Alpaca, Alpaca Breeders, Flowerdale Estate Alpacas, Alpaca farming and alpaca investment opportunities

ALPACA RESOURCE CENTRE FLOWERDALE ESTATE ALPACAS

Finance your alpaca purchase

Speed up the growth of your herd using finance

There is a strong argument for using finance to accelerate the growth of your alpaca herd. First though it is important to understand the goals of most breeders and why most people invest in alpacas.

Goals

Like ourselves, most people start out with aims of building up a herd and breeding some animals to sell for future income. There are two dilemmas we all face in the early years. Firstly, alpaca breeding is a slow process with dams only producing one cria each year, with half of those likely to be males. Secondly, we don’t want to sell the progeny (particularly females) from our early breeding efforts as we need them for future breeding and building up our herd numbers.

The question becomes “How can I accelerate this process if I don’t have the capital to outlay up front?”

Finance can be the answer

Some breeders/investors (like us) have successfully used one of a number of finance options to reach a point where we have animals to sell much sooner. Let’s say our business plan is for us to have a core stock of 20 breeding females within a few years, before we start selling stock and recovering our investment. Look at these possible scenarios below.

In 5 years, starting with 2 pregnant females, the number of females is likely to grow to 7. Starting with 5 females the number should grow to 19.

Using one of various finance options, to accelerate our progress, can make very sound business sense. Some of the benefits will be:

• Accelerated herd growth leading to a stock level that can be sustained as steady sales are made.
• Compound growth leading to a significant appreciation in the value of your herd is unmatched by almost any other investment. See the graph, showing an expected appreciation of over 400% in just 5 years, on our investment page.
• Possible tax deductions for finance costs that may be able to be offset against non alpaca income. (Advice on this must be sought from you tax advisor.)
• Your investment can be insured. This means your finance commitment is covered against losses. A peace of mind not offered by most other investments.

Some finance options

Leasing alpacas or establishing a line of credit through your bank are 2 commons ways of providing capital to leverage up your entry point into breeding. The borrowings can then be repaid over a manageable period, such as four years, while your herd numbers are growing. The repayments (on a loan of say $25,000 over 4 years at 7.5%) will be around $150 per week. Another benefit is the claimable tax deductions. The interest and finance cost component may well be able to be claimed against your taxable income from all sources, depending on how your business and investment activities are structured.

What Flowerdale Estate Alpacas offers

Firstly we do not provide funding for alpaca purchase. We do not have any ties with financial institutions or receive commissions. We have experience with using various financing methods ourselves and are able to pass on advice and in some instances are able to arrange introductions to advisors who may be able to offer help.

We have an extended terms method of financing alpaca purchases. The purchaser pays a deposit, and pays the balance, plus interest at 8%, over an agreed period. Once the alpaca is fully paid for, it is transferred to the new owner. Until then the alpaca remains with the seller on agistment. This is a very successful arrangement that is helping a number of buyers to get a start in this very exciting industry.

Special Starter Packages for new breeders

We have breeding female packages available, with special discounts to new breeders. There are over 150 alpacas to choose from in all colours. We are centrally located, north of Melbourne, just off the Hume Highway.

Phone 5784 5631 to arrange a farm visit.

 

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