Information only disclaimer. The information and commentary in this email are provided for general information purposes only. We recommend the recipients seek financial advice about their circumstances from their adviser before making any financial or investment decision or taking any action.

In farming, opportunities and challenges rarely come at the “perfect” time. A neighbouring block comes up for sale when your equity is stretched. Growth beckons, but the bank says no. Or, on the flip side, pressure mounts from a current lender and selling up feels inevitable.

At NZAB, we see these stories all the time. And while, on the surface, the situation might feel impossible - too far out of reach, too much pressure, not enough support - we’ve learned that with the right approach, there’s nearly always a pathway forward.

1. When Growth Seems Too Big to Grasp

In a recent example, a client was presented with a significant opportunity: the chance to purchase neighbouring land. On their own, it felt too far out of reach. They had started to put together a plan to purchase only a portion, with a complex pathway to hopefully secure the rest later - a pathway that would have added unnecessary cost and pressure to the business.

Like many farmers, their skills and expertise lay in running a successful day-to-day operation, not in navigating the banking environment. And how could they know exactly what information a bank needs to properly assess such a deal?

That’s our role at NZAB. With the experience and expertise from our backgrounds in the banking sector, we understand what is required and how to present a business in a way that gives confidence and clarity.

We reframed the opportunity by first understanding the people, their history, and their long-term vision. From there, we built a clear, executable plan that gave the bank confidence to support the entire land purchase from the outset, not just a portion. While the proposal sat outside typical bank criteria, we clearly articulated not just the numbers, but the story of how the business operates and how the clients would successfully manage the growth that enabled the bank approval.

Whilst refinancing away from an existing bank is never our first option - and in fact, most of our clients in a capital-raise situation remain with their current bank - there are situations when the existing financier can’t support a clients strategy and this is the right decision. This could be due to a stronger understanding of a particular industry, or when history has left too many scars. In this case, refinancing meant aligning the client with the right bank who understood the specialist industry well, backed the people and would support their future ambitions.

By doing so, the bank viewed the financials through a completely different lens. They recognised the strength of the business, resulting in a more competitive banking package, and providing the client access to capital and confidence to grow. Despite taking on more debt, the clients reduced overall costs and gained a long-term banking partner who understands their bigger picture.

The outcome extended beyond just ownership of the neighbouring land - it was a stronger business, a supportive banking relationship, and momentum to keep building towards future strategy.

2. When It Feels Like the End of the Road

We’ve also worked with clients who thought they were out of options entirely. Under pressure from their current bank, with the prospect of listing their farm on the horizon, they felt the dream was slipping away.

As with every client, the first step was taking time to really understand the business. There’s no “one size fits all” strategy - what works for one farming family may not work for another. In some cases, selling is the right option, particularly when succession isn’t a priority. But in this case, the family wanted to retain their farm, keep farming, and build back profitability. They loved what they did - they just needed breathing space and a bank that believed in their future.

We worked through the detail of their business, analysed the numbers, and identified key changes to their structure. Together, we created an actionable plan they could follow, with our role providing the accountability and discipline around executing. This plan didn’t just improve their balance sheet - it also lifted their profitability and gave them confidence in making the right business decisions for their property.

Ultimately, their current bank requested they refinance. Sometimes, scars from past challenges are too deep to heal, and a fresh start is the best path forward. By moving to a new bank that understood their business and their goals, they gained more than just lower interest rate. They gained a supportive relationship, the removal of pressure, and the opportunity to keep farming profitably - with succession options back on the table - something they never thought would be possible.

 

Why This Matters

Growth opportunities and financial pressure are two sides of the same coin: both can feel overwhelming, both can make you think you’re out of options.

But banks don’t just back balance sheets - they back people, vision, and strategy. At NZAB, we specialise in presenting that full story. We give banks the confidence to support our clients by outlining the goals, a clear path forward and the options that exist.

Because when you think it’s too far out of reach, that’s often the moment a fresh strategy can bring it within your grasp – and we’re here to help make that happen.

If any of these situations resonate with you, drop us a line for a no obligation chat.  Feel free to call one of our local team members in Southland, Canterbury, Manawatu, Taranaki or Waikato  (or flick us a quick email here).

 

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NZAB, 335 Lincoln Road, Addington, Christchurch, New Zealand 8024, 0800 NZAB 12

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