Farm Finance

The Pros and Cons of Livestock Finance

Livestock finance is a helpful way to buy stock to take advantage of a market when you may not have the cash flow on hand. This flexibility to purchase livestock at the right time is also an intelligent way to make decisions when needed to make your operation more profitable. There are other benefits: livestock finance doesn’t require you to put up land as security. It won’t churn up your cash flow, and it’s usually has a fast turnaround to…

Why the Agri-finance Market is so Inconsistent

You might have chatted to other farmers about finance and wondered why they got a different rate from you even though you have many similarities between businesses. Or maybe you’re getting offered different loan terms between lenders even though you’re giving them the same info. It’s something we see regularly, and fortunately, we’re able to get excellent insights into why these inconsistencies happen through our relationship with lenders across Australia. So why are lenders inconsistent? There are many factors that…

How to make best impression to your bank

There is a lot involved in an Agribusiness loan application. You’ve got to prepare financial documents, pull together forecasts and show your farm can repay the debt. With our experience working with over 20 different lenders, we’ve understood these difficulties and, importantly, what makes the best impression. This article provides tips and hints on the information you need to present to the bank to put you in a strong position. To get there, you need to provide information that falls…

How Equipment Finance Can Impact your Borrowing Capacity

In his 2021 budget speech, Treasurer Josh Frydenberg announced the extension of the instant asset write-off and a lift from $30,000 to $150,000 for new business equipment finance. The extension is good news if you want to purchase a new piece of farm equipment because of the tax incentive it gives your business, but there can be unintended consequences if equipment finance hinders your ability to take on a loan to grow the farm. So the answer becomes a balance…

Interest rates: To Fix or Not?

Don't rush to fix your rates - take the time to do your research No one can predict when interest rates will change, so make the decision based on your farm's financial needs Don't be pushed into a decision. In this month's note, we look at whether you should fix your interest rate or not. Like commodity prices, interest rates rise and fall depending on macroeconomic conditions - none are accurately predicted. You can look for guidance, like the recent...

Raising farm finance in 2021 for Acquisition or Expansion

2020 was a significant year for farming businesses, as we witnessed record number of sales across the eastern seaboard; and saw land values soar to new records. Many businesses saw the opportunity for expansion, however, unfortunately, many potential land purchasers missed out on securing properties as a result of not being properly organised.  Sadly, many were unable to close on their negotiations as they simply ran out of time. Lengthy bank processes and the unchartered constraints COVID-19 presented; found many...