Arete helps client accelerate cattle property acquisition
Client Industry: Agribusiness (beef cattle)
Loan Amount: $10.2 million
Expanding an agri-property portfolio while growing and managing a successful business can be a challenge. Arete Finance’s knowledge of how banks value assets and treat business cashflows for security purposes, became a real advantage for this agri-business client.
Arete’s client, based in south east QLD, operates a successful consultancy business to beef cattle growers across Australia. "After many years of helping graziers our client wanted to purchase their own cattle properties in South East Queensland. Two adjoining properties were identified by the client however their accountant advised that they could only purchase one property now, the other would have to be leased and then purchased in 5 years." Director, Daniel Dumble said.
The accountant referred the client to Arete Finance to see what finance options would be available to purchase the one property.
Arete Finance reviewed the financial performance of the existing business of the cattle consultant and identified he had strong cash-flows . Taking this into account, Arete Finance understood if packaged correctly lenders would consider the cash-flow in addition to the purchase properties and that there was a high possibility for the Cattle Consultant to purchase both properties without the need to wait five years.
Director Daniel Dumble presented the options to his client and then arranged 100% of the debt finance through one bank that matched the client’s needs and was supportive of their business. The total debt requirement to secure the purchase was $10.2 million.
What impressed the client most was the speed and thoroughness with which the transaction was done, “Daniel really helped me with a streamlined process where I became the decision maker not the ‘taker,’ of any offer.” He said.
“Daniel demonstrated a detailed understanding of my business and how to work with banks. I’m really grateful he was there to get me through the hurdles of banks.”
Daniel says, “Working for and on behalf of my clients is what I really enjoy. I’ve worked with banks all my career and know what will peak their interest if positioned correctly.
The client is now happily running his business during the week and spending the weekend on his new properties and continues to work with Arete Finance on growing their business further.