While banks make billions-Aussie loan seekers look around

Banks are counting up their money

Banks are counting their half year profits in billions. They have so much spare cash that they don’t know what to do with it. Loan seekers are looking around to see how they can share in those billions.  They are they working  with their banking consultants to see how they can keep their businesses and farms secure and profitable by obtaining better loans. Sadly they often rely on people who are not really working for them at all – like bank paid brokers and counsellors. While loan seekers look for funds to expand, banks  buy back their own shares to use up some of their surplus profits.

Loan Seekers want the Honey

Farm loan seekers face a trifecta of major challenges with seasons, commodity prices and government policies driving many to distraction. But they want the honey – the sweetest loan they can get. Getting the honey always takes a bit of effort but it is worth every bit. The easy way to get the very best honey flavoured farm and business loans, is to spray a bit of smoke around and put the bankers into competition with each other. There is an Aussie farmer/accountant who ran his own businesses, sheep and cattle and  thinks that banks should be a lot fairer to their loan customers. His farm loan seeker website puts the banks & other lenders into the financial sale yards of www.farmloanseekers.au  to see what offers they can come up with when competing against each other for the farmer’s business. Bankers sure can sharpen their pencils when they want the business!

Experience Counts

Business loan seekers too need the very best loans, not just on rates and charges, but terms and conditions as well. GBAC founder Greg Bloomfield ran businesses in real estate development and equipment hire. He joined his first public company board when he was 21. He was a Fellow of the Institute of Directors by 24, just before qualifying as a Chartered Accountant, CPA and company Secretary. He bought is first sheep property in the 1980’s and moved to cattle in 1990. Greg knows that the best family business security comes from having lenders compete for the loan business through www.businessloanseekers.au and having a consultant to whom your financial security is the absolute top priority.

It is staggering the number of businesses and farms that get wound up or closed down without ever seeking assistance with their loans and cash crises. GBAC has been doing that for half a century. It works partly because clients only deal with the bosses.

Refinance Risks

Why refinance can have risks.

Refinance risks can vary, depending on a wide variety of circumstances. That is because a person who is refinancing is sometimes under more pressure than before. If refinance is not arranged within a specified timeframe, the existing bank could threatening receivership, appoint a manager or foreclosure and sale at auction. The borrower is looking for loan relief.

The best way to deal with that problem is to turn the tables on the bank from whom one is refinancing, by researching its behaviour to identify where it broke the law, the code of conduct or fair trading laws and then sitting down and telling it some home truths about what happens when you raise that by Votergram to some 225 Federal Politicians

Assessing refinance risks by comparing loan repayments against farm profit

“Generally, farmers’ confidence in the agriculture sector drives the demand for debt to fund land and capital acquisitions,” a banker said recently. The average farm profit was reported as $29,000. While many smallcountry roads businesses are not so vulnerable to weather and commodity prices, many are with our major cities somewhat dependent on beach weather. Recent floods have devastated many businesses. Often such disasters dramatically reduce the security value of  a mortgaged property. That is the ideal time to start gentle negotiations for the bank to write off a good bit of the debt. When the debt is reduced, the chances of refinanced are enhanced. Those who have played their cards right will often find themselves refinancing a much smaller debt. That is converting risk into advantage.

A Borrower’s Budget

It is vital for farmers and business operators to find out exactly how many dollars a year they will pay in loan repayments. Then compare that to their budgets. Make certain that the budget reflects the current reality rather than a fairy tale invented for a bank. Loan repayments and interest have to come out of  profit. It is rash to think that the farm loan or the business loan will produce extra net profit. It often does no such thing and even if it does, it usually takes a few years to do so. A borrower’s budget is their best friend. It should regularly compared with the  same period in the previous year and the actuals in the present year.

There is usually a big difference between the total income or turnover of the enterprise. Profit is the bit left after expenses. Loan repayments must be made from Profits. Don’t be misled by turnover!

Refinance Options

The problem is that a even a loan refinance can quickly turn into a debt trap. This can happen with a couple of bad years if the economy crumbles or flood waters cut business. My first reaction when confronted with refinance or even original loans has always been to seefarm in drought if it is possible to achieve the same result without borrowing from a bank.

Over the years, I have shown farmers a variety of alternatives, from savings, to interest-free loans and trade-offs.

Assets can be acquired without getting the bank involved. Publicised interest rates and charges are not the best that can be achieved when borrowing. Offers of special rates and reduced charges requires negotiation. Those wanting to borrow on best terms and conditions, the “FarmloanSeeker” or “FLS” targets an enquiry to a range of banks. It is an easy way to check out what is available. Then negotiate the very best and cheapest loan possible.