be thrown but instead plan ahead to counter the combined effect of lower incomes from commodity prices and the end of year cashflow strangulation if BPS payments are delayed.
Talking to your bank manager sooner rather than later is the best course of action as he will more readily assist a customer who has considered forward planning and realises there will be a looming cash flow issue. This is much better than someone buries his head in the sand and assumes all will be alright who then finds his bank less willing to help.
The obvious answer is extending the overdraft but there are other options, such as AMC’s five year Flexible Facility.
As the name suggests, it allows drawdown of funds to an agreed limit as and when needed with repayments to suit individual business needs. Another key feature, unlike a number of banks, is that there are no annual reviews so the facility can provide a guaranteed source of working capital for five years. Carter Jonas has many years’ experience helping farmers as appointed AMC agents and, although it may seem obvious, our first advice would be not to contemplate any borrowing that the business cannot realistically afford to repay.
Planning ahead is the key to keep your farming business running on an even keel.