Quantum Capital secures $1.9 million financing package for agriculture business
Location: Manitoba
Facilities: Line of Credit, Term Loan, Commercial Mortgage
Total Amount: $1,900,000
Amortization: 25 years
Lender: Bank lender
Project: Support ongoing working capital needs, restructure existing facilities, release equity in existing property to strengthen liquidity
Primary goals achieved: Improved cash flow, Increased liquidity
Our client is an established agriculture business with 32 years of operating history. Like most farm operations, its cash flow follows the seasons: input costs, payroll and equipment expenses come early in the year, while revenue arrives at harvest and sale.
The client wanted three things: reliable access to working capital through the season, a debt structure that eased pressure on monthly cash flow, and more liquidity to give the business room to operate and grow.
We started by building an underwriting package that presented the operation the way agricultural lenders assess it. It set out the business's production history, seasonal cash flow, existing debt and the value of its real estate. This let lenders see the full strength of the business, including equity that the previous structure hadn't recognized.
We then brought the opportunity to lenders active in the agriculture sector and negotiated a package with three facilities, each with a specific purpose.
$1,000,000 Line of Credit: A revolving operating line supports ongoing working capital needs. The business can draw funds to cover inputs and operating costs ahead of harvest, then repay as revenue comes in, paying interest only on what it uses.
$500,000 Term Loan: The term loan restructures the existing facilities into one loan with fixed payments over a set term. That makes the business's debt simpler to manage and brings its payments in line with its cash flow.
$400,000 Additional Mortgage: An additional mortgage releases equity in the client's existing property. That money goes straight to the business's cash position, giving it a buffer against seasonal swings and the flexibility to act on opportunities as they come up.
The business now has dependable seasonal funding, a simpler debt structure and stronger liquidity heading into its next season.