We were approached by 2 different feedlot companies, one was seeking $5 million in feedlot finance, whilst the other was seeking $50 million. Both were experiencing the same problems.
1) They were sufferings from increases in their variable cost of good sold (Livestock purchases and feed purchases)
2) They had already maxed out their facility limits (and couldn’t get a limit increase with their existing fanciers due to aggregation limits of their financiers)
3) They had an opportunity to take up new supply contracts that would have expanded their business significantly whilst simultaneously adding valuable economies of scale that would have increased the profitability of the entire business
The Big Realizations
We soon identified the root cause of the problem.
Feedlot businesses were being offered traditional financial products (that were designed for broad acre businesses like grazing and cropping enterprises) despite looking and feeling more like a manufacturing business that needed specialist supply chain finance solutions.
To overcome this problem, Sentinel Ag has built a proprietary technology platform that is exclusively focused on unlocking the financial potential of feedlot supply chains.
Our Business Today
Vision
We envisage a world where customer demand and feedlot data (rather than farmland itself) underpin the few of working capital to the feedlot sector.