Organising Credit

Credit approval needs to be in place before you can enter into a commodity derivative transaction with the Bank. We have simplified our credit approval process and empowered our local staff to make decisions on credit.

Outlined below is a list of the basic documentation we need from you in the first instance. We recommend that you meet with a Commonwealth Bank Relationship Executive, who will explain the credit approval process to you. Click here for the contact details of a Relationship Executive in your area.

This list may look imposing, however, we are here to assist you and to ensure the process is as smooth as possible.

• General background to the business – core activities and ownership structure, experience and qualifications of key decision makers, current borrowing and banking arrangements.
• Details of current hedge exposures and risk management strategy.
• Brief description of the properties including total hectares, location, current value, etc.
• For cropping activities, the area under cultivation for the last two years and forecast for the current season.
• For grazing activities, carrying capacities for the last two seasons and forecast production for the current season.
• Farm gate prices received for the last two seasons.
• Financial statements for the last two years for the borrowing entity and the guarantors, including balance sheets and profit & loss statements. If financial statements are not available for the most recent year, management accounts should be provided.

Additional information may be required later depending on a range of factors, which is why we would ask you to contact your local Relationship Executive as a starting point as soon as these documents are available.

For those new client's who do not wish to establish a credit limit, they may seek to utilise the Bank's Collateral Margining facility. Collateral Margining allows you to enter into agricultural swap transactions with the Bank by using an Australian dollar cash deposit as security. It is available for any client who is classified as a Wholesale client as defined by the Corporations Act 2001.

Click here for more information on Collateral Margining.

Important information about advice
As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on the advice, consider its appropriateness to your circumstances. View our Financial Services Guide (PDF 59kb).