Key Features Summary
Loan Amount: €25,000 min to max €300,000.
Term: 8 year loan (can extend to 10 years due to flex events).
Rate: Variable rate loan linked to the EURIBOR - current rate is 3.75%.
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.
MilkFlex at a Glance
Repayments
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.Repayments summary
- 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 28cpl including VAT or below for 3 consecutive months¹ If the milk price is 26cpl 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 34cpl 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 28cpl; This mechanism can be activated four times over the duration of the loan.
- ² 26cpl; This mechanism can be activated two times over the duration of the loan.
- ³ 34cpl; 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.
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.
Download
File type: PDF
Media Size: 0.75MB
Media Size: 0.75MB
So where do you start?
Give us a call
Speak to our specialist team on: