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Pre-Pay Advantage

We can provide seasonal crop finance to help you access cash flow when you need it most. 

Applications open 15 January - 30 September 2024.
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Two men in blue shirts standing in paddock inspecting crop

Are you?

  • Looking to apply additional inputs to your crop, but lacking funds?
  • Experiencing some unbudgeted expenses?
  • Keen to upgrade equipment in preparation for harvest?
  • Interested in having access to cashflow without having to commit to grain sales?

Pre-Pay Advantage could be just what you are looking for. Ready to learn more?

What is it?

  • PPA is a pre-payment for grain, at an advance rate of $200 per tonne committed 
  • If approved, a prepayment facility is made available, which can be drawn down on request
  • You are required to deliver your committed tonnage to a CBH storage facility at harvest
  • You have until 31 July (after harvest) to repay the facility through grain sales to CBH
  • EFT repayment is also accepted during or after harvest, if a CBH grain sale doesn’t work out

Key features

  • Competitive variable interest rates, starting from 6.95% pa
  • Draw funds as needed
  • Seamless repayment from CBH grain sales
  • Repay by EFT from harvest if a CBH grain sale doesn’t work out
  • Surplus committed tonnes released to you when facility is repaid
  • Applications can be made on LoadNet
  • Fast turnaround times from submitting application to approval

How it works

Three easy steps

  1. Apply and submit for credit assessment in LoadNet
  2. Draw down funds for use in your cropping business
  3. Repay seamlessly from grain sales, or via EFT from harvest
Apply now


The details

  • How does PPA work?

    If your Pre-Pay Advantage application is successful, you will have access to funds at an advance rate of $200/t. For example, if you are applying for a $100,000 prepayment facility, you are committing to deliver 500 tonnes to CBH.

    Prevailing grain prices may be higher than the advance rate. This would mean that your facility can be repaid in full via sale proceeds of a lesser tonnage. For example, a $100,000 facility might be repaid from 150t of canola. If this is the case, and your facility is repaid in full, any remaining tonnage commitment will be released to you and can then be sold to any marketer.

  • Is there a minimum application size?

    Yes, the minimum application size is $50,000 (250mt).

  • What fees and charges are there?

    The following fees may apply to your Pre-Pay Advantage application.

    • Approval Fee: 0.15% of the approved pre-payment amount. Minimum charge is $500 (plus GST).
    • Approval Variation Fee: 0.15% of any additional approved pre-payment amount. Minimum charge is $250 (plus GST).
    • Line Fee: 0.50% of the prevailing approved pre-payment amount.
    • Administrative Variation Fee: $200 (plus GST) for each variation made to an existing contract.
    • If you elect to use the Sell Anywhere feature, an administration fee will be charged to your PPA facility. The administration fee is the greater of:
      • $250 (+GST); and
      • $1.50 (+GST) multiplied by the aggregate tonnage of the Sell Anywhere agreement.
    • If you elect to make a repayment to your PPA facility via Electronic Funds Transfer (EFT), you will be charged an administrative fee of $200 (+GST) per transaction.
  • How much money can I access?

    CBH considers your CBH delivery history, financial information and seasonal conditions in assessing your application. If your application cannot be approved in full, a lesser amount may be offered.

    Please speak to your Business Relationship Manager for further guidance.

  • Why is the advance $200/t for all commodities?

    While there is variance in commodity prices, we have a flat advance rate of $200/t so you can easily switch your tonnage commitment from one commodity to another, if required.

  • Will this affect my relationship with my bank?

    Your relationship with you bank should not be affected, as CBH takes security against your crop, without impacting your existing arrangements.

  • What security does CBH require?

    CBH takes security directly over the crop that is funded. We register our interest on the Personal Property Security Register.

    CBH also places a reservation on grain delivered by a Pre-Pay Advantage customer equal to one tonne of grain for every $200 advanced. The reservation is a practical security measure, which means the reserved tonnes may only be nominated to CBH.

The process

  • How do I apply and what information is required?

    Head to the Marketing tab in LoadNet and click on ‘Financial Products’.

    To apply, you will need to attach your budget, a statement of position and (if relevant) copies of any leases. You will also need to provide some land title information and cropping history.

  • How long does it take to process my application?

    Provided that all relevant information is included, you can expect to have a letter of offer within 3-5 business days.

    Once you return your signed offer letter to CBH, you may request a drawdown within 1-2 business days.

  • What are my repayment options?

    A key convenience of Pre-Pay Advantage is that the prepayment facility may be repaid seamlessly when you sell grain to CBH. You can use grain sale proceeds from any CBH cash or pool contracts to repay your PPA.

    If a grain contract with CBH doesn’t work out, you may repay your facility from harvest using EFT (electronic funds transfer). Please contact us for further information about this option.

    We also offer a Sell Anywhere feature, which allows your PPA to be seamlessly repaid from the proceeds of a sale to GrainCorp. Please contact us for further information about this option.

Terms and conditions:

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