CFA offers a broad array of flexible commercial loans to support our member cooperatives. No matter the size of commercial loan requested, our Portfolio Managers can structure a loan to fit their needs.
Operating Loans
These commercial loans are revolving lines of credit available to finance the seasonal increases in supply inventory, grain inventory, hedging activities, receivables, and operating expenses.
Commercial loans are typically secured and may have either variable or fixed interest rates. Operating loans usually mature within 12 months.
Term Loans
This commercial lending product is used to finance real estate, facilities, equipment, vehicles, or permanent levels of current assets.
Term Loans may be either revolving or non-revolving, are typically secured with assets of the cooperative, and may have either variable or fixed interest rates. The repayment period will be matched to the useful life of the assets financed and to the cash flow to be generated.
Specialty Lending
These loans are single-purpose loans to member cooperatives that have a borrowing relationship with another lender. The loans are used to provide deferred terms and fund 100% of inventory purchases.
Our Premier Specialty Loan is our best deferred-terms tool for financing invoices. The loan is a perpetual line of convenience credit subject to annual review.
How it works:
- Member cooperative selects the invoices to be financed
- CFA makes the payments to the suppliers
- The loan is due in full once a year
- Member cooperative chooses which month of the year you prefer to pay off the loan