If you can find it, seller financing that is also self-liquidating will save you from having to make a balloon payment and refinance in the future.Seller financing is almost always mutually beneficial to the buyer and seller.The following points Although necessary, it is not sufficient to only analyse the productivity or the additional returns that will accrue due to the borrowed funds.A loan may be productive but still it may not generate sufficient income to leave funds sufficient enough to repay the loan.Repaying capacity is the portion of the amount that a farm family will earn from a years operation, which shall be available for the repayment of the loan.
Seller financing frequently carries superior terms and faster execution than traditional financing.
The concentration score for highly complex institutions is the highest of the higher-risk assets to Tier 1 capital and reserves score, the Top 20 counterparty exposure to Tier 1 capital and reserves score, or the largest counterparty to Tier 1 capital and reserves score.
The higher-risk assets to Tier 1 capital and reserves ratio and the growth-adjusted portfolio concentration measure are described herein.
Repaying capacity, is therefore, worked out as a residual after meeting the requirements of the family consumption and payment of other dues, debts and repayments.
In case of non-liquidating or partially liquidating loans, the resource acquired with the funds are not directly consumer or are consumed over a number of years.