Owners of contract farming business finally found elusive answer to mounting troubles

CHALLENGE:

Owners of a small contract farming and harvesting business in NSW found themselves at odds with their banking partner, beset with succession planning issues, and dazed with fragmented and messy debt accounts.

OUTCOME:

AgLend looked beyond the client’s current difficulties, created a growth strategy for their business, and brought in a private creditor willing to finance the recovery plan.

Across Australia, providers of contract farming and harvesting services abound. Not all are happy. Some thrive, others barely make it, and a few face closure.

The owners of a small contract farming and harvesting business in New South Wales approached AgLend with a serious dilemma. They have severed ties with a major bank that had been their financing partner for many years. Their family was also in the midst of serious succession planning issues while the messy financial position of the business made transitioning to another traditional bank very difficult.     

Sensing the business owners’ desperation, AgLend Finance reviewed their books and operations, assessed their debt exposure, and helped create a strategy to rationalize their finances, consolidate their debts, and bring them back towards profitability. AgLend also leveraged its extensive credit network to find a private lender willing to give the clients a helping hand.   

Fortunately, the private funder agreed with AgLend Finance’ recommendations and provided an umbrella facility to consolidate their succession plan requirements and their outstanding debts in just a single loan account. This effectively streamlined the whole process and considerably eased the burden on the client’s cash flow.   

Moreover, the loan facility provided an interest-only payment term of two years with the option to reduce, clear, or refinance the loan during the term. The private lender also indicated further support for the clients if they deliver acceptable and consistent debt servicing experience.

Amid a friendly credit environment, the client’s contract farming business gained traction and achieved higher profitability, eventually allowing for a smooth loan settlement.

Extremely relieved and satisfied, the clients conveyed their strong appreciation, thanking AgLend Finance not only for its rare support but also for the way it educated the clients on relevant processes that drive agribusiness finance.   


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