Revolving Line of Credit

A line of credit (LOC) is designed to provide flexible and efficient credit to borrowers whose business and related activities result in cash flow timing differences, and periods of cash surpluses and deficits.

Cape Fear Farm Credit offers a variety of Revolving and Non-Revolving line of credit options to best fit our customers’ operations and their financial needs. 

  • A Revolving Line of Credit (RLOC) is an open-ended facility in which the borrower may make draws to cover expenses. Funds can be advanced, paid back, and re-advanced up to the RLOC's maturity date. The most common use of a RLOC is for funding ongoing business or farm expenses in which the timing of cash flow creates funding challenges. Other purposes include the financing of inventory or receivables.
  • A Non-Revolving Line of Credit (NRLOC) is essentially a term loan in which the borrower may make draws upon to cover expenses for the term of the loan. However, as principal payments are made funds do not become available for the borrower to re-borrow or "re-advance". The most common use of a NRLOC is for the funding of expenses for farm inputs, supplies, and other upcoming expenses for the current farm operating cycle.


Line of Credit Products Available:

Small Select Revolving Line of Credit – Up to $100,000 that is ideal for smaller producers who experience mismatches in cash flow due to nature of the production cycle, such as operating expenses.

One Year Revolving/Non-Revolving Line of Credit – Ideal for mid to large size producers who need funds primarily for operating purposes with repayment plans from the sale of crops, livestock, or other operating assets being financed.

Multi-Year Revolving Line of Credit – Ideal for larger producers who need financing for a range of purposes or whose operations encompass more than the standard production cycle. Examples include timber producers, operations with diverse income streams, or commercial operations. 

Capital Line of Credit – Used to fund a borrower's capital purchase needs such as farm equipment, vehicle fleet, etc.

Asset-Based Line of Credit – Used to fund inventories, utilize cash tied up in accounts receivable, and other operating assets. These loans are indexed to the assets being financed and are monitored periodically through a borrowing base certificate. The repayment is usually accomplished from the conversion of the assets to cash.

*Consumer loans are not permitted for a Line of Credit product