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How to compare Agricultural Finance Companies and Lenders

Agribusiness, just like other businesses, needs the support of loan and deposit products that aid the expansion, daily operation, and other initiatives. To compare agricultural finance companies and find the one best suited to help your agribusiness grow you need to pay attention to a couple of things.

Specialist Financial Products

In addition to the standard range of loan and deposit products, agribusinesses need access to other specialised products and services. A good agricultural finance company can give strong financial support to a farm through a variety of these specialised products and services, and some of them are the following:

Business Finance

Business finance comprises a big part of agribusiness, and the right agribusiness provider needs to supply high-quality business finance products.
Also look out for financial products or lines of credit that offer specialised terms and conditions, such as dedicated finance for equipment upgrades, and flexibility in repayments to manage the cash-flow of a farm.

Seasonal Finance

Many businesses are exposed to unexpected risk and seasonal fluctuations in cash-flow, with expenses being incurred long before any income is realised. This is where seasonal finance offerings come in to keep businesses running year-round.
Seasonal finance allows farmers to repay a loan or line of credit only during the months when they are making an actual return on their harvest. When farmers are not making repayments, the loan or line of credit serves as an alternative source of cash-flow to cover ongoing farm operational expenses.

Equipment Finance

Specialised equipment finance is a must for needs such as upgrades to tractors, irrigation systems, fencing, and the like.

Deposit Products

There is the difference in the deposit products on offer from each institution which is of vital importance for your finance and agribusiness.

Risk Management Products

Agribusiness is an export industry that is subject to both currency fluctuations and commodity price fluctuations, and as such it requires access to risk management products that help to keep your finances steady. Thanks to the Australian climate and the rise and fall of the Australian dollar, most agricultural sectors will occasionally need help from such products, which is what an excellent agribusiness institution should seek to provide.

International Banking and Services

Business with foreign countries provides another set of challenges and financing account needs. Foreign currency accounts, a smooth international bank transfer process, and trade finance facilities are vital during the export process.

There is a lot of other products that you might need to ensure the smooth operation of your agribusiness. It’s always worth asking your bank how they can better support your farm.

Specialist Financial Services

In addition to products, agribusinesses can benefit from access to other specialist financial services, including forms of insurance such as business Life Insurance with Key Person cover, Farm Building cover, and Business Liability cover and those services are also a helpful guide in comparing agricultural finance companies.

Some of the institutional services you should pay attention to while comparing agricultural finance companies and lenders include:

Personal Relationship Managers

Agribusinesses need face-to-face services that are specialised for their particular industry and their specific farm. Financial institutions should provide an adequate number of agribusiness relationship managers, dispersed across the country with particular attention to regional and rural areas.

A good Personal relationship manager should be able to provide specialised advice and assistance to farmers in key areas such as:

Seasonal finance
Wealth management
Succession planning

When considering which agribusiness institution to go with, finding one with a solid number of relationship managers in your area should definitely be on your list of priorities.

Online Banking Functionality

Online banking is crucial for all individuals and businesses today. From modern institutions, it is expected of them to make banking as accessible as possible. Agribusinesses should look for excellent online banking functionality, mobile banking apps for your smartphone or tablet, multiple payment functionalities, and automated graphing and reporting.

Information and Education Services

Agricultural finance companies can add value for their agribusiness clients by providing them with online economic and industry insights, analysis and education tools. Institutions can have an important mentorship role, giving property owners with access to market knowledge and ideas to help identify business growth opportunities.

Special Purpose Lending

The final service you should consider from an agribusiness provider is unique purpose lending. It is a relatively small component of the agribusiness industry, and most farmers find that they won’t need it often.

Every so often though, some unexpected expenses come up that the right agribusiness institution can provide a loan for. Maybe some vet supplies to treat an injured animal, or you might want to buy your neighbour’s property to expand your farm. An outstanding financial institution will offer loans for particular conditions, depending on your eligibility, industry sector, and how much you need to borrow.

It’s not an easy task comparing agricultural finance companies and lenders to find one best suited for your business needs. Luckily you don’t have to do it by yourself. Our team at Aglend is more than ready to help you in securing the best financial products and services available for your agribusiness. So, don’t hesitate to call!

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The content on this website is for general information purposes only. The information is not intended to be a substitute for professional advice and should not be used as such. You should consider seeking independent legal, financial, taxation or other advice to check how the website information relates to your particular circumstances. Speak to our qualified team of financial brokers who may be able to assist you with your situation.