Banker’s Guide to Restructuring Your Finances
John Miller
ANZ Banking Corporation
Representatives from ANZ outlined the financial resources available to irrigators from banks during drought and looked at financial strategies which farmers can apply to their enterprises to assist during limited water years.
Can you tell us a bit about yourself and what you hope growers can take away with them from your presentation?
I’ve been involved in rural banking for over thirty years and many of our staff have long-term experience in rural matters. I hope that growers take away the idea that the bank is human and that we care about the drought and what is happening to them.
What are some of the things growers need to consider before they approach banks for lending money?
You need to plan for what you want, be definite about what you want – how much, what for, under what terms – so you can have a sensible discussion with their bank manager.
What tips can you give growers when approaching a bank for money?
I think the main thing is to be positive about your enterprise, have a written plan about what you are to do production wise and tie this to a financial plan. Basically convince us that your business is viable going forward.
What are some of the ways growers can manage their risk?
Even during the drought it’s still important to maximise your income potential, your production per hectare in whatever enterprises you’re in, control your costs and make timely expenditure.
What financial resources are available to irrigators from banks during drought?
Our normal array of products are available plus most banks have a drought policy which involves re-risk grading their clients, not increasing the costs of funds and assisting them in completing forms for rural assistance.
What strategies can growers apply to their enterprises during times of drought?
Keep an eye on your capital expenditure, don’t make large investments that aren’t income producing for a start, concentrate on income and cash flow production.
What’s the single most important message growers can take away from your presentation?
Your business is unique, your management style is unique and you are unique. This needs to be communicated to the bank by having a good relationship with your bank manager.
