An
agribusiness loan is typically meant for individuals who wish to buy a farm,
update or buy new agricultural equipment or property, or get started with their
own farm business. They are provided by a wide range of lenders including banks
and reputable financial institutions. Qualifying can be challenging as certain
factors could affect the approval of your application. Agribusiness loans in Australia
are typically assessed per case. What you need may be different from another
farmer, so lenders take time to examine your status, the quality of your
business and loan application, and the location of the farmland.
One
of the things to remember when applying for agribusiness loans in Australia is that banks will
carefully assess the applications and lend only to Australian primary
producers. A primary producer is a partnership, individual, company, or trust
operating a primary production business undertaking animal and/or plant
cultivation, pearling and/or fishing, or felling and/or tree farming. Moreover,
you need to make sure that your business and loan application are strong. This
means you will need good credit rating and a high income. If you are purchasing
farmland, the bank may not approve the loan if it is in a remote area.
However,
certain banks can be flexible in granting agribusiness loans in Australia
as long as you can prove to them that you are a low-risk and highly profitable
business. To prove your income, you will need to show your bank statements,
cash flow projections, and tax returns from the last two years. In case you
cannot provide evidence of sufficient income, certain lenders offer low doc
business loans, although they will still want to see equity before financing
your agribusiness.
