Need funding for livestock? - Here’s how to get it with Agrifunder
Although we are operating in a dynamic and often uncertain environment, one thing is for sure - the product you produce (red meat) is essential and therefore is in demand through even the worst of events e.g. COVID-19. To keep up with this demand and ensure supply of production, funding is required - we can help you with that.
Below we step through our application process to make it really clear. The process is streamlined and straight forward to navigate, to ensure a fast turnaround for you to receive your funding. Here’s what to do:
- Fill in our online application form (approx. 10 mins)
- We will give you a call to talk through your funding needs
- Send through your business information
- If successful, sign your operating contract and you’re up and running!
And that’s the whole process. Now let’s go through those steps in more depth and look at some questions we get asked a lot.
Why Agrifunder and not my bank?
At Agrifunder we offer specialised livestock funding, with 100% funding for the purchase price of livestock and flexible security options - no need for a land mortgage. We see the need for flexibility in farming and know that you need to be able to move rapidly to make the most of market opportunities.
Unlike traditional bank finance Agrifunder recognises the market value in the livestock rather than just land. This enables producers to use Agrifunder livestock funding alongside their traditional banking products (e.g. overdraft) and free up capital for investment in other activities, while allowing for them to share in the value they create.
We provide a simple and transparent pricing structure - there is a one off application fee and a funding cost which is paid as the livestock are sold.
Once an application with all information is submitted, approval for funding can be turned around in 2 business days.
Ultimately when deciding what finance is appropriate for you and your business it comes down to focusing on the goals of your business and the opportunity cost associated with the use of various finance products.
If you’re unsure about what type of finance suits your current needs, get in touch for a chat with us.
Applying for livestock funding with Agrifunder
If you have any questions before you get started don’t hesitate to give us a call on 1800 247 438.
Otherwise jump online to fill out a brief application form which gives us an overview of your business and funding needs. It should not take anymore than 10 minutes to fill out.
Once we receive it we will give you a call to discuss your application and request the following information:
- Statement of Position (SOP) with livestock summary. Depending on your equity position, guarantor support may be required.
- Historical financial reports for a minimum of two consecutive years dated within 18 months. Must include Profit & Loss, and Balance Sheet.
- Certified copy of driver’s licence(s) for all relevant individuals, including any Directors.
- A certified copy of the Trust Deed or Partnership Deed and Corporate Structure if relevant.
- Rates notices.
Completing the Process
After sending through your information we may have some questions to clarify with you.
As part of our responsible lending approach the assessment of risk for both producer and funder is an important part of our due diligence process. Our goal is to be able to provide you with an appropriate level of funding that will enable your business to grow and prosper.
Once all of the information has been provided, your application can be assessed within 2 business days.
Signing the contract and getting started with placements
If successful in your application we will send through an operating contract for you to sign. It is recommended that you show the contract to your lawyer or accountant before signing.
You will also receive a welcome email with a link to access your online account through which you can start to submit your invoices as part of your placements (trade) requests for approval and funding.
Our team will reach out to provide a run through of your online account and how to submit your placements and record sales.
We have a simple placement process:
- As the Operator, you decide to fund the livestock using Agrifunder Livestock Funding.
- You receive the invoice, complete the NLIS movement and submit the invoice via your online account (making sure the correct details are included such as name, weight and price etc)
- Agrifunder assesses the placement and on approval issues a placement contract to sign and settles the invoice
- You manage the growth and performance of the livestock
- You arrange to sell the livestock
- We pay you once we receive the proceeds from the sale. The payment is the balance from the sale minus the initial purchase price and funding cost.
A few key points to remember
At Agrifunder we understand the need for flexibility, and we share your goals of profit and growth. Our livestock funding provides 100% livestock funding and flexible security options, using livestock as security.
We understand that access to capital is an industry wide issue in agriculture. At a time when regulatory pressures are causing traditional finance sources to reduce their appetite for risk at the farmgate level; there is a need for specialised funding. We have created a funding platform which is driven by professionals, with deep knowledge and connections to the agricultural industry to help you access specialised funding that recognises your capital needs. Please reach out if you’d like to chat about working together.