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Financial tools to support your cash flow
Cash flow is the life blood of any business. It allows you to grow, manage volatility and it can help to reduce the cost of your lending. Our guide managing rural cash flow explains why managing cash flow is important and provides helpful tips to getting set up.
There's several financial tools available that could help you to manage the seasonal fluctuations in income and expenditure that are common in the rural sector:
- A business overdraft, provides short-to-medium-term cash.
- A revolving credit facility or committed cash facility provides more substantial lending.
Need help?
To understand the different tools available to help you manage your cash flow, contact your local ASB Rural Manager.
Financial tools to support long-term growth
ASB has a range of loans designed for the specific needs of the rural sector.
Business term loans
If you need money long term for investing in new stock or plant, a business term loan can provide flexibility in terms of interest rates and payment periods and can be tailored to suit your needs.
Business Sustainability Loan
The Business Sustainability Loan supports your sustainability journey by providing a special variable interest rate on term loans for an eligible environmental or social purpose.
Rural Asset Finance
If you don’t have surplus cash, but still need to invest in new machinery or refinance existing investment in your business, Asset Finance allows you to use the asset as security.
Getting your application ready
To be able to offer you useful advice or assistance, we’ll need to discuss the financial position of your business. It’s always wise to have the following information on hand:
- Know your current financial position - what has the business earned to date, what are you expecting to make for the rest of the financial year? How much debt do you have, what outstanding creditors do you have – in short how are you doing?
- Understand your cash flow and budget - you should be able to provide specific financial results backed up with bank statements, invoices, etc. Benchmark your business performance against the sector standard - for example, Dairy NZ’s DairyBase enables farmers to compare how they’re doing against similar operations. Ask your industry organisation if they have benchmarking tools available.
- Loan security - if you’re purchasing assets and need to borrow more than 60% of the stock or plant value, you may need a guarantor. If you have this already covered, it can save time in getting approval.
What happens after you've got your loan
As part of our service, and to help you keep on track, your ASB Rural Manager will conduct an annual business review.
This includes a 13-point financial health check to help identify any upcoming risks or opportunities. It’s also an opportunity to discuss your short, medium and long term ambitions with your ASB Rural Manager and to see how ASB can support you in achieving those.
Next steps
Call us
We're here to help, 8.00am to 5.00pm, Monday to Friday.
Other helpful guides
ASB's lending criteria and terms apply.
