Secured business loan · Agriculture
Secured business loan for agriculture
Agricultural finance is lending structured around a single annual income event, using seasonal repayments, equipment finance for machinery and working capital that carries a farm from planting through to sale.
How a secured business loan works for agriculture
Where a farm carries land equity, a secured business loan is generally the cheapest money available for a larger purpose — buying an adjoining paddock, building storage, or consolidating a mix of machinery debts onto one longer term. Rates sit well below unsecured lending because the property backs the facility. The trade-off is the obvious one: the land is at risk, and approval takes weeks rather than days because of valuation. It is the right tool for structural investment, not for a cash-flow gap.
The cash-flow pattern we plan around
Costs spread across the growing season with income concentrated into a harvest, shearing or livestock sale window, sometimes only once a year.
What agriculture typically fund
- Tractors, headers and implements
- Irrigation and water infrastructure
- Seed, fertiliser and chemical before planting
- Livestock purchase and handling equipment
- Silos, sheds and on-farm storage
Secured business loan for agriculture: the numbers
| Typical amounts | $50,000 – $5,000,000 |
|---|---|
| Term | 12–180 months |
| Indicative rates | 6.8% – 13.5% p.a. |
| Repayments | Monthly, principal and interest or interest-only for a set period |
| Speed | 2–6 weeks including valuation |
| Documents agriculture usually need | ABN and land ownership or lease details · Two years of tax returns and financials · Machinery quote or livestock purchase details |
Rates shown are indicative ranges observed across our lender panel for the period stated. They are not an offer or quote. Your rate depends on your business, the lender, the amount, the term and the security offered. The lender makes the final credit decision.
Key terms
Agricultural equipment finance
Agricultural equipment finance is secured lending for farm machinery such as tractors, headers, sprayers and irrigation systems, commonly written over three to seven years with annual or seasonal repayments aligned to harvest income.
Seasonal repayment structure
A seasonal repayment structure is a loan schedule where repayments fall due when farm income arrives — annually after harvest or in set months — rather than in equal monthly instalments.
What is a secured business loan?
A secured business loan is business finance where a specific asset is pledged as security. The lender registers a mortgage or a security interest over that asset and can sell it to recover the debt if the loan is not repaid, which is why pricing is lower than unsecured lending.
What can be used as security for a business loan?
Residential property, commercial or industrial property, unencumbered equipment, and business assets under a general security agreement are all accepted on our panel. Property gives the widest lender choice and the lowest rates.
What LVR do secured business loans allow?
Loan-to-value ratios are commonly up to 80% against residential security and 65–75% against commercial property. Specialist and private lenders may go higher at a higher rate and for shorter terms.