Fintech lends Farmers a hand
- By: "Farm Tender" News
- Agribusiness News
- Jun 05, 2019
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This article was bought to you by DelayPay.
Financial technology startup DelayPay, is enabling farmers to access straight forward credit for essential productivity purchases.
Financial technology startup DelayPay co-founders Kesley Miller and Dwain Duxson are enabling farmers to access straight forward credit for essential productivity purchases.
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Ad- Afterpay for Farmers - Check out DelayPay - Ad
Financial technology startup DelayPay co-founders Kesley Miller and Dwain Duxson are enabling farmers to access straight forward credit for essential productivity purchases.
Backed by insurer QBE, DelayPay hopes to make asset financing as stress free as possible for agribusinesses by offering unsecured credit for $10,000 and above, with flexible six-month repayment plans.
Their point of difference from traditional asset financing is in the flexibility tailored to the agri-sector's unique liquidity patterns.
Farmers are able to pay back in instalments or a single lump sum, with discounts available for those who pay sooner.
This payback arrangement aims to take into account the seasonal and often volatile cash flow cycles of many agribusinesses, and the fact that on-farm investments generally take longer to materialise returns than other enterprises.
Co-founder Dwain Duxson says it marks a new category of financial services for the Ag sector.
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Ad- Afterpay for Farmers - Check out DelayPay - Ad
"Farmers appreciate the product because of its flexibility and quick turnaround time for approval," said Duxson.
The unsecured nature means producers aren't required to put up their existing assets, such as their homes or equipment as security for the lender.
Together with co-founder and former NAB executive Kelsey Miller, the pair launched a pilot trial of their service to an overwhelming customer response.
"Since launching 7 months ago, we've doubled our books month on month. The demand for convenient agri- finance is strong," they said.
In the 2017 financial year, agricultural lending was worth $62.3 billion, financed primarily through bank loans.
In the wake of on-going drought, loans for hay and fodder topped the list in late 2017 which has only recently been surpassed by loans for soil improvement and fertiliser inputs.
No strangers to technology, Duxson backs that "farm customers are great to trial green field products with, because they relay back straight away how they want to use it".
While DelayPay is a new name in finance, the founder's flagship business Farm Tender is a well-established online marketplace.
Ad- Afterpay for Farmers - Check out DelayPay - Ad
Ad- Afterpay for Farmers - Check out DelayPay - Ad
The user-managed, buy-sell platform for all things farm related has been active since 2010 and boasts over 36,000 users.
Though both companies share a CEO in Duxson and DelayPay credit can be used for purchases on and off the Farm Tender site.
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