Re: [AlpacaTalk] alpaca financing.
This is a great thread idea Allison!
It's important for each ranch to do only what works
for them. That goes for financing purchases as much as
financing sales. For some it shouldn't be considered
an option.
We have done a myriad of things for clients and to
make our own purchases possible. The biggest mistake
"small breeders" make is in thinking they can't offer
the things "large breeders" do. One of those things is
long term financing. Of course small breeders can
offer this but to make it worthwhile it needs to be on
their own production.
Some smaller ranches also miss out when someone comes
to them looking for something that isn't in their
pastures. Instead of saying "sorry can't help you" try
"you know, I just might know where the exact animal
you are looking for is". Commissions from referred
sales are not trivial and folks tend to remember that
you went out of your way to help them. Both the seller
and the buyer will remember your assistance.
This is a long term business for us. We are looking at
producing generations of fabulous fleece producing
breeding stock. With a long term eye we can all work
together to make a great US herd.
So, small down payments, payments in full, interest no
interest it is all possible. For those who are leery
of financing a sale, you hold the registration until
payment is made in full. The buyer must have full
mortality insurance on the animal with you as
loss-payee until the animal is paid in full. The
registrations, the animals themselves are the
collateral.
If you are doing long term financing it behooves
everyone involved to make sales of the production
possible and easy for a faster payout. Meaning if the
sale is of say a bred dam with female cria at side,
help the buyer sell that cria at side to get the
package paid off sooner. There is no reason for
stumbling blocks.
Write clear, concise and transparent contracts
including expectations and conditions so the client
can make those sales. The biggest problem I have seen
are ranches saying things like "you can't sell that
cria she still belongs to me" instead of "how can we
make this happen so the contract gets paid out and you
make this sale".
As to the correction, I believe that some of it will
stick. Average animals will more and more pull average
to lower pricing the big fat however is that high end
stock will continue to pull in higher numbers just as
with all other livestock industries.
I am seeing ranches who advertise and who offer high
end SERVICE are making sales in this market.
This has gotten longer than I intended. The bottom
line is if financing a sale helps all involved make it
happen!
Bluest Skies
Jennifer Powers
Aero Ranch Suri Alpacas
Browns Valley CA
--- Allison Moss-Fritch <aemoss17@comcast.
> I have a thread to suggest.
>
>
>
> Given the "alpaca pricing correction" that is going
> on, I am interested in
> types of financing that you can offer for making
> your sale animals more
> attractive to new buyers. Lots of folks advertise
> saying that they are
> willing to be "flexible".well what specifically does
> that mean to you?
>
>
>
> What has worked for folks either when they bought or
> sold. What types of
> back up were sellers able to arrange either through
> their own ingenuity or
> banking of some type?
>
>
>
> Have you found financing options you'd avoid or look
> for in your own
> dealings?
>
>
>
> I know that the truly large farms have options, but
> not all of those are
> viable for smaller alpaca operations.
>
>
>
> This is something where we could all stand to learn
> more about our market
> and its nuances!
>
>
>
> Thanks for any suggestions or ideas.as well as
> warnings of what not to do!
>
>
>
>
>
> Allison E. Moss-Fritch
>
> New Moon Alpacas
>
> Santa Clara, CA
>
> 408/248-3581
>
> http://www.newmoona
>
>
>
>
>
>
>
> [Non-text portions of this message have been
> removed]
>
>
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posted by Chaddo at 10:29 AM
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