Business loans, 100% government backed,

[som farmer]

What's E="som farmer, post: 6925142, member: 86168"]
this money, is cleverly designed, it doesn't matter if you need it, or not, if you qualify, or not. It is simply a cheap way to inject money into the economy, all that matters, is max take up, and max spending. The fact is, for every £1 spent by a farmer/business etc, goes round x7 in the economy, so £50k to a business = £350k injection into the economy, very clever move by the treasury. Nothing about 'saving' businesses, it's all about saving the economy, and a very high default rate, is acceptable, because it will (hopefully) have done it's job. The treasury wanted this to be an automated system, request in, money out, NO bank staff to be involved, bit to ambitious that, but it tells you, the treasuries thinking and aim.

Whats the difference between saving businesses and saving the economy ? Surely forced sales and calapsed businesses would devalue everything .
[/QUOTE]
if money circulates, businesses can trade and survive, if money does not circulate, they cannot survive, either way, has a ripple effect, one good, one bad. Farming is a very resilient business, others are not, while we have very few fail, other types, have high rates of failure. You cannot look at this loan, from a farming point, all we are, is a business, nothing more, or less, and the loan is available to all businesses. If, for example, we took the money, paid of some finance etc, 1 year 0% and no repayments, that is a lower rate of % than the finance, plus, we would have, those payments, gone, for a year, which would leave us, those repayments, available to spend, this year, not explained that well, but hope you get the basics !

 

[som farmer]

What's E="som farmer, post: 6925142, member: 86168"]
this money, is cleverly designed, it doesn't matter if you need it, or not, if you qualify, or not. It is simply a cheap way to inject money into the economy, all that matters, is max take up, and max spending. The fact is, for every £1 spent by a farmer/business etc, goes round x7 in the economy, so £50k to a business = £350k injection into the economy, very clever move by the treasury. Nothing about 'saving' businesses, it's all about saving the economy, and a very high default rate, is acceptable, because it will (hopefully) have done it's job. The treasury wanted this to be an automated system, request in, money out, NO bank staff to be involved, bit to ambitious that, but it tells you, the treasuries thinking and aim.

Whats the difference between saving businesses and saving the economy ? Surely forced sales and calapsed businesses would devalue everything .
[/QUOTE]
if money circulates, businesses can trade and survive, if money does not circulate, they cannot survive, either way, has a ripple effect, one good, one bad. Farming is a very resilient business, others are not, while we have very few fail, other types, have high rates of failure. You cannot look at this loan, from a farming point, all we are, is a business, nothing more, or less, and the loan is available to all businesses. If, for example, we took the money, paid of some finance etc, 1 year 0% and no repayments, that is a lower rate of % than the finance, plus, we would have, those payments, gone, for a year, which would leave us, those repayments, available to spend, this year, not explained that well, but hope you get the basics !

 

[lazy farmer]

Whats the difference between saving businesses and saving the economy ? Surely forced sales and calapsed businesses would devalue everything .

if money circulates, businesses can trade and survive, if money does not circulate, they cannot survive, either way, has a ripple effect, one good, one bad. Farming is a very resilient business, others are not, while we have very few fail, other types, have high rates of failure. You cannot look at this loan, from a farming point, all we are, is a business, nothing more, or less, and the loan is available to all businesses. If, for example, we took the money, paid of some finance etc, 1 year 0% and no repayments, that is a lower rate of % than the finance, plus, we would have, those payments, gone, for a year, which would leave us, those repayments, available to spend, this year, not explained that well, but hope you get the basics !
[/QUOTE]
your right. but your example is poor as the money used to pay off finance will not make back into the local economy in an efficient manner. much better would be paying bills upto date quicker than normal or getting work done that you would have otherwise shelved.

 

[Sid]

To be honest though with price of new kit ever going up and up, banging this free cash into some 2nd hand machinery will be a sound investment, some old classic tractors now have been appreciating in recent years quite nicely, so long as you can afford to do it of course and repay the loan.

Local machinery dealer put up a new shed, totally clad in, roller doors, floated floor. Filled it with grassland machinery in late summer autumn. Sold all of it in the spring and paid for the shed in one year.

 

[som farmer]

if money circulates, businesses can trade and survive, if money does not circulate, they cannot survive, either way, has a ripple effect, one good, one bad. Farming is a very resilient business, others are not, while we have very few fail, other types, have high rates of failure. You cannot look at this loan, from a farming point, all we are, is a business, nothing more, or less, and the loan is available to all businesses. If, for example, we took the money, paid of some finance etc, 1 year 0% and no repayments, that is a lower rate of % than the finance, plus, we would have, those payments, gone, for a year, which would leave us, those repayments, available to spend, this year, not explained that well, but hope you get the basics !

your right. but your example is poor as the money used to pay off finance will not make back into the local economy in an efficient manner. much better would be paying bills upto date quicker than normal or getting work done that you would have otherwise shelved.
[/QUOTE]
if you pay off your finance, you have 1 year, with no payments, that leaves you, with that extra money, for 1 year, to spend, on something else, or, invest it, but the idea is, you spend it.

 

[som farmer]

Local machinery dealer put up a new shed, totally clad in, roller doors, floated floor. Filled it with grassland machinery in late summer autumn. Sold all of it in the spring and paid for the shed in one year.

love to know the mark up on new kit, or does it vary, with farming's ups and downs ?

 

[nelly55]

What is everyone’s opinion on,If you take the loan will the bank suddenly decide to reduce or cancel your working overdraft.Or have they been told not to do that.Eg take loan buy cattle increasing income,but working o/d removed leaving no working capital.Question how many have asked their own bank or gone to another lender.

 

[Honest john]

Upto 50k
Small business loan starts Monday and money in bank in 24hrs allegedly???View attachment 874110

This is progress but only for 200K turnover businesses.
This Government is stealing Labour’s clothes. IMO

 

[jendan]

Local machinery dealer put up a new shed, totally clad in, roller doors, floated floor. Filled it with grassland machinery in late summer autumn. Sold all of it in the spring and paid for the shed in one year.

But why did he need to put up a shed to do that? Most around here are just left outside in their yard/field.

 

[jendan]

love to know the mark up on new kit, or does it vary, with farming's ups and downs ?

Its massive.A machinery rep left his briefcase in my mates kitchen once,after doing a deal on a combine.So he had a look.He was astounded,many many more thousands than he thought.

 

[Sid]

But why did he need to put up a shed to do that? Most around here are just left outside in their yard/field.

Because he can?

 

[jendan]

What is everyone’s opinion on,If you take the loan will the bank suddenly decide to reduce or cancel your working overdraft.Or have they been told not to do that.Eg take loan buy cattle increasing income,but working o/d removed leaving no working capital.Question how many have asked their own bank or gone to another lender.

I think this is definitely what they will do,especially if you have just asked for an increase or extension,or already have a strained relationship with your manager.

 

[The Seeker]

Got to be 30% I’d say

 

[yin ewe]

But why did he need to put up a shed to do that? Most around here are just left outside in their yard/field.

Much better going to look at tractors or machinery under cover. My niece is married to a used tractor dealer, he put up a large shed 3 years ago and now has them all under a roof (70 odd) he reckons they get about double the amount of people coming to look at tractors and as he says if there's no one in the yard, there's nothing selling.

 

[Drillman]

This loan is government backed so no risk to the banks. It’s why it appears to be so easy to get hold of the money.

The banks business is to lend money, its how they make there money. Reducing folks borrowing capacity isn’t going to make the bank anything. And at the end of the day if anyone defaults on the loan it’s the governments problem not the banks.

 

[Chae1]

Its massive.A machinery rep left his briefcase in my mates kitchen once,after doing a deal on a combine.So he had a look.He was astounded,many many more thousands than he thought.

We all have different moral compasses, but no way would I look through anyone's briefcase left in our office/kitchen, then tell other people about it.

That's low in my opinion

 

[J 1177]

This loan is government backed so no risk to the banks. It’s why it appears to be so easy to get hold of the money.

The banks business is to lend money, its how they make there money. Reducing folks borrowing capacity isn’t going to make the bank anything. And at the end of the day if anyone defaults on the loan it’s the governments problem not the banks.

It's always the what ifs in the back of your mind, too good to be true etc. I'm very tempted, pay some hp off that would give a years break from some finance, that would help as we are looking at poor crops. And the downturn of the beef job has had an effect on us. Just a bit unsure...

 

[Renaultman]

Whats the difference between saving businesses and saving the economy ? Surely forced sales and calapsed businesses would devalue everything .

if money circulates, businesses can trade and survive, if money does not circulate, they cannot survive, either way, has a ripple effect, one good, one bad. Farming is a very resilient business, others are not, while we have very few fail, other types, have high rates of failure. You cannot look at this loan, from a farming point, all we are, is a business, nothing more, or less, and the loan is available to all businesses. If, for example, we took the money, paid of some finance etc, 1 year 0% and no repayments, that is a lower rate of % than the finance, plus, we would have, those payments, gone, for a year, which would leave us, those repayments, available to spend, this year, not explained that well, but hope you get the basics !
[/QUOTE]
Makes perfect sense to me.

 

[Doddsy]

I think this is definitely what they will do,especially if you have just asked for an increase or extension,or already have a strained relationship with your manager.

Remember, that banks aren't exposing themselves to any additional risks here, it's all underwritten by HMG, if you default, the Gov picks up the tab. They're effectively lending money to the Gov for a 2.5% return, not a bad risk free return in todays World, given the current yield on a 10 Yr Gov Bond is around 0.25%, I believe.

It's actually a really interesting thread, in amongst all the repetitive stuff. By and large it would appear the money is being dished out without any background checks, which is quite incredible, given we're talking about maybe £10-£15 billion by the time it's done, maybe more. I'm sure the Gov will be working on an assumed default rate, maybe 10-20%, so & £1-£3 billion. In return they're pumping billions and billions more into the econmony in the hope it will trickle down and save thousands of small businesses, therefore potentially tens of thousands of jobs and subsequently billions in benefit payments. It's really a massive economic experiment, the outcome of which is entirely uncertain, but I think it's got to be worth a go!?

 

[Sid]

This loan is government backed so no risk to the banks. It’s why it appears to be so easy to get hold of the money.

The banks business is to lend money, its how they make there money. Reducing folks borrowing capacity isn’t going to make the bank anything. And at the end of the day if anyone defaults on the loan it’s the governments problem not the banks.

Anyone that's taken up this loan what does the small print say about if you don't keep up the repayments?
What happens if you don't pay it back?