We often hear, “I wish I’d known about you sooner.” We’re independent advisory partners who help farmers create and execute business strategies for growth, and succession. nzab.co.nz Align your capital with your business goals For farmers facing expansion opportunities, changing markets or the challenge of succession, having the right capital structure can be just as important as having a strong farming strategy. That is where NZAB aims to give farmers an advantage, combining agricultural expertise with independent financial advice and access to a broader range of funding options. Founded in 2017 by three senior rural lenders, NZAB has grown to a team of more than 50. It works with farmers across New Zealand, helping them align their capital with their business goals rather than simply finding finance for a particular transaction. “The aim is for farmers to have control of their finances and have the capital behind them to execute their strategy,” says Scott Wishart, managing director and founder. “That can be particularly valuable when a farmer identifies an opportunity that does not fit neatly within conventional bank lending criteria.” NZAB assesses the overall strategy, financial position and future requirements before determining whether debt, equity or alternative funding is the most appropriate option. Its advice can also help farmers negotiate better deals. “We can get a better outcome for farmers than they can get for themselves,” says Scott. “That means more confident decisions can be made around the terms and conditions and price for debt, hopefully unlocking opportunities they otherwise wouldn’t be able to.” For growing businesses that might mean farm expansion, an acquisition, irrigation investment, diversification or a change to the farming system. NZAB helps assess borrowing capacity, risk and different capital structures so farmers can understand what is achievable before committing to a major decision. The benefit is not restricted to expansion. NZAB also works with established farming businesses looking to protect equity during volatile conditions, optimise existing debt structures or prepare for succession. Succession can involve competing family objectives, ownership changes, buy-ins and buy-outs, governance and the need to release capital without undermining the operating business. NZAB works alongside lawyers and accountants, concentrating on strategy and implementation. Another advantage is access to capital beyond traditional bank lending. NZAB can connect farmers with private credit, non-bank lenders and equity partners where those options better suit the strategy. Its NZAB Capital arm provides firstmortgage loans for three to five years designed to give farmers time to execute development, expansion or restructuring strategies before refinancing with a main bank. Importantly using NZAB does not necessarily mean moving away from a traditional bank. “In some cases, working through the strategy identifies a pathway back to conventional bank funding,” explains Scott. “In others transitional capital provides a bridge while an acquisition, asset sale or improved earnings creates the conditions for refinancing. Farmers are incredibly good at backing their own judgement and building strong businesses over time. We see more and more situations where the strategy makes sense but the bank simply cannot support it under its criteria.” With more than 500 years of combined industry experience across its team, he says NZAB’s approach is ultimately about giving farmers more choice, greater clarity and the confidence to act when the right opportunity arises.
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