Getting the Loan You Need: What to Prepare Before Applying for Alternative Farm Financing
Farming isn’t just a job — it’s a way of life. But when cash flow gets tight or traditional lenders say no, it can feel like that way of life is at risk. At Farm Lending Canada, we specialize in helping farmers across the country (except Quebec) access alternative financing when the banks won’t step in.
Alternative lending is not about judgment — it’s about opportunity. Our goal is to get you the funds you need today, and just as importantly, to help you work your way back to conventional financing when the time is right.
But for us to offer the best support possible, we need your help: providing a full, clear picture of your farm’s current financial situation.
Why We Ask for So Much Information
We know paperwork isn’t anyone’s favourite part of the job. But when you apply for an alternative loan, we’re not just checking boxes — we’re trying to understand your story.
What’s changed in your operation? Why did the bank say no? Is the current challenge temporary or long-term? Can we help turn things around?
To answer those questions and get to a loan decision quickly, we need to see the facts behind the farm.
What You’ll Need to Gather
Here’s a checklist of the most important information to prepare before applying for alternative financing:
- A brief history of the farm: How many generations? Key milestones. A recent history of the farm and how the farmer got to needing alternative lending.
- Corporate Structure
- Is your farm a sole proprietorship, partnership, or corporation?
- Who owns what, and how is it legally organized?
- Financial History
- Ideally, provide financial statements from the last 2–3 years.
- These don’t need to be perfect, but they help us understand trends and challenges.
- Net Worth Statement
- A snapshot of your assets and liabilities — land, equipment, livestock, debts, etc.
- Land Descriptions & Ownership
- Legal land descriptions and who legally owns each parcel.
- This helps us know what can be used as security for the loan.
- Outstanding Mortgages
- What’s still owed, to whom, and under what terms?
- Land Values
- If you’ve had recent appraisals done, include those.
- If not, let us know your best estimate of current market value.
- Security Already Pledged
- Is the land already being used as collateral for other loans?
- We need to know if there’s room to work with new financing.
The Biggest Mistake: Sending Incomplete Information
One of the main reasons loan applications get delayed — or declined — is missing or unclear information. For example:
- A land title that doesn’t match the corporate documents
- A mortgage reference with no amount or lender listed
- Financials that show a loss without context or explanation
These gaps make it harder for us to understand your operation and harder to say yes — even when we want to.
Our Goal: Get You Back to the Bank
We’re not just here to provide a short-term fix. We want to be part of your long-term plan — helping you regroup, invest where needed, and rebuild financial strength so you can return to conventional lending when you’re ready.
That’s why the more complete your application is from the start, the better we can build a loan package that works for you — and the faster we can get you the funding you need.
Let’s Talk
If you’re facing financial pressure, don’t wait until it’s too late. Whether you’re behind on payments, need funds for expansion, or just got a “no” from the bank, alternative lending is an option — and a lifeline.
The first step is getting your documents together. If you’re unsure where to start, reach out to us — we’re here to guide you through it.