Financing Tractors & Machinery with Australian Agribusiness Finance Loans

Financing Tractors & Machinery with Australian Agribusiness Finance Loans

Have You Considered Working with a Finance Consultant to Secure Better Finance for Your Purchase?

From cattle, dairy and cotton farmers to fruit, nut, and grape growers, keeping equipment up to date is a job in itself. In addition to staying current with technology, farmers then have to know the ins and outs of agri-finance to secure machinery loans. Partnering with an experienced commercial finance consultant is one way of reducing time spent on applications to banks that either:

  1. Are not interested in funding things like tractors, or;
  2. Take weeks before approving the finance.

Which Banks Offer Agribusiness Finance Loans?

Most Australian banks offer agribusiness finance. The difficult part is not in finding a bank that offers finance, but one that will accept the application. Some banks have criteria around the brand and age of the machinery. Others are particular about your ability to prove cash flow and business income. Commercial financial consultants can assist with loans that are quite specific for machinery like farm irrigation equipment and financing.

Why Partner With a Finance Consultant Instead of Going to the Bank Directly?

Wading through every option from each bank is not how most of us want to be spending our time. Experienced commercial consultants have relationships with bank lenders and have the inside scoop on what banks like financing (and what they prefer to avoid).

Why do Banks Approve Some Equipment Loans and Not Others?

Besides unique lending criteria, banks are expected to take on as little risk as possible when approving finance. After all, if they took on too many high-risk loans that could not be repaid, they would be out of business.

Australian Agribusiness Case Study

With some of the richest soil in the world, Australia is home to billions of hectares of grazing and cropland. With that comes a constant demand for new equipment and machinery parts. Many Aussie farmers – many of which have been knocked back or given the run-around previously are utilising their agribusiness and farm equipment financing companies.

One national farming company did exactly this.

They needed tractor attachments for tractors in three different areas of Australia. As such, they needed three separate loan agreements that could be tied to those specific locations. The time it would have taken the company to source all three themselves – and at good rates was unviable.

They turned to their commercial finance consultants. They did all the groundwork.

  • Analysed the parts that were required.
  • Built a case around why these parts were essential components of the company’s core business.
  • Pre-qualified the business.
  • Presented the company with loan options for all three locations on the same day.
  • Compiled and submitted the applications.

The company has since employed more than 10 new staff members and has expanded production across the three sites.

This is just one of many examples of how financial consultants can assist with streamlining agribusiness processes and help businesses receive equipment finance fast.

John Norwood
John Norwood is best known as a technology journalist, currently at Ziddu where he focuses on tech startups, companies, and products.