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  1. #1
    Join Date
    Oct 2010
    Location
    Saguache,Colorado,usa
    Posts
    114

    Default Apiary friendly banks

    So went to the banker to get some capitol. He said it wasn't impossible but he was pretty sure the board would not go for it due to the fact that they knew nothing about bees. Where to sell them, what they are worth ect. ect. So anyone know of banks that specialize in this sort of thing? Or ways to overcome this?

    Thanks

  2. #2
    Join Date
    Apr 2010
    Location
    Tulsa OK. USA
    Posts
    846

    Default Re: Apiary friendly banks

    Swarm calls,swarm traps and splits. I know the area you live and there ain't much population (people) around but borrowing money to buy bees is like borrowing to go to the casino. Jim
    Stop and smell the flowers, 50,000 ladies can't be wrong
    Bsweetapiary@aol.com

  3. #3
    Join Date
    Mar 2011
    Location
    Slidell, LA, USA
    Posts
    259

    Default Re: Apiary friendly banks

    Banks don't know anything about most businesses. They do know how to read a set of books, a client list, a history of sales, a supplier list that shows what you have purchased and how you paid them off. If this is a new business you need venture capital or self finance. I think what they are saying is that they don't think a bunch of hive bodies and a couple hundred thousand bees qualifies as inventory and equipment that they can put a lien on. Don't know anything about the size of the operation or how much you want to borrow but bring them something they can sell to recover their money if you default and they will talk to you.

  4. #4
    Join Date
    Jul 2010
    Location
    moravia,ny
    Posts
    1,187

    Default Re: Apiary friendly banks

    banks are strange. It's hard to get money when needed but later when you don't need it so bad they will beg you to borrow. the gov fsa is for farmers who need capital and beekeepers are in this catigory. don't know much about the program but may your best shot. the better program is to set up plan for 5 yrs working full time and building up the bees on the side until you get 300 - 500. then you have records for the bank and a good cash flow. good luck

  5. #5
    Join Date
    Oct 2010
    Location
    Saguache,Colorado,usa
    Posts
    114

    Default Re: Apiary friendly banks

    So the collateral is not the problem. The problem is where do you get the information they want to see. Such as peoples tax returns, or business statements, how do you show the bank that the numbers you have put together are legitimate? Where do you get those magic books that the banker understands? I was always told to buy low and sell high, I went to the banker one time and he asked how much oats I was going to plant because they were selling high right then. I told him I wasn't going to plant any when they were at there peak because that is what everyone did and by the time they were ready to harvest the market would be gone. Well it made since to him but not what he wanted to hear. So how do you play there game??

  6. #6
    Join Date
    Apr 2010
    Location
    Tulsa OK. USA
    Posts
    846

    Default Re: Apiary friendly banks

    Thats where a 5-10 year plan comes in, it give you time to have those book,tax returns,profit & loss reports to show them.You can't take Donald Trumps tax returns to the bank YOU have to show that YOU can make money with bees and the only way to do that is do it. As beeware said banks don't loan money and hope to get it back, they want something to sell IF you don't make it, like you home or the farm. Read some past post in the commercial section and all the pros will tell you DO NOT borrow money to get into bees. Jim
    Stop and smell the flowers, 50,000 ladies can't be wrong
    Bsweetapiary@aol.com

  7. #7
    Join Date
    May 2008
    Location
    Fresno California USA
    Posts
    2,479

    Default Re: Apiary friendly banks

    Bankers are pretty smart. They don't really want to loan money on anything that swims or flies.

  8. #8
    Join Date
    Feb 2009
    Location
    Pigeon Falls, WI
    Posts
    2,527

    Default Re: Apiary friendly banks

    Produce a honey crop and use it for collateral for a CC loan.........FSA gives low interest loans but you need 150% collateral towards the loan.......gain equity in automobiles or real estate to borrow against.

    Or just start slow and buy as the bees can afford to.
    Leer Family Honey Farm-Shannon Leer

  9. #9
    Join Date
    Jan 2010
    Location
    Gilmer,TX USA
    Posts
    1,830

    Default Re: Apiary friendly banks

    I can think of a list of much better activities to grow your bee biz then getting a loan...
    Did you take a business plan in? SCF? Got to have that.
    mike
    Please check out the new kingfisherapiaries.com!
    Like us on Facebook

  10. #10
    Join Date
    Oct 2010
    Location
    Saguache,Colorado,usa
    Posts
    114

    Default Re: Apiary friendly banks

    So tell me more about these FSA loans? I looked at the first time farmer loans but they want three years of tax returns, doesn't make much sense to me being first time and all LOL.

  11. #11
    Join Date
    Jun 2004
    Location
    Jackson, MO
    Posts
    1,858

    Default Re: Apiary friendly banks

    You don't say how much you want to borrow, or how long you've been keeping bees, or how big you want to get with this loan.

    Most banks don't loan money on hobbies. I think you'd have to show this is a money-making, commercial venture. You'd also have to show a track record of what your hives can produce and how much you can sell your honey for--essentially showing the bank you have the ability to produce and market your crop. It's a game of numbers, income versus expenses, and guessimates we call projections. And what you can show on paper doesn't always prove to be a realistic outcome when the time comes to tally the income to retire the debt.

    If you currently have bees, you can sell the this year's honey and double your inventory of hive bodies and frames. Next year you should be able to split the hives, double your colonies to fill the new equipment. You can essentially double your inventory every year. Then do it the next year, etc.

    And all this time of growth you need to be supporting yourself with your day job.

    If you want to get into this commercial aspect of beekeeping, you are FAR BETTER OFF growing the business by reinvesting the net income than owing your soul to the bank. Been there done that once...never again.

    It's better to work for yourself rather than the bank.

    Grant
    Jackson, MO
    Beekeeping With Twenty-five Hives: https://www.createspace.com/4152725

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