Agriculture is a major sector for the Australian economy contributing 12% GDP. 307,000 people are employed in the sector that earns $ 155 billion-a-year. The numbers clearly show that agriculture is a big business and like every other owner of a huge business, farmers often have to seek quick and affordable finance.

Funding Requirements

Many finance brokers or even lending staff employed by the banks do not understand fully, the essential components for obtaining funding for your farm business. So, if you are looking at expanding your farm business, or just looking to better manage your business during the cycle seasons and commodity fluctuations, here is a list of funding situations where you can use an agriculture loan:

>> You may be looking at buying a neighbouring property

>> You are a livestock producer looking to purchase vet supplies

>> You may want to increase your livestock numbers

>> You may need to buy cropping supplies (e.g. weed spray or fertiliser)

>> You are looking to purchase, upgrade or replace your farm or business equipment

>> You may need to meet your seasonal expenses

>> You would like to consolidate all your agriculture finance into one loan, making your finance simpler and more cost effective, or

>> You may need drought survival assistance

Summary of Agriculture Loan Options

Here is a list of agriculture loans that have been specifically designed by specialised lenders/credit providers to address the specific needs of your farming business. These loans are also more flexible than other loans:

Farm Term Loan: It is an ideal loan when you are considering capital improvement or purchasing property. The loan is flexible, in that it will enable you to choose the option of Interest-Only or Principal and Interest repayments.

Livestock Finance: It is specifically designed to enable you to invest in your livestock breeding. The loan has flexible repayments that can suit you cash flow.

There are other Agriculture loan options available to you, and these are:

Overdraft or Short-Term Finance: The loan type will provide you with the required working capital to fund any short-term production costs and to cover any cash flow shortfalls.

Equipment Finance: The loan type provides you with the options to purchase, upgrade or replace your farm or business equipment. The options are either a Finance lease, Asset purchase or an Equipment loan.

Line of Credit: This is a convenient loan facility that puts you in charge of your finances and you can use the money when and how you want to.

Why Contact a Finance Broker?

Farmers need specialised advice from experts who have the right industry experience as well as having a thorough knowledge of the changing economic and market conditions. If you choose a specialised and experienced finance broker, he/she will:

>> Understand fully your financial needs by working closely with your accountant and solicitor

>> Ascertain your current financial situation and devise an optimum “Farm Business Plan” for you

>> Provide with up-to-date economic data and financial information that will help you sharpen your competitive edge

>> Assist you in obtaining funding for any agriculture loans you may be considering

>> Ensure you meet all the requirements of specialised lender/credit providers

>> Provide you with the required funding options, and

>> Help you in choosing the right agriculture loan

So, don’t worry when you need affordable finance for your farming business. Contact a finance broker and take his/her help in obtaining quick agriculture loans.