Structured Asset Finance

Problem

Farmer’s bank will not renew his operating line due to his inability to pay if off every year.
The farmer has also had some slow pays since his access to capital has been cut off.
He has equity in his land and equipment but the bank will not finance those assets either.
Equipment was purchased when commodity prices were higher to offset taxes but not the short amortization is hurting cash flow.

Solution

SAF refinances a portion of the equipment and operating line into longer term assets.
The operation can now service it’s current debt.
The total yearly debt obligation is now well within cash flow limits.