Agribusiness loans

Agribusiness loans can be used to buy livestock, equipment and property or to boost cash flow.

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With an agribusiness loan, you can fund a range of farming operations no matter the size of your business. There are a number of loans you can apply for, ranging from overdrafts and lines of credit to business loans and equipment loans.

What is an agribusiness loan?

Agribusiness refers to any business that earns most or all of its revenue from agriculture. This umbrella term covers a diverse range of farming operations, from small family-owned farms to large commercial operations.

An agribusiness loan is a specialised loan that provides finance to cover the needs of agribusiness. It is basically the same as an ordinary business loan, with some providers tailoring their products to the sector. These loans can provide cover for shortages in cash flow, allow you to buy or lease equipment and let you purchase livestock or property among other functions.

Australian banks and financial institutions also offer a range of agribusiness banking solutions. These include savings accounts, farm management accounts and risk management services.

BOQ SME Recovery Loan Scheme Business Loan

BOQ SME Recovery Loan Scheme Business Loan

  • Government backed
  • No fees
  • General use
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BOQ SME Recovery Loan Scheme Business Loan

This Australian Government backed business loan is designed to help your business recover from COVID19 lockdowns. Eligibility requirements apply.

  • Loan security: Secured
  • Upfront fee: No approval or administrative fees
  • Minimum loan amount: $20,000
  • Maximum loan amount: $5,000,000
  • Maximum loan term: 1 year
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Business loans you can apply for agribusinesses

Name Product Min. Loan Amount Max. Loan Amount Loan Term Upfront Fee Filter Values
BOQ SME Recovery Loan Scheme Business Loan
$20,000
$5,000,000
Up to 10 years
No approval or administrative fees
This loan only applies to businesses eligible under the SME Recovery Loan Scheme. An Australian Government backed business loan to help businesses recover from the Coronavirus pandemic.
Swoop Finance Business Loan
$18,000
$90,000,000
3 months to 30 years
Depending on your loan contract
Apply online and borrow between $18,000 and $90,000,000. Options for good and bad credit borrowers.
Zip Business Loan
$10,000
$500,000
Up to 5 years
No establishment fee
Borrow up to $500,000 with loan terms of up to 5 years. Flexible weekly, fortnightly and monthly repayment options available with no early repayment fees.
ANZ Unsecured Business Loan
$10,000
No maximum amount
1 to 30 years
Subject to negotiation and will be detailed in your Letter of Offer
Apply for a loan from $10,000 with no security required and benefit from flexible repayment terms.
Lumi Unsecured Business Loan
$5,000
$300,000
3 months to 3 years
2.5% establishment fee
Apply for up to $300,000 from Lumi and benefit from short loan terms, no early repayment fees and once approved receive your funds in just one business day.
ebroker Business Loan
$5,000
$5,000,000
1 month to 30 years
$0 application fee
Small business loans available between $5,000 and $5,000,000. Get access to 70+ non-bank lenders on this independent platform.
ANZ Secured Business Loan
$10,000
No maximum amount
1 to 30 years
Subject to negotiation and will be detailed in your Letter of Offer
Benefit from a low rate when you secure this loan with property and/or business assets. Loans from $10,000 available.
Prospa Business Loan
$5,000
$500,000
3 months to 3 years
3% origination fee
Small business loans are available from $5,000 - $500,000 on terms of up to 3 years. At least six months trading history and a monthly turnover from $6,000 is necessary.
Moula Business Loan
$5,000
$250,000
1 to 2 years
2% Establishment fee
A loan of up to $250,000 that can be approved and funded within 24 hours. Available to businesses with 6+ months operating history and $5,000+ monthly sales.
Max Funding Unsecured Business Loan
$3,000
$30,000
1 month to 1 year
$0 application fee
An unsecured business loan from $3,000 that offers convenient pre-approval and no early repayment fees.
Westpac Business Loan
$20,000
$3,000,000
1 to 30 years
$0 application fee
Purchase a new vehicle, equipment or support your cash flow with a business finance solution from Westpac.
Valiant Finance Business Loan Broker
$5,000
$1,000,000
3 months to 5 years
$0 application fee
A Business Lending Specialist from Valiant Finance can give you access to competitive business loans from over 70 lenders. Loans between $5,000 and $1 million are available. Request a call – your loan can be funded in 1 business day.
ANZ Business Loan under the Government SME Recovery Loan Scheme
$5,000,000
Up to 10 years
No approval or administrative fees
This loan only applies to businesses eligible under the SME Recovery Loan Scheme. Bounce back from lockdowns with a loan of up to $5,000,000 with this Australian government backed business loan. Variable rates between 2.49% p.a. and 2.99% p.a.
Octet Trade Finance
$100,000
$10,000,000
1 month to 2 years
Transaction fee 2.5%
Access a line of credit to pay suppliers in over 65 countries. Borrow from $200,000 up to $7 million.
OnDeck Business Loans
$10,000
$250,000
6 months to 2 years
3% of loan amount
Apply for up to $250,000 and receive your approved funds in one business day. Minimum annual turnover of $100,000 and 1 year of trading history required.
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What can I use an agribusiness loan for?

There are many instances where a business loan can provide the finance your agribusiness needs. These include the following:

  • The purchase of livestock and to cover veterinary costs
  • The purchase of new vehicles or equipment
  • Other upgrades to the farm
  • The purchase of property
  • To bridge gaps in cash flow

What kinds of agribusiness loans are available?

There are a number of agribusiness loans you can apply for. The best loan for you will depend on your needs as an agribusiness. We've highlighted a few options below:

Short-term financing

If you want to bridge gaps in your cash flow, there are a number of short-term options you can consider. These include the following:

  • Business overdrafts. This overdraft is linked to your transaction account and can be either unsecured or secured for higher amounts. It allows your business to draw beyond what you have in your account up to the approved limit. You pay interest on what you borrow.
  • Line of credit. This is a form of revolving credit, giving you ongoing access to funding up to an approved limit. Both secured and unsecured lines of credit are available. You pay interest on what you borrow.
  • Charge or credit cards. With a credit card, you can pay for everyday expenses with your card. There are balance transfer credit cards, no annual fee cards and low interest rate cards. You pay interest on what you borrow.
  • Invoice financing. With invoice financing, you can take a loan against your unpaid invoices. You can convert some or all of your unpaid invoices into funds. Most lenders offer up to 80-90% of the total invoice amount, with the balance paid (minus a fee) after the customer has paid.

Compare invoice financing options below.

Name Product Min. Loan Amount Max. Loan Amount Loan Term Upfront Fee Filter Values
Waddle Invoice Finance
$10,000
$4,000,000
From 1 month
$0
Apply to borrow up to $4 million against your unpaid invoices and receive your approved funds within 48 hours.
Timelio Invoice Finance
$10,000
$100,000,000
Up to 4 months
$0
Get up to 100% of the value of your invoices without having to wait for customer payments, and with no minimum turnover or operating history required.
ScotPac Invoice Finance
$10,000
$150,000,000
From 1 year
No set amount
Improve your business cash flow by financing your outstanding invoices. No minimum trading history required, but minimum 12 - month term and $10,000 in invoices.
ScotPac Selective Invoice Finance
$10,000
$1,000,000
1 to 3 months
$500
Finance your unpaid invoices on demand with terms of 1 - 3 months. 95% of invoice is paid upfront, with no minimum trading history required.
Earlypay Invoice Finance
$50,000
$15,000,000
From 1 month
No set amount
Access a revolving line of credit that grows in line with your accounts receivable. Funding available from $50,000 to $15,000,000+.
Octet Invoice Finance
$100,000
$10,000,000
1 month to 2 years
No Set Amount
Convert up to 85% of your company's receivables into cash flow. The value of your receivables need to be worth at least $250,000 to be eligible.
Earlypay Trade Finance
$20,000
$15,000,000
1 month to 15 years
No set amount
Get finance for 100% of your outstanding supplier invoices. Borrow from $20,000 to $15,000,000 with Earlypay.
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Long-term financing

These loans are generally larger, allowing you to use them for a variety of purposes. This can include purchasing property, buying equipment and upgrading breeding stock.

  • Secured business loans. A secured loan requires an asset as security. Loan amounts for secured loans are generally larger than unsecured loans. You can use residential, commercial or rural property to secure the loan. You will receive the funds in a lump sum payment, which you'll have to repay over time, inclusive of interest. Interest can be fixed or variable.
  • Unsecured business loans. If you don't own an asset, or don't want to use it as security, you could opt for an unsecured loan. Borrowing amounts are typically lower than secured loans, but they come without the risk of losing your asset if you default. You will receive the funds in a lump-sum payment, which you'll have to repay over time, inclusive of interest. Interest can be fixed or variable.

Vehicle and equipment finance

If you're looking for a loan to purchase equipment or vehicles, there are a number of options available. You could either buy the required vehicles or equipment outright or lease them.

  • Chattel mortgage. You can purchase business vehicles with a chattel mortgage. While you will own the vehicle, the lender will retain an interest in it while the loan is being repaid. You will take full ownership of the vehicle once you've repaid the loan in full.
  • Leasing finance. With this loan, the lender will purchase the asset on your behalf, renting it out to you. Once the loan is repaid, you have the option to buy the vehicle and take full ownership of it if you want to.
  • Operating lease. With an operating lease, you can rent the asset you wish to have, but you will not retain ownership of it. At the end of the term, you can return the vehicle or take out a new lease.

How can I compare agribusiness loans?

Here's what you need to keep in mind when comparing agribusiness loans:

  • Does the loan meet my needs? You need to take into consideration why you need the loan. Is it to purchase property to upgrade equipment or to overcome cash-flow shortages? Take the specific needs of your business into consideration and look for a loan that suits these needs.
  • What type of interest does the loan offer? Is it a variable or fixed rate loan? Are you allowed to switch from a fixed to variable rate at some point? Which option would be more suitable for your business?
  • Is there repayment flexibility and seasonal finance? Some agribusiness loans take into account seasonal fluctuations in income and allow for interest-only repayments during that period. Others may allow you to make repayments when your farm earns a return from your harvest. This is called seasonal finance. Does the loan give you the flexibility you need to manage your business?
  • How much does the loan cost? What's the interest and comparison rate? The latter will give you an indication of the true cost of the loan. It includes interest and fees included in the loan. You can use a business loan calculator to help you determine whether you can afford the loan.
  • Can I afford the loan? Can your business afford to take out a loan? Will you be able to include the repayments in your budget with ease? It's important to apply for a loan you can afford. If lenders feel you can't, they will reject your application. Additionally, getting into debt you can't afford will lead to long-term financial difficulties.
  • What is the loan term? How long do you have to repay the loan? It's important to take into account the loan term, as this will determine how much interest you'll be paying over the years. This will add to the cost of the loan.
  • What are the eligibility criteria? Check the lender's eligibility criteria and see if you tick all the boxes.
  • What are the loan features? Does the loan offer features you would find useful? Can you make extra repayments for free or pay off the loan early without penalty? Is there a redraw facility and does the lender charge a fee for it?
  • Are there bundling options? Some banks will allow you to bundle multiple agribusiness banking products into one package. For instance, you may be able to combine an agribusiness loan with an everyday farm management account. This can help you save on fees.

What are the pros and cons of agribusiness loans?

Pros

  • Finance for a wide range of needs. Loans can be used for a short-term cash-flow problem to finance long-term growth or anything in between.
  • Varied loan amounts. Loans can be small, short-term loans to get you through the day or large lump-sum loans.
  • Flexible loan features. Loans can include interest-only repayments or repayments during harvest season.

Cons

  • You're getting into debt. With debt comes responsibility and its attendant headaches.
  • Long-term repercussions if you default. Secured loans come with the risk of repossession. Whether it's a secured vehicle or a loan secured against property, defaulting will have severe consequences. Similarly, for unsecured loans, the lender can initiate legal proceedings against you if you default.

What should I be aware of before applying for an agribusiness loan?

  • Getting into debt you cannot afford. Check the cost of the loan and make sure you can afford it. You should be able to comfortably include your repayments in your budget. You should also avoid borrowing more than you need.
  • Multiple applications. Every loan application shows up on your credit report. Several applications within a short period can have a negative impact on your credit score. This can make it harder for you to get a loan in the future. Select a single loan and lender that you're eligible for and that suits your needs and apply with them.
  • Long-term repercussions and legal issues. Once you sign a loan agreement, you are bound to its conditions. You will have to pay the loan and all the fees. Keep in mind that for unsecured loans, the lender can initiate legal proceedings against you if you don't repay the loan. It can also report the debt to a credit reporting body like Equifax and use the services of a debt collector. With secured loans, your loan security can be repossessed by the lender if you fail to make your repayments.

How can I increase my chances of approval?

There are a number of things you can do to boost your chances of getting your loan approved:

  • Check your business credit score. It's best to know what your borrowing power is before you apply. Check your business credit score, and if it is less than perfect, work on improving your score. Paying bills on time and reducing your credit card limit can help with this.
  • Pick the loan that best suits your business needs. Find the loan that suits all your needs and ticks all the boxes. Given that there are a variety of loans, it's important to do your research. Comparing loans can help you find one that suits you.
  • Apply for a loan you're eligible for. This may seem obvious, but keep a close eye on the eligibility criteria and make sure you meet the minimum requirements. Given the varied nature of farms included under the term agribusiness, applications are usually assessed on a case-by-case basis.
  • Put together a comprehensive application. Make sure any application you submit addresses what the lender asks for. You may have to submit a business plan, apart from bank statements, tax returns and cash-flow projections. A good credit rating will go a long way.
  • Ask for expert advice. If you feel confused, you should ask your accountant or an experienced finance broker for advice on the right agribusiness loan.

How can I apply for an agribusiness loan?

🤔 Work out what type of finance you need, how much you need to borrow and what you can afford.
🔎 Start comparing lenders and loan products. Don't forget to compare interest rates, fees and eligibility criteria. You can use the comparison table above.
✅ Select a lender. Click "go to site" to be directed to the lender's page or "more info" if you want to read about the lender.
🖨️ Organise and prepare the required documentation. This can include proof of identification, financial statements for the last 3 years, your business plan, financial forecasts and personal financial information.
📱 Apply. Most lenders have their applications online.

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