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What we do

Agricultural Lending

Currently in the Irish Agricultural Lending Market, there is a lack of competition amongst key financial players. All banks exhibit the symptoms of the trauma associated with the credit crisis including new management, staff and processes as well as a revised more comprehensive and considered approach to risk assessment.

Irish banks are increasingly influenced by regulatory rules and liquidity constraints.  For the potential borrower, these factors present an extremely challenging situation.

To secure client approval with the best pricing and conditions it is essential that all bank loan proposals are comprehensively and professionally prepared.

FDC Group provide Agri Lending Support Services to clients in the following areas:

  • Assistance with new loans for cases less than €300,000
  • Specialist assistance with new loans complex cases usually in excess of €300,000.
  • Specialist assistance with stressed loans including restructuring arrears and debt settlement negotiations.
  • Agricultural Lending – new borrowing

    The demand for credit in the farming sector is predominately being driven by higher margins, the abolition of milk quotas and recent land mobility incentives.  Profitable farming now requires a high degree of technical knowledge and competence with a significant level of direct labour input from the farmer.

    FDC Group has extensive experience assisting with “new money” loan applications. We also have a dedicated specialist banking team to assist our farming clients with borrowing requirements in excess of €300,000.

Specific services provided by FDC Group include:

  • Enterprise assessment / feasibility study / structure review
  • Business plans
  • Loan application process
  • Loan negotiation process
  • Protection review and provision
  • Bank reviews
  • Alternative funding structures / sources
  • Bespoke cashflow plans
  • Agricultural Loan arrears, restructuring and debt settlement negotiation

    Poor performance of off-farm investments, commodity price volatility, weather events and animal health issues are the usual factors behind farm loan arrears.

    Dealing with loan arrears can be a very stressful process for our clients who usually have little experience in dealing with the processes associated with arrears management and restructuring.

    Where direct engagement does not produce prompt results we are seeing a tendency for banks to move more swiftly to legal proceedings and appointment of receivers.

    Some banks have packaged and sold non-performing loans at a discount to non-regulated investment funds.

    This changes the dynamic significantly for the client with the new owner of their loan seeking to extract value in a short time frame, to secure the value of the supporting security at a minimum.

    This process can threaten the viability of the farming enterprise.

    Our specialist banking team have significant experience both in loan arrears management / negotiation and in dealing with Loan Investor / Vulture Fund cases.