A perfect storm of lows, with a positive outlook in the Top End

A Northern Territory cattle producer approached RBS following the recent breakdown in his marriage. While the breakup was congenial, it resulted in a requirement to significantly decrease the size of the cattle operations as part of the settlement. The relationship breakup also coincided with losing a well-paying off-farm job, which had been contributing to the repayment of business debts.

Dry conditions in the Territory had required de-stocking of the property and record prices for cattle were now inhibiting the client’s ability to restock and rebuild his herd.

All the above factors produced the ‘perfect storm’ that lead to the client eventually reaching out for help from RBS. With a strong background in business development, the client was motivated to engage and sought help to apply for a Regional Investment Corporation (RIC) concessional loan. The client was also honest about his mental wellbeing and was taking positive steps with the support of health professionals to overcome the effects of his marriage breakup.

The support of the Business Financial Counsellor was critical in the client establishing some basic administrative and IT skills to manage the accounts and paperwork that had previously been managed by his wife.

Once the application for the RIC loan was underway, it became easier for the Business Financial Counsellor to clarify with the client their longer-term financial goals based on what was important to him. It also became more apparent that even with a concessional RIC loan, the financial viability of the cattle business was doubtful in the economic climate.

After several appointments to discuss different scenarios, the client decided to withdraw the RIC loan application and listed his cattle property on the market.

While the sale process is still in progress, the client is happy with his decision, and he has an understanding of his values and what is important to him to achieve in life.