A dairy farmer faces being forced out of a major bank’s lending portfolio following the implementation of new guidelines.
Through AgLend’s network, the dairy farmer acquired bridge financing from a non-conforming lender plus equipment financing from another major bank.
A major bank wanted a dairy farmer’s debt off their books, following the issuance of new lending guidelines which restricted facilities similar to the farmer’s loan accounts.
In danger of being forced out of the bank’s portfolio by settling outstanding balances, the Victoria-based farmer sought the help of AgLend Finance.
AgLend Finance developed a complex but effective rescue plan, tapping its nationwide network of major banking institutions, rural lenders, private financiers, and other sources of credit.
The rescue facility involved a non-conforming lender which provided bridge financing and another major but sympathetic bank which extended dairy equipment finance to cover the purchase of new dairy equipment such as milk vats, milking equipment and feeders.
Moreover, the new loan was precisely structured to match the dairy farmer’s cash flow, allowing for interest-only payments until all equipment have been built and installed onsite.