01 Jul Funding Success Stories

CLIENT 1

Loan (limit):                    $2,450,000

Enterprise:                       Agri (Mixed farming)

Type:                                 Tier 1 banking, refinance

Location:                          Central West NSW

Bankability:                     Medium

 

Client’s Problem

The client was seeking to incorporate a stock loan facility (9.5%) and negotiate interest rates on core facilities. The client’s bank was unobliging to accommodate the request.

 

RSP Solution

New bank, new manager, new facilities

• Old interest rate (yield across all facilities): 5.43%
• New interest rate (yield across all facilities): 3.32%
• Annual savings (based on current debt) $49,250
• Savings over a 5-year period: $246,250
• Year 1 Return on investment in RSP (after establishment fees): = 789%
• 5 – year Return on investment in RSP (margin maintained) = 4729%
• Improvement in calibre of bank manager and service

 

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CLIENT 2

Loan: (Limit)                                  $5,750,000

Enterprise:                                      Commercial & Residential Property

Type:                                                Tier 1 banking, refinance

Location:                                         Central West NSW

Bankability:                                    Strong

 

Client’s Problem

The client was seeking improved service and competitive rates on commercial and residential investments.

 

RSP’s Solution

New bank, new manager, new facilities

• Old interest rate (yield across all facilities): 3.57%
• New interest rate (yield across all facilities): 2.61%
• Annual savings (based on current debt): $54,998
• Savings over a 5-year period: $274,990
• Year 1 Return on investment in RSP (after establishment fees): 940%
• 5 – year return on investment in RSP (margin maintained): 5339%
• Improvement in calibre of bank manager and service