Refinancing
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Take back control
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Refinancing • Take back control •
Funding for the future in Gippsland
WHEN Aaron Grant needed to replace milk processor finance his broker suggested CowBank.
The Gippsland dairy farmer had used short-term finance from his milk processor to purchase the remainder of his 250-cow herd.
But when the terms of this agreement changed, Aaron wanted out.
“There weren't a lot of options, but CowBank could help,” he said.
“Rod (CowBank Managing Director) came down and visited me. I gave him all our figures. I also provided my figures from our most recent discussion group meetings, so Rod could glance over our cost of production and margins over feed costs. He also went out into the herd to check out the cows.”
Aaron, who leases a farm at Glen Alvie, secured a medium-term operating lease with CowBank.
“It enabled us to change milk factories and gave us more control, we were not under the thumb of the milk factory,” he said.
“CowBank gives us independence.”
For Aaron, working with Rod and the CowBank team also provided new insight into his dairy business.
“We knew we were punching out debt pretty consistently,” Aaron said.
“So it was nice to hear from Rod, when he got all our figures and put them into the system, that we were quite a profitable dairy with low costs, high profits and that we were pretty consistent year-in-year-out. He came out with figures we’d never really worked out before.”