Warning on interest rates
Too many farmers are paying too much for their money, warns long-standing AMC agents Balfours as farm businesses take another hit on interest rates.
According to Balfours farm business adviser, Trevor Sheard, farms are often being run on bank overdrafts or loans set up for other purposes to those which they now service.
"This would be partially due to the disappearance of the traditional bank manager who would have re-assessed on a more regular and rigorous basis," he said.
He is urging farmers to take time out to work for the business rather than in the business.
"We are unsure that this will be the last rise, so it really is relevant to take stock," says Trevor.
Other factors adding to the financial strain include the overall fall in farm commodity incomes, disappearance of subsidies and annual reduction in Single Farm Payment, while costs continue to rise.
Trevor says: "It's not all doom and gloom, AMC are specialists in agricultural finance and understand that lower margins require lower interest rates. As a result AMC interest rates are significantly more competitive than the High Street bank and that is why it is so important not to let original short-term overdrafts simply drift.
"Through AMC we can select from a vast range of packages, with loans from five to 40 years and interest-only to variable and fixed-rate payments, plus alternatives between the two. By selecting the right package to suit specific business needs we have been able to significantly reduce bank charges for many clients."
Trevor and his team at Balfours are there to save you money. For a free consultation call 01588 673033.
