28 Jan Agri Finance Funding Success Story 2 – January 2021

CLIENT POSITION

Loan (limit)            $4,600,000

Enterprise:             Agribusiness: Beef Cattle

Lender Type:         Tier 1 Banking: Refinance / Restructure

Location:                Northern NSW

Bankability:           Improving

A well-established grazing family was facing resistance from their encumbered bank for additional capital to restock after the drought had broken.  The clients then believed that their bankability was questionable and considered selling a major asset even though their equity was great than 85%.

 RSP SOLUTION

Additional capital for full restocking and working capital achieved.

New Bank, New Bank Manager, New Restructure Facilities.

Land prices have since and are continuing to rise since.

• • • Old Interest Rate (variable): 5.36%
    • New Interest Rate (variable): 2.62%
    • Annual Savings (based on loan limits) $126,040 p.a
    • Savings over 5-year period: $630,200
    • Year 1 Return on Investment = 2,500%
    • Ongoing support from Robinson Sewell Partners