The Mane Point: a legal blog for smart horses and their people
By of Jenkins Fenstermaker, PLLC on 08/16/2021
Equine Business Loan Considerations in West Virginia

Horses require a great deal of routine care that can be quite costly. Feed, water, shoes, veterinarian care, and stabling all add up. You can try to earn a return on your investment by starting an equine business. You may even want to look into some equine business loan considerations to help bridge the financial gap from hobbyist to professional. However, there is an old joke that bears repeating—Q: How do you make a million dollars in horses? A: Start with three million!

Image of horses running in a field, representing how WV equine lawyers Allison J. Farrell helps with legal issues involved in equine business loan considerations.

Why Equine Business Loan Considerations Are Important

Taking out a loan for any reason can involves cost and risk. The borrower pledges collateral as security for the loan. In most loans, the collateral is straightforward: a home is collateral for a home loan, and a vehicle is collateral for a car loan. A business loan gets more complicated when it comes to financing, with collateral found in business assets or, depending on your net worth, a personal guaranty. Equine loans may be financed by the animal itself, other assets, or, like a business loan, a personal guaranty.

Even if your credit makes it possible, there are some equine business loan considerations you shouldn’t overlook.

Is Your Home Part of Your Equine Property?

When looking into equine financing, one of the biggest things to take into consideration is whether or not your business and home are part of the same property. If your home is included in the appraisal of the business, you could risk losing it if the business takes a downturn.

Evaluate the amount of land that you have that may or may not be considered part of the equine business. WV equine lawyer and horsewoman Allison J. Farrell can help you evaluate the legal aspects of financing of a horse business so as to best protect you and your family’s home and land from equine business risk.

Horses as Equine Loan Collateral

As you well know, horses are gorgeous, majestic, living beings. They are also a key business asset of an equine business. It’s difficult to think of a living being as property. This is a beloved animal, a companion, a member of the family even. Horses are priceless in our hearts.

Though they may be priceless to us, to the underwriter tasked with reviewing equine loan collateral, your horses have a specific, quantifiable value. And that value may depreciate over time. Getting an equine business loan for a horse business or farm in WV will likely require a horse valuation for each horse that is considered part of the business.

When You Need a Lawyer for Horse Business Financing

Caring for horses requires a lot of love, time, dedication, and, well, money. Food, water, healthcare, grooming, land, and stable operations financially add up really quickly. Starting an equine business might be a way to earn some income to recoup some of those expenses; however, sometimes the financial costs can exceed the income in the early years of a horse business.

An option for offsetting that imbalance is to look into equine financing. As a WV equine lawyer also licensed in Ohio (OH) and Pennsylvania (PA), Attorney Allison J. Farrell of Jenkins Fenstermaker, PLLC can help equine business owners address the challenges of obtaining a business loan while protecting their home and managing other risk factors. To discuss equine business loan considerations or other equine legal matters, contact Allison by calling (304) 521-6120 or completing the equine legal team’s online contact form.