MERCHANT/COOP CREDIT

keep going

whats the attitude to this type of credit and how do ye use it.personally i use it in the spring for fert/ration but tend to clear it around june and would usually pay no interest then but outside of that id steer clear.its just that its a big issue for coops as in my own coop is carrying over 30% of its annual turnover.

bob charles

keep going wrote: »

my own coop is carrying over 40% of its annual turnover.

:eek: all year round. Feed usually here is around 45days across 3 smallish merchants I deal with. Fertiliser probably 100days as I buy it of large coop - someone their size would have no problem waiting for it is my view. Like to get smaller creditors paid sharpish, big organisations - whenever I have it

keep going

bob charles wrote: »

:eek: all year round. Feed usually here is around 45days across 3 smallish merchants I deal with. Fertiliser probably 100days as I buy it of large coop - someone their size would have no problem waiting for it is my view. Like to get smaller creditors paid sharpish, big organisations - whenever I have it

did you know alot of straights have to be paid for within 7 days but the terms on fertilizer is looser(most merchants are really now only collection agents for the fert companys).two things bought this to mind,first the situation Goods of kinsale find themselves in(and people who sold grain to them)and in the glanbia thread there s a post that seem to say how dare glanbia look for their trading money from the share money.stuff has to be paid for some how

freedominacup

keep going wrote: »

in the glanbia thread there s a post that seem to say how dare glanbia look for their trading money from the share money.stuff has to be paid for some how

That'd be my post I presume. And I stand over it. It won't make any difference to me as I only have a milk account with them so account cleared every month from milk cheque. What they are proposing is to take an asset belonging to you and dispose of it against your wishes at the same time raising a tax bill for you. They can sell at whatever price they like and return whatever balance if any they want to you. It's the exact equivalent of them rocking up into your yard with a cattle truck and proceeding to load whatever animals take their fancy bringing them to a mart and selling them on the market. The only difference is they would need a court order to get away with the second option and TBH I think they need a court ordeer for what they are proposing also.

Tipp Man

keep going wrote: »

did you know alot of straights have to be paid for within 7 days but the terms on fertilizer is looser(most merchants are really now only collection agents for the fert companys).two things bought this to mind,first the situation Goods of kinsale find themselves in(and people who sold grain to them)and in the glanbia thread there s a post that seem to say how dare glanbia look for their trading money from the share money.stuff has to be paid for some how

LEt me tell you Glanbia are the greatest shower of ba####ds that were ever created when it comes to the prices they are charging for inputs

Absolute robbers and nothing short of it.

Now if the reason they are robbing me is because they have a list as long as your arm of people who aren't paying then I don't give a damn what they do to these people as long as it gets their house in order and they start reducing prices

The whole situation is a joke - there are loads of lads living on credit that they haven't a hope of paying off -ever

Since time began we have bought the huge majority of inputs from Glanbia - for both the cows and the cattle. The cows obviously settled from the milk account and the cattle always settled in 30 days - but this year we said enough is enough - so all meal is now coming from Paul & Vincent - all medicines are coming from the Vet or other supplier - and next year all fertiliser will be from Dairygold or local merchant

I mean how can a small local merchant be 16 euro cheaper than Glanbia for a box of bloody milk socks, sprongs at the local corner shop are 5 euro cheaper than glanbia - so are yard brushes

Like a said - a shower of robbing b#####ds

whelan1

but this was an extraordinary year, first of all you had the superlevy and then the ****e weather... had local mill on to me today , i pay every month- now mightnt clear what i owe, but they are going to delete the interest i have been charged on my account during the year as a thank you for my custom, fair play i say

Tipp Man

Weather wise it was bad but the price was still decent all year

Fellas are going to be in a whole heap of trouble in years to come when milk will be a lot lower than it was this year

bob charles

keep going wrote: »

did you know alot of straights have to be paid for within 7 days but the terms on fertilizer is looser(most merchants are really now only collection agents for the fert companys).two things bought this to mind,first the situation Goods of kinsale find themselves in(and people who sold grain to them)and in the glanbia thread there s a post that seem to say how dare glanbia look for their trading money from the share money.stuff has to be paid for some how

Its not my problem. these are the terms offered to me and I abide by them, I could probably push them out another 30 days if I wanted. Payment is at the end of the following month after delivery. Why shouldn't we be maximizing our credit terms?

dar31

bob charles wrote: »

Its not my problem. these are the terms offered to me and I abide by them, I could probably push them out another 30 days if I wanted. Payment is at the end of the following month after delivery. Why shouldn't we be maximizing our credit terms?

put it on the credit card and get another 30 days.

bob charles

dar31 wrote: »

put it on the credit card and get another 30 days.

dont have the gold credit card! I couldnt imagine the amount of interest added if you missed the payment on the credit card at the end of the month and all the feed and fert on it aswell

DMAXMAN

Tipp Man wrote: »

LEt me tell you Glanbia are the greatest shower of ba####ds that were ever created when it comes to the prices they are charging for inputs

Absolute robbers and nothing short of it.

Now if the reason they are robbing me is because they have a list as long as your arm of people who aren't paying then I don't give a damn what they do to these people as long as it gets their house in order and they start reducing prices

The whole situation is a joke - there are loads of lads living on credit that they haven't a hope of paying off -ever

Since time began we have bought the huge majority of inputs from Glanbia - for both the cows and the cattle. The cows obviously settled from the milk account and the cattle always settled in 30 days - but this year we said enough is enough - so all meal is now coming from Paul & Vincent - all medicines are coming from the Vet or other supplier - and next year all fertiliser will be from Dairygold or local merchant

I mean how can a small local merchant be 16 euro cheaper than Glanbia for a box of bloody milk socks, sprongs at the local corner shop are 5 euro cheaper than glanbia - so are yard brushes

Like a said - a shower of robbing b#####ds

i am a member of a buying group and we sometimes deal with glanbia. i remember once being in their branch and was being served after a "milk account" customer. he bought a pallet of the same fert as i was getting and i happened to see the price of his. it was 80 euro per ton dearer than mine ,and they were not losing money on mine

keep going

a few years ago i moved around abit and found i started to get much better from the local boys but most good deals demand cash on delivery.the point im making is i think the majority of farmers are not in a position to pay on the day and therefore coops,plc or whoever price in the credit.the problem i see is that while once it was thought that it was safe money as farmers had assets,now alot of farmers assets are secured on other loans and this type of credit is unsecured so would be the last in line and so is similar to credit card money and we know the type of rates on this.its no good complaining about the price of this or that if you are not paying for it on the spot.add in the volatility in our incomes and its no wonder business s are charging hefty margins.do people honestly believe they are getting credit for nothing

massey woman

Its not only the merchants and co ops who have tightened up their credit policies
The concrete industry in general are insisting on cash up front even for existing customers who have maintained accounts within terms for years
We recently purchased stone concrete and blocks to the value of €30K for a shed
In order to get best prices we aceded to the cash with order terms
Our supplier stated that following a review of their business they concluded that for the margin involved they couldnt offer to finance their customers as after all even the banks wont support either of them
All steel and sheeting was payment in full on completion
Are these typical terms currently

vanderbadger

Tipp Man wrote: »

LEt me tell you Glanbia are the greatest shower of ba####ds that were ever created when it comes to the prices they are charging for inputs

Absolute robbers and nothing short of it.

Now if the reason they are robbing me is because they have a list as long as your arm of people who aren't paying then I don't give a damn what they do to these people as long as it gets their house in order and they start reducing prices

The whole situation is a joke - there are loads of lads living on credit that they haven't a hope of paying off -ever

Since time began we have bought the huge majority of inputs from Glanbia - for both the cows and the cattle. The cows obviously settled from the milk account and the cattle always settled in 30 days - but this year we said enough is enough - so all meal is now coming from Paul & Vincent - all medicines are coming from the Vet or other supplier - and next year all fertiliser will be from Dairygold or local merchant

I mean how can a small local merchant be 16 euro cheaper than Glanbia for a box of bloody milk socks, sprongs at the local corner shop are 5 euro cheaper than glanbia - so are yard brushes

Like a said - a shower of robbing b#####ds

same story down my way, smaller merchants better value than kerry

whelan1

DMAXMAN wrote: »

i am a member of a buying group and we sometimes deal with glanbia. i remember once being in their branch and was being served after a "milk account" customer. he bought a pallet of the same fert as i was getting and i happened to see the price of his. it was 80 euro per ton dearer than mine ,and they were not losing money on mine

unreal the loyalty some people have to their co-op, same in this area with lakelands... i just dont understand it at all

bbam

Our local merchants are charging an extra €10 a ton on meal and Fert booked on the account , started this since last spring, or as they say a €10 discount for paying on the day.

It's not a big deal for us but if you were handling alot of stuff it would add up.

bob charles

I dont find the on account price and cash price worth the option of paying up front when dealing with the bigger coops. I only do a tiny amount of business with the big coop, mostly convenience stuff but it would add up over the year. Last time I caught the big coop rightly was when I rang for a price on a load of Rape. they were €50 a ton at the wrong side of the market. €1500 in total saving, happy days :rolleyes:. Its not often them boyos get caught.

martin.covan

Tipp Man wrote: »

LEt me tell you Glanbia are the greatest shower of ba####ds that were ever created when it comes to the prices they are charging for inputs

Absolute robbers and nothing short of it.

Now if the reason they are robbing me is because they have a list as long as your arm of people who aren't paying then I don't give a damn what they do to these people as long as it gets their house in order and they start reducing prices

The whole situation is a joke - there are loads of lads living on credit that they haven't a hope of paying off -ever

Since time began we have bought the huge majority of inputs from Glanbia - for both the cows and the cattle. The cows obviously settled from the milk account and the cattle always settled in 30 days - but this year we said enough is enough - so all meal is now coming from Paul & Vincent - all medicines are coming from the Vet or other supplier - and next year all fertiliser will be from Dairygold or local merchant

I mean how can a small local merchant be 16 euro cheaper than Glanbia for a box of bloody milk socks, sprongs at the local corner shop are 5 euro cheaper than glanbia - so are yard brushes

Like a said - a shower of robbing b#####ds

Oh dear,you must be useless at haggling,don't worry I am too.
My brother on the other hand,I've seen haggle several Euro's off the price of yard brushes there.
When I go in I just say I want my brothers price on that.
Always and I mean always get a good discount on the final bill too (I ask).

keep going

massey woman wrote: »

Its not only the merchants and co ops who have tightened up their credit policies
The concrete industry in general are insisting on cash up front even for existing customers who have maintained accounts within terms for years
We recently purchased stone concrete and blocks to the value of €30K for a shed
In order to get best prices we aceded to the cash with order terms
Our supplier stated that following a review of their business they concluded that for the margin involved they couldnt offer to finance their customers as after all even the banks wont support either of them
All steel and sheeting was payment in full on completion
Are these typical terms currently

yeah that is what im finding as well,the problem in the building game is that alot of retained earnings that built up during the boom have been washed away with un collectable debts and have ran down stock levells just to keep going.so if they have to get money in straight away or else they cant get in more stuff.in good times money in today paid for stuff delivered 3 months ago,now its paying for stuff delivered next week.and i suspect its only around the corner in farming

bob charles

I still have no problem getting credit for one of the national builder providers, and only started dealing with them over the last few years. Might only have a few thousand of steel of them now and again but no bother. Pay 60 days later, its just convenient to ring up and order what you want and no need to wait for cheques to be cashed etc. Similarly with concrete, pour today, pay when you can with a local family firm, hence they get all our concrete work

lakill Farm

What you some of you may or may not have come across is invoice discounting/ invoice factoring

Ie. Local co op sells you e1000 worth of steel
Co-op invoice discounts to a discounting company. Normally 85percent

01/01/2012 _ you buy steel for e1000
01/01/2012 _ coop sells debt to discount company
02/01/2012 _ coop bank gets 850e off the discount company
28/02/2012_ you pay the co op e1000.
28/02/2012 _ coop pays discount company e1000
01/03/2012 _ coop receives 130e from discount co

So in heal of hunt the co op is charged 20e for the "credit facility"

They sometimes will get a discount for the paying there supplier early (ie steel co)

And added bonus. _ the invoice discount company will insure the debt. Ie you are the debt and its security. Same way the mortgage company demand you insure your house