Funding Success: $8.37M

Client Position

Like many generational dryland mixed farmers, the recent enduring drought event placed financial duress on the farming business.  The business had survived many droughts before, management was strong, and a tested drought policy was put into action.  The previous year the clients had even given a written undertaking to their lender that should the most recent crop fail (which it did), then asset consolidation was to ensue.  Underpinning the scenario was the solemn belief that the business was still very viable and an aching ambition to continue expanding their business for their children, not consolidate it.  But it was a case of proving this to credit.

On the banking side there was an overarching concentrated focus on conscionable lending and strict adherence to compliance.  Credit was tight.  It was a true confluence of conditions that needed immediate focused professional attention by the borrower to address.

Client Outcome

RSP was formally engaged to project manage their position to prepare their business case within a professional framework to not only address the outstanding financial issues with their lender, but also to provide anecdotal evidence proving immediate and long-term viability.  Their business needed an additional $1.9m to fully capitalise their business over the next two years: a material ask given the prevailing circumstances.

RSP project managed a deep analysis of the business.  A 10-year cross examination of various performance milestones (financial and operational) assisted in procuring source evidence to support a myriad of future production assumptions.  Generation of a drought manual and risk mitigation strategies also underpinned managerial capability of the borrowers.  New valuations were undertaken to verify and strengthen the security position.

The bank became comfortable with the proposal and provided the necessary funding for the 2020 and 2021 season.  The post funding condition to consolidate assets was removed and interest rates were reduced saving the client circa $24,000 p.a.

Now the client has had the best autumn break for about 20 years and is so excited about the farming prospects ahead.  The professional investment in their business paid off on so many levels.


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