Understanding a bank's approach to farm business

Published: 10 Feb 2014

Understanding a bank's approach to farm business fact sheet

Are you getting the best deal from your bank?

Without access to finance, growing your business and even accessing adequate working capital can be very difficult. Reducing your finance costs by trying to pay as little as possible in interest and fees to your financier is good business practice.

Key Points

  • Sound, well-managed businesses should pay lower interest rates than poorly managed ones.
  • Your lending interest rate includes an additional ‘customer margin’ especially for you! 
  • Banks need your business and are prepared to fight for it. 
  • Customer margins and fees are negotiable, except for government fees.
  • Knowing how they are calculated will assist you to reduce your finance costs.

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GRDC Project Code AES00006

Region National, North, South, West

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Region: National; North; South; West