1. Loans and Loan Types

2. Loans are used for many reasons Feed, seed and fertilizer purchases Machinery,livestock,and equipment purchases Land,building,and home purchases Business start up expenses like attorney fees,incorporation fees, and product development costs Emergencies Feed, seed and fertilizer purchases Machinery,livestock,and equipment purchases Land,building,and home purchases Business start up expenses like attorney fees,incorporation fees, and product development costs Emergencies

3. Short term loans Less than 1 year Used to buy items like feed, seed, fertilizer, and other consumables Referred to as an operating note Can be financed by merchants, banks and private individuals Interest generally calculated using simple interest method. Used to even out highs and low in income and expenses Less than 1 year Used to buy items like feed, seed, fertilizer, and other consumables Referred to as an operating note Can be financed by merchants, banks and private individuals Interest generally calculated using simple interest method. Used to even out highs and low in income and expenses

4. Intermediate term notes 1 to 10 years in duration Used to buy depreciable assets like machinery, equipment, breeding livestock, and vehicles Banks, Individuals, Ford credit, GMAC Interest calculated several ways including remaining balance and add on 1 to 10 years in duration Used to buy depreciable assets like machinery, equipment, breeding livestock, and vehicles Banks, Individuals, Ford credit, GMAC Interest calculated several ways including remaining balance and add on

5. Long term loan Used to purchase land, buildings, homes Longer than 10 years in duration Usually a mortgage with equal payments Provided by commercial banks, Farm credit system, individuals, insurance companies, and mortgage companies Used to purchase land, buildings, homes Longer than 10 years in duration Usually a mortgage with equal payments Provided by commercial banks, Farm credit system, individuals, insurance companies, and mortgage companies

6. Mortgages Mortgages are long term loans that are generally used to finance the purchase of homes. Mortgages are generally offered in 15 and 30 year lengths with many options to choose from. Mortgages are long term loans that are generally used to finance the purchase of homes. Mortgages are generally offered in 15 and 30 year lengths with many options to choose from.