Bank said sell, gutsy seniors said NO

CHALLENGE:

Seniors owning a small rural property in Queensland had their cash flow battered by drought, causing their bank to pressure them into loan settlement by selling their property.   

OUTCOME:

The rural business owners — all in their 60s — approached AgLend which helped refinance their loan accounts via a private lender, enabling them to retain their property and continue running the business.  

Farms, cattle stations, croplands, and other agricultural businesses are subject to the whims of nature. Among the most dreaded and most impactful natural phenomenon in Australia are droughts. Extreme lack of water has already brought entire industries and markets to their knees in the past and only recently have advances in agricultural technologies and support services significantly mitigated the devastating effect of prolonged droughts.

In Central Queensland, drought has crippled the cash flow of a rural business owned by seniors. Against the odds and the elements, the seniors were able to improve their financial position significantly but their bank refused to lend further assistance or to cooperate with their requests. Taking the easy way out in a desperate attempt to ward off a potential loan default, their bank pressured them instead into selling the property to cover all their outstanding debts.

The gutsy seniors simply said NO. They were fully invested and attached to their property and the real estate market in their location at the time was experiencing a slump, making any property sale always disadvantageous to sellers.

Instead, the owners approached AgLend Finance to help them create a recovery plan and build an effective long-term solution.

And true to form, AgLend delivered. The veteran credit broker probed its vast credit network and streamlined the clients’ liabilities into one loan with a private funder.

The tailored finance facility not only enabled the proactive seniors to further develop their rural business, but also granted them the option to a) reduce the debt balance through a much improved cash flow, or b) to sell their property when market conditions optimize their ROI.


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