SproutAg provides financing services for securing loans, such as livestock finance and other farm expenses, to agricultural business.
Need assistance with securing livestock financing? Contact SproutAg to connect with finance specialists experienced in livestock loans and to understand your options.Request a Quote
Livestock finance is designed to assist producers and agribusinesses working with livestock, whether they are trading or breeding stock.
There are many unique challenges facing the agricultural industry today. This is especially true for livestock operators, where the demands and challenges (and finance costs) can be higher– especially when you’re just starting out or trying to expand an established business. Fortunately, livestock finance options are available for those looking to purchase new stock or use the equity in their current stock on hand for additional working capital.
The SproutAg team can work directly with a number of lenders who understand the industry to give you the best options and chance of securing the funding you need.
Breeder finance is available for both cattle and sheep and is important to any grazing operation that is building up ewes and cows. It is important when building a livestock operation that your repayments on your livestock loan match your program and overall cashflow. It takes cashflow to build up breeder stock, as often you need to retain either heifers or young ewes that would normally be marked for sale, and therefore your cashflow is tighter in these periods.
The appetite for breeder finance comes and goes amongst finance providers in Australia. SproutAg works with multiple providers that allow you to understand exactly who is most suited to the needs of your business.
Livestock trade finance is suitable for short term livestock trading and is not suitable for operators who are looking to build up breeder stock. Trading livestock is an option for an additional income stream into your business, and it is important to be able to act on this when the opportunities present themselves. SproutAg has multiple options available enabling you to establish a facility so you can move fast on your livestock purchases. A livestock trade facility allows you to use the grass or feed that you already have and to capitalise when livestock prices are right.
If you’re wondering why it’s so important to get a specialist loan when it comes to purchasing livestock, it’s important to remember the unique qualities of the livestock industry.
Before a lender can approve a loan, they must be completely sure that they’re going to see a return on their investment, as well as ensuring they are adequately secured. Traditional lenders typically require a first mortgage over your property to provide finance to purchase livestock, which in most cases is simply not practical. SproutAg, however, can connect you with lenders who can provide the financing to purchase more breeding and trading stock at a competitive rate to support the growth of your business.
Matching cashflow payments to your livestock loan is critical and ensuring that you only sign up for a loan that caters for your specific program will reduce cashflow pressure in the long term. Our livestock finance solutions allow you to sell your livestock as you require.
Here at SproutAg, we have plenty of experience when it comes to providing bespoke financial solutions for businesses and individuals with agribusinesses in regional and rural Australia.
SproutAg are specialists in agricultural finance – if you’re looking for livestock finance, contact our team today.
There are different options for livestock finance, it depends on whether you finance through a bank or other traditional lenders, or specific livestock finance companies. This will determine how much you can borrow (which will also be based on other factors like your credit history and current market value of the livestock) and the terms of the finance.
This is why it's best to work with a company that has a comprehensive understanding of the financial options available and a specialist knowledge of agribusiness requirements. Livestock lenders come and go and the parameters are constantly changing, getting an independent firm like SproutAg to assist often saves you time and money.
Livestock leasing is a financial arrangement that allows you to finance the acquisition of livestock, such as cattle or sheep, using the livestock itself as security for financing.
In short, no. If you sell your livestock at any time, the funds from the sale will be viewed as part of the taxable income of the business and not a capital gain.
Financing Livestock can allow a farming business to free up capital for land purchases. In addition to this it can be a tool that farming businesses use when the season and buying conditions are right to provide them with an increase in profit and turnover.
By setting up a livestock lending facility through SproutAg and being prepared for when the conditions are right allows producers to act quickly. Many people falsely presume that a standard, traditional loan will suffice when it comes to attaining the necessary financing to purchase new livestock for their farms. However, it can be difficult to obtain a loan for this purpose, with only a very limited number of financial institutions having the specialist knowledge required to provide such loans.
Fortunately, such financial institutions do exist, and they’re easy to contact and work with – as long as you make sure you know which organisation to put your trust in. This is where SproutAg comes in. Our team specialise in assisting farmers and agribusiness owners throughout the application process, from finding the right finance options, to navigating the approval process and more.
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