Banks vs credit unions, the finance thread.

Bass Reeves

https://www.boards.ie/discussion/comment/122008542#Comment_122008542

The difference between an SBCI loan and a credit union loan is running at around 2%. Growth and sustainability is 4.6% I think and you canntake it out over 10 years

On a 50k loan it 5k in extra interest over 10 years. Nearly 1k in the first year alone.

Bass Reeves

They probably feel.they have over lend especially to dairying. However I have only money other loan, 4 years left. Not a substantial amount. Finished up repaying a loan last year with slightly higher repayments so repayment capacity totally proven. Credit rating should be OK even though BOI made some f@@kup early last year with it.

One bee in there bonnet they seem to have with older farmers is that they have an inheritor/successor which is fair enough. But lending to farming seems to have really tightened.

Having said that I think if it had been my own bank I have the money within a month

Jack98

https://www.boards.ie/discussion/comment/122009039#Comment_122009039

You need substantial enough off farm income I see in the journal yesterday they had a headline off farm income vital for beef farmers looking for loans.

Got a loan for land approved over 6 weeks ago and if I hadn’t been involved in the application doubt they’d have lent to my parents as both are close on retirement age. Max term offered by AIB was 10 years and they questioned about derogation very early into application.

More hoops constantly with them and I share the sentiment with many other posters AIB is very anti lending to farming now unless it’s for a new tractor/loader etc that they can recoup their money quick on when the shite hits the fan.

Siamsa Sessions

https://www.boards.ie/discussion/comment/122009001#Comment_122009001

Ah yeah, I get the numbers alright.

You're really just filling in the SBCI application to get the lower interest rate (which is well worth it as you describe), but I don't think it helps much with convincing the bank to OK the loan.

Bass Reeves

https://www.boards.ie/discussion/comment/122009289#Comment_122009289

Ya It's a slightly higher than 2% (2.15) I think subsidised lending. The SBCI was the easiest. I had that sorted in less than a week. BOI then informed me tgat tgeynonly do Green project lending as opposed to being a green farmer

The bank is something else though. The only other lenders is Microfinance Ireland and they charge 6%+ so I did not engage with them. TBH they seemed more eager for the business.

I am good to wade through paperwork but what is going on is ridiculous. However I can understand in a way. Tge lads who cannot pay and get a way with it are costing us big time

Bass Reeves

https://www.boards.ie/discussion/comment/122009112#Comment_122009112

Off farm income is not an issue a nice bit above 100k/ year fr

Or myself abd wife, admittedly age .ay be an issue I am 62 and hersef is 4 year younger. However people now work into there 70's. As well its a farm business loan and son is entering the partnership. I cannot see the issue as both if us will have decent pensions and a couple small rental properties.

The big problem I see for banks is recouping bad loans and it is starting to haunt those of us that want/need to borrow.

White Clover

https://www.boards.ie/discussion/comment/122009289#Comment_122009289

Are you in ACRES, Bass? From my own enquiries, BOI requirements are that you are in Bord Bia and Acres to be eligible for SCBI loan.

kk.man

Farmer friend of mine was waiting 4 weeks for a cheque book to arrive he's an existing customer of AIB. He's a big operator. It's mad stuff.

Bass Reeves

https://www.boards.ie/discussion/comment/122009483#Comment_122009483

That is covered in the SBCI so as to define you as a green farmer. No BOI requirement is its green lending as opposedto being a green farmer( solar panels, new milk storage units etc). Even got that clarified by SBCI

Bass Reeves

Was it a new cheque book completely, a replacement for a lost one, or a replacement for one just finished.

Had something similar years ago, reorder was tagged at 5 or 10 cheques left ( if a couple of lads were slow to lodge it f@@ked you up) I solved it by when first cheque was used in a chequebook new book was on back order.

whelan2

I think wherever prints the cheque books etc in the uk went bang and they were sourcing another supplier, still no excuse though

White Clover

https://www.boards.ie/discussion/comment/122009658#Comment_122009658

My enquiry was for funding for a shed, acres and Bord Bia were the requirements.

alps

https://www.boards.ie/discussion/comment/121987538#Comment_121987538

The very best of luck with this endeavour. You've done the right thing..Congratulations

Pinsnbushings

https://www.boards.ie/discussion/comment/122009769#Comment_122009769

+1 the best of luck Siamsa, you had no choice but to give it a go after all the thought you put into it, you will be the finest.

dmakc

Have to say I have good experiences with BOI, my loans are usually last minute and they've always acted fairly quick in this regard. No hassle in pushing out a TAMS loan recently too when the dept were slow to process the fund returns

Bass Reeves

https://www.boards.ie/discussion/comment/122009727#Comment_122009727

I am in Acres and Bord bia. Is the present Growth and Sustainability tranche you got funded under or a previous one

SodiumCooled

Best of luck with the new endeavour Siamsa. I look forward to following it all on the YouTube channel (if you continue with that).

epfff

I just had a bad morning with Boi trying to cancel replace do anything with a card I left in machine in local branch Last week.

All I'll say is my thick tongue mumble is no worse than the bad line to had to India or wherever I was trying to work with.

Half hour or repeating my phone number for account verification purposes and I'm hopeful.

anthony500_1

Best of luck Siamsa with the new venture always enjoy your YouTube Channel so best of luck and I hope it all works out for you

whelan2

I was parked outside aib in Ardee today around 12.45. It closes for lunch from 12.30 to 1.30. The amount of people who came to the door and then realised it was closed was unreal. 1 lad kicked the door and walked away.

Bass Reeves

Got verbal approval a week ago. Told documentation would be a few days ( they do not do docusign). Still no sign of it in snail mail. Now its 13 weeks since the process started with AIB and except I am pushing it all the time it would be another 2-3 weeks at least.

tabby aspreme

I went into AIB in Clane last week to lodge a cheque, only to be told it's not a full service branch and they don't do cheque lodgements, all the 2 staff could do was show people how to use the account management terminals.

whelan2

https://www.boards.ie/discussion/comment/122051837#Comment_122051837

Ardee is the same. If the machine is broken you need to go to the local post office with your lodgement book. Lodgement will take a day longer though in post office

visatorro

https://www.boards.ie/discussion/comment/122051842#Comment_122051842

I lodge in the local post office. Only beside me. If you don't get into the town during the day and lodge cheque at night at atm you wouldn't know how'd be lurking about.

Base price

https://www.boards.ie/discussion/comment/122051842#Comment_122051842

I do all the lodgements through the post office now. It saves a half an hour drive to go to the bank in either Cavan or Longford.

Jb1989

https://www.boards.ie/discussion/comment/122052340#Comment_122052340

Going by delays here, god help the thief who steals your cheque, he'll have some wait to cash it.

morphy87

haven’t dealt with the credit union in years, what way does it work with them when it comes to a stocking loan, do you repay the money monthly or repay in full at the end of the agreed period?

whelan2

Oh lodged a cheque, that day the person who wrote the cheque told him not to lodge it. It was returned to us. I went to relodge it today using the machine in aib. It kept returning the cheque back out. The girl at the counter said the printed numbers weren't being read by the machine on the cheque. She was able to fill in a form and lodge it manually. So much for not being able to lodge a cheque if the machine is broken

roosterman71

IFJ have an article on different finance options too

https://www.farmersjournal.ie/agribusiness/news/the-loan-options-available-for-working-capital-and-investment-815061

There was some farming related story on Bobby Kerrs programme on Newstalk this morning too. The only bit I caught of it though had a lad from a bank saying they'd great deals for farmers and to speak to your lender of choice

Bass Reeves

Loan finally came through end of week. Virtually 13 weeks from start to finish and except I kept on top of it would have taken another 2-4 week.