20 minutes with ... Ronan Horgan

Title: Ronan Horgan, managing director, Capitalflow.

Sector: financial.

Facilities provided to date (12 months): €50m.

Number of loans to agribusiness sector: 615.

Average loan amount: €50,000.

How would you describe the current health of the agri-food sector?

Unemployment levels are at their lowest since 2008, and the small to medium businesses have played a central role in this turnaround. While there is certainly a general air of optimism among business owners about the future direction of the economy, issues such as Brexit and political uncertainty in many countries in Europe, as well as the US, are tempering it somewhat.

How is the mood among your agribusiness customers?

The general mood is one of measured optimism with business growth firmly on the agenda. Our clients are looking for a bank or finance company that understands their business and wants them to achieve this growth.

Is there an appetite to expand?

Most definitely. It is very exciting to witness the renewed appetite for growth and it is very satisfying to be able to play a small role in assisting their ambitions to expand and grow the businesses.

What lending rates or range do you offer customers?

We do not discuss rates as we offer a range of facilities to business owners. There is no such thing as a standard fee. It depends on what they are financing. It also depends on whether the business owner wishes to do this over two or five years. All businesses are different and we adapt our rates to reflect this. We design bespoke products for our clients, adjusting our rates depending on the size of the business, its balance sheet, perceived risks and growth projections.

Will you lend to farmers?

Yes, we have set aside €10m for farmers and agri-contractors over the next 12 months, particularly in the area of financing secondhand plant and machinery.

What are the benefits of leveraging assets to borrow money?

Any business owner will tell you that cashflow is their life blood – it allows the business to grow. Since the recession, it is only in the past 12 months that businesses are thinking of investing again. In many cases, a cash deposit of 10% or 20% is required, but we can refinance the paid-for assets in order to put a deposit into a new machine.

Are you positive about future growth in the industry?

There is no doubt that the agri-food sector has been expanding in recent years, but prices and margins are always under pressure. We are an open economy, so what happens elsewhere in the world really affects us.

How concerned are you around Brexit?

The consequences of Brexit for Irish farmers and the food sector will very much depend on the policies that the UK pursues, particularly in the areas of trade, agriculture and regulation. The fact that the British will need to negotiate 52 separate trade agreements means that this will be a long, drawn-out process. This is more likely to suit Irish producers rather than a rush to a hard Brexit.