Lending criteria for bank

letterkenny man

Hi lads
Thinking on getting a loan me and the uncle just a smallish 1 50-80 grand I'm work in U.K. Uncles farming at home sucks and sheep just wondering what all he'll have to produce I've got all my stuff I think cheers

The part time boy

Set of accounts anyway . Depending on bank they might look for a business plan .
Also maybe a tax clearance cert . Maybe life assurance too.

Depends what the laon is for tbh

I with the Ulster bank . Normal I go in tell them what the money was for I sign something and they be it . Last time I went for a loan I spoke to a call centre and they send me out a 45 page form to fill in !

whelan2

Profit monitor, most recent accounts. Confirmation from accountant that all tax affairs are in order. Ulster bank

Buford T. Justice XIX

letterkenny man wrote: »

Hi lads
Thinking on getting a loan me and the uncle just a smallish 1 50-80 grand I'm work in U.K. Uncles farming at home sucks and sheep just wondering what all he'll have to produce I've got all my stuff I think cheers

whelan2 wrote: »

Profit monitor, most recent accounts. Confirmation from accountant that all tax affairs are in order. Ulster bank

I'd say the most recent 3 years accounts would be needed unless the bank would have them from existing loans.

And repayment capacity will have to be shown. I wouldn't know the business relationship between you and your uncle but there would have to be some linking of you and your uncle shown, I imagine, like a partnership or something along those lines?

letterkenny man

He has done very little banking he's 1 of these keep it all under the bed Ino not good in this day and age Yeah we're getting a projection plan done for next 5 years and as for tax clearance don't think he's ever paid any his turn over wouldn't be massive if any so would he fall under a threshold thanks

Buford T. Justice XIX

letterkenny man wrote: »

He has done very little banking he's 1 of these keep it all under the bed Ino not good in this day and age Yeah we're getting a projection plan done for next 5 years and as for tax clearance don't think he's ever paid any his turn over wouldn't be massive if any so would he fall under a threshold thanks

Are you sure you both should be looking for a loan if the returns in the business as it stands doesn't leave a taxable income for one?

Again, the decision is yours, but unless the loaned money was going to dramatically improve the profits on the farm I'd be very reluctant to advise you to take out a loan.

50,000 over 10 years would probably need 5,500 a year in repayments or thereabouts.

Can that money be found out of the improved business and still leave enough money for your uncle to live on, especially in bad years?

Not trying to discourage you or anything but that would be my take on what you have told us so far?

letterkenny man

No offence taken glad for the advice correct me if I'm wrong will it just be the farm income that they look at I thought it would be both as we were going to pay the loan between us I'm new to all this but no I no in a bad year he probably would find in it hard thanks again

Buford T. Justice XIX

letterkenny man wrote: »

No offence taken glad for the advice correct me if I'm wrong will it just be the farm income that they look at I thought it would be both as we were going to pay the loan between us I'm new to all this but no I no in a bad year he probably would find in it hard thanks again

Like I say, I'm not trying to discourage you. You will know if the loan is necessary or not. Sometimes you will have no choice but to take one out. From what you are saying, you have someone working on this for you and that's a good start as they would have some experience in doing this type of work.

Best of luck with it anyway:)

letterkenny man

ðŸ‘ðŸ‘Cheers will we were hoping to buy a small bit of land beside us