First National Bank South Dakota is proud to have been serving agribusiness since 1886. Our knowledge and experience allows us to offer the most innovative agribusiness and finance solutions available, whether your business is beef, pork, grain, ag-supply, processing or any other facet of the industry. No one understands your operation's financing needs better than First National Bank South Dakota, so talk to us today about solutions to fit your size, core business needs and location.
When it's time to purchase livestock, First National Bank South Dakota has customized and affordable financing. Loan commitments are made for terms of three to five years. Interest rates may be fixed or variable and are determined by your financial condition.
Feeder Finance Line of Credit
A feeder finance line of credit provides an avenue for commercial feedlots to attract customers and act as a financing intermediary. You, the feedlot manager, execute a note, security agreement and financing statement with your customer. The note generally requires that your customer provide up-front equity of either $150/head or 30% of purchase price of the cattle, with 100% of the feed expense loaned to you.
In turn, the bank takes assignment of the documents between you and your customer, and provides you with the funds necessary to complete the transaction (approximately 70% of the purchase price of the cattle and 100% of the feed costs). You are responsible for assessing the repayment capacity of your customer; therefore the bank requires that you provide a guaranty of repayment on the notes. Interest rates are variable, and are determined by your financial condition.
Machinery & Equipment Loans
Machinery & Equipment Loans provide funds for you to maintain and expand your feeding equipment, rolling stock and facilities.
We offer fixed and variable rate loans with terms ranging from two to seven years. Your down payment can consist of a cash payment and/or a trade-in allowance. We will also work out a convenient repayment plan to meet your cash flow objectives.
Ag Real Estate Loans
When it's time to finance or refinance property, land improvements, buildings and facilities, our agricultural banking professionals have the tools and expertise to develop the financial plan that suits your needs.
Whether it's a 5-acre plot for an indoor arena or a 50,000-acre spread to run 15,000 head of cattle, we can put the financing together for you. You may select your payment schedule and term based on variable or fixed interest rate options.
Operating Lines of Credit
Working capital funds for your day-to-day operations enable your business to maximize its profitability. One source of these funds is by utilizing a line of credit. Primary uses of a line of credit include:
- Funding seasonal build up fluctuations in inventory
- Assisting in the timing differences of collecting your receivables
- Ability to take advantage of vendor discounts
- Meeting unexpected cash needs
Obtain working capital funds by calling us today and applying for one of our existing revolving or non-revolving lines of credit. Or, we can develop a line of credit to meet your specific needs.