Ag Supplier Financing Program
A customized plan and cost structure that fits your needs.
Get a competitive edge and lock in customers early by offering low-cost financing on for seed, fertilizer, chemical, and other ag products with Choice Bank’s Ag Supplier Financing Program.
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Program
Advantages
For Retailers
- Mitigate risk
- Increase cash flow
- Minimize outstanding receivables
- Receive your payment right away
- Drive business to your company
- Easy implementation
- No financial statements, no liens on $150,000 or less
For Farmers
- Competitive rates that reward timely payments
- Quick approvals
- Easy to Apply
- One-stop financing
- All purchases on one loan
How it Works
As an ag supply retailer, you’ll receive money from input purchases up-front rather than tapping into lines of credit to carry receivables. We will advance a portion of the invoice your customer submits to you, while Choice Bank will retain a small portion of this in a reserve account. If all supplier-referred accounts are paid in full at year-end, you will receive the accumulated reserve account balance back as a rebate.
Program Costs
Choice offers two plans. The standard plan allows you to maintain more capital and and is offset with a higher program cost. The premier plan has a lower overall program cost and requires larger funding to a reserve account. See plan outline for more detail and know that our ag professionals will work with you to find the best program cost solution for your business.
18% retroactive interest rate applicable to all delinquent accounts
| Premier Plan | Standard Plan |
|---|---|
| Net 1% Program Cost | Net 3% Program Cost |
| Retailer funds 8% reserve account | Retailer funds 4% reserve account |
| 7% is returned to retailer upon payment in full of all active accounts | 1% is returned to retailer upon payment in full of all active accounts |
| More capital directed to reserve account, but lower program cost | Less capital directed to reserve account, but higher program cost |
| Occurrence of bad debt results in forfeiture of reserve account balance | Occurrence of bad debt results in forfeiture of reserve account balance |
| Cost to farmer = Wall Street Prime – 1%, variable daily, $100 transaction fee | Cost to farmer = Wall Street Prime – 1%, variable daily, $100 transaction fee |
| Account balance + accrued interest payable in full at standard maturity of January 15th the year following the applicable crop year | Account balance + accrued interest payable in full at standard maturity of January 15th the year following the applicable crop year |
Volume Tiers
$0 – $150,000
- No financial statements required.
- No security instrument filed unless account falls past due.
$150,001 – $500,000
- Financial statement (balance sheet) required upon application.
- No security instrument filed unless account falls past due.
$500,001 +
- Financial statement (balance sheet) required upon application.
- Blanket UCC financing statement filed when advanced balance eclipses $500,000.
- Banks name will not appear on crop checks
The Application Experience
As an input retailer, we’ve made it simple for your customers to apply and receive quick approvals. You’ll have access to several customized collateral pieces to share with your customers including a brochure, posters, a landing page, and application. The online application is device responsive and works on any device with an internet browser. Farmers can apply in minutes.
Personalized Landing Page Example
Ag Solutions Experts
Let’s Talk
Give us a few details and one of our ag experts will reach out to you shortly.
Choice Ag Solutions is a division of Choice Financial Group.