herd expansion
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Increase milking capacity
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herd expansion • Increase milking capacity •
Quick finance secures vendor terms in NSW
TREVOR Middlebrook needed herd finance and he needed it fast.
The Gloucester, NSW dairy farmer had an opportunity to buy some quality cattle - on a neighbouring farm and with vendor terms - but he had to make a decision within hours.
“We first heard of the herd deal on Wednesday and made the preliminary phone call to CowBank on the way to look at the herd on Friday,” he explained.
“The cows had to be off the farm by Sunday - the farmer was starting at another property in Tasmania. Traditional banks can’t do anything overnight, it takes weeks and sometimes months.”
Those cows, in question, now reside at Trevor and Kelly Middlebrook’s operation.
The couple milk 600 cows with their son Thomas.
Trevor, who is also the Dairy Farmers Milk Co-operative Chair, has a long relationship with CowBank, especially Managing Director Rod Banks.
He said it was this open, business relationship - and the understanding CowBank had of his family’s dairy farm - which enabled payment flexibility in a tough time.
“During the floods in our region, Rod rang to see how we were going,” Trevor said.
“He asked if we’d like to postpone a herd leasing payment. It was great to know we had that option, a payment was several thousand dollars. We will never forget that.”
The Middlebrook’s had already worked with CowBank, and this helped their approval process, but the speed of the finance ensured the family could capitalise on this opportunity.
“We needed the cows, it was necessary for us to expand our numbers - to address the cash flow requirements we had from purchasing neighbouring properties,” Trevor said.
“CowBank took care of the financials, from a simple phone call, and they were able to mould our agreement to make the most of the vendor terms we were offered.”
The vendor terms included interest-free payments in instalments across 18 months.
But this was “too fast” from a cash flow perspective for Trevor and his family.
To overcome this challenge - and still reap the benefits for the interest-free offer - CowBank structured a herd contract that paid the vendor terms, when they were due, and spread the remainder of the cost across a four-year operating lease.
Perfect for the family’s cash flow.
