23 Mar Agricultural Funding Success Story 4 – March 2022
Client recently sold a successful commercial / industrial business resulting in a strong balance sheet but now resided with non-compliant income sources in relation to a traditional bank’s credit review perspective. The client sought an equity release from some of his agricultural assets to pursue new greenfield ventures more akin to past professional business career rather than farming itself.
RSP conducted a detailed credit analysis on the funding opportunity that defined an acceptable credit from a reputable non-bank lender. The client achieved a two-year interest only facility which was more generous than required to build up defined revenues and secure alternative investment opportunities. Exit will be refinancing back into mainstream banking.
Purpose: Equity Release: Farm Security
Equity: > 80%
Loan Amount: $4.1m
Risk Rating: Non-Standard
Interest Rate: 6.95%
Term: 2 years interest only