Agri-Finance Funding Success Studies

SCENARIO ONE 

Client A

Loan Limit:                       $7,275,000

Enterprise:                        Agri (horticulture, dryland cropping)

Type:                                  Tier 1 banking

Location:                           NSW

Bankability:                      Satisfactory

Client’s Challenge

The established horticultural client was about to endure material growth within their business.  The growth was being achieved by two separate property acquisitions and major irrigation infrastructure investment.  Experienced banking expertise was required to support and present the funding requirement to a panel of banks to ensure a strong funding platform was procured to support the business and their growth ambitions.

RSP’s solution

  • Strong bank engagement for the proposal
  • Procured approvals for each of the two property purchases plus infrastructure finance limits
  • Saved 40% on the loan.
  • Annual savings (based on fully drawn facilities) $29,000 p.a
  • Savings over a 5-year period = $145,000
  • Year 1 Return on Investment (with RSP) = 580%

 

SCENARIO TWO

Client B

New Loan Facility:          $2,700,000  (total facilities $7,200,000)

Enterprise:                        Agri  (dryland mixed farming)

Type:                                 Tier 1 banking

Location:                           NSW

Bankability:                      Satisfactory

Client’s Challenge

A farming vendor was seeking to sell a part of their property which still required a partial subdivision and new titles registered.  This created complexity in both seeking formal bank approval and timing.

RSP’s client was seeking to purchase and needed to move efficiently as the agribusiness property market was building momentum.

RSP’s solution

  • Worked through a detailed funding credit submission for credit approval.
  • Procured approval in a timely manner.
  • Created a more cost-effective funding structure and overall pricing.
  • Client remained with encumbered bank for greater efficiency and support.
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