Merchant Cash Advances » Farming Business Advance

Farming Business Funding

Blue tractor parked in field representing farm equipment business.

By Richard Wilson

Last Updated on

Estimated read time: 7 minutes

If you need funding to expand your crop production, improve livestock farming, acquire agricultural machinery, purchase farm equipment, or enhance ranching operations in your farming business, MCashAdvance farming advances are a fast way to get the funding you need.

We provide farming advances ranging from $5,000 to $900,000 to help grow your farming business. We fund all types of farming enterprises, including crop production, livestock farming, agricultural machinery, farm equipment, and ranching.

Securing financing from banks for farming businesses can be a lengthy and challenging process, often taking weeks or even months to obtain, with strict approval requirements, extensive paperwork, the need for collateral, and a preference for businesses with perfect credit.

An advance from MCashAdvance for farming businesses offers simpler approval, no paperwork or collateral, the possibility of receiving funds within 24 hours or up to 3 days, and accepts poor credit scores with no hard credit check that won’t impact your credit score upon application.

Get a Farm Loan Alternative Now

Advance Amounts:

$5,000 – $900,000

Factor Rate:

1.1– 1.5

Repayment Terms:

3 – 36 months

Funding Time:

1-3 days

Applying is easy, free, and won’t impact your credit score.

Get the farm financing you need today.

What is a Farming Business Advance?

A farming business advance is a type of merchant cash advance (MCA) created for farming businesses, including crop production, livestock farming, agricultural machinery, farm equipment, and ranching.

Your farming business sells a portion of its future credit card translation sales to MCashAdvance in exchange for an upfront lump sum of funds called a cash advance.

In exchange, we will deduct a small percentage of your daily sales revenue until the advance and MCA fee is fully repaid.

Emergency Funding for Farm Businesses

Farming can be unpredictable, with financial needs arising from various sources like seasonal shifts, equipment upgrades, or unexpected costs. A farm business cash advance provides a quick financial solution, often accessible within 24 hours to 3 days, and can be used for any farm-related need.

Farm Business Financing for Any Purpose

Here are 18 common ways a cash advance can be utilized in your Farm Business:

  1. Upgrade Farm Equipment: Invest in new tractors, plows, or harvesters to increase efficiency.
  2. Expand Livestock or Crops: Diversify your livestock breeds or crop varieties to broaden market appeal.
  3. Enhance Irrigation Systems: Upgrade irrigation for better water management and crop yields.
  4. Adopt Organic Farming: Shift to organic practices and obtain certifications to access new markets.
  5. Build Storage Facilities: Construct barns or silos for increased storage capacity.
  6. Invest in Renewable Energy: Install solar panels or wind turbines to cut energy costs and promote sustainability.
  7. Improve Farm Roads: Upgrade access roads for easier transportation of goods.
  8. Develop Online Presence: Create a website or online store to sell products directly to consumers.
  9. Emergency Repairs: Address urgent repairs or maintenance to prevent operational disruptions.
  10. Soil Health Improvement Programs: Implement programs focused on soil health, like cover cropping or composting, to enhance long-term agricultural sustainability and productivity.
  11. Farmers Market and Community Engagement: Allocate funds to participate in local farmers’ markets or community events, building brand awareness and customer loyalty.
  12. Implement Soil Health Programs: Invest in soil testing and health improvement programs for better crop quality.
  13. Pest and Disease Management: Upgrade your pest and disease control methods to protect crops and livestock.
  14. Market Research and Development: Conduct research to identify new market opportunities or develop niche products.
  15. Employee Training and Hiring: Train existing staff or hire additional help for more efficient farm operations.
  16. Purchase Additional Land: Expand your farm’s acreage to increase production capacity.
  17. Implement Smart Farming Technologies: Invest in technology like GPS, drones, or farm management software for precision agriculture.
  18. Community Engagement Initiatives: Fund projects like community-supported agriculture (CSA) programs or educational farm tours to build local engagement and support.
Farm equipment business owner sits on tractor in field wearing hat.

Farm Advance Example

Suppose you need a $23,500 merchant cash advance loan to purchase a new seeder for a tractor on your farm. If you are approved for $23,500 and receive a funding offer with a factor rate of 1.2 and a daily credit card holdback percentage of 15%, your total repayment amount will be $23,500 (Advance Amount) + $4,700 (Fees) = $28,200.

DetailsExample
Advance Amount$23,500
Factor Rate1.2
Avg Monthly Credit Card Sales$10,000
Holdback Percentage15% of Daily Credit Card Sales
Daily Credit Card Sales$333.33 per day (approx.)
Daily Payment Amount$50.00 per day (approx.)
Repayment Term (in days)Approximately 470 days
Repayment Term (in months)Approximately 15.67 months
Total Repaid$23,500 (Advance Amount) + $4,700 (Fees) = $28,200

Agricultural Enterprise Funding Eligibility

To be eligible for funding from MCashAdvance you must meet these 5 criteria:

  1. Your agricultural business must have been operational for at least 6 months
  2. Your farm or agricultural company should be generating a minimum of $100,000 per year in revenue
  3. As the agricultural enterprise owner, your personal FICO score needs to be 550 or higher
  4. Your agricultural operation must utilize a business checking account
  5. You, as the agricultural business proprietor, must be over 18 years of age and a U.S. citizen

How to Get a Farming Advance from MCashAdvance

To get an advance for your farming business from MCashAdvance, follow these 5 steps:

Step 1: Begin Online Application: Click Apply for an MCA to begin.

Step 2: Fill in Your Details: Provide information about your farm business and some personal details as the owner of the business.

Step 3: Submit Bank Statements: Upload the last three months’ bank statements of your farm business.

Step 4: Await Review Process: One of our underwriters will review your cash advance application to decide on funding.

Step 5: Receive Offer and Funding: Once you get a funding offer, review it. If it suits your business needs, accept it, sign the MCA agreement and the funds will be deposited into your business account

Get a Farm Business Advance Now

or learn more about merchant cash advances

Farm Funding FAQs

Can farming businesses get an SBA loan?

Farming businesses may not typically qualify for SBA loans, as they often require specialized agricultural financing. It’s advisable to explore alternative financing options that better suit the unique needs of the farming industry.

Can farming businesses get invoice financing loans?

Farming businesses, especially those involved in wholesale transactions and issuing invoices for produce sales, could potentially qualify for invoice financing.

Do banks lend to farming businesses?

Banks typically require farming businesses to have at least two years in operation, a FICO credit score of 680 or higher, three years of cash flow records, and a well-structured business plan outlining fund usage. Meeting these criteria increases the likelihood of banks approving a loan for your farming business. If you can’t meet these standards, alternative lenders like MCashAdvance may offer more accessible eligibility criteria for obtaining financial support for your agricultural enterprise.

How does farming equipment financing work?

Farming businesses can invest in equipment like tractors and use the tractors as collateral to secure financing. At MCashAdvance, you can obtain tractors using our advances without having to use the equipment as collateral.

Can farming businesses get business lines of credit?

Yes, farming businesses can obtain a business line of credit if they meet specific criteria related to the farming industry. Qualifications often encompass maintaining a FICO credit score of 660 or higher, having at least one year of experience in farming, and consistently generating monthly farming revenue exceeding $5,000.

How does a farm cash advance address the unique challenges of farming operations throughout the year?

A farm cash advance provides financial flexibility to farmers, addressing their unique needs throughout different seasons. It offers timely access to funds, allowing farmers to manage expenses like seed purchase, equipment maintenance, and livestock care efficiently. This flexibility is crucial, especially in unexpected situations or when preparing for peak farming periods, ensuring operations run smoothly year-round.

How can you apply for a field crop, honey, or livestock fall advance?

To apply for an advance for field crops, honey, or livestock, farmers can use an online application portal, or choose alternatives like mail, fax, or phone. This process involves submitting required financial and operational details relevant to the specific farming activity—crop, honey production, or livestock rearing.

How important is purchasing agriculture equipment for business efficiency?

Purchasing the right agricultural equipment is vital for business efficiency. It enhances productivity by streamlining processes, reducing manual labor, and increasing output. Quality equipment can lead to better crop yields, more efficient livestock management, and overall operational improvements, contributing significantly to the success of a farming business.

What types of agriculture businesses does MCashAdvance serve?

MCashAdvance serves a diverse range of agriculture businesses. This includes traditional crop farming, livestock rearing, specialized activities like beekeeping (honey production), ranching and almost all farming businesses in the USA.

Can you qualify for farm loans with bad credit?

Yes, although it’s difficult with traditional lenders who often require a minimum FICO score of 660, MCashAdvance allows applications with scores as low as 550. They assess the farm’s potential rather than solely focusing on credit history. However, terms and interest rates may be adjusted based on the credit score.

About the Author: