How money moves in this industry
A seasonal forecast is different from cash already received. Repayment frequency needs to fit the actual production and sale cycle.
A practical example
A grower purchases inputs months before harvest and wants to avoid selling produce early solely to pay suppliers.
This illustrates a funding need; it is not a lender eligibility claim or a recommendation to borrow.
Common reasons to explore finance
- Seasonal inputs
- Machinery replacement
- Livestock or crop production
- Land or shed purchase
Equipment and assets that may be financed
Asset finance depends on the lender's product, the asset, its condition and the proposed term. Examples in this industry include:
- Tractors and harvesters
- Irrigation systems
- Farm vehicles
Questions to prepare for a lender discussion
These are useful preparation questions, not a statement that any particular lender accepts this industry.
- What are the production and sale dates?
- How volatile have yields and prices been?
- What land, machinery or inventory can support a facility?
Insurance and business continuity
Finance is one part of a business decision. This industry may also need to consider property, machinery breakdown, business interruption cover, depending on its activities, contracts and legal obligations. Our business insurance guide explains the concepts and links to official Australian sources.