Equipment financing

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Hook2.0
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Re: Equipment financing

Postby Hook2.0 » Wed Sep 26, 2018 12:31 pm

Named'em Tamed'em wrote:I used. Ag Direct. They beat the Case rate by. 2%

I just went with a signature loan. No liens, no extra paperwork. Credit score was in The top 2% so that isn’t an issue. I’ll have it paid for by spring anyway so rate is irrelevant.
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Stocker Steve
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Re: Equipment financing

Postby Stocker Steve » Thu Sep 27, 2018 1:43 am

jltrent wrote:[As stated before if you want to conserve your funds then get a loan against them as that will give you the best rate. For the bank it is zero risk and when I worked in the banking business we went 2% over CD face rate.

Credit Unions have good rates as banks are for-profit, while credit unions are nonprofits and can offer usually better rates on loans. If you have a good home town bank usually they will try to work with their good customers and go below sheet rate.


Sheet rate applies to what kind of bank customer ?

Does an individual or an ag operaton ever get loans at prime rate, or is it just for big corporations?
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jltrent
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Re: Equipment financing

Postby jltrent » Thu Sep 27, 2018 6:34 am

Stocker Steve wrote:
jltrent wrote:[As stated before if you want to conserve your funds then get a loan against them as that will give you the best rate. For the bank it is zero risk and when I worked in the banking business we went 2% over CD face rate.

Credit Unions have good rates as banks are for-profit, while credit unions are nonprofits and can offer usually better rates on loans. If you have a good home town bank usually they will try to work with their good customers and go below sheet rate.


Sheet rate applies to what kind of bank customer ?

Does an individual or an ag operaton ever get loans at prime rate, or is it just for big corporations?


Depends, when I was a Loan Officer, Branch Manager in the mid/early eighties we were provided a sheet rate to go by and from there we could either go up or down. It was and individual thing, based mostly on these five C's: Character, Capacity, Capital, Collateral, and Conditions. A good customer that everything checks out, good history, etc. if the sheet rate was 8% on a new tractor (farm equipment loan) it wasn't out of the norm to reduce to 6.75% as the risk was lower. Have a good relationship with your banker and it never hurts to ask for a better rate also. To you it is considered a debt, to the bank it is on their records as and asset, banks want good assets. It is very interesting to review banks quarterly call reports as I do this all the time online. I am pretty much familiar on how to read them and what to look for.
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