Agribusiness is a crucial part of the Australian way of life.
It is the business of earning revenue through agriculture. Agribusiness-specialised financial institutions provide farmers with financial products, such as business loans, online banking access in rural areas, insurance and credit cards as well as some more specialised services.
These financial products are tailored to the sector, encompassing all farming and farming-related activities.
As these banking products are particular to the agriculture industry, banks usually have agribusiness divisions or teams who work with farming and rural communities. They also offer a range of financial tools to help agribusinesses succeed.
The types of products available for supporting agribusinesses are:
Loans – for agribusinesses loans include lines of credit, overdraft facilities, business loans, bill facilities, credit cards, trade finance, livestock, and financing advances for your produce.
Vehicle finance – many specialised vehicles are used on farms, and there are loans for these vehicles, including hire purchase, funding for vehicles and equipment, and finance for leased vehicles and equipment.
Banking accounts – these include personal banking accounts that come as part of financial packages, as well as specific farm management or deposit accounts.
Risk management – these services include commodity risk management, currency risk management, and interest rate risk management in the form of insurances, financial planning, and foreign currency expert analysis.
Home loans – there are also property financing solutions for agribusiness owners, both for residential properties as part of financial packages, and commercial properties.
Loans and other services provided for agribusinesses are compared by:
Fees – the fees available on the different loan products will contribute significantly to the cost of the product. Check if these fees will be one-off or ongoing and if you will need to pay expenses to use any additional features of the product.
Rates – for loans, such as overdrafts, a line of credit, or vehicle finance, you should check the prices offered with the loan product. The rate may be provided as fixed or variable, and you may be given the option of making interest-only repayments during seasonal lows to assist with business cash flow.
Products and financial packages – some lenders may allow you to package several of their products together, which is a convenient option, and one that can also result in discounts on that suite of products.
The lender – some lenders offer a specialised agribusiness team that can work with you to choose the right products for your agricultural needs. If you’re after a higher level of customer service, then compare your options and select a lender that is willing to meet your needs.
And if you would like help in choosing the best finance products for your agribusiness just call us at Aglend and we will provide options most suited to your needs.