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Farm First Committed Cash Advance Facility

A short to medium term line of credit offering direct access to money market based funding 

With a Committed Cash Advance Facility, we provide indicative rates for a number of terms, and you specify the amount and term required. We then draw on the facility and credit the funds to your nominated credit account. A formal confirmation will be mailed to you. At maturity we call and arrange a further drawing if it's required. In the meantime, you can make further drawings under the facility to meet your needs, as long as your drawings do not collectively exceed the facility limit.

Features

  • Can be established for any term up to 3 years
  • Advances can be repaid and redrawn within the term of the facility, meaning that you are able to time your drawings precisely to suit your projected cashflow requirements
  • Each drawing is for a fixed term of between 1 and 365 days at a fixed rate, and is debited to your nominated account on maturity
  • Interest rate risk can actively be managed because it is only fixed for the period of the drawing
  • Rate of interest is a margin above the current money market rates for the period of the drawing
  • Interest is charged every 90 days, or on maturity if the term is less than 90 days, meaning that your interest payments will be spread out if you draw a 365 day term
  • Minimum drawing requirement of $100,000 (minimum of $250,000 if the term is between one and 14 days)
  • The facility fee may be paid quarterly, six-monthly or yearly
Hot tips
  • Useful for working capital or seasonal requirements; for funding a short to medium term project, with repayment to be made upon completion; when flexibility is required to draw and repay the funds; when funds need to be drawn for different terms; or for matching repayment of borrowings with an expected receipt of funds

Apply Now
If you would like further information, or to apply for a Farm First Committed Cash Advance Facility you can contact your local Agribusiness Manager, e-mail us, or call us free on  0800 BANK BNZ (0800 226 526).