Livestock Finance FAQs (New Zealand)
Answers to common questions about livestock finance in NZ: eligibility, rates, LVRs, security, documentation, timing, risks and how to apply.
General questions
What livestock can be financed?
Most lenders fund cattle (dairy and beef) and sheep (ewes and lambs). Stud stock may be considered with appropriate evidence and security.
How is livestock finance different from a farm mortgage?
Livestock facilities are tied to stock value and turnover with periodic reviews, while farm mortgages are long-term and secured by property.
Eligibility & documentation
Do I need previous farming experience?
Experience helps, but strong management support, conservative budgets, and clear trading plans can offset a shorter track record.
What documents will I need?
Contact details, farm entity info, recent financials or management accounts, stock class and headcount, purchase pricing, and timeframe.
Rates, fees & LVRs
How are rates set?
Pricing reflects facility size, leverage (LVR), stock class, security, and market conditions. Most facilities are variable with review cycles.
What fees should I expect?
Common fees include establishment, service/line fees, and sometimes transaction fees. We disclose these when we present options.
What is LVR (advance rate)?
It's the percentage of stock value a lender will fund. Indicatively 50–80% depending on eligibility, stock class, and market conditions.
Is a deposit required?
Not always. A deposit or retained earnings can improve terms and pricing. Requirements vary by lender and risk profile.
Security & risk
What security is taken?
Security is commonly over the financed stock. Larger facilities may require a GSA, personal guarantee, or property security.
How do lenders view weather and biosecurity risks?
They expect strong risk management: insurance, biosecurity, buffers, and conservative budgeting. Clear plans support approval and pricing.
Process, timing & after approval
How long does approval take?
Pre-qualification typically takes 1–2 business days with complete information. Full approval and settlement depend on security and docs.
Can I increase my limit mid-season?
Potentially. Provide updated performance and budgets. Approval depends on security, trading results, and lender policy.
Can I refinance or switch lenders later?
Yes, subject to eligibility and settlement costs. Review options at renewal or when pricing/needs change.
Will applying affect my credit score?
Pre-qualification is typically a soft check. A full application may involve a credit inquiry per lender policy.
Do you charge farmers a fee?
Our service is free to use. Some lenders may pay us a referral fee; this does not change your interest rate.
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