15 May FINANCIAL ISOLATION
RSP Case Studies
As masters of your business and financial prosperity, ask yourself 3 questions?
- Have you been aligned to a bank manager that does not understand your business?
- Have you seen bank managers come and go like passing traffic whilst your business demonstrates stability?
- What is the relationship like with your bank?
At Robinson Sewell Partners we have built our business model around stability, reliability and availability. We become the financial constant for our clients. We know our client’s business and we understand their financial needs.
If you reserved any doubts answering the above questions, please get in touch us at Robinson Sewell Partners as we are open for business as these three Case Studies below support!
1. Client Position
Client was confident that they were not getting the most cost efficient borrowing platform for their farming business. Being removed from banking and bank policy they themselves were making very little progress in testing the market and refinancing their business to get a better outcome. RSP was engaged to manage the process for them.
Their $2,000,000 funding requirements were defined in our credit submission format and tendered to market. A very positive response was achieved which resulted in a new bank, an engaged manager and $65,000 p.a savings in interest alone.
2. Client Position
A farming client was caught in an awkward position of being informed that a pending superannuation liability was due. If this payment was not made then a $248,000 tax penalty would be imposed. Existing bank found it difficult to work around superannuation policy and hence the client engaged RSP to find a solution.
RSP worked closely with the client and “new” bank to identify all of the issues and funding requirements, and custom designed a structure that was palatable to the bank and met all of the client’s needs. The collaboration and support the client felt throughout this process has reinvigorated his belief in banks. In the process, the family had saved $68,000 p.a. on interest alone on their $5,600,000 facility + avoided the $248,000 tax liability.
3. Client Position
A significant family farming client was approaching maturity on their facilities as was assured from their existing bank that the new proposed facilities are the “very best” offer available. Their pricing and short term structures were noted. Short term facilities did not suit the client’s long term investment horizons. Being an astute operator, the client engaged RSP to test this hypothesis under RSP’s tender process.
A detailed credit analysis and profile was conducted on the client’s business and strategically invited a panel of banks to participate. The winning bank achieved long term funding solutions with a package that delivered $65,000 p.a. saving each year compared to their existing bank on a $12,500,000 facility. The client was extremely satisfied.
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