Overview on Agri Lending
At CPI Finance we understanding the seasonal cash flow and climatic influence to your business, is key to structuring a funding solution. So from buying the neighbors farm to commodity price risk management, we understand you need a banker that understands your business.
Agri finance has the ability to structure different loans around payment options such as standard, interest only to seasonal, variable or fixed interest, or a combination, and repayment terms of short term, 30 years to no set term. Generally the options include.
- Short term funding
- Seasonal finance
- Long term funding
- Equipment finance
- Risk management
Short term funding:
Examples of solutions available may include.
- Business credit card.
- Produce advance.
- Livestock mortgage.
Understanding that there can be spells between income, some of the options to counter this include.
- Agribusiness revolving lines of credit.
- Loan switching options.
Long term funding:
Traditional and non-traditional loans are available, and may include the following.
- Agri / business loans up to 30 years.
- Bill facility – Market linked loan that includes hedging strategies.
There is a range of equipment finance solutions available at our Car and Equipment Link, and can finance but not limited to the following.
- Car & motor
- Tractors & equipment
- Cold rooms and storage facilities
- Irrigation, to name a few.
The options available these days through financial market products is quite varied and inviting. While CPI Finance can not advise personally on these options, through our long industry experience and connections in the agri sector we can direct you to an expert that can. Some of the options available include.
- Cap, collar and options hedging.
- Commodity options.
- Diesel hedging.
- Risk planning.
- Foreign currency.
Why CPI Finance
We know that you are good at agri, but we also know that you need a trusted professional when it comes to your financial requirements in either accounting or lending. CPI Finance has a long and industry varied history to help you make these right decisions.
CPI Finance tip
“Understanding your business historic and future cash flow movements, is critical to an agri application. The best results are when your financials are up to date, and you can produce quality cash flow forecasts including things like a stock forecast or similar to your industry. (Opening stock, birth rate, culls, deaths, turn off weight and times, predicted price per kilo etc). CPI Finance can help with some of these templates, or direct you to a professional”.