01 Dec Agricultural Case Study – December 2021

Client Position

An established Victorian farmer was seeking additional capital to purchase a neighbouring farm.  In addition, given the material increase in debt, they sought competitive pricing to ensure that the economics of the purchase maintained an achievable feasibility status.  The client also had to move quickly and with confidence given the speed to which agricultural land has been exchanging across the state (and the country).

Client Result

RSP focused on creating a full and detailed credit pack prior to approaching lenders.  A formal and clinical tender process achieved strong outcomes on both fronts – pricing and speed to market as follows;

Farm Purchase: Approved and ready to settle

LVR 23%

Loan Amount: $6.0m

Risk Rating: Satisfactory

NEW Interest Rate: 1.99%

OLD Interest Rate: 3.03%

Savings: $84,000 p.a

Lender: Mainstream bank