28 Jan Agri Finance Funding Success Story 1 – January 2021
Loan (limit) $10,000,000
Enterprise: Agribusiness: Dryland Farming
Lender Type: Tier 1 Banking: Refinance / Restructure
Location: Riverina NSW
A progressive and generational farming family has been progressively expanding their operation over the years to capture scale on the utilisation of human and plant capital. The drought years provided some seasonal challenges but none that were unsurmountable. In addition, given their scale, further investment in their logistics and marketing capabilities via grain handling and management. Their current bank was providing restrictive proposals that limited the client’s scope to achieve their objectives.
Additional capital required for on farm investment.
New Bank, New Bank Manager, New Restructure Facilities, Less Restrictive Covenants.
- Old Interest Rate (variable): 3.15%
- New Interest Rate (variable) 2.79%
- Annual Savings (based on loan limits) $36,000 p.a
- Savings over 5-year period: $180,000
- Year 1 Return on Investment = 720%
- 5 Year Return on Investment = 3,600%
- Ongoing support from Robinson Sewell Partners