Panel & appetite
14 lenders · appetite by commodity, region and security · and it changes without anybody telling you
3 changes this month
Five deals last year were placed with a lender whose appetite had already changed. Six weeks each, on deals with a season date. Nobody was careless — the appetite changed in a phone call between a business development manager and one broker, and never reached the other five.
Appetite changes, 30 days
3
1 affects a live deal
Deals mis-placed, 12 months
5
6 weeks lost on each
Average time to approval
17 days
Range 6 to 41
Lenders on panel
14
6 used in the last quarter
Who will do what, this week
Recorded when a BDM says it, dated, and attributed
| Lender | Will do | Will not | Approval | Seasonal repayments | Confirmed | Status |
|---|---|---|---|---|---|---|
| Rural lender A | Land, water, seasonal OD | Livestock, standalone plant | 21 d | Yes | 19 Aug | Tightened on water |
| Lender B | Plant, vehicles, irrigation | Land, livestock | 6 d | Yes | 21 Aug | Open |
| Lender C | Livestock, working capital | Land over $3m | 14 d | Yes | 22 Aug | Paused on cattle |
| Lender D | SMSF, limited recourse | Anything operating | 28 d | n/a | 14 Aug | Open |
| Lender E | Land, large facilities | Under $2m | 34 d | Yes | 11 Aug | Open |
| Lender F | Plant, short term | Trusts as borrower | 8 d | No | 25 Aug | Now monthly only |
| Lender G | Water entitlement | Everything else | 24 d | Yes | 2 Apr | Not confirmed, 145 d |
| Lender H | Horticulture, permanent plantings | Broadacre | 19 d | Yes | 14 May | Not confirmed, 103 d |
Lender C paused on cattle three days ago and Corrigan Grazing is sitting with them. That deal has a 15 September season date and now has to be re-placed. It is the fifth time in two years.
Where a deal should go
The header deal, matched against the panel automatically
| Lender | Fit | Approval | Seasonal | Trust borrower | Verdict |
|---|---|---|---|---|---|
| Lender B | Plant · in appetite | 6 d | Yes | Yes | First choice |
| Rural lender A | Plant · will look, slower | 21 d | Yes | Yes | Too slow for the window |
| Lender F | Plant · in appetite | 8 d | No, monthly only | No | Wrong on both counts |
| Lender C | Out of appetite for plant | 14 d | Yes | Yes | Not applicable |
Six days to approval against twenty-one is not a preference on this deal, it is the difference between harvesting and not. The cheapest rate on the panel belongs to a lender that would take three weeks.
Appetite changes, this year
Recorded when heard, so everybody hears it
- Lender C — paused on cattle
- Lender F — seasonal repayments withdrawn
- Rural lender A — tightened on water security
- Lender E — minimum raised to $2m
- Lender H — exited broadacre
Rural lender A now wants a water valuation under twelve months old. The Larkins' is from July last year. Nobody has connected those two facts, and the group's largest unencumbered asset has quietly stopped being usable with their main lender.