Agricultural Loan

DJ98

When applying for an agricultural loan (less than 60k) what is required in terms of docuntation. Cash flow planner? Buisness Plan? AIB Bank if that makes a difference and young farmer.

148multi

DJ98 wrote: »

When applying for an agricultural loan (less than 60k) what is required in terms of docuntation. Cash flow planner?
Buisness Plan? AIB Bank if that makes a difference and young farmer.

Don't know about aib, but bank of Ireland definitely has a farmer loan, reduced interest rates, you would definitely need a plan, ask in your local branch, read up and ask more questions.

Dakota Dan

DJ98 wrote: »

When applying for an agricultural loan (less than 60k) what is required in terms of docuntation. Cash flow planner? Buisness Plan? AIB Bank if that makes a difference and young farmer.

Over €50k you'll have to put up the farm for security, you'll have to pay solicitor both ways.

alps

Dakota Dan wrote: »

Over €50k you'll have to put up the farm for security, you'll have to pay solicitor both ways.

There are options of funding for far greater than that without security....main banks and don't rule out finance Ireland..

And credit unions hungry for business at that level also

anfieldrd

DJ98 wrote: »

When applying for an agricultural loan (less than 60k) what is required in terms of docuntation. Cash flow planner? Buisness Plan? AIB Bank if that makes a difference and young farmer.

Looked for farm accounts for previous 3 years, business plan, costings. Loan paid down when invoices submitted. Loan was for slightly more than 60k. Bank already had security of farm from previous loan.

whelan2

Also if using land as security it will have to be valued by an auctioneer. This cost me €800 !!!!

jaymla627

DJ98 wrote: »

When applying for an agricultural loan (less than 60k) what is required in terms of docuntation. Cash flow planner? Buisness Plan? AIB Bank if that makes a difference and young farmer.

If your milking, milkflex is the way to go, no land needed as collateral, and a lot faster approval then messing around with banks

Aravo

If the loan is for agricultural machinery one is likely to get a better deal from leasing companies and not banks and no land as collateral (depending on amount sought)

Dakota Dan

jaymla627 wrote: »

If your milking, milkflex is the way to go, no land needed as collateral, and a lot faster approval then messing around with banks

The banks are a disaster, they say approval within 48 hours and in the real world you’d be lucky to be approved within 48 days. I applied for a loan to buy cows earlier this year, it dragged on so much that I only ended up buying half the cows I needed and that was possible because the Mart gave me credit only for that the time was gone for buying cows when I eventually got the loan.

enricoh

If using solicitors get a price off them beforehand n negotiate.
I was a bit green when i got my first loan out n never asked. E1400 charge on a 100k loan and he delayed the loan no end.!
Never used him again, once bitten twice shy but annoyed me at the time.