Farming is full of curveballs. Some seasons, the rain shows up when it should, the markets behave, and everything ticks along. Other times, it’s dry as a bone, costs keep rising, and you’re wondering how to make it all work. That’s why smart farmers don’t just focus on the here and now—they make sure they have a plan for what’s ahead.
And here’s the thing—when it comes to finance, banks don’t just look at your cash flow or land value anymore. They want to know you’ve got a structured, long-term approach to managing your farm’s future. That’s where a good advisory board comes in—and why your lender should be at the table when you’re making key decisions.
Farmers who involve their lender in business planning don’t just get better loan approvals—they build stronger financial relationships that pay off when it really matters. Here’s how bringing your bank into the conversation can put you ahead of the pack.
Banks Want to See You Have a Plan—Not Just Numbers on a Page
If you’ve ever applied for a loan, you’ll know that banks want paperwork. Lots of it. But beyond the figures, they’re looking for proof that your business is well-managed and built to last.
A structured advisory board shows that you’re thinking long-term. It gives lenders confidence that you have people in your corner—agronomists, accountants, financial advisers—who are helping you make sound decisions. Instead of just handing over a P&L statement, you’re showing a bigger picture of how you run your farm, plan for challenges, and manage risk.
One farmer we worked with had applied for a seasonal finance loan after a tough year. On paper, things looked tight, and the bank was hesitant. But when we sat down with his lender—alongside his agronomist and accountant—they saw he wasn’t just hoping for a better season. He had a strategy in place: plans to improve soil health, diversify income, and manage costs. That one meeting turned the conversation around. Instead of seeing risk, the lender saw a farm with a plan—and the loan was approved.
This is the difference an ongoing financial relationship can make. The more your bank understands your business, the better position you’ll be in when you need support.
How an Advisory Board Strengthens Your Loan Applications
When a lender is part of your business discussions, they get to know your farm beyond the numbers. This means:
- Your loan applications become easier. Instead of explaining everything from scratch, you’re working with someone who already understands your goals and strategy.
- You get better finance options. Lenders are more likely to offer competitive rates and flexible terms to clients they trust.
- You build a financial buffer before you need it. By discussing funding needs early, you can plan ahead rather than scrambling for cash flow at the last minute.
Banks don’t like surprises. If they’ve been part of your discussions, they already know what’s coming—whether it’s a big infrastructure project, succession planning, or a strategy to get through a tough season.
Making It Happen: Setting Up an Advisory Board That Works
If you don’t already have an advisory board, start simple. The goal isn’t to create extra work—it’s to bring the right people together to make smarter financial decisions.
Most farmers benefit from including:
- A financial adviser or accountant – to provide clear financial insights.
- An agronomist or farm consultant – to ensure on-farm decisions align with business goals.
- Your lending relationship manager – to keep finance options aligned with your plans.
- Key family members or succession planning experts – if transition planning is a priority.
Once you’ve got the right people, set a schedule for meetings—whether it’s quarterly or twice a year. Keeping lenders involved before you need finance makes it easier to secure funding when you do.
When inviting your lender, keep the conversation practical. Run through your business vision, cash flow updates, investment plans, and risk management strategies. Encourage them to provide feedback on timing and loan structures, so you know what’s possible well in advance.
The Best Time to Build Financial Relationships is Before You Need Them
The farmers who get ahead financially aren’t necessarily the ones who have the best seasons—they’re the ones who plan ahead, build strong relationships with their lenders, and take control of their financial future.
If you want to be in the best position next time you need finance, start now.
If you need help mapping out your priorities and ensuring your business can run smoothly in any situation, give Dibbo a call today. Let’s put a plan in place so you’re prepared for whatever comes your way.
Please contact us directly:
📞 08 8253 2906
📧 info@financialservicessa.com.au
