Meeting the bank
Before you meet with your banker, it’s valuable to have a clear understanding of your banking needs including overdraft, term loan and equipment finance facilities.
Meeting the bank
Your banker will have a mutual interest in your business success, so your banking relationship operates best as a partnership. The more you both understand each other’s perspective, the stronger the business partnership.
Main types of banking services used by dairy farmers
Working capital/overdraft to assist with cash flow when starting your career, cash flow fluctuations throughout the year or during industry challenges.
Finance to purchase key assets such as machinery or livestock. Usually three to five year loan terms or life span of goods/animals being purchased.
Longer term finance for purchase of land and/or off farm assets.
What should you take to your meeting with the bank?
The more information you can provide, the more confidence the banker will have in your business. Take with you annual summaries of financial and physical performance plus monthly cash flow statements underpinned by assets and liabilities, milk production and feed budgets, along with longer term plans and projections.
Dairy Australia has developed a range of business tools in conjunction with the dairy industry. Tools include:
For further information, contact your Regional Development Program or go to the Farm Business Management section of the Dairy Australia website.
- Three years of financial reports from your accountant (if current year unavailable, draft financials or cash book figures formatted as a profit and loss report)
- Corresponding year’s annual milk statements (usually June’s statement has all details required)
- Statement of assets and liabilities
- Bank statements for past 12 months
- Last year’s DairyBase report
- A business plan; include risks and how you will manage them, budget and cashflow
- An income estimation from your processor
- Budgets for the next 12 months underpinned by milk production and feed budgets