Sentinel Ag technology has a near real time view of the feedlot enterprise, allowing our feedlot clients to unlock the working capital required to cover their variable cost of goods sold (livestock purchases and livestock feed purchases) independently of the land and water assets on their balance sheet.
Typical Feedlot Finance facilities supported by Sentinel Ag technology have funds made available to them of up to 83% of the expected cashfow from the sale of finished livestock to approved customers.
In some instances, Sentinel Technology can also be used to support a simultaneous backgrounding facility that can be used to cover 100% of the livestock purchase price. Typically these facilities are limited to 20% of the feedlot finance facility limit.
Feedlot Cattle Trader
We wanted to take advantage of some additional sales contracts on offer to us from both new and existing customers. Since we commenced working with Sentinel Ag in March 2023, we have tripled the size of our business. Underpinning the business case for the expansion of our home feedlot.
Feedlot Owner Operator
We switched to a specialist Feedlot Finance & Backgrounding Facility supported by Sentinel Ag. This has allowed us to work with our existing bank to reallocate the borrowing power of our farm deeds into expanding the one-time capacity of the feedlot. Adding valuable economies across our entire enterprise.
Retained Ownership
We knew our breeding programs produced cattle that perform in the feed yard. We wanted to retain ownership and have them custom fed to capture the additional profit margin. Working with Sentinel Ag we were able to achieve this without putting the additional cashflow pressure on our cow-calf business.
Frequently Asked Questions
Who is the Lender?
The funding needs of feedlots vary from as little as one million dollars to facilities that require hundreds of millions of dollars. Clearly no single source of funds can cater to such a broad section of financial needs. As such Sentinel Ag works with a panel of lenders from High Net Worth Family Offices to global Debt Funds.
What is the interest rate ?
The interest rate for each draw down request is made up of a floating Base Rate and a fixed Risk Margin.
The Risk Margin is fixed at the time of entering into the livestock finance agreement whist the Base Rate is the Bank Bill Swap Rate (BBSW), as announced by the Australian Stock Exchange (ASX) on the date of the advance request.
What is the security ?
The Borrower shall charge the livestock to the Lender as security for the due performance of all of their obligations under the finance agreement.
The Borrower shall grant the Lender the right to register a security interest over the livestock on the Australian Personal Property Security Register.
For clarity the registered security interest will cover the:
- The Livestock
- The Proceeds from the Sale of the Livestock
- The Proceeds from any insurance policies pertaining to the Livestock and/or the sale of Livestock.
Where needed, additional guarantees and/or security may be requested.
What about existing banking relationship
All of the Lenders we are associated with have successfully established feedlot finance facilities that have co-existed alongside existing banking relationships. Their feedlot finance solutions are specialist financial instruments and never purport to be a direct replacement for an existing banking facility.
How do I get started
Simply follow the link below and request a call back from one of our Client Managers.