The loan to value ratio is good in agriculture compared to other businesses but you still need to show evidence of inherent profitability & cashflow to service the repayments.
P X Farms
- Thread starter mountfarm
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The loan to value ratio is good in agriculture compared to other businesses but you still need to show evidence of inherent profitability & cashflow to service the repayments.
I went to a dinner with a load of Lloyds ag managers and their UK head of ag first night of Lamma this year - There is a LOT less borrowing in farming that you would imagine, average overdraft was below 50K IIRC a surprising amount of farms having no borrowings at all, the loan to value ratio very comfortable for them compared to other sectors they lend to was the general overview of what they had to say
They were very positive about the safety of lent money in ag - any concerns they all had were re servicing loans. No bank wants to ever have to rely on the security to get its money back if they can avoid it !
Farmers don't run overdrafts......... the new farmers sin is how much machinery and cars are on finance. Also few business's are worth as much as a farm
I dont see borrowing money as any kind of "sin" lol
If I can borrow at say 3% and make 10% with that money I see that a bloody good business !
the problems only come along when you cant make more than the money costs ! - ie. serviceability and that the concern of most responsible lenders not the LTV etc
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Interesting, given your tendency to acuse me of trolling when I dare to offer a veiw different to your own.....
its trolls I have developed a thick skin to !
you for instance clearly can't not resist replying to my posts with many reason why I'm a twit ............ I can live with it though as long as you don't repeat your self too much
your post above being case in point again !
I'm always happy to respect others with different point of view as long as they extend that same respect to me - if any TFF user posts with no other reason than a clear personal dislike then that's a bit different and become trolling as defined below
a troll (or trolling) is a person who sows discord on the Internet by starting quarrels or upsetting people or by posting inflammatory or extraneous comments in an online community. This is with the primary intent of provoking readers into an emotional response or of otherwise disrupting conversation.
So your post above ? - what is it actually adding to this thread ? or is simply yet again a chance for a cheap shot that brings no value at all to any relevant debate or discussion whatsoever ?
As I'm quite sure you're aware, here is not the place for such a discussion Clive. If I happen to disagree with your veiw point, that doesn't make it personal - it'd be a pretty dull forum if we all had the same veiws.its trolls I have developed a thick skin to !
you for instance clearly can't not resist replying to my posts with many reason why I'm a twit ............ I can live with it though as long as you don't repeat your self too much
your post above being case in point again !
I'm always happy to respect others with different point of view as long as they extend that same respect to me - if any TFF user posts with no other reason than a clear personal dislike then that's a bit different and become trolling as defined below
a troll (or trolling) is a person who sows discord on the Internet by starting quarrels or upsetting people or by posting inflammatory or extraneous comments in an online community. This is with the primary intent of provoking readers into an emotional response or of otherwise disrupting conversation.
So your post above ? - what is it actually adding to this thread ? or is simply yet again a chance for a cheap shot that brings no value at all to any relevant debate or discussion whatsoever ?