The Regional Investment Corporation (RIC) has reduced its loan processing timeframes by two months since September, as it continues to implement improvements.
The RIC handling time was 10 months as of November, excluding the time RIC waited for information from customers or banks.
This was a reduction from 12 months in September.
RIC CEO Bruce King said a number of factors combined to deliver these reductions including increased numbers of staff dedicated to specific stages throughout the process and a range of improvement initiatives currently under way.
A decrease in applications received in recent months was also helping, allowing the RIC more space to assess loan applications already in the system, following the unprecedented level of applications received in September.
“In November, we were able to increase our decision rate by 65 per cent compared to the month before,” he said.
“We are very aware the current timeframes remain lengthy and acknowledge the undue pressure it places on applicants in the process.
“As an organisation we’re focused on a range of process improvements and intend on delivering on our commitment to reducing our handling time, to 65 days for 80 per cent of loans by 30 June 2021.
“We thank our customers for their patience during this time as we continue to implement these improvements.”
The RIC has several initiatives well under way including recruiting more than 80 people to the organisation, implementing more efficient triage and quality assurance and working with the banks to speed up settlements.
Strike teams are working diligently to escalate applications with longer lead times.
For more on our customers and innovative loan uses, see ric.gov.au/case-studies
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About the Regional Investment Corporation
The Regional Investment Corporation (RIC) is a Federal Government-backed specialist finance provider for farmers and farm-related small businesses. For the financial year to 30 November 2020, the RIC has approved more loans in the past five months than the total of the previous financial year combined. With more than 690 loans valued at over $720 million approved (as at November 2020) this financial year, compared to a total of more than 640 loans valued at $725 million (for the whole of the 19/20 financial year). Since its inception on 1 July 2018, the RIC has approved total loans valued at more than $1.6 billion as at 30 November 2020.