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When securing a loan, collateral is considered a secondary source of repayment; the primary source being cash flow. Collateral is made up of assets such as real estate, livestock and equipment that can be pledged to the lender as a form of security in case a borrower fails to pay back the loan. Loan officers, Jeremy Haley & Stephanie Tyler, explain how FCS Financial evaluates collateral when working with a young, beginning farmer.

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