This is branded content for Nutrien Ag Solutions.
Nutrien Finance's Prepay Plus product offers customers, including small businesses, more flexibility.
Andrew Bartley has made use of the product for the past few years to help with cash flow management and tax planning on the family's Sundale Enterprises at Jimbour Plain near Dalby.
With Prepay Plus, customers can Prepay an amount of expected expenditure for the next financial year and claim a tax deduction for the full amount at the time of payment. In addition, customers are eligible for a reward of 4.15 per cent per annum based on the amount of the prepayment and the time that elapses between the time of prepayment and the time the goods are collected or delivered.
Customers like Andrew can use these rewards to purchase a wide range of farming products from Nutrien Ag Solutions.
Andrew farms with his father Keith, and the family are in the midst of harvesting, as they look to tax planning ahead of 30 June.
The Darling Downs farmers produce cotton, sorghum and mung beans and have winter crops of chickpeas and wheat.
While they received rain in early April, the crops really needed it a month earlier to meet their full potential.
For Andrew, he cannot control the rain but he is keen to manage the variables he can. That's why Prepay Plus appealed to him.
Andrew has used Prepay Plus for the past few years and intends to take advantage of the service again this year.
"It's a great way to manage cash flow for us and is part of our tax planning," Andrew said.
"And it helps with budgeting for the next season, because I know I've got most of my cropping inputs paid for before the season."
With Prepay Plus, customers can prepay for an extensive range of farming products from Nutrien Ag Solutions such as fertiliser, animal health and cropping inputs, and claim a tax deduction at the time of payment. The prepayment must be used within the next 12 months.
The amount that customers prepay also earns a 4.15 per cent per annum reward on the outstanding balance. The reward accrues every month.
Prepay Plus can help farmers manage cash flow with items such as chemicals paid for in June and then collected months later.
With the support of Andrew's wife Lisa who does the books, the family have decided to put more into Prepay Plus each year.
"I think we've gained confidence because it does suit our business very well," Andrew said.
General Manager - Nutrien Financial Services, James Bull, said Prepay Plus was a genuine solution for a business as they can prepay future expenses on product such as crop chemical and fertiliser that are essential in their operations.
"Subject to the customer's personal or business circumstances, there may be a benefit in prepaying expenditure before 30 June and deducting the prepaid amount at the time of payment, on top of the incentive from Nutrien in the form a 4.15 per cent per annum reward, which can be put towards future goods they purchase from us. There are huge benefits in planning ahead," James said.
"A customer told me once that they like the Prepay Plus product due to its essential business nature. Prepaying for inputs enables reserves to be built in their farm balance sheet and acts like equity in a future crop, and the fact that a deduction is available at the time of prepayment helps with tax planning and cash flow management."
James said helping their customers manage their cash flow is a natural extension of Nutrien Finance.
"In addition to our Prepay Plus product, we also offer flexible finance terms, whether it be on cropping inputs or livestock, which means customers can buy now and pay later, after harvest for example. For those looking to pay early or pay later, we have a solution for them," he said.
Nutrien Ag Solutions Limited ABN 73 008 743 217 (Nutrien Ag Solutions), its employees, agents or contractors are not providing any financial, legal or tax advice. Nutrien Ag Solutions recommends that interested parties obtain their own independent tax and/or financial advice on the suitability and benefits of this product based on their specific circumstances. Depending on individual circumstances this product may provide tax benefits. Contact your local branch manager or Rural Finance Manager for the Full Terms and Conditions.
This is sponsored content for Nutrien Ag Solutions.
The story Prepay Plus gives Darling Downs farmer a boost in cash flow management and tax planning first appeared on Queensland Country Life.