02 Aug CASE STUDY REPORT: Lack of bank support
No Bank Support to Expand
Wanting to purchase the neighbour’s rural property, but not having the support of your bank, is a frustrating and disappointing experience.
Farmers and small businesses around Australia place significant trust in their banks interpretation and feedback on their business goals and finance needs.
So, when one family in western NSW were told by their bank that finance to buy the neighbours property was not possible, they naturally thought they were asking for something that no bank would agree to. Furthermore, the client’s bank indicated that even the clients existing debt was of concern to the bank.
Resolution & Salvation
It was only after the client’s accountant recommended the clients talk to Robinson Sewell Partners that they realised they had the opportunity to achieve their growth aspirations.
With a committed credit analysis process undergone to generate a more clarified viability proposition, the banking fraternity could attain clarity in purpose, execution, feasibility and risk mitigation for the reasoning of credit.
The solution that transpired not only obtained the required property purchase finance, but obtained the finance at a markedly lower interest rate to what they were currently paying, and from a new and experienced bank manager that showed a better understanding of the client’s business.
The property purchased recently settled, allowing the clients to increase their economies of scale at a lower of cost of funds, and in partnership with a new bank and bank manager showing a genuine interest in the client’s business and future.
Take Home Message
The lesson in this case study is that you should never take ‘one’ NO as the final answer. Robinson Sewell Partners can conduct due diligence on your finance needs, and then provide you with an experienced opinion as to the probability of successfully acquiring finance, and what the likely cost and terms of that finance might be.