The expectations of life depend upon diligence; the craftsman that would perfect his work must first sharpen his tools.

~ The Analects of Confucius

Please take the time to read the latest Robinson Sewell Partners’ report on how RSP business clients (Agribusiness or Commercial) avoid being cornered by the financial burdens of their businesses by taking full control their financial destiny.  Below are three case studies of clients who have achieved their targeted financial objectives and enhanced profitability by focusing on their funding platform that underpins the liquidity of their business.


Client Position

Clients had the capacity to pay their $202,000 annual equipment finance repayments which all fell within a 6 week period. However, with a poor summer crop and winter looking dry, the clients were looking for options to reduce the costs of their equipment finance in both the short and medium term.

RSP Solution

RSP identified a two part refinance solution for the client:

1)      The refinance comprised a new interest rate close to 2% below the clients existing interest rates.

2)      The refinance occurred prior to a circa $60,000 imminent repayment being due; allowing the client to defer the payment another 12 months; thus freeing up working capital.

3)      The refinance allowed for the goods to be financed over a new 5 year term with generous residual/ balloon payment; thus reducing the client’s future annual repayments by $37,000 p.a. and again freeing up working capital.


Client Position

A farming family was in credit management with a bank and was under instruction to repay loans.  Given the “noise” around the entity and the assets the clients had difficulty in refinancing their position to satisfy the bank without having to sell the assets to a third party.

RSP Solution

RSP, with their accountant, restructured the asset mix, entity structure and overall proposition that was more palatable to bank policy.  With a two stepped approach, a refinance outcome was achieved with very commercially attractive rates and conditions applied.  The client managed to maintain their core assets for their enterprise.


Client Position

A 6th Generation farmer researched his farming financial model and realised that there was sufficient equity to reinvest back into the business for expansion.  This would materially reduce fixed overhead costs on a per ha basis thereby increasing the gross margins.  He currently had a split banking relationship with neither bank having the appreciation or appetite to support the expansion.  Client approached RSP for assistance.

RSP Solution

The raw data was available but the presentation of the business needed to be redefined to communicate with bank policy.  Upon completion of a full credit submission paper, several banks expressed interest to provide a full funding solution $2.0 million (refinance + expansion capital).  The client settled the transaction just in time to secure the additional property and capture the pre-sowing rainfall.

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