Why you need an agribusiness broker to support your business

No matter what you do, you probably already know that when it comes to your business finance, it’s more than just interest rates.

There are relationships and succession planning, business structures, new products, and plans to expand and diversify.

But did you know that as an agribusiness broker, I can help you with these things?

 In this blog, I’m going to cover some of the other services I offer and how they can help you.

Property purchase, expansion and diversification

Whether you’re thinking about buying a new property, expanding your business or diversifying, you’ll need the support of your lender, especially if you’re looking to secure additional finance.

But before you head off to you manager to request an increase on your lending, it pays to talk to a broker. Having your agribusiness broker support you through the process reduces stress and increases your chances of a good result.

You should start with a solid, well thought out plan. If you don’t provide enough information and can’t tell the story about your plans in a way that makes it easy for the lender to understand, it’s possible your application may not be successful.

By working with a broker, you’re putting your best foot and plan forward. We love telling the story about your plans, and we know what financial institutions want to see in that story.

We also know exactly what financial information the bank will want to see and how best to present it.

Building the right relationships

We know how important the right relationships are for business, and that extends to mortgage and loan providers. Having a solid relationship built on trust and mutual understanding makes all the difference to ensure you get the best deal.

But it doesn’t always work out that way.

Perhaps they don’t provide the services you need or maybe the manager isn’t the right fit for your business. Sometimes it could just be that they don’t seem all that supportive of your plans.

That’s when having a trusted agribusiness broker in your corner can make all the difference. I’m focused on bringing the personal relationship back to financing. Having an agribusiness broker working with you means you have someone to provide consistent and cohesive support. I also help with regular reviews of your business. I work with many clients, so I have a detailed understanding of the wide range of products available and know who will provide the best deal.

Succession planning

You’ve probably heard horror stories about succession plans. They are complex. And like anything that involves family and relationships, they need to be managed carefully. Having a broker provide independent advice, free from the emotions family members might be feeling, can make it easier.

But that’s not the only reason.

Succession plans often involve complex tax and legal advice and it helps to have someone who can explain this to you. We’re experienced in working with other professional advisors and can remove the jargon so you understand exactly what’s required.

Finally, your succession plan needs to pass the scrutiny of your financial institution. We’ll work with you to ensure the plan is viable and gets the support of your lender.

Complicated structures and products

How many loan products do you have?

Over the years, I’ve seen clients face a range of situations. I won’t say I’ve seen it all, but I’ve definitely seen enough to know what works best for most businesses.

I’ve had a client with over 30 fixed-rate loans and another with 90% of their loan fixed in one lump sum for a long period.

But no matter how complex your business is, your banking doesn’t need to be complicated. Most importantly, one size doesn’t fit every customer.

The advantage of working with an experienced agribusiness broker like me, is that I understand how to make your lending work for you, no matter how much debt you have.

Customer case study: Agricultural debt funding success

A couple of years ago, I was working with a grain farmer in the mid north of South Australia. They wanted a review of their business finance and were especially keen to know whether the financial products they were using were really right for them. They’d experienced a few years of droughts and frosts and were also thinking they weren’t getting the best deal from their existing bank manager. The farmer was in a good financial position and had enjoyed a reasonable season. So after a few years of needing to borrow extra capital, they didn’t need to borrow further working capital.

We reviewed their position and could see that another bank lender would deliver benefits and savings.

The result?

They refinanced with another bank, securing loans that were easier to understand and better suited to their business. Even better, we helped them save around $47,000 per year in interest.

Isn’t it time you had a broker in your corner?

If you’ve been working through your agribusiness finance needs on your own, it could be time to get some support from a broker.

Whether you need a succession plan or want to diversify or expand, having a broker to help you navigate discussions with lenders can make all the difference. Not only to look at your bottom line, but to help you get the best deal. Having a broker to support you can also make the process way less stressful, something we can all agree is a good thing.

Over to you

Are you looking at changing your business? Need some help with a succession plan, diversification or expansion?

If you’d like some help, please get in touch. If you have comments and questions, I’d also love to hear from you. And, if you liked this article, I’d love you to share it.