Our most recent trust survey showed that farmers have particularly low levels of trust in their banks.

Restoring trust with the farming community is a key priority for the IBCB and our member banks, AIB, Bank of Ireland, KBC Bank Ireland and Permanent TSB.

Martin Stapleton, IBCB board member and IFA treasurer, comments that “farmers need to be heard and understood by banks and have their financial needs met”.

Issues raised by farmers relate to how banks can work with customers to improve financial awareness and better serve the sector’s banking needs.

In part one of a four-part series, we will look at applying for bank finance.

Applying

Applying for bank finance is a key part to the running of a farm business. The use of finance within any business comes with a commitment over a defined period, and finding the correct information and products available is vitally important.

If you’re considering applying for finance, contact your bank and establish the details about the application process early.

Permanent TSB business banking manager, Patrick Ryan, explains: "The application process will include a lending application form. You may be asked to provide financial information, such as an auditor’s statement and cashflow projections.

"Providing accurate, up-to-date financial information ensures your bank has all the information required to assess your application.’’

Make any future business plans known to your bank

To further strengthen your application, it is important to make the bank aware of your business plans, with projections on how you can afford the loan repayments - and how such investment will benefit the overall business.

According to Eoin Lowry, head of agriculture at Bank of Ireland, it’s important to "have a plan as to what your future needs are. Also, consider past performance in terms of what the achievements are to-date, and also take into account the current position and what the risks are going forward.

"These can be good indicators of future financial performance.’’

Have clear objectives for the business

Donal Whelton, head of agriculture at AIB, offers some advice on how to avoid common pitfalls: "Early engagement and preparation is key. It’s also important to have a clear objective in place that demonstrates your vision for the business.

"It’s important to be honest and realistic with regards to business performance, costs and projections of your business.’’

Credit report checks

You should be aware that banks will check your credit reports, which are provided through the Central Credit Register, which shows credit information for customers.

Customers can access this information on www.centralcreditregister.ie.

You may also be asked to provide security for a loan. This is assessed on a case-by-case basis and customers should allow sufficient time for security to be put in place.

This topic will be discussed in more detail in a podcast in the coming weeks.