little as 24 hours
Pros & Cons
  • Multiple lenders and loan products
  • Excellent customer service
  • Competitive interest rates
  • Flexible terms
  • Poor credit is accepted
  • Annual income requirements may be high
  • Phone calls are required during application process
Overview

If you’re in need of a loan for your farm but aren’t quite sure which product or lender to choose, we recommend Lendzi. Lendzi was founded in 2020 and they are both a direct lender and a partner with more than 75 additional lenders. Because of this, they can match you with the perfect loan and lender for your farm business. And, if you’ve previously been denied a loan or have bad credit, Lendzi will work to find you a loan, too. Their application takes a few minutes to fill out and will not impact your credit score. Once you apply, a representative will reach out to guide you through the rest of the process.

Main Features
Lendzi offers seven different types of small business loans for farm businesses, including short- and long-term loans, merchant cash advances, business lines of credit, working capital loans, equipment financing, and SBA loans. Most max out at $400,000, with the exception of equipment financing loans ($2 million) and SBA loans ($5 million). Terms and rates vary depending on product and lender. To qualify for a loan from Lendzi, you should be in business for at least six months and have $180,000 in annual revenue. Lendzi doesn’t care as much about credit score, but of course, the higher your score, the better the rates you’ll receive.

If you aren’t quite sure what type of loan is in your best interest, we recommend Lendzi. Not only do they offer a multitude of products and lenders, they also have representatives that guide you along the way. Lendzi also has more than 2,000 5-star reviews, making them a top choice among customers and businesses alike.
Backd business loans
4.5

Backd - Best for Cheapest Interest Rates

4.5
Factor Rate
Starting at 1.10
Loan Amounts
Up to $2 million
Min. Annual Revenue
$200,000
Key Features
  • Borrow up to $2 million
  • Min. Credit Score: 640
  • Min. Time in Business: 2 years
  • Industry best factor rate for MCA - as low as 1.10
  • APR for the Line of credit product starts at 35%
  • Flexible repayment terms up to 16 months
  • Get funding in as little as 24 hours
  • Check your rate with a soft credit pull
Pros & Cons
  • Fast and easy application
  • Quick funding times
  • Large loan amounts
  • Flexible loan terms
  • Rates are not disclosed prior to application
  • Not available to startups
  • Not available to all industries
Overview

Backd was founded in 2018 to offer financial solutions to small businesses that may not qualify elsewhere. Loan terms are large - up to $2 million - and payment options are flexible. Backd works with your unique business to find a funding option that is tailored specifically to your needs.

 

Main Features
Backd offers two loan products to farm businesses - working capital loans and business lines of credit. Working capital loans range from $10,000 to $2 million with terms up to 16 months. Payments are made daily, weekly, or semi-monthly. Business lines of credit range from $10,000 to $750,000 with unlimited terms. With this type of funding, you can draw on your funds at any time, pay them back, and use them again. To qualify for either option, you need to be in business for at least two years, have annual revenues of $200,000 or more, 640 or higher FICO score, be based in the U.S., and have a business bank account.

Backd makes it easy for farm businesses to apply, get approved, and get funded. If you need flexible payment plans, we recommend a working capital loan from Backd. If you’d rather be able to draw on your funds at any time, a business line of credit could be the right fit for you. Backd tailors their loans to you, not the other way around, making them a top choice for agriculture business loans.
nationalfunding
4.1

National Funding - Best For Farm Equipment Loans

4.1
Factor Rate
Starting at 1.10
Loan Amounts
Up to $500K
Min. Annual Revenue
$250,000
Key Features
  • Min. Time in Business: 6 months
  • Min. Credit Score 600
  • Borrow up to $500,000 in working capital
  • Equipment financing up to $150,000
  • Factor rate From 1.10
  • Fast funding
  • Early payment discounts
  • Equipment financing repayment 2-5 years
  • Working capital repayment 4 months - 2 years
Pros & Cons
  • Easy application: You can apply for an equipment loan online, within minutes.
  • Fair credit accepted: Even if you have fair credit, National Funding may approve you for equipment financing as it accepts borrowers with credit scores of 600 or higher.
  • No down payment required: You don’t need to put any money down to take out a National Funding equipment loan.
  • No special interest loans: While National Funding states it offers business loans to minorities, it doesn’t offer any special loan products for them.
  • High annual revenue requirement: National Funding only lends to farms who earn at least $250,000 per year so it can be difficult to qualify if you’re a startup or newer farm.
  • No mobile app: Unlike other lenders, National Funding doesn’t offer a mobile app you can use to keep tabs on your loan on the go.
Overview

National Funding equipment loans can help you pay for new and used equipment for your farm, such as tractors, backhoes, front end loaders, plows, cultivators, and wagons. Depending on your situation you can lock in up to $150,000 in funding.

 

Main Features
National Funding’s equipment loans go up to $150,000 with repayment terms between two and five year years. The pay rate starts at 1.10 and you’ll repay your loan on a monthly basis. To qualify for an equipment loan, you’ll need a credit score of at least 600, at least six months of business history, and $250,000 or more in annual revenue. 

If you earn sufficient revenue and need to buy new equipment or upgrade your current equipment, an equipment loan from National Funding can be a solid pick. You can get approved without good credit or a down payment.
SMB Compass
4.5

SMB Compass - Best for Fast Funding Farm Loans

4.5
Interest Rates
Starting at 7.99%
Loan Amounts
$10K - $10 million
Min. Monthly Revenue
$20,000
Key Features
  • Loans up to $10 million
  • Min. credit score: can go as low as 550 for certain loans
  • Min. time in business: 1+ years in business, no startups
  • Funding times: 5 to 7 days for term loans and 24 - 48 hours for line of credit
  • Flexible terms: 2 – 10 years for term loans
  • Interest Rates: starting at 8.99% for term loans
  • Applying does not impact credit score
  • Nine loan products to choose from
Pros & Cons
  • Low, competitive rates
  • Large loan amounts
  • Loan terms up to 25 years
  • Excellent customer service
  • Poor credit not accepted
  • Not available in all states
  • Must be in business at least one year
  • High revenue requirements
Overview

If you need a loan for your farm in a short amount of time, SMB Compass can get you the funding you need within one to two business days. The lender also offers a variety of loan types, including business lines of credit, equipment financing, asset-based loans, SBA loans, and more. Whether you need a small line of credit to help pay for everyday farm expenses or a large $5 million equipment loan, SMB Compass can quickly get you the funding you need. To qualify, SMB Compass prefers one year of business history, a minimum credit score of 650, and $20,000 or more in monthly revenue.

 

Main Features

SMB Compass offers nine different types of small business loans to borrowers. Their mission is to make loans more accessible to small business borrowers by providing cost-effective and flexible lending solutions. SMB Compass business loans range from $10,000 to $10 million with terms up to 25 years. Rates start at 7.99% for qualified borrowers. The lender has currently provided more than 1,200 U.S. businesses with more than $250 million in financing. To apply, simply fill out their easy online application. It takes just a few minutes and will not impact your credit score. If approved, funding can be dispersed within 24 hours.

SMB Compass understands running a farm costs money, and they want to help you get the funds you need to keep your farm afloat. Customer service is excellent, loans have high limits and flexible terms, rates are competitive, and funding times are quick. Contact SMB Compass today to get started!
biz2credit review
4

Biz2Credit - Best for Large Farm Loans

4
Interest rates
Starting at 7.99%
Loan Amounts
$25K to $500K
Min. Annual Revenue
$250,000
Key Features
  • Working capital up to $2 million
  • Term loans up to $500,000
  • Term loan interest rate starts at 7.99%
  • Loan Repayment 12-36 months terms
  • Variable APR depending on the applicant
  • Funding in 72 hours
  • Soft credit pull
Pros & Cons
  • High loan amounts up to $6 million
  • High customer ratings
  • Three loan types that cover many uses
  • Simple application process
  • You’ll need a high credit score to secure a loan
  • Not upfront fees
Overview

For farmers with high loan needs, Biz2Credit offers some of the highest borrowing amounts for borrowers with good credit. With over 200,000 small businesses funded, Biz2Credit has demonstrated a strong commitment to all types of businesses. 

 

Main Features
Biz2Credit offers three types of loans to farm businesses: term loans, working capital loans, and commercial real estate loans. Term loans range from $25,000 to $500,000 with terms ranging from 12 to 36 months. Working capital loans range from $25,000 to $2 million, and commercial real estate loans can be as high as $6 million. To qualify with Biz2Credit, your credit score will need to be at least 575 if you’re looking for a working capital loan or 660 for longer-term, large loans. Your farm will also need a yearly income of at least $250,000, and you’ll need to have been in business for six months for working capital loans and 18 months for term and CRE loans. 

For larger scale farmers, Biz2Credit offers the most options. Their application takes just minutes, and you could see your funding in your account in just 72 hours. Just make sure to read the fine print before accepting the loan offer. One of the biggest (but only) complaints about Bz2Credit is the higher interest rates and fees compared to their competitors.
fora financial logo reviewed on Finimpact.com
4

Fora Financial - Best for Quick Turnaround Loans

4
Factor Rate
1.15-1.40
Loan Amounts
$5K-$1.4 million
Min. Monthly Revenue
$12,000
Key Features
  • Min. time in business: 6 months
  • Min. credit score: 550+
  • Borrow up to $1.4 million
  • Factor rate from 1.15 to 1.40
  • Ideal for plenty of industries
  • Approval not solely credit based
  • Early payoff discounts
Pros & Cons
  • Get an approval decision in 24 hours
  • Early payoff discounts
  • Not strictly credit-based
  • Short-term loans can come with high fees
  • Not available if you have a bankruptcy
Overview

Fora Financial offers short-term loans with quick turnarounds and no collateral required. Plus, they take more than your credit score into consideration when you apply. Instead, your positive business history as a farmer can help you qualify for the right loan.

 

Main Features

Fora Financial offers loan amounts from $5,000 to $750,000 with terms ranging from four to 15 months. Because of the low term length, Fora is best-suited for farm owners who need cash now but have the ability to pay it back quickly. Fora Financial is fairly open-minded when it comes to the credit score of their applicants. In fact, your credit score won’t even be affected when you apply. As for revenue requirements, Fora asks for a minimum of $12,000 in gross sales each month. You also need to be in business at least six months to qualify. 

For quick turnaround loans with short repayment terms, farmers should consider Fora Financial. However, if you need longer than 15 months to pay back your loan, Fora may not be the right option. In general, Fora Financial is a reputable company that offers farmers an easily securable option for their farming needs.

Main Features of The Best Farm Loans

Lendzi4.5
Backd4.5
National Funding4.1
Biz2Credit4
Fora Financial4
  • Min. Credit Score - 500
  • Min. Time in Business - 6 months
  • Min. Annual Revenue - $180,000
  • Loan Amount - Up to $400,000
  • Interest Rate - Varies

How to Choose the Best Farm Loan

  • Loan features - This includes the maximum amount you can borrow and how long you have to pay the loan back.
  • Application process - How long does it take to apply for the loan? Does the lender do a hard-pull or soft-pull on your credit? What documentation do you need to provide?
  • Interest rates and fees - Even though you might think a loan comes with the perfect repayment terms, consider all of the costs involved in taking out a loan. You’re not just paying the dollar amount you borrowed, you’ll pay origination fees, interest on the loan, and any other fees a lender has. 
  • Qualification process - Lenders will look at your credit score, time in business, and annual revenue when deciding if they should approve you for the loan.
  • Customer support - If you ever need help with loan payments, having a responsive customer support team can make the situation much better. When looking into a lender, see what customer service options are available. Is it just by phone or can you email as well? Make sure there’s an option you’re comfortable with.  
  • Online user reviewsThe best way to get a sense of a company is to read their reviews. When comparing lenders, find out what their TrustPilot and BBB reviews are, so you can see how others like you have fared.
  • Perks and bonuses - Some companies will offer incentives to make them stand out from their competitors. For example, FundBox offers a Flex Pay option that gives you a few extra days to pay your bill. Consider how much these extra perks mean to you before making a final decision. 

 

What Is a Farm Loan?

A loan for farm businesses is financing offered by lenders to farmers who can use the money for farm-related expenses. Whether you’re looking to purchase, grow, or need cash flow to keep your farm operating, farm loans can help.

 

Types of Farm Business Loans

In addition to farm loans offered by online lenders mentioned above, farmers can access loans through the U.S. Department of Agriculture Farm Service Agency. They provide different loans, including:

  • Beginning Farmers and Ranchers Loans - These loans help first-time farmers finance a farm. You’ll need to meet specific requirements in order to qualify as a beginner farmer. 
  • Emergency Farm Loans - If your farm has been damaged or destroyed due to a natural disaster, these emergency loans can help you rebuild. 
  • Farm Operating Loans - Farms have high yearly operating expenses. These loans can help keep your farm going when you don’t have the cash upfront. 
  • Farm Ownership Loans - If you want to expand your farm, these loans can help you get the extra land you need. 
  • Guaranteed Farm Loans - You’ll typically find these loans through commercial lenders like the ones in our list. Guaranteed loans can come in smaller amounts or be larger loans that help you keep your farm operating. 
  • MicroloansMicroloans are small loan amounts with quicker repayments. They’re best for niche farmers or smaller farms that need more specific types of funding. 
  • Minority and Women Farmers and Ranchers Loans - These loans support farmers from minority or underserved communities, and can help them find ownership and guaranteed loans. 
  • Native American Loans - Native American tribal members can use these loans to expand their agricultural needs.

 

How to Get a Farm Business Loan

Compare lenders

The lenders on this list are a great place to start, but compare as many lenders as you need to get a sense of which lenders will work best with your financial situation. Each lender will offer different interest rates, loan amounts, and benefits to borrowers. 

Only go with lenders whose requirements you meet

Loan lenders aren’t apt to take applicants that don’t meet their requirements, so it’s not worth your time to apply. You’ll increase your chances of approval by only focusing on companies that are likely to grant you a loan. 

Make sure your credit is where it needs to be

Having a good credit score qualifies you  for the best rates, the highest loan amounts, and the best discounts. If you have subpar credit, consider taking the time to focus on improving it before applying for loans. 

Prequalify, if possible

Some companies allow you to prequalify so you can see if it’s worth submitting a full application. Prequalification comes with a soft credit check, which means your score won’t be affected, so it’s always worth doing if you can.

 

How Can You Use a Farm Loan? 

Farm loans can be used to support most operations on a farm. Many loans are flexible, meaning you can use them for just about any legal purpose associated with your business. 

The main uses of a farm business loan include:

  • Start a farmStartup loans are common among business loan lenders. Often, these come with lower loan amounts than loans to help farms already in operation, but they can be a big source of financing at the beginning of your farming journey. 
  • Purchase or repair equipmentFarming equipment comes at a high cost, so it can be difficult to repair or completely replace equipment without a loan.
  • Purchase livestock - If you’re in the business of cattle farming (or any other livestock), you can use a farm loan to purchase additional heads of livestock if the need arises. 
  • Hire extra workers - Farms rely on seasonal and migrant workers more so than other industries, and many farmers need to hire many workers at once. It can be difficult to truly get the help you need, but farm loans can help you employ the right people at a fair price. 

 

Conclusion

Farm loans come in a variety of types that support different farmers. Whether you’re a beginner farmer or a seasoned farmer looking to continue growing your business, a farm loan could work for you. The companies on our list offer different loan amounts and credit requirements, so most farmers should be able to qualify through at least one lender.

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Christopher Murray

Written by: Christopher Murray

Personal Finance Expert

Christopher Murray is a professional personal finance and sustainability writer and editor who enjoys writing about everything from budgeting and saving to unique investing options like SRI and cryptocurrency.

More about me
Sarah Brooks

Reviewed by: Sarah Brooks

Personal Finance Writer and Editor

Sarah Brooks is a personal finance writer and editor with more than 10 years of experience. She specializes in personal and business loans, mortgages, auto loans, and credit cards.

More about me

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