Making the most of your money to keep those farm finances healthy
Whether it is re-evaluating overdrafts or finalising a cash flow, these four steps will help get your finances in order
Sick of feeling like you've been bailing out your bank? Here's four ways to help slash the annual charges you hand over to your banker.
Get into a buying group
Most farmers are great hagglers. But there's only so far a good haggle will get you these days. Size counts, as they say, and your bank, no more than any other supplier, likes to deal in bulk.
For this reason, many of the best discussion groups around the country have morphed into mini trading co-ops. They are able to leverage the fact that, as a group, they can offer a lot more guaranteed business to a supplier than they can as individuals.
As a result, there are farm buyer groups around the country that have secured some eye-watering lending rates.
While most farmers would be pleased to secure working capital or term loan rates of 5-6pc, some buyer groups are operating at rates of less than 2.5pc. This may not sound like a lot but for a farmer with a €100,000 farm loan, this equates to an annual saving of €3,500.
Minimise your overdraft
Unexpected purchases crop up all the time. It could be a replacement machine, extra stock or improvements around the yard.