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We find out how Mr Robinson entered the agribusiness loan industry, the necessity in understanding your clients, and why emerging agribusiness brokers should consider lateral support.
Last year, at the 2021 Australian Broking Awards, Ian Robinson was crowned Broker of the Year.
The award, coupled with the title of Commercial Finance Broker of the Year 2021, is a pedigree that the agribusiness and corporate finance broker says “comes from teamworkship”, that team existing both within and outside of his business.
However, the accreditation arguably also reflects the depth and dexterity of the relationships that Mr Robinson has fostered with his clients over more than 11 years – revealing how personal relationships can intertwine with commercial success.
We find out how Mr Robinson entered the agribusiness loan industry, the necessity in understanding your clients, and why emerging agribusiness brokers should consider lateral support.
The Adviser: You entered broking, specifically agribusiness broking, over a decade ago. Why and how did you enter this space?
Ian Robinson: I grew up in a sheep station way out west, so I guess farming has been part of my DNA but I was a career banker from the start. A lot of it being investment banking in the early days, mostly in Australia but also overseas. When I came back, I was moved into traditional banking with the big four, just so I could transition back into regional Australia.
After a period of time, I developed an understanding that a lot of farmers didn't know how to present their businesses to the banks. And because there was no one really specialising in that arena, that's when Ben Sewell, my business partner, and I stepped out.
What do you think has been the secret to your success?
It comes down to the strength of the relationships. I know that sounds a little bit cliché, but a lot of our clients become second families. We're effectively on their speed dial, and anything that sort of comes up in front of mind, whether it's related to banking or otherwise, they just give us a call. Those types of relationships are enduring. And I think that that endurance translates into a good commercial business relationship as well.
You mentioned farming being part of your DNA. Do you think having that background was critical to building the strength of these relationships?
Yes, definitely. And it's a knowledge that's not easily attained either. If you weren't brought up living and breathing farm life, then that has to come through osmosis. But because agribusiness is so varied, it's a knowledge that also takes a long time to attain. Once you do have it though, then it becomes a very powerful tool in communicating.
We all know that pre-harvest is a pinch time in the liquidity. So, you call your croppers to see how their working capital's going and if they need any more assistance. It’s those small things that remind the client you understand their business and their needs.
Your clients are geographically separated from you, which would have been compounded during the COVID-19 pandemic. How do you manage relationships remotely?
We were doing a lot of driving before – every new client was always a farm tour. With COVID-19, we had to be sympathetic about whether a client wanted people on the farm. But nonetheless, being on a farm and meeting farmers is a very important part of the process.
But since we haven't been driving so much, it's freed up a lot of time to create more of a high-contact approach to both our clients and our lenders. There was a lot of time becoming consumed by driving, and that time's now being utilised very efficiently. We’re probably spending more time with our clients, but just on a remote basis, so they have probably felt more of our presence in the last 18 months if anything.
What advice would you give a broker interested in entering the agribusiness broking arena?
If they've got agribusiness lending experience coming out of a banking system, then that step is quite an easy transition to make. But becoming exposed to agribusiness for the first time can be quite daunting – just on the dynamics and the characteristics of agribusiness alone, alongside understanding the volatilities, income, expense drivers and the language.
But I’d say the first thing to understand is that you're dealing with people's livelihoods. If you feel like you may have a knowledge gap, reach out to other professionals and work either on a formal or informal basis. If you do that several times, you’ll find you’ll get more competent and more experienced. It's really just seeking out the support we need to make sure that the client has a good experience.
You can find out more about Ian Robinson and his journey into both agribusiness broking and success. Tune into the Elite Broker podcast with Ian Robinson here:
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