How Banjo supports the Prima Fresh Group’s growth with their working capital solutions

Prima Fresh Group

Banjo Loans tells Manufacturers’ Monthly about a local manufacturing company and how its supporting them with their finances.

Since 2015, Banjo has been delivering working capital solutions to Australian manufacturers. We support their growth when they need to purchase new equipment or stock, expand product ranges or premises, acquisitions or when they need general working capital.

Banjo’s lending decisions are quick, and funds are normally accessible in as little as 24 hours following loan offer acceptance. Banjo values the passion of our local manufacturers and acknowledges the challenges they face when providing for the Australian community. We back our manufacturing sector and ensure we maintain close relationships to support our clients directly with our highly experienced and friendly credit assessment team.

Our team are always ready to help throughout the loan application process and continue supporting you until the deal is settled and beyond. Banjo is with you every step of the way to help to move your business forward.   

Banjo’s working capital loans enable manufacturing businesses to procure unsecured* loans between $20K-$500K across 6 to 24-month terms. Our smart funding solutions help businesses that experience peaks and troughs in their cash flow cycle. 

One of our solutions offered includes the option to procure our Flexi Working Capital loans that offer up to 4 months interest expense only period with 12-to-16-month terms. Banjo’s Single Pay loans help manufacturing businesses no longer be in a holding pattern; a bridging finance facility up to $500k helps release the working capital that you require to move your business forward and capitalise on significant opportunities available to your business now. 

For example, here is a recent case study on one of our long-time manufacturing clients – The Prima Fresh Group.   

Who is the Prima Fresh Group?   

The Prima Fresh Group is a third-generation family-owned orchard and packhouse business. They have been in operation since 2002, growing from strength to strength in the last 19 years, turning over $1.4M to $39M in 2021. In 2013 Coles become their first main direct supplier, shortly followed by Aldi, who have contributed to the business’s growth and success.   

What started as 200 acres is now an operation covering 1,000 acres to pack fruit all year round. Located in Tatura (in the Greater Shepparton region of Victoria), the Prima Fresh Group sets the benchmark for providing high-quality products combined with an above-standard service.    

Why did the Prima Fresh Group require funding?    

Working capital was needed fast to fund the purchase of some automatic equipment from Denmark. This highly specialised equipment would help reduce their product pre-packing costs. However, due to the way business was structured, they were finding it hard to locate a lender who can understand the complexity of their business and provide funds in the required timeframe.   

How did Banjo help?   

Banjo has continued to support the growth of the Prima Fresh Group since July 2019. During this time, Banjo has provided several working capital loans. Due to the nature of their industry, the Prima Fresh Group experiences seasonality. Banjo considered this in their assessment process. Growing season means that the business did not earn an income during this time and approached Banjo to assist with purchasing water entitlements at discounted prices (and thus manage their water costs) during the growing phase.   

Once harvesting season is upon the business, the Prima Fresh Group come to Banjo for more funds. The funds would assist with buying fruit (as they only grow 45 per cent of their total inventory), paying the pickers to harvest fruit, and storing the harvest in cold storage for three months or so. Then comes the packing for distribution season of this fruit in cold storage from August onwards till the summer months. Therefore, most of the income earned happens over the summer months when the fruit is packed and distributed to Coles and other retailers. These funds are used to pay down their loans with us. Then the cycle starts all over again.    

What was the result of the fast turnaround from Banjo?     

The funding was speedy, which is a critical factor in purchasing water as the water market trades daily. Banjo quickly enabled the Prima Fresh Group to secure good deals when no one else would finance water. As a result, Banjo helped save the business $100 to $200 per megalitre because of timing.    

Banjo has been a great part of the business for the Prima Fresh Group when we have needed access to quick capital. It has allowed us to take advantage of great opportunities,” Prima Fresh managing director, Gerard Alampi said.  

If your business requires working capital to help secure better opportunities from scenarios such as purchasing new equipment, new product development or expanding a product range, purchasing stock, expanding premises, acquisitions, or general working capital, then talk to us today on 1300 22 65 65. Discover how we can help power your business. 

 

*While Banjo does not generally take security over assets, director guarantees may be required, and a general security deed or other security may be required for larger loans or in respect of some loan types. Statements regarding timing in relation to applications, approvals and funding are only indicative.