Agribusiness Banking Products

agri

Just like farming isn’t just any kind of job, farmers don’t use just any kind of banking.

With approximately two thirds of Australia’s land dedicated to farming, it’s no wonder why agriculture is seen to be at the forefront of Australia’s development. Farming is a specialised industry in Australia, just like it is in any country, and as such, it requires a specialised banking products to serve the needs of our farmers. That’s where agribusiness comes in.

What is agribusiness?

In technical terms, agribusiness is the business of agricultural production. In terms of banking and finances, agribusiness refers to the specialised products that banks develop to service the Australian farming industry.

Rates last updated April 20th, 2018
$
$
months
Name Product Maximum Variable Rate p.a. Standard Variable Rate p.a. Bonus Interest p.a. Fees Min Bal / Min Deposit Interest Earned Product Description
BankSA Business Access Saver
0.50%
0.50%
0.00%
$0
$0 / $0
Ongoing, variable 0.50% p.a. when you link to a business transaction account. Available on the entire balance.
Bank of Melbourne Business Access Saver
0.50%
0.50%
0.00%
$0
$0 / $0
Ongoing, variable 0.50% p.a. when you link to one of the Bank of Melbourne’s eligible business transaction accounts. Available on the entire balance.
ANZ Business Online Saver
1.00%
0.40%
0.60%
$0
$5,000 / $0
Ongoing, variable rate of 1.00% p.a. on balances more than $5,000.
AMP Bank Business Saver Account
1.80%
1.80%
0.00%
$0
$2,000 / $0
Ongoing, variable 1.80% p.a. when you link to a transaction account in the same name. Available on balances of $2,000 or more.



Commonwealth Bank Business Online Saver
0.50%
0.50%
0.00%
$0
$10,000 / $0
Ongoing, variable 0.50% p.a. when you link to Commonwealth Bank Premium Business Cheque Account or Business Transaction Account and maintain a balance of $10,000 or more.
Citibank Ultimate Business Saver
1.65%
1.65%
0.00%
$0
$10,000 / $10,000
Ongoing, variable rate of 1.65% p.a. on balances more than $10,000
ING Business Optimiser
1.80%
1.50%
0.30%
$0
$0 / $0
Introductory rate of 1.80% p.a. for 6 months, reverting to a rate of 1.50% p.a. Available on balances below $1,000,000.

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Rates last updated April 20th, 2018
Name Product Min Loan Amount Max. Loan Amount Loan Term Application Fee Product Description
NAB QuickBiz Loan
$5,000
$100,000
1 to 3 years
$0
An unsecured business loan from $5,000 that can be processed in 1 business day. Businesses that apply and are approved before 30 April 2018 are eligible for a discounted interest rate of 12.95% p.a.
Prospa Business Loan
$5,000
$250,000
0.25 to 2 years
$0
Apply for up to $250,000 and receive your approved funds within one business day. Note: Businesses must have a turnover of more than $5,000 per month and be able to demonstrate 6 months of trading history.
OnDeck Business Loans
$10,000
$250,000
0.5 to 2 years
2.5% origination fee
Apply online for up to $250,000 with OnDeck and receive approved funds in one business day.
Valiant Finance Business Loan Broker
$5,000
$1,000,000
0.25 to 5 years
$0
A Small Business Lending Specialist from Valiant Finance can give you access to competitive business loans from over 60 lenders. Loans between $5,000 and $1 million are available. Request a call – your loan can be funded in 1 business day.
Moula Business Loan
$5,000
$250,000
0.5 to 2 years
$0
Small business loans of up to $250,000 approved and funded within 24 hours.
Transparent fees and rates. Note: Business must have been operating for at least 12 months and have monthly sales of at least $5,000.
Ferratum Business Loan
$2,000
$150,000
0.5 to 1.5 years
2.5% origination fee
Competitive business loans from $2,000 based on your business’ cash flow.
Sail Unsecured Business Loan
$5,000
$100,000
1 year
2.5% origination fee
Apply for up to $100,000 even if you have bad credit. Note: Business must have been operating for at least 6 months and have turnover over $50,000.

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How does agribusiness work?

Banks offer specific products and services for agribusinesses. As these banking products are particular to the agriculture industry, banks usually have agribusiness divisions or teams who work with farming and rural communities. Banks offer different types of agribusiness products including loans, financial packages, money management and investing, risk management, vehicle finance and economic insights. They also offer a range of financial tools to help agribusinesses succeed.

What are the types of products available?

  • Loans. Loans for agribusinesses include lines of credit, overdraft facilities, business loans, bill facilities, credit cards, trade finance, livestock leasing and financing advances for your produce.
  • Vehicle finance. Many specialised vehicles are used on farms, so there are loans for these vehicles, including hire purchase, finance 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.

How do I compare agribusiness?

  • Fees. The fees available on the different loan products will contribute significantly to the cost of the product, so remember to take this into consideration. Check if these fees will be one-off or ongoing, and if you will need to pay fees to use any additional features of the product.
  • Rates. For loans, such as overdrafts, line of credit, or vehicle finance, you should check the rates offered with the loan product. The rate may be offered 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 across that suite of products. Be sure to check the individual costs of these products to see their individual value.
  • The lender. As already mentioned, 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 choose a lender that is willing to meet your needs.

What are the pros and cons?

Pros

  • Specialised products. These banking products are designed for farmers, and are suited to meet the needs of those in the agricultural industry.
  • Seasonal solutions. As farming is largely a seasonal industry, some of the products accommodate for seasonal changes in cash flow.
  • Discounts available. Some lenders offer discounts if you package a range of products together, helping you to save money on your banking.

Cons

  • Different costs. As these products are specifically designed for farmers, they may come with different rates and costs than those available in the bank’s other range of products.

The risks

There are a range of products available, and while they all might seem beneficial to you, you should avoid applying for a product before you know you’ll need it. You should also check how easy it is to talk to your chosen bank or lender before you apply. Most banks understand that agribusiness owners may have limited access to Internet or phones at certain points in rural areas, but you need to be sure that your bank will be contactable when they need to be. Some banks offer mobile banking services with some packages, so this may be worth considering.

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