1. Agribusiness Banking
Chris Horan – Senior Partner Agribusiness, Waikato
Nick Coster – Partner Agribusiness, Morrinsville
Laura Brown – Senior Associate, Hamilton

2. Information Required by the bank
Finance requirement – building additional shed.
Financial analysis.
Timing - when do key events take place?
Operational outline – staffing, trading, product mix etc.
Marketing strategy & target market.
Key risks and mitigates.
Contingency plan, what are our fall back options and what triggers them?
Goals and aspirations, how do we measure success?

3. Strategic Capital Project – Building additional calf shed?
What is required?
Building
5 bay shed = $15,000
Machinery
New Quad = $15,000
Other
Sundry – additional feeders, troughs, hay = $5,000
Total loan required = $35,000

4. Strategic Capital Project – Shed build
Statement of Position – Chris and Karin
Assets
Liabilities
Land & Buildings
$ ,000,000
Term Loan
$ ,000
Stock
$ ,000
Working Capital
$ ,000
Plant & Machinery
$ ,000
Investments/Shares
$ ,000
Sundry
Total Assets
$ 1,370,000
Total Liabilities
$ ,000
Total Equity
$ ,000
Total Equity %
54%

5. Debt Servicing – Break out exercise
Assumptions:
Current shed, 8 bays, capacity 130 calves per run, 2 runs per year.
5 bay shed capacity? How many more calves could I do?
10% death rate.

6. Outcomes of proposal: Should I do build the shed?
Where could results improve?
What are the threats to making it a success?
What type of loan should I consider?
Other questions?