Ag/Commercial Operating Lines of Credit (OLOC)
What is an Operating Line of Credit?
An Operating Line of Credit (OLOC) is a flexible, revolving loan providing farmers and businesses immediate access to funds up to a set limit.
What would I use an Operating Line of Credit for?
Funds are available on demand during the loan term.
Common uses of an OLOC are:
- Manage Cash Flow Gaps
- Purchase Inventory
- Cost of Inputs
- Operating Expenses
- Repairs, etc.
How do I make payments?
Interest is only accrued on the amount drawn. Payments can be made toward the principal balance to reuse the funds at any time during the term. Overall, the payment structure is flexible to coincide with receivables being collected or any crop or cattle sales.
What kind of fees are involved with an OLOC?
Fees may include origination fees, credit report fees and UCC filing fees. To view our fee schedule, click here.
What is the term of an Operating Line of Credit?
Our OLOCs are usually a one-year term with an option to extend one-year and the end of the first term. Interest accrued along with the extension fee are required to be paid in order to extend the loan. At the end of the two-year cycle the line of credit must be rewritten/originated.
What can I use as collateral for an Operating Line of Credit?
Lines are often secured by a Farm or Commercial Blanket UCC, Real Estate Mortgage, or FSB held customer asset accounts.
How do I qualify for an Operating Line of Credit?
Several components are looked at to determine whether a customer qualifies for an OLOC:
- Completed Application – Print an application here.
- Three Years of Tax Returns
- Current Financial Statement - Choose a format FSB Financial Statement (pdf) or FSB Financial Statement (Excel)
- Credit Bureau Report