When you need financing for expanding or developing your farm business, or for making smaller or larger purchases, you can apply for a loan easily online.
Simply click on “Apply for corporate loan”, fill in your farm’s details and describe your financing need.
We will contact you within two business days from receiving your application. We will discuss with you the farm’s financing-related needs and general status. You will receive a loan decision based on the negotiations.
If you already are a customer of OP, you can also fill in the application in your OP eServices under Loans, Show more.
Bank loan forms the basis for your farm’s financing
A bank loan suits all financing needs of your farm. It is suitable for financing both long-term investments and short-term needs.
- We will agree with you on the loan term according to the investment payback period.
- Repayments and interest payment will be scheduled based on your income flows.
- The price is based on interest payable on the loan plus charges for loan servicing and drawdown.
- The borrowing rate is based on the agreed reference interest rate and a markup - the rate may also be fixed for an agreed period or throughout the loan term.
It is also possible to choose an interest rate corridor or interest rate cap for the loan which provide protection against a rise in interest rates. We also recommend taking a closer look at Payment Protection Insurance and Kultaturva in the case of serious illness which protect your finances if something bad happens.
For the most important investments, you can get aid and interest-subsidy loan.
Collateral for the loan in most cases is a mortgage on the farm’s real property and a business mortgage in which the farm’s moveable property serves as collateral. If there is shortage of collateral securities, government guarantee can also be used for many investments.
Hire purchase and lease are suited for financing agricultural machinery
The financing need of machinery purchases tend to be short term in nature, which is why hire purchase and lease are well suited for their financing in addition to a bank loan. Considering that the machine as such serves as collateral, you can use your farm’s collateral securities for other investments.
Also consider the working capital need of your farm
When planning financing for a farm’s investments, you should not ignore working capital that is needed for running daily operations. In investments in particular, you should carefully assess the increasing need for working capital because s surprisingly much capital is tied to warehouses, supplies and other inventories – for as long as you .run your farm.
Visit your nearest OP cooperative bank to discuss your farm’s needs for financing. Our experts will be pleased to serve you in all financing matters related to your farm, also over the phone.