IFAInvest - Blogs

03

Aug

Helped by Loan : Finding the Perfect Summer Internship For You

2023-08-03 02:24 AM

After graduating from college, many jobs want experience in your work field. Having a summer internship is a great way gain experience. Here are some ways to find the perfect internship for you:Check out online resourcesThere are many online resources to help you look for internships. CyHire is a great tool to find employers who are recruiting Iowa State students. You can search for positions by your college or major, upload your resume, view career fair information and more. You can even automate your CyHire search to have new opportunities emailed to you. LinkedIn is another great tool to connect with people and to find internships in different cities and states. Through LinkedIn you can also connect with alumni of Iowa State University.Attend career fairsCareer fairs are a great way to network and to create connections with people in the work force. Through networking you are able to share your resume and network for yourself with others. Connections are important for finding job opportunities.Contact the employer directlyYou don’t see an internship at a business or organization you want to work for? Contact the business or the employers. This shows them that you are motivated and willing to go the extra mile.Find something that works for youLooking for an internship that intrigues you and will help you improve your skills and connections is important when making a final decision. While there are both paid and un-paid internships, there may be scholarships you can apply for if you decide to take an un-paid position, so don’t discount an opportunity if it will ultimately help you gain valuable experience.

03

Aug

Agri-loan, key to farming success

2023-08-03 02:21 AM

Starting today's article with statistics provided by the Bangladesh Bank.According to IFPRI, 19 percent of farmers take loans from relatives. 15 percent from the landowner, 11.4 percent come from moneylenders and 3.6 percent from various associations and cooperatives. Farmers get the largest share of the loan from the Krishi Bank, which is aboFarming has never been easy. Between unpredictable weather, fluctuating commodity prices, rising input costs, and the need for constant innovation, turning a profit while feeding the world is a monumental task. Yet, one financial tool stands out as a true game-changer for farmers of all scales: the agri-loan (agricultural loan). When used strategically, agri-loans provide the capital to invest, expand, and weather challenges—often making the difference between mere survival and real success. In this post, we'll explore why agri-loans are essential, their main benefits, potential pitfalls, and practical steps to secure and manage one effectively. Why Agri-Loans Matter in Modern Farming Agriculture is capital-intensive. Seeds, fertilizers, machinery, land, labor, and irrigation systems all demand significant upfront investment long before any revenue arrives. For smallholder and beginning farmers especially, cash flow gaps during planting and growing seasons can halt progress. Agri-loans bridge these gaps. Tailored to farming's seasonal and cyclical nature, they offer flexible terms that align with harvest cycles—unlike standard business loans. Institutions like the USDA's Farm Service Agency (FSA), Farm Credit System, commercial banks, and specialized ag lenders recognize this reality, providing products designed for the unique risks and rewards of agriculture. Access to credit isn't just helpful—it's often the foundation for growth, resilience, and long-term viability. Key Benefits of Agri-Loans Here are the primary ways agri-loans drive farming success: Access to Modern Equipment and Technology Upgrading to precision agriculture tools, efficient tractors, harvesters, irrigation systems, or drones boosts yields, cuts labor costs, and reduces waste. Loans make these investments possible without draining savings. (Imagine modern tractors working vast fields—precision tech in action.) Purchasing or Expanding Land Farm ownership loans help buy additional acreage, refinance existing property, or improve buildings and soil/water conservation—essential for scaling operations and increasing production capacity. Covering Operating Expenses Crop operating loans fund seeds, fertilizers, fuel, labor, and other seasonal needs. This smooths cash flow, allowing farmers to focus on production rather than scrambling for funds mid-season. Diversification and Risk Management Loans enable trying new crops, adding livestock, or adopting climate-smart practices—building resilience against market volatility or weather events. Support for Beginning and Smallholder Farmers Programs like USDA beginning farmer loans or microloans ease entry with relaxed requirements, lower paperwork, and targeted funding—helping new generations succeed. Competitive Advantages Lower interest rates (compared to general loans), flexible repayment tied to harvest timing, and specialized lenders who understand agriculture make agri-loans more farmer-friendly. These advantages help increase productivity, profitability, and sustainability—turning ambitious plans into reality. Potential Challenges and How to Handle Them Agri-loans aren't risk-free. Key drawbacks include: Debt burden if yields or prices fall short Collateral requirements (often land or equipment) Interest costs adding pressure during low-price years Strict qualification (good credit, solid business plan needed) Mitigate these by: Borrowing only what you need and can repay Maintaining detailed records and realistic budgets Exploring crop insurance or government guarantees Choosing flexible lenders familiar with agriculture How to Secure an Agri-Loan: Practical Steps Assess Your Needs — Calculate exact requirements (e.g., equipment vs. operating costs). Build a Strong Business Plan — Include production projections, marketing strategy, cash flow forecasts, and risk management. Lenders love data-driven plans. Check Your Credit and Finances — Review credit score, prepare balance sheets, income statements, and tax returns. Research Lenders — Compare USDA FSA (great for beginners), Farm Credit institutions, local ag banks, or online options. Look for flexible terms and ag expertise. Apply with Documentation — Expect to provide financials, farm details, collateral info, and sometimes appraisals. Explore Government Programs — In many countries (e.g., USDA in the US), targeted support exists for young, small, or underserved farmers. Pro tip: Start early—loan processes take time, especially before planting season. Final Thoughts: Unlocking Your Farm's Potential An agri-loan isn't just debt—it's strategic capital that fuels growth, innovation, and stability. In an industry where timing and investment determine outcomes, the right financing can transform challenges into opportunities. Whether you're a smallholder aiming to boost yields, a mid-size operator expanding acreage, or a beginner taking your first steps, agri-loans remain a powerful key to long-term farming success. Have you used an agri-loan to grow your operation? Share your experience in the comments—what worked, what you'd do differently? Happy farming—and smart financing! 🌾ut 15 percent. Large, medium and small farmers together get 36 percent of the total loan while marginal farmers get about 5 percent. The total percentage of loan all the farmers get is 36 percent. Sharecroppers, the farmers who cultivate other people's land on lease, do not get this loan. As a result, they have to rely on loans from other sources, including NGOs.Small NGOs and associations began to form in the districts and upazilas from the 80s to the early 90s of the last century. Along with other developmental activities, these institutions started a micro-credit programme. Institutions thrive mainly on interest earned from loans. But there is no such change in the farmer I have witnessed. The farmer falls into a debt trap and sometimes carry the burden of prolonged loans that they take from NGOs and local moneylenders. Farmer Rafiqul Islam from Natore, at one of the open-air discussion among farmers and policymakers, popularly known as 'Krishi Budget Krishoker Budget' (Farmers' Voices in Budget, aired on Channel i), said he has never seen any political person become poor while doing politics, but the farmers are not well off doing their profession, which is farming. "We don't have capital, no one thinks about our market, no one talks about us," Rafiqul angrily said. Such anger doesn't only come from Rafiqul, but almost every farmer bears the same agony. Most importantly, the moneylenders expanded their business by capitalizing on the poor state of the farmers and they never want them to get out of this vicious circle of borrowing money from the locally-rich and powerful people.Agri-Loan: The Key to Farming SuccessAgriculture remains the backbone of many economies, especially across Africa, where it provides livelihoods, ensures food security, and drives rural development. Yet, one of the biggest challenges farmers face is access to adequate financing. This is where agri-loans come in—a powerful tool that can transform small-scale farming into profitable, sustainable agribusiness.What is an Agri-Loan?An agri-loan is a type of financing specifically designed to support agricultural activities. It provides farmers with the capital they need to invest in seeds, fertilizers, equipment, irrigation systems, livestock, and other essential resources required for successful farming.Unlike traditional loans, agri-loans are often structured with flexible repayment terms that align with farming cycles, making them more suitable for agricultural operations.Why Agri-Loans Matter1. Boosting ProductivityWith access to funds, farmers can purchase high-quality seeds, modern equipment, and fertilizers. This leads to increased crop yields and improved quality of produce.2. Encouraging Modern Farming TechniquesAgri-loans enable farmers to adopt advanced technologies such as irrigation systems, mechanized tools, and greenhouse farming. These innovations reduce labor, save time, and increase efficiency.3. Expanding Farm OperationsFarmers can use loans to acquire more land, diversify crops, or invest in livestock farming. Expansion often leads to higher income and better resilience against market fluctuations.4. Reducing Financial StressInstead of relying on informal lenders with high interest rates, farmers can access structured financing with manageable repayment plans. This creates financial stability and better planning.5. Supporting Agribusiness GrowthAgri-loans are not limited to crop farming—they also support processing, storage, transportation, and distribution. This strengthens the entire agricultural value chain.Types of Agri-LoansShort-term loans: For seasonal inputs like seeds and fertilizersMedium-term loans: For equipment and livestockLong-term loans: For land purchase, irrigation systems, and infrastructureMicroloans: For smallholder farmers with limited capital needsKey Benefits of Agri-LoansImproved cash flow managementIncreased farm output and incomeAccess to better marketsEnhanced food securityJob creation in rural communitiesHow to Qualify for an Agri-LoanWhile requirements vary by lender, farmers typically need:A clear farming or business planProof of land ownership or usage rightsFinancial records or income estimatesIdentification and basic documentationSome lenders may also require collateral, while others offer group lending or government-backed programs to reduce risk.Tips for Using an Agri-Loan SuccessfullyPlan before borrowing – Know exactly how the funds will be usedBorrow what you need – Avoid over-borrowing to reduce repayment pressureInvest wisely – Focus on inputs or assets that generate returnsTrack your expenses – Keep records to manage your finances effectivelyRepay on time – Maintain a good credit history for future opportunitiesThe Future of Farming with Agri-LoansAs agriculture evolves, access to finance will play an even greater role in shaping the industry. With the rise of digital banking, mobile money, and government support programs, agri-loans are becoming more accessible to farmers—even in remote areas.Farmers who embrace these financial tools position themselves for long-term success, sustainability, and growth.ConclusionAgri-loans are more than just financial support—they are a catalyst for transformation in agriculture. By enabling farmers to invest, expand, and innovate, these loans unlock the true potential of farming.Whether you are a smallholder farmer or an emerging agribusiness owner, leveraging agri-loans can be the key to achieving productivity, profitability, and lasting success in agriculture.

03

Aug

Dealing with Delinquent Business Loans: Protecting Your Finances and Credit

2023-08-03 02:18 AM

Closing on a business loan often brings a sense of relief and excitement as you secure the funds to grow your business. However, it’s not uncommon to find yourself overwhelmed after a few months or years, realizing that you’ve taken on more than you can handle. With over one-third of Americans struggling with delinquent debt and the risk of loan defaults, taking immediate action is crucial when you fall behind on loan payments. This article provides essential information on delinquent loans, defaults, and practical strategies to protect yourself and minimize the associated damage.Understanding Delinquent LoansA loan becomes delinquent when you miss a payment, even in just one day. If you miss payments or cannot make them for an extended period (typically 90 to 120 days), the lender may classify the loan as default and initiate collection procedures. Both delinquent loans and defaults have negative implications for your credit. It’s important to note that the timing of your delinquency rarely matters. For example, if your payment is due on February 1 and the lender doesn’t receive it that day, the loan becomes delinquent on February 2.Consequences of Delinquent LoansThe consequences of a delinquent loan depend on your lender’s policies and the terms outlined in the loan agreement. However, there are three typical outcomes:Penalty Rates & Late Fees: Loan agreements often permit lenders to charge late fees after a few days grace period. Some agreements also permit the lender to increase the interest rate on overdue amounts, known as a “penalty rate” or “default rate.” Late fee structures vary among lenders, so it’s essential to understand their specific policies to avoid surprises.Negative Impact on Credit Score: Once you are 30 days late on payments, lenders can report the late payment to credit bureaus. Beyond this period, a late payment can decrease your credit score by nearly 100 points. In addition, poor credit score makes qualifying for future business loans more challenging. Late payments can remain on your credit report for up to seven years, even if you pay the lender after the item is reported.It’s worth noting that this 30-day rule does not apply to business credit reports, as lenders can report late payments to commercial credit bureaus even if you are just one day late.Increased Contact from LendersWhen you have a delinquent loan, expect frequent calls and emails from your lender urging you to make payments. Lenders prioritize collection efforts while the deadline is fresh in your mind. As delinquency continues, it becomes more challenging for lenders to collect the debt.Delinquent Loans vs. Defaulted LoansA loan transitions from delinquency to default when you have an outstanding balance for an extended period specified in the loan agreement. Typically, lenders wait 90 to 120 days before considering a loan as default.How to Identify Defaulted LoansWhen a loan goes into default, the lender will send you a written notice stating that you have breached the loan agreement and must immediately repay the entire loan balance. The lender might also sell or transfer the debt to a collection agency, escalating collection efforts to recover the outstanding balance. If the lender believes they won’t recover the money, they can charge off the loan, removing it from their books. However, you remain responsible for paying the debt.Actions After DefaultThe lender’s subsequent actions depend on whether the loan is secured or unsecured. Secured loans have collateral or personal guarantees backing them, while unsecured loans do not.

29

Jul

Rev Up Your Journey: A Guide to Car Loans

2023-07-29 07:32 AM

I wouldn’t say it’s harder to get a mortgage if you’re self-employed, but it’s less straightforward than for an employed person. You’ll find that lenders will ask you for more documentation. They’re potentially going to look at your income a little bit more closely, compared with an employed person who will just have to provide payslips and maybe some bank statements.One of the outcomes of Covid last year was that it took a while for mortgage providers to start lending to more self-employed clients. There were minimum deposit restrictions in place. Some lenders still have these – they will ask for a 25% deposit if you’re self-employed.But most are going back to the norm now.Lenders vary in terms of how much they will lend self-employed people and the type of self-employed clients they will accept. That just means you need to do a bit more research before you apply to a lender.What if I only have one year’s accounts?You should still be able to get a mortgage with just one year’s accounts. The majority of lenders usually want two years’ history as self-employed, but some will accept a year’s self-employed income.There are even lenders who in some scenarios would accept the self-employed from day one. For example if someone who had one year’s accounts as an accountant decided to be a self-employed builder, they might struggle because there’s no work experience history. But an employed accountant moving to become a self-employed accountant is more likely to be accepted with a year’s accounts.Imagine a doctor that has worked for the NHS for five years is buying into a local, established practice. Many lenders would consider that from day one because the practice already has history. So it is definitely possible to get a mortgage with one year’s accounts, and sometimes less.As brokers we’re here to help. We’ve got a really good understanding of which lenders are most suitable for every type of client.Are self-cert mortgages still available?Thankfully not, but we have seen some companies try to set up self-certs abroad. I would avoid those companies like the plague.Self-cert mortgages are not a good idea – back in 2008 a major factor in the credit crunch for the mortgage world was self-cert, and so they’re not available anymore.Can you get a joint mortgage if one person is self-employed?It does help to have someone else on the mortgage who’s employed, particularly when it comes to credit scoring. It will also increase the amount you can borrow, because the lender will base the loan on your combined incomes.One thing to do before you apply for a mortgage if you’re self-employed is to have a look at your credit score and register on the electoral roll. Some lenders might score you more harshly when you’re self-employed as the risk to them is higher.With mortgages for the self-employed a broker really comes into their own – we can look at all the different options.What’s the difference in mortgages for a sole trader and a limited company director?A lot of this is to do with how the lenders treat you – firstly in terms of how they calculate your income. If you’re a sole trader or running a partnership, the lender will usually take two years worth of your tax returns. They’ve got various names: tax calculations or SA302s. The lender will usually work off your net profit, which is your income after your expenses. They will usually take either an average of your last two years’ net profits or use your latest year if there’s a steady increase.The main difference for a limited company is that even though you’re self-employed, you’re actually employed by your limited company and receive your income via salary and dividends. The majority of lenders will use your two years’ salary and dividend figures from your tax calculations.But there are also lenders that will disregard your salary and dividends and go for your net profits instead – that will often allow you to borrow a lot more. So, as a limited company the way lenders can view you will vary considerably.How much can a self-employed person borrow on a mortgage?Where affordability can vary is whether the lender uses the average of your last two years or your latest year. The average income might work out at, say, £25,000 but if your latest year is £40,000 that could be quite a big difference.But it’s with limited companies that we see the biggest difference in affordability. A limited company director may have taken a salary and dividend of say £40,000 – some lenders will take that as the income. But perhaps their net profit is £100,000 a year. Other lenders will take that as your income – which means a massive difference in how much you can borrow. NatWest or Halifax will use salary and dividends while Coventry and HSBC, for example, will use the £100,000.If you want a rough idea of how much you could borrow, the very general rule is about 4.5 times your income, up to a maximum of about 4.75 and, in some very rare instances, up to 5 times.

29

Jul

Unlock Your Dream Home: Explore Our Home Loan Options.

2023-07-29 07:29 AM

27

Oct

USA mortgages: ‘How did a $42,500 loan turn into a $477,000 debt?’

2020-10-27 08:57 PM

Cooper’s parents died in 2021, and their house was last year valued at $750,000, so – as things stand – he and his sister will have to hand over most of that to the bank. He says he feels certain his late parents did not realise that that $42,500 loan could spiral to close to $500,000 and “cost their kids their inheritance”.However, the bank says it recommended at the time that customers took independent financial advice to ensure they understood the product and that it was right for them, and adds that in this case, solicitors were instructed by the borrowers.The Coopers are among hundreds – probably thousands – of families whose lives have been blighted by shared appreciation mortgages (Sams). This was a type of home loan that was only on sale for a brief period, between 1996 and 1998, and only available from two banks, Bank of Scotland and Barclays.These loans were ostensibly aimed at helping “asset-rich, cash-poor” older people release some of the value locked up in their homes. They typically allowed people to borrow up to 25% of the property’s value, and usually there were no repayments to make during the lifetime of the loan.In return, people were required to pay back the original amount when the mortgage was repaid, or when they died and the house was sold, plus a share of any increase in the value of their home.This share was usually worked out on a three-to-one basis – so if you borrowed 25% of the value, you would be in line to hand over 75% of the future growth in value.Of course, in the years since those mortgages were sold, house prices have rocketed, leaving people facing massive repayments if they want to move – or, as in the case of Cooper, leaving the offspring of those who signed up with a huge and costly headache.

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