The focus of the Agricultural Mortgage Corporation’s (AMC) appearance at Four Oaks will be to ask growers to challenge them to beat the interest rates on their existing bank’s lending.
AMC said that almost one third of its annual lending is helping businesses to restructure their bank borrowing at better interest rates or on a better mix of capital and interest only repayments or fixed and variable rates.
The company stressed that for many businesses restructuring debt can save a substantial amount of money in the long term.
By way of example AMC said that one business took out a £100,000 bank loan three years ago to cover an existing overdraft, refinance an existing loan and carry out structural and other improvements. It had a loan fixed 12.5 percent over 25 years, with financial costs at £17,285 per year.
According to AMC that business refinanced with them, borrowing £110,000 on a secure basis over 12 years, with installments reduced by £4,271 per year and halving the time it will take to clear the debt.
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