Consolidating Farm Loans in Canada

Consolidating Farm Loans in Canada

It is a common practice for farmers to borrow from banks or other lenders before the start of the season and repay after the crop has been harvested. This has been going on for several years now and has helped many farmers to grow from small yields to bumper crops with a lot more land under their possession. However, it is possible that a few farmers end up defaulting or falling behind on their repayments causing a lot more financial problems to them and their families.

As a matter of fact, it was reported by one of Canada’s biggest farm lenders that few farmers from Western Canada had fallen behind on a small proportion of their loan payments this year. Of course the low number of farmers defaulting is actually good news considering farmers had to face weather related problems as well as smaller crops in 2010. However, even the slightest of problems in repayment is a default and can have a serious negative impact for the farmers in question.

For those farmers who feel they have multiple loans and are having problems in keeping up with them, it is better to try and consolidate their loans into something which is more manageable.

There are times when a repayment is due, but it has either slipped the mind of the farmer or they do not have the cash right at that moment. It is possible that the money will be available within a few weeks, but if the repayment which is due at the moment is not met, you will be seen as a defaulter and action can be taken against you accordingly.

Of course all farmers usually own trucks or any other type of vehicle which they use in the farm for transportation. Just in case you feel that you are about to default on an existing loan but you will have the money in the near future, it could be a good idea to apply for a vehicle title loan. Also known as auto title loan, these types of loans allow you to borrow quick cash against the title of your vehicle. They are perfect to meet with an immediate financial requirement and are short-term in nature. Once you have the money which you were expecting, you can repay the loan and get back the title of your vehicle. That way you can meet both your immediate farming expenses or are able to meet any kind of repayment requirements of other farm loans you may have.

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