Pre-Pay Advantage

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.

• Minimum application size is $50,000 (250mt)
• CBH delivery history of 3 consecutive seasons
• Minimum CBH delivery of 500mt

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: $300 (plus GST) for each variation made to an existing facility.
• If you elect to make a repayment to your PPA facility via Electronic Funds Transfer (EFT), you will be charged an administrative fee of $300 (+GST) per transaction.
• If you make changes to your reserved tonnes, you will be charged a reservation fee of $100 (+GST).

CBH Grain considers your CBH delivery history, financial information and seasonal conditions (among other things) 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.

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.

CBH Grain takes security over the crop that is funded. We register our interest on the Personal Property Security Register(PPSR).

In addition, CBH Grain may also require security in the form of a General Sercurity Agreement (GSA) (which is also registered on the PPSR) and request to note its interest in your crop on your insurance policy.

If a company or corporate trustee is involved, a personal guarantee will be required from directors.

CBH also places a reservation on grain delivered by a Pre-Pay Advantage customer equal to one tonne of grain for every $200 advanced.

Head to the Marketing tab in LoadNet and click on ‘ Grower Finance’. During the application opening period, you can submit an initial or variation application via LoadNet.  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.

Provided that all relevant information is included and your application is successful, 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.

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

Please be aware that the full contract proceeds of a flagged CBH Grain contract are paid to the PPA facility. If required, contract tonnages can be split to separate contracts to help manage cash flow needs. Please contact us to arrange any contract splits.

You may also replay your PPA facility using EFT. Surplus reserved tonnes will be released to you once your facility is repaid.