Milk Price- Please read Mod note in post #1

Tipp Man

Been a few years now since we paid any overdraft interest - but haven't used an overdraft in a few years

kevthegaff

ive been mine the last month but out now havent been in for 3 yrs before that, whats the overdraft interest rate on say 8k for one month with BOI??

bob charles

milkprofit wrote: »

If i told u rate for overdraft u would not believe me
I would wager 50% less than u
15 yr money dont know

May I ask who is taking out the overdraft, the group or the members individually. I must be a nightmare for a bank if it was an individual members overdraft as each and every farm would have different risk associated with it thus requiring a different margin. Would it not result in the always good members/farmers getting a poorer rate and the bad members getting a great rate, If this is the case I should definitely join up

delaval

bob charles wrote: »

May I ask who is taking out the overdraft, the group or the members individually. I must be a nightmare for a bank if it was an individual members overdraft as each and every farm would have different risk associated with it thus requiring a different margin. Would it not result in the always good members/farmers getting a poorer rate and the bad members getting a great rate, If this is the case I should definitely join up

Was wondering the same.
With other inputs is it not the same a guy buying 6 tonne of fert v someone buying a lorry load. Would the guy with the volume be subsidising the smaller order?

whelan1

bob charles wrote: »

May I ask who is taking out the overdraft, the group or the members individually. I must be a nightmare for a bank if it was an individual members overdraft as each and every farm would have different risk associated with it thus requiring a different margin. Would it not result in the always good members/farmers getting a poorer rate and the bad members getting a great rate, If this is the case I should definitely join up

jeeny if they are anything like my bank expect a long wait, 2 months i am waiting on my loan, it is now approved, yesterday they rang me looking for 2 forms of id, ffs i am with them 20 years:mad::mad: I can go to my local credit union on a friday evening and have the money in my hand the next morning, fecking joke

bob charles

whelan1 wrote: »

jeeny if they are anything like my bank expect a long wait, 2 months i am waiting on my loan, it is now approved, yesterday they rang me looking for 2 forms of id, ffs i am with them 20 years:mad::mad: I can go to my local credit union on a friday evening and have the money in my hand the next morning, fecking joke

Ah ffs, they mustnt be too interested in giving it and slowing the process so much that they hope you wont need it when you finally get it money into account. It only took the IRA about 15 minutes to get £26 million from Northern Bank, now thats what I call efficient business banking

delaval

bob charles wrote: »

Ah ffs, they mustnt be too interested in giving it and slowing the process so much that they hope you wont need it when you finally get it money into account. It only took the IRA about 15 minutes to get £26 million from Northern Bank, now thats what I call efficient business banking

Armlite in one hand pass card in the other!!!!

mf240

Tis my money ted, I just didnt want to fill out the forms.

jomoloney

whelan1 wrote: »

jeeny if they are anything like my bank expect a long wait, 2 months i am waiting on my loan, it is now approved, yesterday they rang me looking for 2 forms of id, ffs i am with them 20 years:mad::mad: I can go to my local credit union on a friday evening and have the money in my hand the next morning, fecking joke

I hope you not borrowing long term on the strength of present milk price

whelan1

jomoloney wrote: »

I hope you not borrowing long term on the strength of present milk price

no extending my overdraft and small seasonal loan, you wouldnt want to be in a rush for the money, i can tell ya!:cool: can well understand how lads took their lives over carry on from the banks

loveta

delaval wrote: »

Was wondering the same.
With other inputs is it not the same a guy buying 6 tonne of fert v someone buying a lorry load. Would the guy with the volume be subsidising the smaller order?

Works quiet easily guys give in there requirements and a bulk order is given for say 5 or 600 ton credit terms are agreed. Normally there is a max of 2 drops per load to cater for the smaller guys, but tbh fert is the one product that there is the least savings on alot of it can be down to timing from our experience.

loveta

bob charles wrote: »

May I ask who is taking out the overdraft, the group or the members individually. I must be a nightmare for a bank if it was an individual members overdraft as each and every farm would have different risk associated with it thus requiring a different margin. Would it not result in the always good members/farmers getting a poorer rate and the bad members getting a great rate, If this is the case I should definitely join up

The bank deal takes ALOT and i do mean ALOT of work, got a professional guy in who does a indept portfolio of the groups assets, borrowings ect ect and then it is presented to the banks for tenders was actually shocked at how many guys have little or no borrowings what so ever "dont know what iam doing wrong" the biggest problem is lack of competition between them.:mad:

bob charles

loveta wrote: »

The bank deal takes ALOT and i do mean ALOT of work, got a professional guy in who does a indept portfolio of the groups assets, borrowings ect ect and then it is presented to the banks for tenders was actually shocked at how many guys have little or no borrowings what so ever "dont know what iam doing wrong" the biggest problem is lack of competition between them.:mad:

thats strange when you say allot of the guys have little or no borrowings. Most farmers I know are at the credit card maxed out level:D. Is your group of similar sized farms so.

Biggest danger for such groups is they get too big and then a secretary is needed, then a full time boss, outside experts etc and next thing more members are need and the whole thing turns into a sham.

Im surprised a bank would even consider lending into such a complex arrangement if you saying the rates are so low. Banks get very very nervous when there is a known unknown

Do you not get poaching by outside merchants of the bigger clients in the group?

kowtow

bob charles wrote: »

...danger for such groups is they get too big and then a secretary is needed, then a full time boss, outside experts etc and next thing more members are need and the whole thing turns into a sham.

Or, as we call it in the local dialect, a "co-op"

kowtow

bob charles wrote: »

Banks get very very nervous when there is a known unknown

Judging by the level of ability in the Irish banks at the moment, I would say everything from their arse to their elbow ought to be filed under "unknown"

Who is the obligor for loans like this to buying groups? There is no element of joint / several, I assume?

loveta

Its hard to give direct answers to some of the points mentioned in the above posts without breaking confidentiality but basically the banks get an indept break down of the groups assets, borrowings ect they make an offer who ever has the best got it, BUT, YES THERE ALWAYS IS ONE, each member has to go on his own to get his loan at the rates agreed on his own viable merits and the bank decides if he or she is a safe bet then..

bob charles

loveta wrote: »

Its hard to give direct answers to some of the points mentioned in the above posts without breaking confidentiality but basically the banks get an indept break down of the groups assets, borrowings ect they make an offer who ever has the best got it, BUT, YES THERE ALWAYS IS ONE, each member has to go on his own to get his loan at the rates agreed on his own viable merits and the bank decides if he or she is a safe bet then..

so its individual borrowing under the group banner @ group rate. unless your group have a large asset base I dont see what is in it for the bank. anyway best of luck with it.

whelan1

so any word of the june price, i am .5cpl down before i even start due to tbc, i would have been in grade 4:eek::eek::eek: only for i explained my case

kevthegaff

whelan1 wrote: »

so any word of the june price, i am .5cpl down before i even start due to tbc, i would have been in grade 4:eek::eek::eek: only for i explained my case

what happened to ye whelan? not sure whats happening with arrabawn

whelan1

kevthegaff wrote: »

what happened to ye whelan? not sure whats happening with arrabawn

i went away for 2 days, milk tank was the problem, sorted now and on the last collection of a big month...:mad::mad:

kevthegaff

nothing worse, i havent failed a test since the new tank i got 2 yrs ago. had to manually wash the old one, oh the good old days! a 1c increase would be grand, still have heap of bills!

Timmaay

whelan1 wrote: »

i would have been in grade 4:eek::eek::eek: only for i explained my case

Pleading your case worked?? I thought they were quite strict on the fines, I'll certainly remember that if I have any serious problems in the future!

whelan1

Timmaay wrote: »

Pleading your case worked?? I thought they were quite strict on the fines, I'll certainly remember that if I have any serious problems in the future!

i had been under 10 all month, fooking typical last collection of the month...back under 10 now, would have been 4cpl fine

Timmaay

whelan1 wrote: »

i had been under 10 all month, fooking typical last collection of the month...back under 10 now, would have been 4cpl fine

You get tested for tbc every collection? Only tested here twice a month. And 4cpl,wow max fine last yr was 3.3 I thought.

jomoloney

whelan1 wrote: »

so any word of the june price, i am .5cpl down before i even start due to tbc, i would have been in grade 4:eek::eek::eek: only for i explained my case

will you get it back at the end of year ? if you only fail the one

whelan1

Timmaay wrote: »

You get tested for tbc every collection? Only tested here twice a month. And 4cpl,wow max fine last yr was 3.3 I thought.

no not every collection but was 5 tbc tests in june , no thermo test at all

whelan1

jomoloney wrote: »

will you get it back at the end of year ? if you only fail the one

i hope so, was very annoyed over it

kevthegaff

we only get 2 tbc tests every month

whelan1

should the payment not be on the months average rather than last 2 tests- i know i still would have been deducted but hate getting a whooper result at the end of the month when you cant redeem yourself

Timmaay

Tbc is very tricky to measure, and I'd hazard a guess its too expensive to measure it every tank. I know they measure it on every lorry collection, and I'd guess if there is a high reading they will then go and test all the samples from each farmer in the lorry to find whos milk was high.