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Cattle Leasing

This is a product that is aimed at the established grazier with existing commercial cattle numbers of around 800 to 1000 head. Graziers with smaller herd sizes of stud cattle will be considered for the facility. To put it simply the operation needs to be viable in its own right, without reliance on off farm income.

Most types of stud and commercial beef cattle can be funded by this arrangement. It is simply an alternative method to fund the acquisition of additional cattle as opposed to using your cash reserves, overdraft facilities or loans secured by your property.

Unless it is otherwise mutually agreed upon, the only security taken for the facility is the cattle subject of the lease agreement. No mortgages over brands or charges over property or company assets allows you to buy and sell cattle without restrictions.

The facility is similar to a lease agreement for other chattels such as trucks, tractors and motor vehicles. You simply choose a term, repayment structure and residual value (subject to ATO guidelines) to suit your requirements. The interest rate is locked in for the term of the lease.

At the expiration of the lease you would normally payout the residual value or re-lease the cattle for a further period.

Leasing Limit

A facility can be arranged for an agreed dollar amount. This would be subject to annual review. Cattle can be purchased in lots up to the agreed limit amount.

Each new lease transaction is basically a “stand alone” facility with interest rates, term of lease and residual values to be determined at the point of acceptance.

At the time of writing there are no fees attached to this product excepting a loan documentation fee and the normal government taxes and charges such as GST for each draw down under the limit.

Summary

This can be a great way to increase your existing herd size to take advantage of seasonal influence and pricing variations. We have a large number of clients who use this facility to their advantage.

Please use our loan calculator for an indicative quote. If you want a more accurate idea, or have matters you wish to discuss, please contact us.

We recommend you talk to your accountant regarding taxation matters involving this facility and how these issues relate to your own particular circumstances.