Business Bonus Program 2021
Your BBP Questions answered.
Download your BBP Application here and review our frequently asked questions below.
Why are we launching this program?
Coming up at the end of the financial year (EOFY) many of our clients are looking for tax effective expenses and would like to purchase their farm supplies for the remainder of the season before 30th June, and this program meets that need.
Why the end of June?
In general, clients who incur business expenses in the 2021 financial year can offset those expenses against revenue to gain taxation advantages (this is a process that all businesses look at usually after discussion with their taxation advisor).
Why are we doing a Business Bonus and not paying interest?
Our advice is that interest is not compliant with tax law but we are able to provide pre-payment bonuses to clients. As the client is pre-paying for his farm supplies and the client agrees for us to store the stock on their behalf, we are providing them with a prepayment BUSINESS BONUS.
Does it replace our fertiliser deal and prepay deals from last year?
Yes, it replaces all our previous year deals. This is the only BUSINESS BONUS deal we will have for this financial year which makes it wonderfully simple.
What about the IPF prepay deal?
Don't worry, it's not as good as ours, that's why we will only be using ours.
Why is ours better?
- Our Business Bonus is better than Nutrien's and Elders.
- Our product range includes items that Crop Smart does not have access to.
- The client is dealing with us and our warm friendly long-standing accommodating relationship and we are here to help them make the right decisions.
What is the process?
- The NWA team presents the BBP to our clients
- Client discusses paying for their supplies early with NWA team member and decides on the $ amount for the BBP
- An invoice is generated in ABM by the branch using a stock item (Urea per Tn – BBP - $1000 ex GST) before the Closing Date
- The client pays the invoice before the Closing Date
- The client completes the Application and it is sent to NWA HO
- During July 2021, the invoice above will be credited in its entirety (by Delta) and you will see the credit appear on the client's account
- Any credit balances on trading accounts for BBP participants will have their Business Bonus calculated by NWA HO and advised to the branches each month.
What if a client wants a specific product booked out before the end of June, what do I do?
If it is in stock, this is simply a sale that the client pays for. Book out the stock items on ABM they want at the prices agreed and take the payment. It has nothing to do with the BBP.
What if they have ordered something like a field bin that will not be delivered until after 30th June 2021?
Book out the amount of the item on ABM as a BBP payment and take the payment. When the stock item arrives, they will have the credit on their account and you can invoice out the item and off-set the credit.
Who is responsible for the correct processes and procedures being followed for the BBP?
The Branch Manager.