Any type of Kubota credit, whether it be finance or leasing, will be offered to an individual or not depending upon whether the credit agency involved and in this case Kubota as well deem the individual to be a suitable credit risk or not.
The process involved in establishing this is quite a complex one, although the end result often makes it seem slightly over simplistic.
This means that anyone who applies for credit of any type with any institution is effectively checked by a credit agency, of which nationally there are normally two or three.
They will do a thorough background check on the individual and their financial commitments and obligations and produce a report that assesses the credit agencies view of their financial suitability for credit.
The credit agency initially undertakes what is known as a credit report on the individual.
This involves collating a large amount of information relating to the individual’s personal history and their credit history.
The information collected with regard to their personal and life history relates to information such as their name, date of birth, their current and previous addresses, their current and previous telephone numbers.
Also collected information relates to their Social Insurance Number or their Social Security number, their drivers license and their passport. Information will also be collected concerning their current employment and all previous employment and any financial information that may stem from that area.
The credit agency will also collect information on the individual’s credit history.
CREDIT SCORE / CREDIT REPORT
This relates to a scan of public records for things such as bankruptcy.
Their banking history also be analysed including their level of overdrafts and whether they were authorised or not, whether any bank accounts have been closed due to lack of funds or overdrawn checks.
Any current and previous loans and mortgages will also be checked, specifically with a view to see how much was lined on whether it was appropriate and whether there were or are any problems regarding repayment terms.
Lines of credit will also be analysed to see what type of credit has been granted and in which specific areas. Also all types of credit cards and any store cards also be looked at along the same terms as well as any telephone or Internet payment problems.
Specifically there will also be a focus on what are known as pay day loan applications, which anecdotally are known to have an adverse affect on an individual’s credit score.
Once the credit agency has assembled this information relating to an individual’s personal life and their credit history they use the information to evaluate the individual and work out what they deem to be a credit score.
This credit score is essentially a single number, although it may be a triple digit number, that is set as a value between a range of two other numbers or values.
As an example, an individual may have a credit score of 50, set between a range of 1 and 100. this would indicate that the individual has an average credit rating.
In practice credit agencies use a much greater range of values as this gives them a much greater specificity of where to put the individuals credit score and accurately reflect their credit rating.
Credit agencies work out a credit score specifically on the basis of the history of the individual.
This applies to their payment history on all credit loans mortgages has been taken out, they use of available credit, their length of credit histories and what types of credit they had used.
A credit agency will also take into account the number of enquiries or credit applications that have been made and when they have been made.
After this process has been gone through, the credit agency will come up with a specific number that indicates their view of the creditworthiness of the individual.
This number will then be used by Kubota to decide whether or not to offer credit by way of finance and leasing to an individual, and if so on what terms and conditions.
Kubota may decide to offer credit to someone with a poor credit history but by increasing the size of the down payment and the interest rate charged to reflect a greater risk. Alternatively they may decide to deny credit, and suggest the individual seeks help elsewhere.
Many dealerships will also offer advice for people with poor or bad credit histories and some will have links to specific financial institutions who may be able to help.
A good dealer will go the extra mile to help an individual get credit when Kubota itself not able to offer credit because they view the individual to be a bad risk, but still want to sell them a tractor.
Anyone who owns or rents a farm or a branch of any size or description, and effectively runs it as a commercial business, needs to have specific areas of insurance directly tailored to their needs.
A farm is essentially a mix of a home and a business, both in terms of buildings, plant and machinery, agricultural vehicles and in terms of workforce.
Specific risk assessments ideally need to be done on all areas of the business, in order to establish levels of risk and which ones are and are not covered by an insurance policy.
This is a general guide to some of the principles that may be helpful when assessing the need for farm insurance.
Farm Insurance – Buildings
As a farm or a ranch is both a home and a business, all buildings and all land including all outbuildings, whether used or not, and any area of land connected with the property at all needs to be included.
Farm Insurance – Crops
Some type of crop insurance may be essential. Check if there are any government schemes available first, and that check what type of risks your policy will cover you against, i.e. hail damage. This is one example
In a lot of insurance policies will offer some type of cover for damage of crops prior to harvesting, which effectively cause severe business interruption. Many policies will exclude cover once crops have been harvested and for various other reasons.
Farm Insurance – Engineering Insurance
Insurance against damage to plant and machinery is essential. Levels of cover differ.
There are normally limitations are stored is determined as plant. A pressure plant is normally defined as a plant that contains a boiler plant, a plant subjects to steam pressure and a plant used to contain fluids under pressure.
Make sure that storage tanks are also included. Also crucial to make sure that clearing up and spillage costs are included, as well as that of debris removal.
Farm Insurance – Deterioration of stock
This area of agents is designed to cover the value of stock that is damaged by risks such as a breakdown in a refrigeration unit or a temporary loss of access to public utilities such as water/electricity or gas resulting in damage to stock.
Makes sure the sums insured for the saleable value of the stock, otherwise under insurance will apply.
Farm insurance – livestock insurance
This type of insurance cover is normally restricted to two main areas, that of death or slaughter on humane grounds, when caused by an insured peril or theft.
The insurance company will normally insist on a strict ‘poultry warranty’ in the policy which stipulates checks on conditions in which poultry are kept, such as electricity supply, extraction systems, temperature variation and mains alarm systems and standby or backup generators.
Farm Insurance – Livestock in Transit
This is designed to cover the cost of livestock fatally injured in any motor accident.
There are likely to be local/national rules concerning the transportation of livestock, and you must make sure these are adhered to. Also make sure that insurance policy covers subcontractors, veterinarians fees and debris removal.
Farm Insurance – Livestock Herd Diseases
This is normally designed to cover you if livestock to be humanely destroyed as the direct result of a specific disease.
The diseases will normally listed or spelt out in the policy, and often include Tuberculosis, Brucellosis and Foot and Mouth.
Farm Insurance – Business Interruption
Any of the losses covered under a farm insurance policy can have a serious knock-on effect in terms of not simply making a business unprofitable, but of interrupting or stopping the business functioning at all for periods of time.
The insurance should provide some cover for this, but will be very specific in terms of what it deems business terminology
Farm insurance – Contractors All Risk Insurance
This area of the insurance policy is designed to give you maximum cover where you are effectively operating as a contractorEither on your own property, or on soils as property or anywhere within the specified geographical limits of the policy.
Farm Insurance – Goods in Transit
This is separate to livestock in transit, and is designed to provide cover for any goods that you may need to move around the locality or nationally, by the doing it yourself or with a subcontractor or haulier.
This area of insurance can be extremely expensive, simply because it is notoriously high risk. The insurance policy is likely to specify exactly what it considers to be high-risk items, and impose strict limits on the value and number of such items can be carried.
There are also likely to be stringent comments regarding security and anti theft measures regarding the goods.
Farm Insurance – Liability Insurance
The type and levels of liability joint required will vary significantly depending upon the nature of the farm and its business. There are a few general areas should be considered.
Farm Insurance –Employer liability.
It is important that as an employer you are fully aware yourself of any local national legal requirements concerning health and safety conditions at work, and make sure that these are fully implemented.
There are quite often specific conditions relating to a farm, as opposed to an industrial complex, and it is crucial is understood. On top of this, as an employer you will need to have specific employers liability insurance.
Make sure all employees including family are included and covered, as well as any subcontractors you might use.
Farm Insurance – Public and Products Liability
Public and product liability insurance often goes together.
The important thing to realise with product liability pretty is that you need to have it in relation to any goods that you have any connection with irrespective of whether you actually produce them are not.
This means that you need products liability insurance in relation to any goods that you store, repair, label test or process or you transport.