Livestock farmers face considerable challenges as they try to grow their business in the light of so many external pressures. They are under constant scrutiny to ensure that their animals are well cared for while demand for organic options and sustainable feeding practices continues to build. In situations like this, a farmer needs to be flexible and have as many options as possible as they try to sustain their stock size and grow as needed. It's little wonder they are turning to non-standard finance options, which are now becoming more widely available as the industry diversifies. What do you need to know about your options if you're in this position?
Challenging Times
Most livestock farmers understand that they cannot rely on government support to help them, even in trying times. After all, very few Australian farmers are able to take advantage of government backing when compared to other OECD countries. Meanwhile, climatological factors make it even more difficult for livestock farmers to rear their stock and earn as much money from their efforts as they should.
Looking for Answers
With so many pressures in play, livestock farmers may not have as much spare cash around or necessarily access a traditional bank overdraft. There are many turning to specialist loans to help them not just buy new stock, but to also maintain what they have and get new equipment or infrastructure.
Repayment Options
Depending on the stock in question, it may take some time before a farmer is able to reap the rewards of their outlay. Thankfully, loan amounts vary as well and are short-term or multi-year, depending on the animal and the profit cycle.
Types of Loan
Unsecured loans may be available to help tide the farmer over in terms of cash flow and help with day-to-day expenditures. These kinds of loans can be used to buy feed or settle vet bills, for example. It may be possible to get an asset-secured loan to acquire more livestock-specific farm buildings, like chicken sheds, cattle housing or feed stores.
Specialist Lenders
If you have found it difficult dealing with the traditional big lenders, maybe it's time to talk with specialist organisations instead? After all, you may be able to get affordable livestock finance on terms that are more than attractive compared to traditional bank loans.
The Next Step
Reach out to a livestock loan service that will understand your needs and explain the options available.
If you are currently looking for a loan, you will no doubt want to do everything you can to get the best possible deal. When it comes to loans, there are various factors you need to take into account. This blog will be looking at some of the things you need to consider when applying for a loan. We will also explore some other financial products. Our team of writers aren't professionals but they pour a lot of time and energy into researching everything which is published on this blog. We hope you find what they have written enjoyable and informative.