05 Aug Rural Succession Planning Funding Success

CLIENT POSITION           

The client, a broadacre farmer, required funds to implement a final stage of their succession plan.  It involved purchasing land from a family member and dissolving a business partnership.  He was a lifelong client of his bank and normally would have approached the bank himself, comfortable in the thought that his long-standing relationship with his bank would ensure he received the best rates possible.

His financial advisor suggested that he approach other banks to test the market.   The client engaged RSP to manage a tender process for him.

RSP SOLUTION 

Robinson Sewell Partners prepared a professional credit submission for the required $2,000,000 and presented to the market.  It was an attractive proposition for the banks which ensured strong competition.  The variation in rates from lowest to highest in the tender was 1% – $20,000 per annum.

LOAN AMOUNT:  $2,000,000

ENTERPRISE:  Broadacre

TYPE:  Bank Lending

LOCATION:  Rural Yorke Peninsula SA

VARIATION:  A variation in rates from lowest to highest in the tender was 1% – $20,000 per annum