Phil and Andrew run a large mixed farming enterprise in Central Victoria. They usually shear around September / October and supply a high value contract with tight specifications. The client is very reliant on this income to replenish their working capital position in the lead up to grain harvest.
After inspection of livestock, they had concerns that staple length would not achieve specifications necessary to maximise pricing under their wool offtake contract, and if shearing was undertaken at that time their return would be materially impacted.
They approached Legacy Livestock and requested a cash advance to cover their working capital requirements to enable them to delay shearing and optimise the value of the wool clip. This was approved and documented with funds made available to the client within a week from original enquiry.
The uplift in the value of the wool clip achieved by Phil and Andrew was calculated to be greater than 7 times the cost of the interest associated with the cash advance.
