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NGExpert financial copywriter
Page written by Chris Godfrey. Last reviewed on July 23, 2024. Next review due January 1, 2025.
Agriculture and farming is big business in Ireland, contributing many €billions to the Irish economy and powering a whole host of related industries. However, even as women farmers play an ever-increasing role in this bonanza, owning or operating more than half of the farms in the nation, access to funding for female farmers has traditionally been tougher to secure than it is for their male counterparts. Reduced development and lower output from women-owned farming businesses is often the result.
Fortunately, this situation is now changing and an array of business loans and grants for female farming entrepreneurs are available to fill the funding gap. Read on to learn more about farm loans for women and how they can help your agricultural business grow.
Farm loans are specialised business loans made to farmers and organisations that operate in the Irish agricultural industry. You can use a farm loan to buy agricultural land and property as well as cover other costs such as livestock, equipment, vehicles, seeds, feed and more.
There are several types of farm loan and grant. All are tailored to meet the needs of Irish farm owners, whilst some are restricted to female farm entrepreneurs.
Female farmers seeking to start or improve their farming or ranching business can accelerate their activities with a farm loan or grant. Key benefits of employing borrowed or donated capital include:
Financing for women farmers can come as a loan or as a grant. Loans are provided by government agencies, nonprofits and commercial lenders, while grants are typically only available from government sources and nonprofits. Depending on your need for financing and your business situation, it may be easier and faster to secure a farm loan than a grant, although the biggest benefit of a grant is that as long as you spend it where you said you would, you never have to pay the money back.
The most common type of business loan. Typically used for one-off investments where you know exactly how much cash you need. Land and property purchases, agricultural plant and equipment investment, and debt repayment and restructuring activities work well with this kind of loan. You receive a single, lump-sum cash injection and then pay it back in regular instalments over a fixed period of up to 25 years. Collateral may be required.
This is a business loan that functions like a high-value credit card but comes with lower interest rates and fees. Farmers can withdraw as much as they want when they want from a loan facility up to the limit of their borrowing. Ideal for covering gaps in working capital, or sudden costs or opportunities, a line of credit can give you excellent peace of mind – you have access to funds when you need them, but you only pay interest on the sums that you withdraw. Interest rates are usually fixed, and your farming business may repay on a set or flexible schedule. Collateral may be required.
Also known as account receivables financing, this type of loan works best for farms that have regular sales of produce – such as dairy products – rather than uneven, seasonal income. Invoice financing allows farmers to borrow against the value of their unpaid invoices. The lender may provide up to 95% of the invoice value within a few days or even hours of the bill being raised. Your invoices act as collateral, no added security is required.
Equipment loans are an ideal way to buy expensive agricultural machinery and equipment. Spread the cost over time to take the strain off cashflow. Equipment loans use the assets you’re financing as security, similar to a car loan or a residential mortgage, meaning there is no need for added collateral. Use the equipment as you pay for it while the lender maintains a lien on the machinery. Once you pay the loan back, the lender releases the lien, and you own the equipment outright.
Documentation will vary from one lender to another, but commonly requested paperwork includes:
Interest rates for farm loans for women can be as low as 5% per year, but the rate you pay will depend on the type of loan you select, the policies of your lender, and circumstances unique to your business.
You can improve your chances of getting approved for a farm loan by preparing in advance. Key tasks to take care of include:
Why do you need the money? What do you expect the finance to achieve for your business? You must present a strong case to secure a farm loan and your financial records must support your need, indicating how the loan will deliver your plan – and critically, how you will pay the loan back.
Qualifying rules for farm loans can vary significantly. Beyond the standard time in business, revenues and credit check guidelines, some lenders will have their own specific hurdles that you must overcome. Make sure you meet the eligibility rules for the lender you are applying to. If you have holes in your request, such as errors on your credit report, take steps to fix them before submitting your application.
Some loans work better for some farming needs than others. Also, should you go for a loan or a grant? Which loans are cheapest? Which are the fastest to secure? Research all the funding types you may qualify for before settling on your final option.
Once you’re ready to make an application, check out offers from lenders and grant providers. You can do this by approaching banks, credit unions, nonprofits and online lenders one by one, or you can use the services of a loan marketplace that will introduce you to a choice of loan deals from different funders. Some marketplace platforms can also give you advice and help you with the application process. This can be especially useful for farm owners who have never taken out a loan or grant before.
Make sure you are within the deadline stipulated by the lender or grant provider before submitting your application and ensure you have provided all the necessary documents and information they require. Keep in mind that processing times can vary enormously, with some providers taking many weeks to arrive at a final decision and disburse their funds.
If you need funds in a hurry, you may be eligible for a fast farm loan. Start that process here.
No matter if you’re seeking your first farm loan or you’re a seasoned borrower, working with business finance experts can make all the difference when applying for your loan. Contact Swoop to discuss your borrowing needs, get help with your application and to compare high-quality farm loans for women from a choice of lenders. Give your farming business the financial boost it deserves. Register with Swoop today.
Written by
Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.
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