In the ag industry, optimizing financing offers amidst purchasing and profit realization can be a challenge. Bridge financing is an easy solution to help “bridge the gap” between this year’s crop income and next year’s seed needs. Bridge financing is only available to Nutrien Financial customers. It affords our growers with a mechanism to conserve cash and without exceeding existing credit lines. Bridge financing is especially appealing in the current interest rate environment because it provides peace of mind.
Bridge Financing for Seed Orders
As we approach fall harvest, it’s a great time to use bridge financing because you can secure your seed for next year now, taking advantage of early season pricing, without putting additional financial pressure on your budget before your income from this year’s harvest arrives. Financing instruments such as operating lines of credit are often variable, but financing from Nutrien Financial is fixed. This means you not only get great rates, but you also ensure some level of certainty for your budget.
In addition to alleviating some cash flow challenges that many face this time of year, and maybe more importantly, you avoid doubling up your credit lines. This takes the chore of juggling payments and income off your to-do list so you can focus on farming.
Combat High Interest Rates
Using bridge financing for your seed orders will lock in a fixed interest rate. The Fed has more than doubled interest rates since 2022 and it is difficult to predict whether or not those rates will continue to climb. If you are using credit cards or a bank line of credit, which typically have a variable interest rate structure, you may need to adjust your budget in response to higher interest expense.
With Nutrien Financial, you can use bridge financing to lock in a competitive fixed rate for the season, which won’t fluctuate even if the prime rate keeps increasing.
Save Cash for Unexpected Expenses or Other Needs
Financing your seed purchases can improve your cash flow and can free up working capital to give you a safety net in unpredictable times. Financing allows you to conserve your cash for other things - like expanding your operation, saving for emergencies, or maximizing profitability by using your cash on other crop inputs where discounts aren’t as readily available.
If you finance your seed now, you can protect your cash and leverage it for needs that might arise later. Bridge financing is designed with maximum flexibility so you can strategically plan for next year in the critical “gap period” of harvesting this year’s crop.
How to Start with Bridge Financing
If you’re already a Nutrien customer, talk to your crop consultant or retail branch. If you already have credit with us, there is NO additional paperwork - just notify your crop consultant when you’re ready. If you are new to Nutrien Financial, get started by completing a secure and easy online application at www.nutrienfinancial.com.