Banks vs credit unions, the finance thread.

A lot is to do with the account manager you have

I switched from boi to sib 2 yrs ago and it was horrific. Took about 5 months and every month there was a new query then the other data would be out of date and I’d have to submit that again. Complete **** show

I got a 50k loan off them in 2020 for putting up sheds, they kept 1,500 secured in my account and off I went. Very very easy to deal with. The minute I got the young farmer payment back for the sheds I put it straight off the loan. The next morning they were on the phone to me asking if I wanted to lower my weekly repayments seen as I was so far ahead of the agreed initial pay plan. They’re great to deal with to be fair in my experience

I wonder did aib get jockeyed by backing brave and are tightening everything up. Hoping by dragging things out people will just go elsewhere or are they just crap?

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.

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.

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

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.

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

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

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

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

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

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.

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

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.

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?

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

do you mind saying what was the loan for, the reason I’m asking is I’m waiting for grant approval for a shed and will need a loan, going from your timeline above I’d need to get cracking on that now. 13 weeks is unbelievable, I got 2 mortgages in the last 7 years and neither took that long. I assumed I had plenty of time, should have known better I suppose.

Farm Development, fencing, water system, Farm roadway. Problem was I wasnot banking with AIB. I had SBCI approval for growth and sustainabilityinterest rate was 4.6% I think. BOI did not do non green lending for this tranche so I had to jump through hoops with AIB. Staff were grand the process was sh!te