FAQ's
How much of a down payment do I require?
Each situation is different just like each entrepreneur is different. We do not have predetermined down payment requirements but make an assessment for each applicant based on their personal financial situation.
Do I require collateral?
Yes. Each of our loans is secured. Depending on what is being financed personal assets may be taken as security.
How much collateral do I require?
The collateral you will require will depend on the nature of the financing, the business and the degree of risk. At a minimum our office will take your Promissory Note and a General Security Agreement(GSA). We may also place a mortgage on property or ask for a guarantor. You will be advised of the collateral requirements before we make an Offer to Finance.
Do I need to approach my traditional financial institution before I approach Sagehill?
No. Don’t hesitate to speak with us about your financing needs. However, we always recommend that you consult with your financial institution to determine if their products can meet your needs. If they can’t or can only meet part of your requirements you may find that they will refer you to our office.
Is my loan life insured?
Yes. All loans are life insured.
Are there any fees or charges?
Yes. There is a 1.5% annual administration fee. There is also a one time loan collateral documentation charge of $85.00 for unincorporated businesses and $125.00 for those that are incorporated, if your loan is approved. There is no application fee.
Are there any prepayment penalties?
No. Whether you decide to make an extra loan payment in one or more months or find yourself in a position to pay the loan in full before the maturity date you will never be charged any penalties.
Can I have more than one loan with Sagehill?
Yes. Although the total of all loans cannot exceed $150,000.00
What do I need to do to apply for financing?
If the business is new we will need a business plan complete with financial projections for a minimum 12 month period. If you are purchasing an existing business we will need your proposal, historical financials (min. 2 years) and a purchase agreement. In either case we will also require personal information including a Net Worth Statement
Does Sagehill do ag-based lending?
While we do not provide financing for “traditional” agriculture practices (purchase of a home quarter for residence or purchase of land for production of grains and oilseeds, for example) we are interested in participating in diversification activities. Those activities could include orchards, market gardens, manufacturing businesses located on a home quarter or value added processing opportunities. While this list is not exhaustive it should help you identify whether your business idea might be eligible for financing.
I’m a first time entrepreneur. What are my chances of obtaining financing?
We’re pleased that more than 50% of our portfolio has been invested with 1st time entrepreneurs and that approximately 20% of those customers are under the age of 30.
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