Suncorp Bank Shines in Farm Finance

Suncorp Bank: Australia's Farm Finance Specialist

1902: It was the year Brisbane was declared a city, Collingwood won the VFL grand final – held for the first time at the MCG before a record crowd of 35,000, Australia won the Ashes again and the country was in the midst of the ‘Federation Drought’, resulting in one of the driest years in Australian history.

It was also the year in which the Queensland Agricultural Bank opened its first branch in south-west Queensland providing loans to rural communities. In 1986, it became the Queensland Government-owned Queensland Industry Development Corporation (QIDC), expanding its operations to include commercial lending to small and medium-sized businesses, before merging with Metway Bank a decade later to create Suncorp Metway.

While now part of Australia’s fifth-largest listed financial services group, Suncorp Bank has never lost its rural roots and remains a leading provider of specialist banking services to the agribusiness sector across Australia.

Dedicated Agribusiness Support

Suncorp Bank employs a dedicated team of Agribusiness Specialists to support the financial needs of primary producers.

With more than 100 team members located across the country – from Adelaide in South Australia to Ayr in North Queensland, Agribusiness Specialists can help you manage your affairs over the phone, or can arrange a time to come out and see you. It’s the perfect mix of detailed agribusiness knowledge, and good old-fashioned service.

They can have a no-obligation discussion with you about accounts or loans that might suit your current needs and how to prepare financially for the future (good years and bad) through the availability of Farm Management Deposit Accounts, including the ability to offset an ‘at call’ account to an eligible Suncorp Bank agribusiness loan.

For more information on Suncorp Bank's Agribusiness Specialists, click here.

Agribusiness Lending

Suncorp Bank’s Agribusiness Loans are available for a broad range of agri-lending purposes such as property purchases, off-farm investments, capital improvements or the consolidation of existing finance.

You’ll be able to choose from a range of options including fixed or variable interest rates, and a choice of loan repayment and interest charging frequencies.

Your Agribusiness Specialist will help you structure a loan to suit your business needs, your cash flow, and will take into consideration any seasonal fluctuations. Options include: fixed and variable interest rates; principal and interest and interest-only repayments; terms from one up to 15 years; and a choice of security including residential, commercial or rural property. Business assets may also be acceptable.

For more information on Suncorp Bank’s Agribusiness Loans, click here.

Farm Management Deposit Accounts

A Farm Management Deposit Account (FMDA) can be a tax-effective solution to help eligible primary producers manage their cash flow.

Suncorp Bank’s FMDAs are designed to help primary producers tax-effectively move income from good to bad financial years to help with seasonal fluctuations and adverse events that effect cash flow (i.e. natural disasters, demand issues, weather events). They work by allowing primary producers a tax deduction for deposits into an FMDA that are held for 12 months or more. This allows primary producers to build up cash reserves to manage risk and cash flow in uncertain times (eligibility and conditions apply).

Eligible primary producers can choose from two options for balances of between $1,000 and $800,000: an at-call FMDA which earns a variable interest and can be accessed at any time through a Suncorp Bank branch or Agribusiness Specialist; or a fixed-term FMDA that earns a higher fixed interest rate dependant on the term (six, 12 or 24 months).

What’s more, you may be able to use the balance of your at-call FMDA to offset and save interest on your eligible variable rate agribusiness loan. This allows you to pay less interest on your eligible loan, while still receiving the benefit of having a FDMA.

For more information on Suncorp Bank’s Farm Management Deposit Accounts, click here.

Business Overdraft

A Suncorp Bank Business Overdraft allows you to manage your short-term cash flow, unexpected expenses, or simply have access to extra credit when you need it.

Available to eligible small or large agri-businesses, it’s an ideal facility to help manage seasonal cash-flow fluctuations, the purchase of new stock, or to finance short-term working capital.

Interest is only charged on the portion of the overdraft that is used and with no set principal repayments. You can minimise your repayments until your cash flow allows you to start repaying the balance.

For more information on Suncorp Bank’s Business Overdrafts, click here.

Business Line of Credit

A Business Line of Credit gives you the flexibility to borrow however much you need, when you need, up to an approved limit. As long as you keep the loan balance below the credit limit, you decide how often and how much to pay off.

Available for a wide range of business purposes such as financing investments, short-term working capital, seasonal business requirements and for large operational business expenses such as bulk ordering, a Business Line of Credit attracts a variable interest rate with interest only charged on the amount used. There are no set principal repayments required; and no fixed term.

For more information on Suncorp Bank’s Business Line of Credit, click here.

Equipment Finance

Equipment Finance provides options to help you purchase or upgrade vehicles and equipment without drawing on your working capital. Suncorp* offers both Finance Leases and Chattel Mortgages, each with potential tax-saving benefits and flexible payment options to match your cash flow.

Flexibility is the key, with terms of one to five years; and a choice of monthly, half-yearly, yearly or seasonal repayment options, either in advance or arrears.

For more information on Suncorp Bank’s Equipment Finance, click here.

Disclosures

Banking products are issued by Suncorp-Metway Ltd ABN 66 010 831 722 AFSL No 229882 Australian Credit Licence 229882 (“Suncorp Bank”) to approved applicants only. Terms and fees apply. Read the relevant disclosure documents before deciding. Contact us for a copy.

*Equipment finance products are offered by Suncorp Metway Advances Corporation Pty Ltd ABN 89 100 845 127 to approved applicants only. Terms and fees apply. Read the relevant disclosure documents before deciding. Contact us for a copy.

Products and services including banking and insurance are provided by separate entities in the Suncorp Group which are responsible for their own products and services. Suncorp Bank is only liable for the banking products or services it provides. 

This information does not constitute business, financial, legal or taxation (including GST) advice. You should seek professional advice from your registered tax adviser as to how this product will impact your tax position.

Any advice does not take into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it.

This is a Suncorp Bank sponsored article.