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When you have cash available, your operating loan is paid first and all excess funds are then invested in an account comprised of AgriBank Investment Bonds. These bonds pay interest at rates that normally are significantly higher than what can be earned on typical commercial bank accounts – like checking, savings, money markets and even certificates of deposit (CDs). When you need cash for operating expenses, the investment account funds are used first, before advancing funds on your operating loan, helping to minimize your operating loan interest cost. |
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