16 Mar Agri-Finance Funding Success Stories March 2021

CLIENT 1

CLIENT POSITION

A long-term successful family business owner located in Sydney with strong agricultural roots sought to invest back into agricultural land.  Their financial acumen and discipline were profound, but lender policy for new entrants in agriculture with no operational history and a primary business that had uncertain COVID policy implications, made it both a challenging and daunting prospect for the borrower.

Loan (limit)                 $3,200,000

Enterprise:                  Agribusiness: Dryland Grazing

Lender Type:              Tier 1 Banking: Farm Acquisition

Location:                     Central Tableland NSW

Bankability:                Satisfactory

RSP SOLUTION

1. Approval for rural property acquisition.
2. New Bank, New Bank Manager, New Facilities, Minimum Covenants.

• LVR = 58%
• Interest Rate (variable) 2.78%
• Ongoing support from Robinson Sewell Partners

CLIENT 2

CLIENT POSITION

A young and established grazing family was expanding their off-farm earthmoving business with major investment and upgrades in their plant and equipment.  In addition, their desire to keep expanding their rural enterprise is running in parallel to their expanding contracting business.  The clients realised they needed professional guidance to secure their funding needs in a strategic and sustainable process.

Loan (limit)                 $2,000,000 +

Enterprise:                  Agribusiness : Earth Moving

Lender Type:               Restructure

Location:                     Riverina NSW

Bankability:                Satisfactory

RSP SOLUTION

1. Additional capital for agribusiness
2. Same Bank, New Bank Manager, New Restructured Facilities, New Capital for Expansion.
3. Land prices have since and are continuing to rise since.

• Old Interest Rate (variable): 3.36%
• New Interest Rate (variable): 2.80%
• Annual Savings (based on loan limits) $16,000 p.a
• Savings over 5-year period: $80,200
• Annual Return on Investment = 320%
• Ongoing support from Robinson Sewell Partners