The Loan
that knows dairy
Introducing
MilkFlex
MilkFlex is an award winning loan product available to dairy suppliers of participating co-ops in the Republic of Ireland.
The MilkFlex loan offers access to flexible, low interest rate, unsecured loans over a term of 8 years.
The MilkFlex application process is fast and flexible and our agri business team are available to guide you through the application process. Fill in our Finance Enquiry form for a callback from one of our Agri business experts.
Finance Enquiry
Key Features
- Loan Amount: €25,000 min to max €500,000
- Term: 8 year loan (can extend to 10 years due to flex events)
- Rate: Variable rate 4.50% above the EURIBOR cost of funds
- Upfront Fee: 1.25% of the loan amount deducted from the loan amount at drawdown
- No further hidden fees - all fees are upfront at drawdown
- Early Repayment: Early repayments and ad hoc payments are allowed without incurring a fee
Watch our MilkFlex explainer
If you are unsure about what MilkFlex can be used for, or how the MilkFlex application process works you can watch our short explainer video below which discusses the key features of the loan, the application process, the farm visit and the drawdown process.
For more information on MilkFlex, please give us a call on the number below or fill in our enquiry form above for a call back from a member of our MilkFlex team.
MilkFlex at a Glance
How are payments broken down?
Loan repayments are automatically deducted from the milk receipts by the participating Co-op. No repayments are made from December to March. 10% of the annual repayment is made in each of the months of April, May, October, and November and 15% of the annual repayment is made in each of the peak milk production months of June, July, August and September.
- Directly from the Milk Cheque – 8 months of the year (April to Nov)
- No repayments Dec, Jan Feb, Mar
- 10% of annual repayment taken in April, May, Oct & Nov
- 15% of annual repayment taken in peak milk months June, July, Aug, Sept
What are flex events?
Flex events facilitate the reduction of principal and interest repayments by 50% for a 6 month period if the milk price is 33cpl including VAT or below for 3 consecutive months¹. If the milk price is 31cpl including VAT or below for 3 consecutive months principal and interest repayments can be reduced by 100% for a 6 month period.² If the milk price rises to 41cpl for 3 consecutive months, then repayments increase by 25% for a 6 month period.³ Flex events also protect against the risk of disease outbreak. If output is reduced by 30% year on year, repayments can be cancelled for 6 months.
Flex event details
- ¹ 33cpl; This mechanism can be activated four times over the duration of the loan.
- ² 31cpl; This mechanism can be activated two times over the duration of the loan.
- ³ 41cpl; This mechanism can be activated four times over the duration of the loan.
Is security required?
No asset-based security is required (personal guarantees are required if lending to a limited company). Priority deduction will be from milk payments. A Milk Supply Agreement (MSA) is required for the duration of the loan.
More detail
- Loan is classified as unsecured
- New Milk Supply Agreement to be signed with the Coop for the duration of the loan
- No land taken as security => no solicitors costs
- Personal guarantees of the directors/shareholders when lending to a Ltd company
Whats needed to apply?
The application process
The application process is simple and designed with as little friction as possible. Our team of Agri Business Managers are located nationally and are available to discuss your specific requirements with you, helping guide you through the application process from beginning to end.
Whats needed to apply?
- Last two years financial accounts stamped by accountant
- Confirmation of tax affairs being up to date & in order
- 12 months current account bank statement
- Confirmation of single farm payment
- LCopy of the partnership agreement if applicable
- Copy of schedule of farm insurance
- Copy of passport or drivers licence
- Costings/quotes if available
Loan Information Booklet
Want to know more about MilkFlex?
Learn about the key features of a MilkFlex loan and the application process in this useful information booklet.
Read our FAQs for more.
Or Get In Touch
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Opening Hours
9:00 AM - 17:30 PM
Visit Us
Clerkin House
85 Pembroke Road,
Ballsbridge, Dublin 4
Regulatory Information
WARNING: THE COST OF YOUR PAYMENTS MAY INCREASE
WARNING: IF YOU DO NOT MEET THE REPAYMENTS ON YOUR CREDIT FACILITY AGREEMENT, YOUR ACCOUNT WILL GO INTO ARREARS. THIS MAY AFFECT YOUR CREDIT RATING WHICH MAY LIMIT YOUR ABILITY TO ACCESS CREDIT IN THE FUTURE.
Representative Example for total credit amount of €75,000:
8.70% Annual Percentage Rate (APR) representative is inclusive of an arrangement fee of 1.25% and based on a variable interest rate of 8.33%. Total credit €75,000. 96 monthly instalments of €1,073.03. Actual instalments are repayable seasonally with high season monthly instalment of €1,931.45 and low season monthly instalment of €1,287.64. Total cost of credit €28,948.38 (inc arrangement fee).
Please note the above example is representative and does not account for the impact of a Flex event.
Low Months are April / May / October / November.
High Months are June / July / August / September.