Target Market Determination

1. Product Summary

2. Target Market

The Farm Working Capital Facility is designed for Australian farming businesses that meet the following criteria:

Customer Characteristics

• Operating a farming enterprise in Australia (cropping, livestock, mixed farming)
• Registered Australian business with valid ABN
• Minimum 12 months trading history
• Able to provide security (general security deed, director guarantee)
• Has a clear repayment source (e.g., crop sale, livestock sale)

Customer Objectives

This product is designed for customers who:

• Need working capital to cover operational expenses between income events
• Want flexibility to draw funds as needed rather than taking a lump sum loan
• Prefer to pay suppliers directly rather than receiving cash
• Can make a single bullet repayment aligned with their income cycle
• Value quick approval and funding times

Financial Situation

• Seasonal income pattern with periods between revenue events
• Sufficient expected revenue to repay drawn funds plus interest at term end
• Ability to service any existing debt obligations
• Adequate cash flow to manage ongoing business operations

3. Who This Product Is NOT Suitable For

• Non-farming businesses - The product is specifically designed for agricultural enterprises
• Consumers - This is a business credit product, not suitable for personal/consumer use
• New businesses - Businesses with less than 12 months trading history
• Businesses in financial distress - Those unable to demonstrate capacity to repay
• Customers needing regular repayments - The bullet repayment structure requires full repayment at term end
• Customers needing cash advances - Funds are paid directly to suppliers, not to the customer
• Customers unable to provide security - A general security deed and guarantee are required
• Cropping operations seeking over $500,000 - Maximum limit for cropping is $500,000

4. Distribution Conditions

This product may only be distributed through the following channels and subject to the specified conditions:

Distribution Channels

• Direct online application - Via the RuralPay website
• Telephone enquiries - Via RuralPay customer service
• Authorised referrers - Agriculture industry partners (subject to referrer agreements)

Distribution Conditions

• All customers must complete an eligibility check before full application
• Credit assessment must be completed for every application
• Identity verification is mandatory
• Customers must be provided with a Credit Guide before entering into a contract
• Product disclosure documentation must be provided

Inappropriateness Indicators

Staff and referrers should not proceed with an application if:

• The customer is not operating a farming business
• The customer cannot demonstrate a repayment source
• The customer indicates they need regular repayment options
• The customer indicates personal (non-business) use
• The customer cannot provide required security

5. Review Triggers

This TMD will be reviewed if any of the following events or circumstances occur:

Periodic Review

This TMD will be reviewed at least annually from the effective date.

Event-Based Review Triggers

• Significant increase in customer complaints relating to product suitability
• Material change to the product features, terms, or conditions
• Significant increase in default rates beyond expected parameters
• Material change to regulatory requirements affecting the product
• Feedback from distributors indicating the TMD may not be appropriate
• Material change in the target market or their circumstances
• ASIC or AFCA guidance suggesting changes are needed

6. Reporting Requirements

Distributor Reporting

Authorised distributors must report the following information to RuralPay:

• Number of applications received
• Number of applications where product was identified as potentially unsuitable
• Customer complaints relating to product suitability
• Any other information reasonably required to assess TMD appropriateness

Reporting Frequency