Deals/Larkin group — header

Larkin group — header replacement

DL-2291 · $1,180,000 · Larkin Pastoral Co · Griffith NSW · Angus McPhee

3 days behind
Harvest starts on 12 October and nobody can move it. Everything on this deal is derived backwards from that date — the machine has to be on the farm five days before, the dealer needs a week to prepare and deliver it, and the lender needs a fortnight from approval to settlement. The group position was due three days ago. Every day it runs late comes off the front, and there is no slack at the back.

The window

Planned backwards from the season, not forwards from the enquiry

43 days to harvest
12 Oct
Harvest startsSet by the crop, the weather and the contractor queue
Fixed
7 Oct
Machine on farmDelivery, setup, operator familiarisation
5 days
30 Sep
SettlementDealer needs a week to prep and deliver
7 days
16 Sep
Lender approvalDocuments, then settlement booking
14 days
2 Sep
Application submittedCredit turnaround on a group this size
14 days
22 Aug
Group position completeCannot submit without it · 3 days late
−3 days
11 Aug
Enquiry takenAngus took the call from the shed
Done
Planned forwards, this deal looks comfortable. It came in on 11 August, harvest is in October, that is eight weeks. Planned backwards from the only date that matters, it is already late — and the difference between those two readings is exactly the difference between a client who harvests and a client who watches a contractor do it.
Kerrindale would not let a seasonal deal be opened without a season date, and the plan derives from it automatically. A broker cannot forget to work backwards if the system will not work forwards.

What is holding it up

The group position — four items outstanding, two of them with the client's accountant

ItemEntityWithRequestedDaysStatus
FY26 financialsLarkin Pastoral CoHollis & Reid, accountants4 Aug21Chased 3 times
FY26 financialsLarkin Family TrustHollis & Reid, accountants4 Aug21Chased 3 times
Water entitlement statementLarkin Pastoral CoClient11 Aug14Client to obtain
Payout figure — existing headerLarkin Pastoral CoIncumbent financier19 Aug6Expires 2 Sep
Livestock count & valuationLarkin Grazing Pty LtdComplete14 AugHeld
Machinery scheduleGroupComplete13 AugHeld
Title searches ×4GroupComplete12 AugHeld
Existing debt — 4 lendersGroupComplete13 AugHeld
Six of eight items are done. The two that are not are both with the same accountant, and they have been for three weeks — which is a phone call from Fiona, not another email from the portal.

The deal

What is being financed and against what

ItemDetailAmountNote
New headerClass 9, 12.2m front, 2026 build$1,340,000Dealer, Griffith
Trade-in2018 machine, 2,840 engine hours−$310,000Subject to inspection
Payout on the tradeIncumbent financier$148,000Figure expires 2 Sep
DepositFrom the FY26 cotton cheque−$0Nil, by choice
Amount financedChattel mortgage, 60 months$1,180,000
Balloon30% at 60 months$354,000Refinance Oct 2031
RepaymentAnnual in arrears, post-harvest$214,800Structured to the season
Annual repayments, not monthly. The Larkins' income arrives twice a year. A lender that insists on monthly repayments is not cheaper, it is wrong — and knowing which lenders will structure seasonally is most of what Kerrindale sells.

What it costs to miss

Contract harvesting, 1,900 ha$188,000
Owning and operating$64,000
Difference to the client$124,000
Contractor availabilityNot guaranteed
Kerrindale commission$9,440
Client relationship14 years
The commission is not the number that matters. The Larkins have been clients since 2012 and have four entities and $6.8m of debt placed through Kerrindale. A missed harvest is remembered for a decade.

If it slips

  • Ring the accountant, not the client
    Three weeks of emails have produced nothing
  • Ask the lender for a conditional
    Two on the panel will look at draft financials
  • Ask the dealer to hold the machine
    They have one other buyer for it
  • Tell the client early
    A contractor booked in September costs less than one booked in October