Sentinel Ag technology generates the operational finance documents that allow feedlot companies to efficiently communicate their funding needs to their financiers and simultaneously allows the financiers to understand the risk adjusted returns of advancing the funds to the feedlot enterprise.
To increase the availability of funding for Sentinel Ag clients, Sentinel Ag has successfully introduced five different financial institutions to the unique funding opportunities of the feedlot supply chain since 2018.
Each of these financial institutions were attracted by the superior risk adjusted returns that can be achieved when deploying funds through Sentinel Ag’s technology platform and have used their own credit managers to scrutinize the process supported by Sentinel Ag’s technology.
Vertically Integrated Meat Marketer
We sell boxed beef to domestic and international markets. We procure cattle from third party feedlots and also maintain our own inventory of feedlot cattle & backgrounding cattle. Despite this complexity, Sentinel Ag has a near real time understanding of our business and its ever-changing finance needs. Since we commenced working with Sentinel Ag in 2020, we have been able to grow our business in a way that we could never have imagined.
Frequently Asked Questions?
What is Sentinel Ag’s role?
Sentinel is not a lender nor a finance broker and does not it participate in any subordinated debt structures. Sentinel does not provide credit services (or advice services or recommendations in relation to finance arrangements).
Sentinel is an information technology company who provides technology services to businesses that purchase and raise livestock for sale. Where these businesses have entered into a finance agreement with a financier (with obligations to provide information to the Financier on an ongoing basis), Sentinel is engaged to provide the Required Information Report in a reliable form.
Who will be the Lender?
Each Financial Institution working with Sentinel is required to be a Lender in their own right. Importantly this means that all decisions with respect to credit, legal, compliance, tax and accounting matters are the exclusive responsibility of the Lender. Accordingly, the negotiation of any commercial matters and/or the finance agreement are solely between the Lenders and the Borrower.
What is the Lenders 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 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 e 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.
How do I get started
Simply follow the link below and request a call back from one of our Client Managers.