Debt Solutions for a Borrower

“The Winning Borrower” 

“I was phoned one day by an IT executive, just after I had spoken to a farmer whose total crop proceeds had been seized by the bank. The IT expert had a similar problem. His bank account had also been frozen after a large deposit had been made into the account. The bank’s receiver took it all.”

So begins “The Winning Borrower”, the story of how one Sydney Chartered Accountant with a farming and family business background became a “bank loan consultant” and took on the big banks to provide Aussie debt solutions for Aussie farmers and business owners.

Baseball bats to battle bank debt issues

In the process of negotiations, mediations and refinancing, he discovered the disturbing details of how banks lied, cheated and trapped  farmers in debt they could not clear without selling the farms and did the same to business owners who had mortgaged their homes. The author relates how untrustworthy banks have exploited customers in their quest for multi-billion-dollar profits. He takes a metaphorical baseball bat to the bankers, explaining how some of his  clients ended up making more profit out of their loan settlements than out of farming or business.

Royal Commission investigates bank loan problems

The day the Prime Minister announced that there would definitely not be a Royal Commission into the banking industry, the author sent a Votergram to each one of the 225 Federal MPs decrying the decision. Within days the decision was reversed and the Royal Commission announced.

Author makes book free to farmers during March

The Winning Borrower” 85 page e-book by this businessman,4th generation farmer, Chartered Accountant and CPA , who became a bank loan consultant by accident, is available during March as a FREE e-book to help business owners and farmers all over Australia enjoy more profitable and secure lives.

Benefits of Financial analysis

Financial analysis

Business financial analysis are the last thing that gets the farmer’s attention, but are a necessary part of a successful business operation.

Measurements and financial analysis

In business we pay a lot of attention to measurements – micron, moisture, calving rate.

Yet we mostly ignore the money measurements. Frankly they are not half as interesting.

My grandfather was a Queensland drover, then bred sheep and cattle at Coonabarabran before establishing a property development and building company in Sydney.

Accounting

Before I qualified as a Chartered Accountant/CPA, when I turned 21 he  invited me onto the board of his company. He gave be a set of financial statements from the accountant, to read over. They might have been written in Russian for all that they meant to me and perhaps to him. Many years later they mean more to me than measuring  the micron of our sheep at Tullamore, the soil moisture in the cropping paddocks or the calf birth weights and calving rates at Braidwood.

Financial statements tell stories

Financial statements tell stories to financial analysts that they hide from others. Over one or two years they reveal a great deal about the money management side of a farm. Over a decade they provide the data that can enable a business owner to make much more money per product of service.

It does not matter whether the business is coping with downtime or debt, or enjoying the best seasons in decades. The figures reveal the secret of making more money. We work to enable us to live the very best life-style in the world. But the more money we make out of it, the more enjoyable it becomes.

Many matters depend on wise financial analysis

When we sit down with business owners to chat about  restructuring, succession planning, expanding or getting the bank off their back, their past financial statements have the information needed to set them on the right track. The figures and graphs we extract, tell the business owner what they can afford and how they can best afford it. They also reveal why they might be finding cashflow very tight. An important part of financial analysis can highlight how their toil is supporting the multi-million dollar bank’s CEO’s salary.

Money in your bank account, not the bank’s.

For many, those figures enable us to put more money into the farmers bank accounts than into the bank’s own coffers. At farm debt mediation they earned one farmer $5 million. When refinancing, good financial analysis can help shave the interest rate being paid for the next 20 years. This could even eliminate the need for debt at all. Loan and debt problems are not unique to business owners, but the financial climate can turn profits into losses overnight. Some commodities have a very short “self life” like consumables.

Be careful who you borrow from

The good thing about a bank loan is that one can talk to the bank. Borrowing from a non-bank lender, one of my clients had been faced by a debt collector who said  to the person not making loan repayments, “How would you like to end up in the dam with a lump of concrete around your feet?” Even when a bank debt is seriously behind we have found that the bank will deal with it sensibly. Physical violence is not part of their recovery process, even though financial abuse is. However, business owners need to treat any threat by the bank seriously. Because a bank can foreclose on the business, appoint a receiver or take insolvency action against them. Call a consultant fast if that happens, because that can cost a business owner a fortune and lose the operation in a flash.

Use an accountant who has been paid for producing the figures.

Figures that cost a business owner heaps for the accountant to prepare, turn into a technicolour landscape in the hands of a skilled financial analyst.  Studying accounting enabled me to run the Australia-wide GBAC consultancy, run and equipment hire business, an art rentals business, own and run sheep and cattle farms. At the same time, developing the most effective political persuasion tool in Australia, the Votergrams. I thank all those business owners and accountants who at conventions and conferences or just as neighbours, shared their knowledge with me. That knowledge, I can now pass it on to others.

What I have learned is that there is almost always a good solution to any problem. The dull old financial statements that have been paid for to do tax returns can often help provide those good solutions.

Greg Bloomfield

Banks grow but their customers lose

Banks grow but their customers lose.

In 1987 before bank de-regulation and sale of government banks to private profiteers, CBA made a net profit of $333,000, RBA inflation calculator puts that at $964,000 in today’s money.  Call it $1 million. Bank customers lose out.

This year CBA will earn about  $10 billion, $10,000,000,000, 10,000 times it’s pre-deregulation earnings. Bank loan customers like Home buyers, business debt or farm debt holders lose most.

Government owned bank

If we had a bank owned partly by the government and partly by the bank customers in the style of Bendigo Community bank, the people of Australia could enjoy better, cheaper banking services and be richer. Bank loan consultants like us could do more productive things than debt mediation, stopping foreclosures and farm debt mediation.
The big four billionaire banks and their multi-millionaire executives would change tack and compete for your business by reducing their outrageous charges and increasing your benefits.

Make it happen!

To make this happen, please go to go to www.bankwatch.au. Click the “Tell us” tab, click on “ Better, fairer banking industry”, add your details and submit. The Votergram system can persuade as many of the 225 federal MPs that this would be good for them too.

Bank branch closures

Bank branch closures deprive bank customers of Benefits.

CBA makes $833 million a month, $10 billion a year, 10,000 times what it made in 1987 before our politicians firstly deregulated banks and secondly sold off the honest government owned banks to eliminate competition.

Meanwhile:
banks close their branches and ATMs to make more profit  AND
Their multi-millionaire CEOs tell us that mortgage stress is causing borrowers to fall behind

Bankers control government

Banks can do what they choose including closing bank branches and reducing its services to bank customers

A government regulation prevents me  or my bank loan consultant firm GBAC from helping home-buyers in trouble with their mortgages as I have done for farmers and businesses for decades. All over Australia GBAC delivers big financial gains to borrowers at farm debt mediation, business debt mediation, refinance. In negotiations it delivers substantial debt write-offs.

Why do politicians prevent us from helping home buyers? Bankers control government because political parties and politicians need bank loans to buy homes, negatively geared investment properties and to fund election campaigns etc. MPs however, usually earn enough to avoid loan problems like foreclosure with overdue bank loans.

How do we stop our Members of Parliament selling us out to dishonest banks? It is not that the politicians are dishonest too. It is just that they need money like the rest of us. Banks hold them to ransom!

Stop financial abuse of borrowers and bank branch closures

You can help stop this financial abuse of borrowers from ending in foreclosure and forced home sales:

  1. Go to www.bankwatch.au and briefly tell Bankwatch about your mortgage stress. Most mortgage stress is caused by the bank, not the borrower, so don’t think it is your fault.
  2. Join Voters Network. It is free and it gives you enormous power and influence to protect yourself and your family from abuse or neglect by banks or governments.

When we Australian voters work together with our elected Members of Parliament we create a far better society. Politicians are just ordinary Australians trying to do a very difficult job of pleasing 27 million Australians. They can really only please those who get alongside them, tell them what should be done and explain why it should be done.

Bank entrapment of borrowers

Bank entrapment of borrowers

Bank borrowers can be fooled into a false sense of security.

In Chapter 17 of the Code of banking practice the banks undertake to:

“If we are considering providing you with a new loan, or an increase in a loan limit, we will exercise the care and skill of a diligent and prudent banker.”

“If you are a small business, when assessing whether you can repay the loan we sill do so by considering the appropriate circumstances reasonably known to us.”
These clauses are widely believed to mean that the bank will use that care and skill to avoid lending the customers into unaffordable debt.

The banker and the farmer

That however is not said or suggested in the code. The most profitable loan for a banker is one that the borrower cannot afford repay or service but is secured by real property of far greater value than the loan it secures. Farmers, affected by weather, commodity prices and government policy are ideal targets, whose skill is related to livestock, crops and the land, not financial statements, loan projections and budgets.

Selling up security

When the customer cannot make a repayment instalment the interest rate often increases and the debt builds up the customer pays what they can which is first allocated to interest. The bank earns an increasing share of the business income each year. After many years the debt may have risen by millions and is approaching the value of the security the bank will sell the property up. The borrower will lose all the money they have poured into the loan over the years, perhaps a decade of more and lose the property with which the loan was secured.

Taken for a ride

The bank did use its care and skill as a prudent banker. It protected itself all the time, making sure it had good mortgage security and could recover the debt in full by selling up the borrower. For the bank and its shareholders it was very prudent. It just made the bank part of a small fortune. The loan was probably approved by AI.

But it took the borrower for a very expensive ride.

The Big Bad Billionaire Banks

It is to protect bank customers that GBAC has worked hard over the last 40 years. It helps the borrowers to see the traps in the bank offers and to exercise their own care and prudent behaviour to protect themselves from predatory moneylenders, particularly the big billionaire banks.

HI – Human Intelligence wins the day

It is possible for borrowers to obtain good, suitable and reasonably safe loans, but it requires a good bit of work and recognition by the borrower that the bank will exercise the care and skills of a diligent banker to earn itself the maximum amount it can from the loan and it expects the borrower to understand that what the bank earns the borrower loses.

GBAC offers a HI (Human Intelligence) service from negotiating the best loan in the first place, managing that loan through and clearing the debt and recovering the title deeds at the end. The is the way for borrowers to make money out of borrowing.

Fake bank debt dispute resolution

Fake bank debt dispute resolution solutions.

John Collett in SMH Money 24 January 2024 highlights problems with 100,000 complaints to AFCA. Australia’s Fake Complaints Authority. This free bank debt dispute resolution service is an industry internal complaints body, provided by the banking industry, for their own benefit. It is a FAKE, in pretending to be a “Government  Authority”. Hoping to get your bank disputes resolved by a shop front with no teeth can leave you feeling disappointed.

Government owned banks.

Get a fair go from dishonest banks. Contact a genuine bank loan and bank debt consultant like  GBAC. In addition, those taken down by their bank may want government control of banks for a fair banking industry like Australia had before de-regulation  in 1987. Bankwatch can help you persuade Federal Parliament to re-introduce government owned banks to provide honest competition.

Bank dispute resolution trends.

Australia cannot afford to have businesses foreclosed on and sold up or  sent to Debt Mediation. Thousands of small to medium sized family businesses are tricked into unaffordable loans.  Moreover, unaffordable loans can result in  receivers appointed, assets stripped and sold off.

Resolving bank disputes.

It is no good expecting free advice from the banking industry to make the banks pay up for the damage to their customers. GBAC can provide good business debt consultants to help write off interest-inflated debt caused by dishonest bank practices.

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.