Livestock Loans in New Zealand
A complete guide to livestock loans in NZ. Learn structures, LVRs, rates, and the application process for funding cattle and sheep purchases.
What is a livestock loan?
A livestock loan is a specialized financing facility designed to help farmers purchase cattle, sheep, and other stock. Unlike traditional farm mortgages, these facilities are structured around the value and turnover of livestock.
- • Secured by the livestock being financed
- • Flexible repayment aligned to stock sales
- • Shorter review cycles than property loans
- • Variable interest rates based on risk
Structures & security options
Stock Security Only
First charge over the financed livestock
- • Simplest structure
- • Fastest approval
- • Lower LVRs typically
- • Good for established farmers
Stock + GSA
General Security Agreement over farm assets
- • Higher advance rates
- • Better pricing available
- • Covers equipment/inventory
- • More comprehensive security
Property Security
Mortgage over farm property
- • Highest advance rates
- • Best pricing terms
- • Larger facility limits
- • Longer approval process
Rates, terms & LVRs
Typical Rate Ranges
LVR Guidelines
Application process
Pre-Qualification
Submit basic details and stock information
Documentation
Provide financials and stock details
Assessment
Lender reviews and provides terms
Settlement
Funds released for stock purchase
When livestock finance makes sense
Good Fit Scenarios
- • Seasonal stock purchases and sales
- • Herd expansion or replacement programs
- • Taking advantage of market opportunities
- • Preserving cash for other farm investments
- • Smoothing cashflow across seasons
Consider Alternatives When
- • You have sufficient cash reserves
- • Stock prices are at historic highs
- • Uncertain about sale timings
- • Limited livestock management experience
- • Existing debt levels are high
Livestock Loan Questions
How is livestock finance different from a farm mortgage?
Livestock facilities are tied to stock value and turnover, often with shorter review cycles and stock-based security.
Can I use livestock finance alongside a farm mortgage?
Yes. Many farms blend facilities to optimize cashflow and risk.
What happens if stock prices change?
Lenders monitor value and may adjust limits at review. Sensible buffers and cashflow planning help manage volatility.
Can I finance mixed herds?
Usually, yes. Provide a breakdown by class and your rationale for the purchase.
Ready to Explore Your Options?
Get pre-qualified and see what livestock loan structures work for your farm.
Apply for Pre-Qualification 🚀