“One of NAEDA Canada’s most valuable partnerships is with Farm Credit Canada (FCC),” said Larry Hertz, Vice President of NAEDA Canada. “Finance companies have come and gone over the years, but the stability of FCC means a lot to our dealers and customers.”
FCC filled an existing gap, and by working together with the dealers’ association, we developed the most attractive retail finance program in Canada.
“When the financial crisis hit North America in 2008, we started discussions on an inventory finance program,” added Hertz. “These discussions led to the program that still is in place today.”
The FCC Inventory Financing Program is a unique financing option developed by NAEDA and FCC to support dealerships. It provides flexible, and convenient solutions tailored for dealerships doing business in the new and used agricultural equipment market.
This program supports the agricultural industry and empowers dealerships to manage their inventory and cash flow effectively. With a range of benefits that set it apart from other financing options, the FCC Inventory Financing Program is a competitive option for your dealership.
Benefits of the FCC Inventory Financing Program
- No stand-by, administration, or set-up fees. The program does not charge fees for setting up or maintaining the financing line. This means that dealerships can save money and avoid hidden costs.
- Stability and predictability are essential when it comes to financing. The FCC Inventory Financing Program offers a competitive interest rate based on the Bank’s prime rate and does not fluctuate based on your dealership’s financial results. This means that regardless of market conditions, you can enjoy a stable and affordable financing cost, giving you the confidence and security to plan your finances effectively.
- Industry-standard LTV and curtailments. The program provides a reasonable loan-to-value ratio and curtailment schedule aligned with industry standards. This means dealerships can finance their inventory without overextending their credit or risking their assets.
- Dedicated support team and sales team. A team of experts is ready to provide comprehensive support and guidance to dealerships whenever needed. The support team can assist with disbursement, reporting requirements, and troubleshooting issues. The sales team can build a strategy and support your business’s outside inventory financing.
- FCC also provides lending for dealerships for their land, building, acquisition financing and working capital requirements.
- Integrated financing model. The program works with the well-established Dealer Financing Program, which provides financing to customers who buy agricultural equipment from dealerships. By having both programs, dealerships can build a strategy with FCC for an integrated financing model that can provide additional support and benefits as part of a partnership.
“Without the partnership we developed with FCC and their product offering, our dealers would have faced financial challenges over the years, added Schmeiser. “For us, it is great to have a creative and innovative partner that can quickly adapt to provide financing solutions for the betterment of the industry.”
FCC continues to make enhancements to the Inventory Financing Program to fill gaps in the industry and support dealerships. To learn more about the FCC Inventory Financing and its Integrated Financing model, contact your FCC representative, who can explain more.
