Scotiabank Credit Line for Agriculture
Features:
A revolving line of credit that can be used for any inputs on
your participating dealers invoice.
A line of credit up to $50,000 may be unsecured. Some lines of
credit, between $20,000 and $50,000, may require a General Security
Agreement (GSA).
Between $50,000 and $100,000, a General Security Agreement (GSA) or
other appropriate security is required.
Above $100,000 requires additional information, along with a general
security agreement (GSA) or other appropriate security.
Rates and fees:
No checking account fees.
Interest rates range from prime plus 2.0%, to prime plus 4.0% based
on approved credit. You will be notified of your interest rate upon
approval. Interest on your outstanding balance is added to your
account at the end of each month.
For accounts where there is evidence of payment, delinquency, or a
review of credit particulars is necessary, late payment and/or
credit review fees may be charged.
Payment:
No payments are required on your credit line between April 1 at
October 31 except where monthly interest charges have your account
above the approved limit. If this occurs, you must make an immediate
payment to bring the amount going down to within the authorized
limit.
Between November 1 and March 31, a minimum of two payments is
required:
First payment -- by January 20.
Second payment -- on March 20.
Each of these two payments must be at least 25% of the outstanding
balance of your account as set. December 31.
Important - pay down your credit line during the off-season is
essential to provide you with the room to use the available credit
in the following season.
Applying:
Contact or visit your local independent farm supplier.
Participating dealers will take you through the sign-up process.
You will be required to complete and sign a Scotia Bank credit
application and a quick information supplement highlighting a few
key details about your farming operation. The dealer will ask for,
and take photocopies [front and back as applicable] of, two pieces
of valid identification - such as a driver's license, firearm
permit, passport, birth certificate, credit card. The dealer will
forward this information to Scotia Bank.
Within three business days you will receive a credit decision. In
most cases. When approved, you will receive a letter by mail,
welcoming you to the program, confirming the amount of your credit
line, stating the applicable interest rate, and requesting that you
visit your dealer to complete your credit line documentation, or it.
This documentation consists of your sign acceptance of the approval
letter acknowledging the credit and its terms and conditions. If the
application is in the name of a corporation, you as owners must
provide a personal guarantee, which is attached to the approval
letter.
Accessing your credit line:
Checks for accessing your credit line will be held at your
dealer's premises.
Simply purchase from your dealer, and ask to have payment come from
your credit line. Your dealer will have you sign a check for the
amount of the invoice.
If you use the dealer's supplier account to purchase, your
outstanding balance can be rolled onto the credit line at a
subsequent date.
Note: accounts must be in good standing and up to
date at time of transfer.