The mounting financial pressures faced by farmers in today’s economic landscape has been highlighted by a surge in customer calls requiring assistance with their third tier finance options. Third tier lenders tend to be finance companies that offer short term, high interest loans.
Farmers are under immense pressure evidenced by B+LNZ’s report showing that on-farm inflation is at 16.3% and further fuelled by last week’s Official Cash Rate (OCR) increase by 25 base points.
Given these operating conditions it is not surprising that farmers and growers are looking to bridge the gap in their cashflow but navigating the different terms and conditions on third tier finance can be daunting. Farm Focus has observed instances where customers inadvertently missed claiming GST or incorrectly reconciled stock due to miscoding and confusion around these terms and conditions.
To tackle these challenges its crucial to utilise management and planning tools. When farmers optimise their cashflow planning and management they can often reduce the need for additional finance and the accompanying costs associated with these. Maintaining open communication with your bank, accountants, and advisors can help explore options such as extended overdraft facilities or identify which secondary finance option is the best fit for your business.
Nicola Black, CEO at Farm Focus, recognises the pressures stating, “Farm Focus understands the challenges farmers face in today’s economic climate, and we want to emphasise that we are just a phone call away. We are fully committed to helping farmers navigate through these uncertain times by providing personalised support and planning advice “.
For support and guidance contact Farm Focus on 0800 888 080.