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 to any marketer.

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

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.

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.

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.

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

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.

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

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, 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. 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.