Agricultural Debt Funding Success Stories

Client Position: $2,950,000

An RSP client maintains a professional career who also owns an operating farm.  The farm has been an ongoing investment project by the client via injecting capital from his off-farm income sources into the agricultural asset.  The farm itself has achieved material capital price advancement, but the cash flow economics has not been as strong from a Profit and Loss perspective.  This is due to the nature of accounting reporting principles and expenses.

In addition, the client sought additional capital of > $800,000 to fund a greenfield venture with no proven track record.  The encumbered bank just found it difficult to navigate the request through their credit underwriting standards.

RSP Solution

RSP had to present the proposal to a mainstream bank in a format that supported all of the underlying assumptions regarding the future servicing capacity of the borrower.  Given that we were dealing with farmgate, off farm and new business ventures, there was a need to “blend” credit performances in a way that provided overall support to the transaction.

The transaction was approved with a new bank on very competitive terms and the borrower has now begun the next phase in wealth creation for his family.



 Client Position

$700,000 finance for a rural property purchase in north QLD.  Client had low income and subsequently poor loan serviceability due to being a full-time carer for his sick parents for two years. It did not look like there was any chance the client could obtain finance to purchase a rural property.

RSP Solution

The client formally engaged RSP to tap into their network of banking products and experienced bank managers.  A loan product and supportive policy procedures were identified by a major bank that allowed the purchase to be financed and hence proceed.  Had the client gone direct to a local bank branch, and not through RSP, it is likely their loan application would have been rejected, because it took an experienced manager with a deep understanding of the bank’s capabilities to find a solution.

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