Input finance to support more efficient cash-flow - Who uses?

[A-Owen]

Good Morning!

After reading some articles on 'input finance' products currently available specifically for farmers, I wondered if anyone on here uses to help spread the cost of AgChem's, fertilisers, new grain stores even? If so, who do you use? and what sort of rates and repayment terms are decent (if any)?

 

[A-Owen]

If this seems like a random post, check out my 'About me' for more info

 

[Clive]

If this seems like a random post, check out my 'About me' for more info

if you are in anyway commercial please read our policies before posting further or posts will be deleted and your ip blocked as spam

 

[A-Owen]

if you are in anyway commercial please read our policies before posting further or posts will be deleted and your ip blocked as spam

No, not commercial. I'm just wanting to find ways to support British Farmers since my younger days were on a farm and would like to see our farms prosper and not disappear like the one I grew up on. I am actually not employed right now...

 

[Johnnyboxer]

Good Morning!

After reading some articles on 'input finance' products currently available specifically for farmers, I wondered if anyone on here uses to help spread the cost of AgChem's, fertilisers, new grain stores even? If so, who do you use? and what sort of rates and repayment terms are decent (if any)?

Do you work for Oxberry Bank by any chance ?

Residing in Cheshire [emoji6]

 

[A-Owen]

@Johnnyboxer - I've recently left UPL and now looking for new opportunities but with someone who genuinely wants to help farmers - currently unemployed

What's your story?

 

[lloyd]

A lot of farmers use the AMC on fixed or variable loans.
Google them they look very competitive.

 

[SilliamWhale]

No, not commercial. I'm just wanting to find ways to support British Farmers since my younger days were on a farm and would like to see our farms prosper and not disappear like the one I grew up on. I am actually not employed right now...

My view is that finance companies are nearly always dearer than the bank. I suppose they are more flexible than the bank but you tend to pay for that. Had a recent quote from a trendy new agricultural lender the other day for £50k and it was going to cost £16k plus over 5 years.

So in conclusion there are a few places I trust (Hitachi Finance for example for HP) but I think there are lot of spurious ones too. I think there must be a decent market for a good broker mind

 

[A-Owen]

@lloyd - Thank you. Their products appear somewhat fixed... lacking flexibility for seasonal cash-flow variances for example - i'll look at them some more, good start

 

[A-Owen]

My view is that finance companies are nearly always dearer than the bank. I suppose they are more flexible than the bank but you tend to pay for that. Had a recent quote from a trendy new agricultural lender the other day for £50k and it was going to cost £16k plus over 5 years.

So in conclusion there are a few places I trust (Hitachi Finance for example for HP) but I think there are lot of spurious ones too. I think there must be a decent market for a good broker mind

Geeze!! Who was that with?

I looked in to providers such as Hitachi, Fram Farmers, UK Ag Finance and Oxbury who all offer 'input finance'. I'm trying to determine if there is a gap in the market for a competitive alternative to a bank overdraft or trade finance that can support farmers with genuine low-rate costs for everyday farm inputs such as crop protection products, fertilisers, fuels, seeds and animal feeds, or for capital expenditure perhaps to help improve farm productivity, i.e. new grain stores or renewable energy installations (examples only but you get the idea) - thoughts?

In an idea but realistic world, i'm keen to hear what farmers would like from a finance provider that is not being offered through todays mainstream banks - Low rate + ??? as @SilliamWhale I too believe there could be a decent market here, only many banks appear to be pulling back and at a time when most needed. So to shape what is really wanted/needed, i'm interested to hear direct from the horses mouth so to speak... or farmers in this case

 

[Clive]

@Johnnyboxer - now looking for new opportunities but with someone who genuinely wants to help farmers - currently unemployed

we should talk

 

[Farmertom1988]

I suppose bank overdraft facilities would be the most ideal for short term working capital

 

[lloyd]

Has this forum turned into dragons den?

 

[A-Owen]

Has this forum turned into dragons den?

I hadn't though of it like that but now you mention it.... i'm not pitching any idea as such, just trying to find some gaps in the market, identify them and see how I can potentially help to facilitate if possible.

In myAgChem role, I got involved in a wide range of marketing projects, however I was especially passionate about one in particular which was actually for the benefit of farmers. Since leaving my job recently, I realise I would like to do more to support farmers hence looking at areas of necessity, i.e. Ag Finance. I could Google all day long (and I have), however i'm only going to get real information by going direct... so here I am to listen and learn in the hope I can support somehow

#AgDen

 

[Doc]

With a recent changes to overdraft rates, there may well be a need for easy access, competitive rate, working capital, secured by means other than simply land. This is particularly so for new entrants.

 

[Happy at it]

If you do come up with an idea, where to implement it could be a consideration. Seems from reading on here that the best od rates available to farm businesses NI are way behind what can be got across the water.

 

[A-Owen]

If you do come up with an idea, where to implement it could be a consideration. Seems from reading on here that the best od rates available to farm businesses NI are way behind what can be got across the water.

Interesting - Any example rates for comparison perhaps?

 

[Cowabunga]

All this sounds very much like payday loans for farmers. A bit of desperate 'last resort' finance for those that have hit their overdraft limit and whose bank is unwilling to extend it.
Am I on the right track?

 

[teslacoils]

You can usually buy your fert and sprays with decent payment terms to avoid going to the bank.

 

[A-Owen]

All this sounds very much like payday loans for farmers. A bit of desperate 'last resort' finance for those that have hit their overdraft limit and whose bank is unwilling to extend it.
Am I on the right track?

No.... I would say that sort of finance would not help farmers as those types of providers would charge high rates. I am thinking of an alternate option to bank overdrafts / Trade Credit, whereby rates are competitive to those offered by banks, flexible and quick to obtain, yet in addition, offer further added benefits such as a safe online application where all invoices, payments and cash can be managed and integrated direct with suppliers, i.e. distributors for purchasing of crop protection products (example) in a bid to make things more convenient for a farmer - A competitive financial solution with a difference is what I was thinking.... I may be barking up the wrong tree but exploring just in case....