Credit Union loan package aims to tackle issue of cashflow woes

THERE are over 13,000 herd owners in Co. Galway – the vast majority of them into livestock farming – and cashflow is their main worry, according to research carried out by local credit unions.

The research  has prompted four Credit Unions in the county  – Ballinasloe, Gort, Loughrea and Tuam – to launch the Cultivate package offering loans of up to €50,000 for farmers.

Loans are being offered at an interest rate of 6.75% with a maximum repayment period of up to seven years – the Cultivate package was launched last week in the Lough Rea Hotel by IFA President, Joe Healy.

The ‘personal touch’ and ‘face to face contact’ rate very highly with the farming community in terms of their financial dealings, according to the Credit Unions.

The Credit Unions point out that Galway is predominantly a county of dry stock farmers who have identified  the lack of cashflow as a major annual challenge.

“Much of their income comes from direct payments at the backend of the year.  Having access to working capital in the Spring and Summer in the form of Basic Payment Bridging finance is seen as being particularly important.

“Stocking and farm development loans are also seen as equally important. We have built up a close relationship with Mountbellew Agricultural College and they see the provision of farming loan packages for young entrants to farming as being particularly relevant,” said a spokesperson for the Credit Unions.

■ For further details please contact: www.cultivate-cu.ie