Overdraft requirements for coming growing season.

Overdraft requirements will be

  • Higher

    Votes: 21 11.7%
  • Same

    Votes: 63 35.2%
  • Lower

    Votes: 18 10.1%
  • Minted do not need an overdraft

    Votes: 77 43.0%

  • Total voters
    179

capfits

Member
Getting to the time of year for the chat with bank manager.
Not expecting any major surprises in terms of arrangement fees or rates.
Think we could reduce our requirements but not so sure it will be wise to with the political stuff going on.
Threats and opportunities and all that.
So what are your overdraft plans?
 

glasshouse

Member
Location
lothians
Getting to the time of year for the chat with bank manager.
Not expecting any major surprises in terms of arrangement fees or rates.
Think we could reduce our requirements but not so sure it will be wise to with the political stuff going on.
Threats and opportunities and all that.
So what are your overdraft plans?
You forgot one category
Not allowed / dont want an overdraft.
 

Still Farming

Member
Mixed Farmer
Location
South Wales UK
All change March of interest charged on arranged overdrafts?
Screenshot_20200123-175210_Gallery.jpg
 

Bury the Trash

Member
Mixed Farmer
Getting to the time of year for the chat with bank manager.
Not expecting any major surprises in terms of arrangement fees or rates.
Think we could reduce our requirements but not so sure it will be wise to with the political stuff going on.
Threats and opportunities and all that.
So what are your overdraft plans?
Why do you have to be minted to not 'need' an overdraft ?
 

anzani

Member
Given that overdrafts are normally subject to withdrawal by banks ' upon demand', are you able to arrange more secure financing for working capital?, it could be an 'uncertain' year!
 

capfits

Member
You forgot one category
Not allowed / dont want an overdraft.
Of course I could have put that in.
Dare say for many we could actually ditch the overdraft with a couple of years very tight financial management, but the truth is most of us that have them will use them as nothing more than cashflow management tools.
That cashflow management tool will be the same that one some choose not to pay some of their suppliers until receipts from sales come in.
 

neilo

Member
Mixed Farmer
Location
Montgomeryshire
Looks like non business account holders are in for a thrashing. Av 1% interest on big balances and up to 40% on unauthorised borrowing. Keep it under the mattress.........:(

The changes are for authorised overdrafts too, bringing an end to the penalty clauses for unauthorised borrowing, where the banks have been charging for each day over the limit, on top of high interest rates. Apparently it’s unfair!

I was shocked by the report on BBC Breakfast that reckoned 11million people in the UK used unauthorised overdrafts (as well as 14m using authorised ones). I had no idea so many were regular borrowing at crazy rates like those.
I have a (free) OD facility on my current account, but I’ve never used it. My business OD is in regular use for working capital though, which is what they’re meant for, not long term borrowing. It used to be that, if you stayed in the red, the banks would try to move some of the debt onto longer term borrowing such as loans, but I suspect it has more to do with which product provides the biggest margin to them now.
 

teslacoils

Member
Arable Farmer
Location
Lincolnshire
I was shocked by the report on BBC Breakfast that reckoned 11million people in the UK used unauthorised overdrafts (as well as 14m using authorised ones). I had no idea so many were regular borrowing at crazy rates like those.

I think the number of families who have under £500 of cash or savings at any one time might shock you.

The 2018 figure I heard was 1/4 *families* have under £100.
 

Phil P

Member
Arable Farmer
Location
North West
I think a lot of the trouble with most people (especially farmers) is if they have funds available they’ll spend it on something (usually shiny machinery).
We don’t have an overdraft facility, I’m not saying there’s not times of the year when I wish we did but it takes a lot of cash flow management to keep out the red! Trouble is as soon as you dip into that overdraft it can take along time to dig yourself out, so if the money isn’t there you can’t spend it.
we do fined that business credit cards help smooth out monthly outgoings. They get paid of each month but if purchases are timed just right it can give you 60 day before the balance is due.
 

SFI - What % were you taking out of production?

  • 0 %

    Votes: 79 42.5%
  • Up to 25%

    Votes: 65 34.9%
  • 25-50%

    Votes: 30 16.1%
  • 50-75%

    Votes: 3 1.6%
  • 75-100%

    Votes: 3 1.6%
  • 100% I’ve had enough of farming!

    Votes: 6 3.2%

Red Tractor drops launch of green farming scheme amid anger from farmers

  • 1,287
  • 1
As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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