We can help improve the viability of farm operations in Nova Scotia.
The Farm Debt Consolidator is used as a cleanup tool for short-term payables, stagnant operating debt, medium term loans, and restructuring of long-term debt with other lenders. This is another popular loan provided by the NSFLB. It is normally implemented when cash flow demand outstrips supply. This loan can be a signal to the farmer that it is time to re-think the plan. New plans require some time to develop and implement. The "Consolidator" provides our clients with that time to re-think and plan.
The Consolidator can be a very useful financial tool, but restructuring debt can be a difficult sell to a financial institution and one that most lenders do not like to hear about, as it can carry some very negative operational indicators. Terming out short-term debt (1 year or less) over a longer period of time (5 years or more) is never a good idea, but on some occasions it is necessary.
A NSFLB Loan Officer can help clients make the right decisions when it comes to prioritizing what should be included in consolidation, e.g. the amortization period, repayment schedule, and, most importantly, how to ensure the situation is not repeated.
The good news is that the NSFLB will consider using the "Consolidator" and will advance credit in difficult situations, if a viable plan can be developed.
Loan to Value not to exceed 70%
The Consolidator will be real estate based, supplemented by all other typical forms of security such as a General Security Agreement (GSA) and corporate and personal guarantees. On occasion the Board NSFLB may wish to go beyond the farm for additional personal security.
The security may take the form of a Collateral Mortgage, Continuing Collateral Mortgage, or existing Agreement of Sale.
Life Insurance is available to most clients and is a requirement of your loan. Life insurance may be obtained through the Board's Creditor Group Life Insurance policy with Sun Life Assurance, or privately.
Fixed rate interest for the full amortization period, from 1-30 years.
Term rate financing for 3-5-10 Term Options with 1-30 year amortizations.
The Quota Loan is for buying milk quota, egg quota, broiler quota, and turkey quota. Clients know that to grow production and keep a farm moving into the future, it takes a big roll of cash.
The Farm Debt Consolidator is used as a cleanup tool for short-term payables, stagnant operating debt, medium term loans, and restructuring of long-term debt with other lenders.
A deferred loan structure has been developed for general cash flow situations that require a principal deferment to help a farm manage its cash situation.
Jump Start program is designed for new entrant farmers. In combination with the Provincial FarmNext plan this program can give a new farmer a real boost to get his or her farm life off to a great start.
The Fast Tracktor loan authorization is an equipment purchasing line of credit. The loan option provides a preapproved equipment line of credit for clients requiring new or used equipment to sustain their operation.