Jade Agri Finance FAQs

A balloon is an option with Commercial Hire Purchase and Chattel Mortgage ATV loans.

During the finance term with Leasing, the lender has ownership of the machinery. At the end of the term, the borrower has the option of paying out the residual and taking ownership of the machine.

All sized business operations can be eligible for an overdraft. Lenders will assess the financials of the operation when determining the size of an overdraft.

A farm trade loan is a term generally used to describe loans provided for the purchase of livestock. Funding is provided as a line of credit which the farmer can access as required to purchase stock.

Generally, the type of livestock would not impact the type of credit facility. What may impact the loan is whether breeder or trade finance is required, and the financial position and credit profile of the farmer.

Finance to buy a farm is provided with a commercial property loan. The loan is a commercial mortgage with the property used as the collateral. The land, dwelling and structures may be included in the loan. Where machinery, stock and other assets are included, lender approval is required to include these purchases in the property loan. A separate loan for the contents may be required.

All asset finance facilities offer tax deductions. Lease and Rent-to-Own have deductible payments and Chattel Mortgage and CHP provide a deduction through asset depreciation and deductible interest.

Farm machines can be financed with Chattel Mortgage, Leasing, Commercial Hire Purchase and Rent-to-Own loans. The best loan is the loan that suits the accounting method, tax and balance sheet approach and financial objectives of the business. Businesses should review the features of each credit facility and discuss the suitable of each for their set-up with an accountant.