- a maturity structure of debt that matches the length of the payoff periods for the assets being financed

- a repayment pattern over time that matches the asset's earning pattern

- made for the purpose to generate sufficient income to repay the loan within the maturity period

- must be met from cash generated by the investment

- current assets

- assets are used up or converted in the production process

- lender must rely on security interest in growing crops and fixed asstes to provide necessary collateral

- loan repayments should be scheduled to come from income generated from product sales

- source of repayment is from cash generated from sales

- capital costs are charged against the business as depreciation over the economic life of the asset

- most provide collateral and contribute to the business net worth

- financing should synchronize the loan maturity and repayment schedule

- primarily land

- typically long term 20-40 years

- primary source of repayment is from retained earnings

- debt hasn't been appropriately allocated

- total debt is too great