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 are indicative, change without notice and depend on the lender, product, asset, term and your credit profile at the time of application. They are not an offer of finance. Comparison rates, where shown, are true only for the example given.
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.
Questions from agriculture
Can farm finance repayments be matched to harvest or livestock sales?
Yes. Agricultural lenders offer seasonal, half-yearly and annual repayments so machinery and working capital are paid for when grain, wool, livestock or milk income arrives rather than monthly, and some allow a repayment holiday while a crop is in the ground. Tell your broker when income arrives and the structure is built around it.
How do farmers fund inputs between planting and harvest?
A seasonal line of credit or a working capital loan secured against the farm covers seed, fertiliser, chemicals, fuel and contractors through the growing season and is repaid from the harvest. Some input suppliers offer finance, and a broker compares it against the panel. Livestock producers use the same structure across the sale cycle.
Can I finance machinery bought at a clearing sale?
Yes. Clearing sale and private purchases are financed with a PPSR clearance, an inspection and a signed sale agreement, and lenders are relaxed about the age of tractors and headers from major brands. Pre-approval before the sale lets you bid with confidence and settle to the vendor within days.
Can I buy the neighbouring farm or more land with finance?
Yes. Rural property loans fund land purchases, water entitlements and farm improvements against the value of the land and the enterprise’s earnings, usually over 15 to 30 years. Lenders look at the farm’s history, the combined operation’s cash flow and equity. Lyft Money works with agribusiness lenders as well as the major banks.