Case Study – Faisan Wines
Business Expansion Loan - Helping a Winery Become the Pick of the Bunch
Michael Walker is a second-generation wine maker at Faisan Estate Wines in the cool climate wine region near Orange in the Central tablelands of New South Wales. The winery was established in 1991 by Michael’s parents who planted the first acre of Cabernet Sauvignon grapes back in 1985. Sitting at the foothills of Mount Canobolas, the growing conditions perfectly matches those in the Burgundy region of France, synonymous with some of the greatest Chardonnays and Point Noirs.
After those first plantings the winery steadily grew in size with Cabernet Franc, Merlot, Shiraz, Pinot Noir, Chardonnay and Semillon added over the next decades. In 2011 Michael took over operations at the vineyard full-time.
Building a Future
Michael is planning to extend the plantings of Chardonnay and Pinot Noir in the near-future and also wants to diversify the winery’s offering with on farm accommodation and hospitality facilities to allow for weddings and events.
In order to bring these plans to life Michael approached their regular bank for finance but was turned down because the business had suffered losses due to the Covid pandemic and their financials were unable to satisfy the bank’s servicing requirements.
“Despite being able to show that the loan would allow us to quadruple sales and production through implementing innovative marketing plans and investing prudently in the brand, vineyard and winery, the bank didn’t want to play a part in our growth program,” said Michael. “In our minds we had a solid case for a business loan but because of the lending criteria and restrictions the banks had in place we had to go looking elsewhere for the funding.”
Private Lending Finance
Michael came to Private Mortgages Australia and gave us a detailed overview of his plans to grow the winery business, including expanding sales into international markets, investing in new equipment and infrastructure, hiring new staff, extending the vineyard plantings and upgrading the property to accommodate short-term stays and events like weddings.
Michael was able to secure the loan with the vineyard property which included a house and cellar door which meant the LVR was 55%. He only required the funds for 12 months to allow him to get the business working at improved levels before refinancing to a bank loan. PMA were able to build in 6 monthly extensions should he require a little more time.
“When I discussed our loan scenario with PMA they talked me through the simple lending process and were able to offer a competitive interest rate,” said Michael. “We’re now in a position that will allow us to take the next step in growing our business and help us to achieve our goals.”
If you’re in the market for some delicious cool-climate wines make sure you head over to the Faisan Estate website: https://faisanestate.com.au/collections/all or visit them next time you’re in the Orange region.
If you’re looking for a simple and flexible finance option then get in touch with Private Mortgages Australia on 1300 856 683 or [email protected].
