FAQs

Additional items for tractors may be included in the tractor funding where they are purchased concurrently and from the same source as the machine. Subject to individual lender approval.

The term of a credit contract is subject to lender guidelines but up to 7 years is a typical asset funding term.

Operators can get estimates of credit repayments by using an online credit calculator.

A balloon is an option with Chattel Mortgage and Commercial Hire Purchase. It is a percentage of the initial credit total that is due to be finalised in full after the last monthly repayment is made.

Most lenders will arrange asset funding such as for tractors, at a fixed interest rate. This means that the rate would remain unchanged over the full term of the funding.

Cash flow shortages may be addressed with a number of credit options. Secured and unsecured general funding or with an overdraft or a line of credit.

The same types of credit products are available for funding both used and new tractors. These are Rent-to-Own, Lease, CHP and Chattel Mortgage. The interest rate can be different as can the term and other conditions for used goods as the age and condition is assessed by the lender.

Credit products vary in suitability to accounting methods, the approach taken to the balance sheet, tax strategies and the aims of the operation. It is advisable for producers to consult with their accountant if unsure of the most suitable option for their set-up.

Commercial credit products all include some form of tax deduction. The specifics vary with the type of credit. Chattel Mortgage and CHP derive deductions through asset depreciation. Rent-to-Own and Lease have tax deductible payments. Interest, fees and charges are deductible on all types of commercial credit.

Vehicles such as SUVs, 4WD, utes and other types of cars may be funded with the operator’s choice of Lease, Commercial Hire Purchase or Chattel Mortgage.

Rates vary on different credit products and for different applications and with different lenders. Lenders tend to display their best available rates for strong applications and new goods. A quote should be requested to obtain the specific rate applicable to the purpose and operator.

Operators requiring funding for stock and supplies may consider either a secured or unsecured credit product. A general secured commercial funding product can suit many non-asset agri acquisitions where security is provided through assets. Where security is not available, an unsecured option may be considered.

Yes. Applications for machinery funding can be submitted and approved prior to purchase. The quote and offer would be based on an estimated amount. Details of the type and condition of the machinery would need to be provided as used goods can attract different rates and conditions to new goods.

Operators can select the most appropriate credit option from Leasing, Rent-to-Own, Commercial Hire Purchase and Chattel Mortgage.

Start-up operators that have not traded for long enough to meet the approval conditions of some lenders may consider low doc and no doc credit. This is available via brokers and non-bank lenders.