How does Stocklease work?
When your Stocklease Masterlease is approved, you will receive a master credit limit. With this facility in place you can:
- acquire parcels of livestock, up to the master credit limit, on the basis that the purchases will be owned and funded by Stocklease, or
- sell existing livestock to Stocklease, with a lease back to you, through a sale & lease back arrangement.
An individual transaction to fund a parcel of livestock under your master credit limit is known as a “Facility Lease,” and approved lessees are entitled to as many Facility Leases as they require, providing all livestock meet the broad specifications approved under the Masterlease, and that the collective value of all Facility Leases is within the master credit limit.
New livestock can be acquired via third parties, such as a livestock agent, and as long as the livestock is within the scope of the description agreed in your Masterlease, Stocklease will pay the invoice and assume ownership of the livestock. Aside from this, it’s business as usual, with all management and marketing rights remaining with you, the lessee.
In the case of a sale and leaseback, Landmark staff will value the livestock, and payment will be made to you, as the lessee, upon this value being agreed.
Through the lease period, you need to make lease payments in accordance with your Facility Lease. These lease payments are structured having agreed a final residual value with you and considering your cash flow requirements. In the case of backgrounding, grass-finishing and feed-lotting livestock, the residual value is 100% to reflect the fact that the animals should be increasing in value as they gain weight.
