From farm debt to farm profits

 There are a number of ways to turn your farm debt to farm profit.  They could vary according to individual circumstances. Below are some points to consider.

Seeking a loan to make farm profits

1. Apply to a number of banks to ensure that you obtain the most profitable loan on the most profitable terms.
2. Avoid borrowing to cover operational expenses, as that can increase those costs turning operational profits into losses. Engage a consultant if necessary to keep expenses below costs and build cash reserves.
3. Make sure that the loan money is to be invested in profitable capital expenditure and that the increased profit will cover interest, charges and loan repayments.
4. Read and understand perfectly, every clause in your loan agreement, or engage a bank loan consultant to do so for you. Every word has been written by skilled lawyers to benefit the bank.

 

Existing loan paid within terms and experiencing no problems

5. Monitor loan repayments carefully to ensure the debt is reducing as planned. If debt problems do arise call a consultant promptly to work out most profitable options including a temporary restructure to meet special circumstances.
6. When possible make extra loan repayments to clear debt early or build “fat” for lean times when you need a repayment holiday.

Unfair treatment or lack of sympathy from bank

7. Watch and record what the bank is doing. Note any unfair treatment or lack of empathy by bankers looking to charge penalty interest or appoint receivers. Engage a bank loan consultant for protection. Never accept foreclosure without a fight.
8. When the bank has treated you unfairly, it may have broken the law or code of practice. That can open the opportunity for you to turn debt into profit. Call a consultant.
9. A good bank loan consultant will be much more helpful than finance industry-controlled APRA or AFCA will ever be. ASIC and ACCC are unlikely to obtain any cash benefits for you.
10. GBAC Advisory has, effective strategies to turn the tables on dishonest banks and turn non-performing debt into profit through debt discounting.