Funding alternatives in agriculture

From producers to haulage providers, Australian agribusiness has traditionally relied on conventional debt financing. Being captive to variable factors such as climate and cyclical business cycles, financial institutions often take a conservative approach to lending which has restricted the flow of funds. When adverse trading conditions limit revenue and compound debt levels, alternative sources of finance may be used to clear debt, remove unfavourable assets from the balance sheet and adjust cash flow forecasts.

Lease backs

Lease backs are attracting an increasing amount of interest in Australia, both from asset owners and agribusiness investors. Lease backs are ideally suited to entities looking to finance manufacturing plants, heavy equipment or rural land.