Latest / Dollars In The Dirt / #055 - Suncorp Is Moving to ANZ, Do Graziers Need To Review Their Debt?

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#055 - Suncorp Is Moving to ANZ, Do Graziers Need To Review Their Debt? · Dollars In The Dirt

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  ANZ is moving Suncorp Bank customers onto its banking system
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  by June 2027. Most producers think a
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  bank transition means they either sit tight and hope or rush
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  out and refinance. After helping hundreds of farmers secure over
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  a billion dollars in finance, I can tell you that the better move
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  is to get the facts, understand your own lending position, and
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  then make a decision that suits the business. So in this video, I'm
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  going to show you what the changing to Suncorp Bank, what the landmark history
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  does and doesn't mean, and how I'd review your finance before
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  making the move. Firstly, this is Suncorp Bank. It's not
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  Suncorp Insurance. ANZ completed the acquisition of
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  Suncorp Bank on the 31st of July 2024. The next
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  stage is moving Suncorp Bank customers onto the ANZ's banking
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  products, services and platforms by June 2027. ANZ
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  and Suncorp Bank started communicating the transition to customers in
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  September 26 and they've said more detailed information will
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  come through in late 26 and into early 2027. For
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  now, customers can keep their banking with Suncorp Bank. There's
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  no need to rush out and refinance just because the transition has
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  been announced. But there's a difference between not panicking and
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  not reviewing anything. ANZ said the move will
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  give Suncorp Bank customers access to a wider network of specialists and
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  branches, along with its digital services and anti-fraud
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  technology. It has also said existing Suncorp Bank teams will
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  continue supporting customers through the transition. As part
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  of the acquisition commitment ANZ said it would maintain the
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  combined number of ANZ and Suncorp Bank regional branches in
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  Australia for three years after the completion. It also
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  said there would be no net job losses for Suncorp Bank employees
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  in Australia directly because of the acquisition for the same
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  three-year period. While that's some information, it
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  still doesn't tell you what happens with your overdraft, or your term loan,
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  or your livestock facility, or your security, or the person that
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  you deal with when you need a decision. And that's why it's worth getting
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  on top of your own position now. By the way, if you've got a
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  rural debt in place and want to know whether the structure still fits the business, book
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  a free call. We can help you get clear on the facilities, the cash
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  flow timing, and what a lender will need to see if
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  you're looking to buy a property or grow. The links are in the description. Now
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  there'll be some farmers and graziers watching this who remember the Landmark acquisition.
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  ANZ bought Landmark's lending business in 2010. This acquisition
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  was examined during the Banking Royal Commission in 2018 and
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  there were serious problems raised about the way the former Landmark customers
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  were treated when they got into financial difficulty. Councillors assisting
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  the Commission said ANZ hadn't properly prepared for the number of
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  agricultural borrowers under pressure. The hearing looked at the
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  lack of flexibility and empathy in some of these customers' dealings. They
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  also looked at interest rate increases for borrowers who were already
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  under financial stress. In one case involving Queensland
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  grazier Charlie Follott, an ANZ executive accepted the
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  bank's dealings had not been fair and reasonable and had breached the
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  parts of the Code of Banking Practice. By July 2018, reporting
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  on the Royal Commission said ANZ had provided around $40 million
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  to roughly 40 or 50 former landmark customers through debt
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  forgiveness, refunded interest or compensation. That
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  history matters because it involved a real farming family, their
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  properties and their livelihoods. But it was a different transaction.
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  It happened years ago and it doesn't mean Suncorp Bank customers will
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  have the same experience under ANZ. What it does mean
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  is that when your banking relationship is changing, you should understand
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  what you've got, read the information that comes through and
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  ask direct questions when something affects your business. Don't
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  assume the worst, but don't assume the new setup will automatically be
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  right for you either. Start with where your business is heading, what
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  are you trying to do over the next few years. Maybe you're looking at
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  your neighbours place, maybe you want to build your livestock numbers and
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  maybe there's fencing, water or infrastructure that needs doing. Or
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  maybe the goal is simply to get your debt down and make the business less
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  exposed for when the season turns. The plan should
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  drive the finance conversation. If I was sitting at your kitchen table,
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  I'd want the full picture on the facilities you've got now. What
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  they're funding, what's still owing and whether repayments, working
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  capital and security still suit your business you're running
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  right now. Because plenty of facilities get put
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  in place for one reason. then the business changes. Say
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  you bought a block five years ago and set the loan up quickly
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  to get the settlement done. You've since had two ordinary seasons, the
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  overdraft has worked harder than planned, you have used stock sales
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  to tidy things up. Now the place next door might
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  be coming up. The business may have grown, but the finance still
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  might be built around old limits, old cash flow assumptions, and
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  a facility mix that doesn't fit anymore. And because it's worth
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  checking the structure before you make the next move, You also want
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  to know who is looking after your account. Who do you
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  ring when you need a decision and do they understand your operation?
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  And if the season gets away from you, do you understand how
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  to have that conversation with the bank? If you do look at
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  other options, don't reduce the whole decision to a lower advertised rate.
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  Say you're looking at buying more cattle or upgrading your water infrastructure. You
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  might see another lender with a lower rate and think that has to
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  be a better deal, and maybe it is. You might see another lender
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  with a lower rate and think that has to be a better deal, and maybe it
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  is. But it might not be once you look at the full arrangement. You
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  need to understand the repayments and when they fall due. You need to
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  know how much working capital you'll have once the purchase
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  improvements are funded. You need to understand what security is being tied
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  up, and you need to know the cost of moving before you commit to
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  it. Depending on the facilities, that could mean discharge costs, establishment
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  costs, evaluation, legal fees or a fixed rate
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  break cost. Those figures need to be confirmed for your
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  actual loans. And the other part is making sure the new finance actually
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  supports your plan. If you buy cattle and do water improvements,
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  when does the extra income turn up and what does it cost before you get
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  there? And can the existing business carry the repayments through
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  an ordinary season? Land secures debt, cash flow has to
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  carry it. Sometimes you work through all of that, staying with the
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  existing lender might be the sensible answer. And that's okay,
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  but at least you got some certainty. This ANZ transition gives
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  you a reason to ask a broader question. Not just, what
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  will my Suncorp facility look like under ANZ? But also,
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  how does the arrangement compare with other options that might suit my
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  business? That doesn't mean you move for the sake of it, and
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  it doesn't mean ANZ can't still be the right lender. It may be.
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  Another lender may be a better fit, or the right answer may be to improve
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  the arrangement you've already got. All three are valid outcomes. If
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  you're speaking with a broker, ask who they can access, ask
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  what they've compared, and ask why the options they're putting forward suit
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  your circumstances. No broker has access to every lender
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  and every product in Australia, but you should definitely be looking at
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  multiple options. So if you're a Suncorp Bank customer, start
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  by reading the information ANZ sends you about the transition, If
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  something isn't clear, ask how it affects your actual facilities. Ask
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  for clarification in writing where you need it. And then put
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  your lending position on the table. Bring together the balances, your
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  rates, the fees, the limits, the repayments, the review dates
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  and your security arrangements. and put that beside your cash flow
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  and your plans for the next few years. That way you can make a decision
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  based on the real business. If you're buying a property, changing
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  the structure or reviewing your existing debt, that's where we can help.
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  We start with what you're trying to achieve, then we look at the current arrangements
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  and the suitable alternatives we can access. There may be an opportunity to
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  negotiate and there may be a reason to refinance. or
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  there may be a good reason to leave the lending where it is. What I wouldn't do
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  is move purely because of an announcement that has frustrated you. And
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  I wouldn't stay just because it feels easier. If you do decide to change
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  lenders, coordinate it properly. Don't cancel your existing facilities until
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  you understand the approval conditions, the settlement process, and
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  how your day-to-day banking will keep working through the move. And
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  if you'd like our help with this, or to see if we might be able to help you, there's
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  a link below in the description for you to be able to book a free call. Thanks