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Operating Credit

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Short-term loans can help you run your farm whether it is financing for land rent or lease payments, repairs, fuel, payroll for farm labor, insurance premiums, taxes or margin calls. An operating line of credit used for purchases such as supplies, fertilizer, farm chemicals or seeds, when tied to a business checking account, can sweep excess funds back to your line saving you time and money.

Lines of credit are available on an annual basis for a set amount or an open-ended basis so you can draw on the line when needed.

Advances and payment schedules are tailored to fit your specific operation.

Cash Management Sweeps

A one-way credit sweep from a line of credit helps ag and business clients manage their funds without micro-managing their operations. A line of credit is tied to a primary business checking account with a target balance. The line advances into the checking account to maintain the target balance.

A one-way credit sweep to a loan allows a client to use excess deposits to pay down a line of credit or a loan balance automatically. A line of credit or loan is tied to a primary business checking account with a target balance. When the checking account balance exceeds the target balance, a principal payment is made to the loan or line of credit. Stops on the account prevent a sweep if the loan or line of credit has no outstanding balance.

Two-way credit sweeps move funds back and forth—advances from a line of credit or paydowns from checking—to help clients maintain the target balance for the primary business checking account. Payments are for principal only.

This information offers general advice and is not intended to be marketing, legal or tax advice. Consult your attorney, tax accountant or other professional.