The Top Tips When It Comes To getting a Farm Loan In Australia.
Many Australians wrongfully assume that all farmers are millionaires and because they have land and livestock that life must be good for them. There has never been a more difficult time to be a farmer and the financial climate is not the best at the moment. If you are a farmer and you’re reading this article then you will know and understand exactly what is being said here and it’s likely that you have been going through many years of financial difficulty up until this point. In order to keep any farm operational, you need machinery that is reliable and that starts every time that you want to use it. Then there is the maintenance to think about and all of these things cost money.
The good news however is that most farmers can get farm equipment financing from reputable lenders that will help them to get over the bumps that they experience throughout the agricultural year so that they can come out smiling on the other side. If you find yourself in a situation where you have to approach a lender then there are a number of things that you need to have in place to make sure that your application is a successful one.
The following are just some of the top tips when it comes to getting a loan for your farm in Australia.
- Create a business plan – If you intend to just walk into any lender and tell them that you need money then you will be completely wasting your time because they want to know that you have a plan in place so that the money will be used properly and so that you can pay it back in full and on time. You need to create some kind of loan proposal that can let the lender know that you have thought about your current business idea and that you have a plan in place to pay it back.
- Consider your ability to pay back – Every lender that you approach will want to know whether or not you can pay back any loan that they may provide for you. This means that all of your paperwork needs to be in hand with regard to cash flow, the balance sheet for your farm and the current financial history of your business. They will want to make sure that you are able to pay them back as well as take care of the current financial liabilities that you have.
- Make the right first impression – Even though you may look good on paper, you also need to be able to provide an excellent first impression when you meet the lender. They will want to know that you have the skills and the aptitude to run your business and they will also be looking into your credit history as well.
Every lender will make a risk assessment about your farming business and whether or not they feel that your farm will be a success now and in the future. They want to get the money back so expect the unexpected.
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