Bank loan or credit union loan

easymoney!

hi folks was away working for a few months due back next month..
im going looking for a loan not to much savings recorded from before as i only opened a credit union account before i went.. my question is i want to loan for the purchase of stock,, and a hoof pare crush and a cattle trailer ive a fairly good busniess plan in my head.. what the chances honestly?? no problem with repayments thanks

bogman_bass

Credit union will give you 5 times what you have in the account. Will that be enough?

Timmaay

bogman_bass wrote: »

Credit union will give you 5 times what you have in the account. Will that be enough?

I thought it was only 3times? And at a shockingly high interest rate. Bank would be a much better bet, but make sure you have your figures done and go in to them with a good business plan that is realistic and not pie in the sky, they ain't stupid!

RainyDay

bogman_bass wrote: »

Credit union will give you 5 times what you have in the account. Will that be enough?

Every credit union is different. They each have their own credit rules.

You really won't know until you talk to your own credit union. Make sure you use the APR rate to compare the cost of borrowing.

easymoney!

cheers folks,, but my problem would be the record of savings if i put say 4 or 5 grand in straight away and have a good busniess plan in place i might have a chance??? as regards stocking loan its money tied up with the hope of making a few bob and the same with the hoof paring crush is to make money!! i really hope so as i need this to get things going !!!

jimmy G M

Just a wild guess here you are probably in your mid 20's and have been abroad working for the past while? Have you ever had a loan before?. Do you own land / assets?

If this is your first loan, and you don't own any land and you have no income in Ireland for then past year, I'd say you'll find it hard to get finance on your own. Your best bet is to go wherever your parents bank and ask for a loan where your family are known. One of your parents will probably have to sign a guarantee form. It's the way I got started back in the day. The fact that you managed to earn & save money abroad will be to your credit though.

dzer2

If your wages went into the bank then they are your best bet with a low interest rate the credit union is a very high interest rate and want payment every month as to the bank if its a stocking loan you will have 2 yrs to pay it back.

easymoney!

jimmy G M wrote: »

Just a wild guess here you are probably in your mid 20's and have been abroad working for the past while? Have you ever had a loan before?. Do you own land / assets?

If this is your first loan, and you don't own any land and you have no income in Ireland for then past year, I'd say you'll find it hard to get finance on your own. Your best bet is to go wherever your parents bank and ask for a loan where your family are known. One of your parents will probably have to sign a guarantee form. It's the way I got started back in the day. The fact that you managed to earn & save money abroad will be to your credit though.

how ya never had a loan before,, no land in my name but ive livestock in it ... i havent been over abroad to long,, im hoping to net a good job in 2 weeks time, with wages paid in to the bank.. and ur right on the age nearly ha! so in other words they"d be signing a contract agsinst the land or house?

easymoney!

dzer2 wrote: »

If your wages went into the bank then they are your best bet with a low interest rate the credit union is a very high interest rate and want payment every month as to the bank if its a stocking loan you will have 2 yrs to pay it back.

id rather the bank tbh honest but were i can get it first id be happy... like i said below il hopefully have wages coming in to the bank in 2 weeks time if i got chatting to a agri bank person and had me plan in place would that help?

Bodacious

easymoney! wrote: »

id rather the bank tbh honest but were i can get it first id be happy... like i said below il hopefully have wages coming in to the bank in 2 weeks time if i got chatting to a agri bank person and had me plan in place would that help?

I assessed both options 12 months ago.. If it's your first loan my credit union is 3.5 times your shares but it's a high rate 10.8% I think but it is more really when you think that you have your own 3-5k sitting in their possession .. Now they easy to deal with and will always give you money/extension at short notice but they far too expensive IMO

Get your stuff together and go to bank and you will get agri business loan at 5.2%(Aib) but as previous lads have said you might need ole lad to co sign!

Good luck with it, have you trained as a hoof parer .. Is there a gap in the market near you at home .. Think twice if there is a real good lad already operating in your vicinty as farmers get faith in a good parer they will be reluctant to change

jimmy G M

easymoney! wrote: »

how ya never had a loan before,, no land in my name but ive livestock in it ... i havent been over abroad to long,, im hoping to net a good job in 2 weeks time, with wages paid in to the bank.. and ur right on the age nearly ha! so in other words they"d be signing a contract agsinst the land or house?

Good to hear that you are getting a solid job, that is a big help also. Owning livestock is good too, shows you saved money in the past. Say your looking for circa €15k, I doubt if your parents will have to sign anything more than a simple guarantee broadly saying that if you don't pay, they will pay. (ie they would not need to support the guarantee with deeds)

Good luck with it in any case. Build a good relationship, honour your commitments, in spite of all the Bank bashing, you will need a reliable lender to support your business and family life going forward.

easymoney!

Bodacious wrote: »

I assessed both options 12 months ago.. If it's your first loan my credit union is 3.5 times your shares but it's a high rate 10.8% I think but it is more really when you think that you have your own 3-5k sitting in their possession .. Now they easy to deal with and will always give you money/extension at short notice but they far too expensive IMO

Get your stuff together and go to bank and you will get agri business loan at 5.2%(Aib) but as previous lads have said you might need ole lad to co sign!

Good luck with it, have you trained as a hoof parer .. Is there a gap in the market near you at home .. Think twice if there is a real good lad already operating in your vicinty as farmers get faith in a good parer they will be reluctant to change

thanks for the replie i will try that bank option only thing worrying me is no history of savings as such yano... i have trained as one and there is a niche in the market here if i work hard at it

easymoney!

jimmy G M wrote: »

Good to hear that you are getting a solid job, that is a big help also. Owning livestock is good too, shows you saved money in the past. Say your looking for circa €15k, I doubt if your parents will have to sign anything more than a simple guarantee broadly saying that if you don't pay, they will pay. (ie they would not need to support the guarantee with deeds)

Good luck with it in any case. Build a good relationship, honour your commitments, in spite of all the Bank bashing, you will need a reliable lender to support your business and family life going forward.

hanks for that,, thats a wise head speaking :-) im looking forward to the challenge just need that break yano... as i said above its the past saving but i never had a problem with paying back anything and would stick by my word

colrow

It sounds like you are fired up and have a good plan, we all would like to be able to do it straight away, but I,d advise you to put your 5k into a deposit account in your bank, whenyour wages start getting paid in, and ask if youu could see the manager for some advice, asking him what would be the best way to proceed, then tell him what youu want to do. Hopefully this will flatter him a bit and he will see that yiou are serious. I think if you went in with a "business plan in your head" it wouldn't mean anything. I'm sure he will tell you how best to proceed.

They want to lend money after all.