Is interest-only financing right for your operation?

Interest-only financing isn’t for everyone, but it certainly shouldn’t be dismissed out of hand. The interest-only term loan option, where borrowers pay only the interest without reducing the principal, has proven to be an effective financial strategy. This approach has been advantageous due to the consistent rise in farmland values and historically low interest rates over the past. It doesn’t apply to traditional lines of credit or operating loans.

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