Succession plan for farm foreclosure?

Saying “No thank you”

Young farmers will be better off if they decline offers of farm succession based on them borrowing an interest-bearing farm bank loan. Their retiring parents and the farm will be safer too.

The inclusion of potential bank debt problems on top of fire, flood, drought, commodity prices and government policy, can be destructive to any farm family. I changed GBAC from  a Chartered Accountancy firm to a farm debt consultant once banks were deregulated. They were promoting “asset lending” – loans that depended on sale of the farm, rather than farm profits, to repay the debt.

Debt enriches banks

Succession planning debt enriches banks, impoverishes young farmers and puts farms at risk. Serious lateral thinking by experts familiar with farming  and bank loans will tailor a safer alternative for those who want to keep the farm in the family.

Passing on farm debt is rarely beneficial, so rather than refinancing debt to the youngsters, every endeavour should be made to clear all mortgage debt first, so the younger generation can begin with a clean slate. It is nothing like as hard as is thought.

Personal experience

When selling my Merino breeding  farm to buy the beef cattle property that had been settled by my great-grandfather, the asking price was many times higher than what I had expected. That was due to a recent nearby sale at a price an agent called “ridiculous”. I could not have afforded interest as well.  So I devised a plan that I could afford. It involved minimal  external debt and it worked extremely well for my relative-vendor.

Good succession planning avoids the need to call in a farm debt consultant when the bank has appointed receivers to run the farm. The last thing any young farmer needs is a debt problem that leads to farm debt mediation, the forerunner to potential foreclosure and sale of the farm.

Avoiding mortgage stress

Bank debt is offered by banks because it converts farm revenue to bank revenue. Better to keep the money in the farm’s saving deposits and avoid the mortgage stress.

Greg Bloomfield

New Year’s Resolution – Farm Succession Planning

Do something about passing on the farm before it is too late.

Here are 5 points on farm succession.

  1. Don’t involve an external lender ( eg bank) in your farm succession plan.
  2. There is nothing clever about handing down debt for your children to deal with.
  3. Add fire, flood, drought, price drop or illness and chances are they will lose the farm.
  4. GBAC ( Greg Bloomfield Agribusiness Consultants) can help your farm transfers without external debt and make both generations happy.
  5. GBAC takes the family friction out of succession plans, satisfies all parties.

Call Greg now to chat on  0428 417 496

Trouble with Transmission Towers

Profits and cashflow affected

Farm or business profits can be suddenly and badly affected when government utility construction staff enter a property. A farm debt or a business debt can do the same if cashflow is badly affected. Gates can be left open, fences or walls knocked down, trading stock or livestock lost and access blocked. GBAC consultants have run their own businesses and farms. They also have an expertise in dealing with government that many others lack. GBAC can be called in to make sure that any transmission construction on or over a business or farm is properly managed to have minimal impact on  finances, particularly  long term loan debt. It can negotiate strongly for serious compensation if damage is done. Enforced transmission lines may have to be accepted, but the wise property owners will ensure that it is at least very profitable.business premises

Don’t waste time with bureaucrats

Individuals often need to make sacrifices for the good of their nation, but when they do they should receive very generous compensation for doing so.

Property owners troubled by transmission lines should not waste time negotiating with bureaucrats or public servants over whom they have no control. Polite persistent political persuasion in the privacy of parliament is the best way to go

Go to those who can say “Yes”, not those who can say “No”

GBAC uses cheap, simple and effective Votergrams to take their concerns directly to every Member of Parliament. MPs are the only segment of government over which most people have any control. In a property owner’s role as a “Voter”, that person gains considerable political power. Voters control political careers. Most MPs are very happy to help voters when approached in the right way.

Chartered Accountant Greg Bloomfield developed Votergrams in his GBAC office before he concentrated on helping Aussies with their mortgage loan and debt issues. To provide strength to those who need community support for more effective political persuasion he also formed the Voters! Network. Transmission towers threaten the peaceful operation of businesses, homes and farms across Australia. That is the sort of issue on which voters need to join forces. When long term mortgages are taken out it is not possible to foresee the future. We have seen millions of dollars damage done by utility construction teams who simply do not know or care that mortgage repayment schedules can be seriously disrupted by intrusive construction teams. GBAC is good at making them care, even long-distance online . shaking hands

Join Voters! and have other voters support you

GBAC knows that bringing in Voters from all over Australia to report problems to Federal MPs helps to  deter harmful practices by construction companies.  Votergrams  can quickly put voters in touch with every state and federal MP in the country. However as negotiating consultants GBAC knows that it is rarely necessary. Once a construction company knows that, it tends to treat property owners properly.

 

Farm Debt – consultants

Do farm debt consultants deliver financial benefits to farmers ?

 

GBAC Farm Debt Consultants’ farm loan clients benefit from Greg Bloomfield’s years as a Chartered  Accountant/ CPA with an emphasis on pastoral companies. They gain too from his experience when he headed the largest NSW Farmers branch, ran sheep at Tullamore and cattle at Braidwood.

 

Many followed his sound farm financial advice in the Hereford Quarterly and rural papers. Farmers were amazed when they won farm debt mediations and huge debt write-offs.

 

Farmers today are freed from overwhelming debt,  with tailored refinance. In the process farmers unexpectedly earned hundreds of thousands, sometimes millions of dollars.

 

At home on a horse or bike, fixing fences or marking calves, having financed his own farms, Greg soon identifies bank loan problems  and bank debt solutions.

farm creek pond

 

Working by phone and fax previously, phone and email now,  GBAC provides farm debt solutions in a way that neither RFCs nor local Accountants can, using unique and persuasive strategies to win a fair go for farmers all over Australia. Receiverships and foreclosures are stopped and prevented.

 

Anyone needing help with a new farm loan or an old farm debt should ring for a chat with Greg any day or evening on 0428 417 496 or 02 9988 3312. Being away from the local town means that what farmers discuss with GBAC remains completely confidential.

 

Small Business Loan Broker Vs Bank Loan Broker

Should you borrow via an independent Business Loan Broker or Bank Loan Broker.

When any small business considers using a loan broker to borrow, the following question should be considered:

How can a small business be properly served by a bank broker who is  paid substantial commission by a bank?

Cannot serve 2 masters

The broker can either serve the bank or the borrower. They can’t serve both. What the bank makes, the small business borrower loses. What protects the bank makes the small business borrower vulnerable. Who do the brokers deal with most, the business borrower or the bank? The one bank of course.

More suitable farm loan fit.

At BorrowBetter.au we do not accept any commission or payment from the bank. We work for business borrowers only. As the bank does not pay an independent business broker on loans we negotiate, we work to get business borrowers a substantial reduction in the business loan cost.

How to get the best loan?

Borrow Better with BorrowBetter.au by having banks compete for your small business loan.

Cost of borrowing for business.

The most important part of a business loan is the price you pay for them not the actual business loan approval, because borrowing is easy but paying it back is hard.

Interest rate is not the only consideration of a business loan.

Apart from the obvious Interest rate there are:

  • Setup charges
  • Bank fees
  • Amount and timing of regular repayments
  • loan contract terms
  • Conditions under which the bank loan can be called to be repaid in full
  • Flexibility if the small business strikes hard times, gets sick, loses income
  • Ability to repay early or faster.
  • Small business Borrower’s ability to meet repayments out of income as only interest will be tax deductible
  • Small business Borrower’s relationship with with the bankers involved.

Ruthless business debt collectors can quickly replace smiling bank lenders.

Who will gain the most financially from the small business loan? Make it the small business owner!

Small Business Borrowers can achieve a better financial out come by using BorrowBetter.au consultants.

Call now for a friendly chat 0428 417 498, 0422 907 155, 02 9988 3312

Email greg@gbac.au, pat@gbac.au

Borrow Better with your own “broker”

Good Roads affect small businessHow can any small to medium sized business or farmer be properly served by a mortgage loan broker who is  paid substantial commission by a bank and knows little about business or farming?

  • Either the broker serves the bank or they serve the borrower. They can’t serve both because what the bank earns, the borrower pays; what protects the bank makes the borrower vulnerable if loan problems arise.
  • Who do the brokers deal with most, the borrower or the bank? The bank of course on a daily basis.
  • At Borrow Better we do not accept any commission or payment from the bank. We work for borrowers only. As the bank does not pay a broker on loans we help borrowers negotiate, we work to get borrowers a substantial reduction in the loan cost.
  • Borrow Better by having banks compete for your loan business, whether it is a new loan, restructure or refinance.
  • Borrowing is easy. It is the paying it back that is hard. So the most important part of a loan is not the getting of the funds, but the price and promises given to get them.
  • Price of a loan includes:Hay
    Interest rate
    Set-up charge
    Bank fees
    Amount and timing of regular repayments
    Contract terms
    Conditions under which bank can call in the loan to be repaid in full.
    Flexibility if the borrower strikes hard times, gets sick, loses income.
    Ability to repay early or faster.
    Borrower’s ability to meet repayments out of income as only interest will be tax deductible
    How well the borrower gets on with the bankers involved.
    The smiling lender can quickly be replaced by ruthless debt collectors in some loan contracts.
  • Who will gain the most financially from the loan? Make it the borrower!
  • Sometimes borrowers need loan help. At other times help is needed with a defaulting debt
  • If farm debt mediation or business debt mediation arise we can give expert assistance.
  • Even if a bank moves to foreclosure or appointing receivers, we provide appropriate, experienced assistance to borrowers.
  • GBAC consultants are qualified and experienced at running their own businesses and farms.
  • How will that be achieved? BorrowBetter.au consultants will tell you.
  • Call now for a friendly chat 0428 417 498, 0422 907 155, 02 9988 3312

Email greg@gbac.au, pat@gbac.au

Bank Loan Repayments

loan repaymentsIs the Bank Loan market right for you now?

News headline this week “Banks feeling pinch of sliding margins” but multi-billion dollar profits.

Most days there are reports about sliding bank margins and an increase in defaulting bank loans from poor bank loan repayments.

When we borrow we tend to put all else aside. We just want to get that bank loan for our business without giving a second thought to our ability to make the repayment commitments.

Bank Loan repayment Management

Far wiser is to think strategically.

How, when, from whom, at what rate, on what terms, how will I manage repayments.

A business loan consultant  for a borrower, is the equivalent of a mortgage broker for a bank.

One serves the borrower. The other serves the bank.

Don’t be swayed by a few years of “interest only” repayments.

That is the bait for an unaffordable loan that could lose you the home, business or farm to the bank.

GBAC has developed its BorrowBetter app to let borrowers bargain with the bank. It is like a “Borrower’s Broker” without the big commission charge. Get the best rates, charges and terms

For those having trouble with their bank, Bankwatch lets borrowers report disputes & defaults for possible solutions.

If the loan has grown into a problem debt then the best option is a business debt consultant . GBAC provides both.