How to secure an ag loan

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If you’re in the agriculture business, you know that securing a loan is an important step to reaching milestones like purchasing new equipment or additional land. When you decide it’s time to borrow money – no matter if it’s your first loan or for additional funds – there are a few tips that can help make the process more efficient and effective.


The four phases of securing an ag loan:

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1) Application Phase

Determine what you want and why. The amount, term and purpose of the loan will be essential to understanding the risks and cash flow burdens you will incur as well as for the lender to understand your needs. This may sound basic, but it is the most important and often times overlooked portion of the loan request process.

It’s okay to be a little unclear as to the right structure for the loan as this is a task that should be done in collaboration with a lender. The lender should work carefully with you to determine how the loan will work going forward and what it will be used for. Loans borrowed for one specific purpose and then used for another is the most frequent cause of stress and problems between ag borrowers and lenders.

2) Information Phase

During this phase, it is important that you be open with your lender. There are three areas you should be prepared to discuss:

  • Copies of your last three years of tax returns and a current financial statement (balance sheet) with complete and full disclosure of all assets and liabilities
  • A realistic value of your assets — Any exaggeration will make a negative impression of your approach to the borrowing process and financial matters.
  • How your operation has changed over the last several years, as well as your expectations for the years ahead — A realistic valuation is one of the most significant aspects of a lender’s assessment of your financial and operational planning capabilities. If you have been through a difficult time period, be prepared to discuss this candidly and to share the causes and cures for these troubles.

3) Analysis Phase

Meet with more than one lender. This may allow for more options on loan terms, rates and structure. Be candid with the lenders in telling them that you are talking to more than one lender.

Ask the lender’s opinion on your loan request, financial strength and plans for the future. If the lender is vague or reluctant to share an opinion, you may need to speak with another bank. Whether their opinion is good or bad, a clear understanding of their thoughts on your financial situation and the direction you are headed is critical to your financial future with this lender. This conversation is one that many avoid because it can be stressful and awkward, but this is where you can receive the greatest value from a lender. This exchange will also provide insight as to the quality of the lender and financial institution you would be working with.

4) Decision Phase

Plan on learning from this experience. Whether the decision on your application is a yes or a no, you have the right to understand the reason and the rationale behind it.

  • With a yes comes the requirement that you understand what the decision means to future operations and cash flow and whether or not it meets your initial needs.
  • With a no comes the difficult but important personal understanding of why the decision was negative and how your operation needs to change so that it will be more credit worthy going forward (at least in the eyes of this particular lender).

In all borrowing discussions, the most important aspect is candor, both with you and with a lender. A realistic third party assessment of your operational and financial affairs can be a valuable insight that can only be gained through a candid and open discussion with knowledgeable people.

For more tips on securing loans, read our lender’s inside scoop.


When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.

Mr. Watson serves as president of the UMB Agribusiness Division. He joined UMB in August of 2005 and has also served as the president of the UMB Kansas region. Watson is a graduate of Wabash College in Crawfordsville, Indiana with a major in Psychology. He has also attended The Colorado School of Banking, The National Commercial Lending School (where he has also been an instructor), and the Stonier Graduate School of Banking.

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Learn how to prevent identity theft on Data Privacy Day

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Data Privacy Day

A whopping 9 out of 10 adults feel they have lost control over how personal information is collected and used by companies.* With tools at your fingertips allowing you to instantly share and receive online, your private information flows through the internet often without you giving it a second thought. Instead of sending you off with no electronics to rough it in the mountains just so you can protect your privacy, these stats should inspire you to expand your identity theft know-how and step up your privacy game.

I’d like to invite you to join UMB in participating in Data Privacy Day 2015.  Be one of the 6 in 10 Americans who are ready to do more to protect their personal information online.* Here are a few ways you can reduce your digital footprint, protect your privacy and prevent identity theft:

  • Think before you give out your Social Security number, first pet or mother’s maiden name. Does the business or website really need it? Could you use another piece of information?
  • Read the Privacy Policy. You may be surprised where your favorite online retailer or social media site shares your information. Here is UMB’s Privacy Statement.
  • Know how to update your privacy settings. Use these simple instructions on how to update privacy settings on Facebook, Pandora, email, internet browsers, mobile devices and more.
  • Review your bank and credit card statements regularly for unauthorized transactions. Use custom mobile banking alerts to monitor your accounts.
  • Check your credit reports. Every 12 months, you can get a free copy of your three reports at
  • Share with care. Consider the future and not just the moment with anything you post or share online. Once the information is in cyberspace it could be seen, stolen and used.

Celebrated on January 28, Data Privacy Day is an international effort centered on bringing attention to the importance of privacy, safeguarding data and enabling trust. Find out more about Data Privacy Day from the National Cyber Security Alliance.


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When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.

Ms. Flores serves as senior vice president and Chief Information Security Officer, providing oversight of UMB’s information security and privacy programs. She joined UMB in 2010 and has 16 years of experience in information technology and information security. She attended Kansas State University with a focus on management information systems and is a Certified Information Security Manager (CISM), Certified Information Privacy Professional (CIPP/US) and Certified Information Systems Auditor (CISA).

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The ABCs of SBA Loans

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Small Business Loans explained

UMB SBA loans

A loan from the U.S. Small Business Administration (SBA) could be a very useful option for your company, no matter if you are just getting started or if you have been around for years.

SBA loans often allow business owners who may not normally qualify for conventional commercial loans to obtain financing. This includes those who:

  • have less available cash flow,
  • are more leveraged, or
  • have little to no history in operating their business.

However, it is important to know exactly how an SBA loan differs from other loans, what types of SBA loans are available and what to consider when deciding to apply.

How do SBA loans work?

The SBA actually does not make direct loans to small businesses. Rather, when you apply for an SBA loan, you are actually applying for a commercial loan from a bank or another partner lender, structured according to SBA requirements and backed by an SBA guarantee. (The SBA agrees to pay a certain percentage of the loan if the borrower defaults.)

SBA loan vs. a traditional loan:

  • SBA loans usually have a lower down payment requirement, but higher fees
  • collateral requirements: SBA loans might access equity on a person’s home for collateral, which most traditional loans would not do.
  • SBA loans have longer amortization periods and terms. This can lead to a lower payment for the borrower.

What Types of Loans Are Available?

  • 7(a) loans – the most common offered by the SBA and include a variety of loan programs such as SBA Express and CAPLines
  • 504 loans – used primarily for real estate and equipment purchasing

Considering an SBA Loan

Many aspiring business owners are hesitant to go through the SBA loan process. The application process and associated costs seem too daunting. We recommend visiting an SBA Small Business Development Center or SBA’s website to learn more about loan options available and qualifications. These centers can work with applicants not only on loan options, but also can provide resources for business planning.

If an SBA loan seems to be a fit, we recommend working with a banker that is experienced in SBA lending and can help expedite the application process, as well as evaluate all other loan options.


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When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.

Mr. Karaba is a Executive Vice President for UMB Business Banking. He is responsible for Leadership of the Business Banking Business Line at UMB. He joined UMB in 2013 and has 19 years of experience in the financial services industry.

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Do niche markets need niche banking? (The answer may surprise you.)

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UMB Industry Insights
What do manufacturing, wholesale distribution, pipeline energy, coal mining, energy services, architecture and engineering firms, law firms, telecommunications and infrastructure construction companies have in common? They are all niche markets that require specialized support from the companies servicing them. They are also industries that have entire dedicated departments within large banks and financial services companies.

UMB Bank niche markets

As a leader at an energy services company, you might see value at first in a banking partner with a whole department dedicated to your specific industry. But what keeps you going back? Is it the number of people assigned to your account or is it the relationship you have with your bank?

I hope it’s the relationship. This is true for all industries; not just banking. If you develop business partnerships based on your relationship with the people at the company, you’ll find that the business part comes naturally. You’re creating additional value for your customers beyond the products and services.

Connecting, not just banking

In our case, we serve all of the industries described above with the same group of commercial bankers. Our bankers know how to lend to all different types of companies. Not only do we know the different industries, but we know how they all fit together.

For example, we’ve found that with our various niche market commercial clients, we can provide unique networking opportunities between them. It gives our customers a chance to develop business relationships outside of the financial industry. We can connect an architecture firm with a technology company that may have otherwise not had the chance to interact. We’re able to provide referrals between our clients; not only within their state but across our eight-state footprint.

When working with your commercial bank, you should see them as more than just a “banker.” They should be a problem-solver, an advisor, and most importantly, a partner. Working outside of your traditional expectations and putting your company’s best interest ahead of everything else should be the top priority.

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Mr. Anderson is President of Commercial Banking for UMB Bank. He is responsible for commercial banking, treasury management, and business banking. He joined UMB in 1986 and has 33 years of experience in the financial services industry.

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New Leadership in Oklahoma

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Oklahoma UMB News

Oklahoma is one of the regions where we focus because it has potential for strong, continued growth. We have a couple of exciting leadership changes to announce that reflect our strong commitment to developing top associates and to continue our development and growth of the Oklahoma region.
David Hardy UMBDavid Hardy is now the CEO of the Oklahoma region, and Matt Badsky has been promoted to market president of Tulsa.

In his previous role as executive vice president, Tulsa market leader, David made great strides in developing the Tulsa market, so this change keeps him focused on building those relationships while also overseeing Oklahoma City and leading the commercial sales teams in those cities. He is dedicated to our customers and will bring additional growth to this region, I’m sure.

Matt’s move to Tulsa to become the market president comes after his role as the chief credit administrative officer of the Kansas region in Wichita. His extensive lending expertise and commercial business development skills, as well as his dedication to UMB and our customers, will have a remarkable impact on the Tulsa region.
Matt Badsky UMB

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Mr. Trout joined UMB in 1988. As Regional CEO for Kansas and Oklahoma, he is responsible for the profitability, leadership development and commercial banking oversight of his regions. Mr. Trout has over 25 years of experience in the financial industry. He earned his MBA from Avila University, and his Executive Leadership Certificate from Washington University.

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Why keeping talented associates is just as important as finding them

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Like every organization, our success depends on hiring talented associates who are dedicated to serving our customers. But RETAINING this talent is just as important. Peter deSilva explains how we provide opportunities for career growth and development – and why so many associates choose to spend their entire career with UMB.

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Mr. deSilva is president and chief operating officer of UMB Financial Corporation. He is also vice chairman of UMB Bank, n.a. Mr. deSilva joined UMB in January 2004. He is primarily responsible for UMB's fee-producing business units and product lines, including Scout Investments; UMB Fund Services, UMB Healthcare Services Payment Solutions, Prairie Capital Management. Additionally, he is responsible for all corporate operations, technology, properties, security and marketing.

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How to use a home equity line of credit

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Finding the treasure within your home
home improvement

We’ve walked you through the steps to buying a new home. Before you finished unpacking, we’re guessing you already started a list of improvements and additions to give your new home a personal touch.

Reports like this one show that you’re not alone. Today, home improvement is becoming a growing trend for many American homeowners. Much of this growth is attributed to a rebound in the housing market and the highest consumer confidence scores since 2008.

So should you tackle a home improvement project?

Whether it’s updating your bathroom or adding more space to accommodate a growing family, improving your home can be a fun experience and a strategic method of increasing its fair market value. Research has shown that adding a deck and turning your attic into a bedroom raise the most value, returning approximately 85 percent of your original investment.

If you are considering making a home improvement, using a home equity line of credit (HELOC) to borrow against the equity in your home may be a good solution for financing the project. With today’s low interest rates and steady rise in home prices, you may have greater opportunity to borrow against your equity.

Some advantages:

  • You can make purchases with a HELOC debit card. Using the card is an easy and efficient way for you to pay for needed items.
  • The flexibility factor – the home equity line is something you can access as many times as you need to, as long as the credit is available. But remember to be disciplined with your spending. If you would like to use the equity in your home for a purchase, the wisest thing to do is use it for investments that help retain or add value to your home.

Give yourself an additional level of comfort by seeking counsel from your banker or financial advisor. This person is experienced in carefully reviewing all the home equity options to ensure you have the appropriate financial resources to complete your project in the most strategic way possible.

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When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.

Ms. Michelle Nischbach joined UMB in 2010. As Territory Sales Director in the consumer bank, she is responsible for overseeing operational and advisory excellence within five primary operating markets: St. Louis, Greater Missouri, Oklahoma, Nebraska and Arizona. Ms. Nischbach has 26 years of experience in the financial industry and earned her MBA from Lindenwood University.

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UMB Insights: Bank Outlook

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Our CEO of UMB Bank gives an inside look into some of our strategies and how we’ve been successful through a variety of economic environments.


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Mr. Hagedorn is president and chief executive officer of UMB Bank and vice chairman of UMB Financial Corporation. Prior to this role, Hagedorn served as chief financial officer and chief administrative officer of UMB Financial Corporation. He joined UMB in March 2005.

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Holiday Costs

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Holiday costs. How do they all add up? How do you spend your money and your time?

Holiday Spending Infographic

December holidays by the numbers


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UMB Financial Corporation (Nasdaq: UMBF) is a diversified financial holding company headquartered in Kansas City, Mo., offering complete banking services, payment solutions, asset servicing and institutional investment management to customers. UMB operates banking and wealth management centers throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, as well as two national specialty-lending businesses. Subsidiaries of the holding company include companies that offer services to mutual funds and alternative-investment entities and registered investment advisors that offer equity and fixed income strategies to institutions and individual investors.

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