Succession planning is a topic often avoided for the simple reason that people can be reluctant to discuss the matter, with younger generations feeling it isn’t their place to mention it or are unwilling to pluck up the courage to raise the issue. Many decisions are being made regarding the direction of travel of businesses and there is a feeling that senior generations are now becoming more accepting that the ‘young ones’ should be given their place and allowed to drive things forward.
With change comes opportunity - and the chance to consider options around such issues as personnel, diversification, enterprises, partnerships, financial strength and investment.
Many of these decisions require capital expenditure or restructuring of existing debt into a more streamlined and consolidated package.
The Agricultural Mortgage Corporation (AMC) specialises in rural business funding and is focused on long-term borrowing between 5 and 30 years. The margin of a loan from AMC is guaranteed for the full term without the risk and uncertainty of breaks or renewals. This sets it apart from other banks, which tend to set 3, 5 or 10-year reviews at which loans or lending margins can be renegotiated and additional fees charged. Depending on the specific bank's appetite, it can also result in the re-calling of a loan at that stage. As always, the devil is in the detail of the small print.
This certainty on margin on a loan from AMC provides a significant amount of peace of mind, knowing that the loan terms will not alter. Confidence in investment is key and this can be an excellent facilitator whether looking at capital investment in land, property or infrastructure. AMC prides itself on providing its borrowers with the funds required, while letting them get on with running their businesses.
A wide variety of loan structures are available to fit the borrower’s specific requirements with fixed rate, variable rate and interest only options available – or indeed a combination if so desired. The flexibility of varied loan structures and the correct structure is key.
Our highly experienced team of AMC agents and valuers, who are all rural chartered surveyors, understand rural business and the intricacies of borrowing money. It is crucial to have support from someone who understands your business and can talk you through the process. So whether you are reviewing your business’s financial structure or seeking long term stability, please contact one of our agents and we’d be delighted to discuss your requirements.