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Non-repayable loans for young farmers

Agriculture is one of the sectors that is offering more satisfaction,

Agriculture is one of the sectors that is offering more satisfaction,

Especially to the younger sections of the population: there are many boys and girls who, due to the difficulties in obtaining a stable and gratifying job, decide to return to the countryside, putting on small and medium-sized companies, with more than satisfactory results. For this reason, a wide range of non-repayable loans for young farmers has been established: these funds are intended to keep the provinces and small rural centers alive, encourage generational turnover on farms and thus improve their efficiency ( as well as the quality of the products), through the inclusion in them of graduated and qualified personnel.

Farms can be of various kinds;

Farms can be of various kinds;

however, the most successful cases are those that place on the market a high quality product, certified and rooted in the territory (for example fine wines, spices, oil, organic and typical agriculture, etc.), or which also support other services with production, like agritourisms or riding schools.

Through the e-commerce phenomenon, these companies manage to get in touch with buyers located also in other parts of the world: there are cases of high quality wines exported to China or Japan, and the possibilities are truly endless, if you work with passion and with an eye on new promotion and sales channels!

Support for young farmers

Support for young farmers

For young farmers who need an economic ‘push’ to start their project, there is a non-repayable loan, disbursed in a lump sum in two installments: the first is disbursed during the initial phases, while it is possible to obtain the second, only if the objectives set in the business plan have been achieved, and therefore following an audit, which also includes the acquisition of skills and compliance with current regulations.

Those young people who are under the age of 40 and who intend to establish themselves on a farm as head of the firm can benefit from this support; they also have a period of 36 months to acquire the necessary professional skills, if they do not already have them at the time of requesting the loan.

The young farmer can be either the sole owner of the company, or one of the owners; it is also possible to access the aforementioned funds, even when the asset belongs to another legal entity, provided that it is demonstrated that it is able to manage and manage the company independently. Therefore, the applicant must personally take on the risks that the management entails, exercising full control over all aspects related to the production, administration and marketing of the products.

How to use the loan

How to use the loan

We also come to another vital issue: how can the loan be used? What aspects of business management can be covered?

The non-repayable loan can be used to cover various expenses, we see which:

  • notary fees and advice;
  • purchase of goods, land, buildings and agricultural vehicles;
  • purchase of the tools necessary for production;
  • cattle purchase;
  • purchase of agricultural production rights.

It should be remembered, however, that in order to obtain funding, it is necessary for the young farmer to certify his willingness to establish himself as a head of company and to hold that position for a period of at least five years. Furthermore, it is necessary to present a precise business plan, ie a detailed plan that explains the various stages of the company’s development, the strategies, the costs, the amounts allocated and the objectives to be achieved within a predetermined period of time: if the project is convincing, the chances of getting good funding will certainly be greater!

Who can you contact to get grants for young farmers?

Who can you contact to get grants for young farmers?

To obtain the financing to start up their own business, or to take over as head of a company in an existing business, the young farmer must submit the application to Invibank, the agency that evaluates the new projects and provides the necessary amounts for their start. In this way it is possible to receive almost total coverage of the initial costs, the costs for training and for the purchase of the machinery.

 

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Ask yourself these questions before applying for a loan

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Do you have doubts asking for a loan? Perhaps there are some considerations that you have to make before you have a responsible attitude with your economy and finances: you will need to check the status of your personal and business accounts. You should think about how you are going to repay the loan and how much money you really need.

From Good Finance we suggest you ask yourself some of these key questions before requesting a loan:

How much money and what do you need it for?

How much money and what do you need it for?

This is the first question and perhaps one of the most important. If you want to ask for a loan for a very small amount, maybe it is preferable to give up certain pleasures and save, as long as possible. For example, you want to buy a jean for $ 1000.

Think that a credit, however small, extra expenses (commissions, interest, etc.) that will make your purchase more expensive. Perhaps for a purchase of this style it is convenient for a month to go to eat out or cut a little in some daily consumption to get to buy what you want.

On the other hand, a very different situation is if you have to repair the car or pay bills because they can cut your service and you don’t have time to wait, then it’s another story and an online loan may be the solution.

Do you need money urgently?

Do you need money urgently?

If the answer is yes, an online loan is a quick answer. We recommend that you try our simulator, where you can request between $ 3000 and $ 6000 to be credited to your account in a matter of hours.

When we have an unforeseen issue that we need to urgently solve and we have no money saved, loans are the best solution.

Can you return it in a timely manner?

Can you return it in a timely manner?

That is, when you have to return the loan money, will you be able to pay it back? Do you have any kind of income that allows you to assume the installments in the agreed term? If an unforeseen event arose, some expense that you have to pay urgently and that did not fall within your monthly budget, it is logical that you consider applying for a loan.

But keep in mind that the next month you will have to start returning it and you have to have an income to do so.

Are you sure how much the borrowed money will cost you?

Are you sure how much the borrowed money will cost you?

At all times you should be clear about how much the total amount to pay for the loan will be with the interest and commissions it entails.

From Good Finance we want to be as transparent and clear as possible, so we show you in our simulator how much the loan will cost you and for how much each installment will be debited from your account. The saying goes: clear accounts retain friendship! and we want to be the hand that helps you get up when you have a stumble and need help.

What happens to payment delays?

In the absence of payment, the financial institution that has lent you money will activate the late payment interest, you must also count on that if you are going to have problems in collecting your next income.

You also have to keep in mind that the non-payment of a loan, as of any debt, may also imply the inclusion in a list of delinquents, which will close the doors to the requests for next loans.
If you are hesitating to ask for your loan, send us your questions that we will answer as soon as possible.

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Residential Property Credit Law

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On 26.2.2016, the Federal Council passed the Law on the Mortgage Credit Directive. In particular, it aims to protect consumers from insolvency and oblige banks to better audit their clients before lending.

Loans only after close scrutiny.In the future, a loan may only be granted once the credit institution has carefully examined whether the claimant is solvent. The customer can terminate the loan agreement at any time – without payment of a prepayment penalty – if the lender has violated his obligations and despite the lack of creditworthiness, a contract has been concluded.
For real estate loans, the review must be particularly thorough. Because with a loan for the purchase of an apartment or a house, the buyer enters high financial obligations and thus risks. Before concluding a real estate loan, the lender must fully understand the client’s financial and personal situation, preferences and goals. He should be able to make a suitable recommendation.

Tying transactions are inadmissible

In the case of real estate loans, there is also a widespread ban on so-called tying transactions in which the loan is only available as a package with other financial products or services, such as savings accounts, Pfandbriefe or insurances. Exempted from this are consumer interest products such as Bauspar or Riester savings contracts.

Annual percentage rate of charge

The calculation of the annual percentage rate of charge shall include the interest to be paid by the consumer and any other costs, including any intermediation costs.

No eternal right of withdrawal

In order to exclude a “perpetual right of revocation”, it expires in the future at the latest after one year and 14 days. For so-called “old contracts”, which were concluded between 1. 8.2002 and 10.6.2010, the right of withdrawal no longer applies as previously unlimited. It ends at the latest 3 months after the entry into force of the law on 21.3.2016.

More expertise of intermediaries

Real estate loan brokers must in the future lead a certificate of competence, register and take out a professional indemnity insurance. The Federal Government is now also introducing the independent fee consultant for real estate loans. He must base his advice on a sufficient overview of the market and only receive his compensation from the customer who commissions him.

More protection with high disbursement rates

In case of permanent or significant overdraft of accounts institutions must offer advice on cheaper alternatives. This occurs when the customer consistently utilizes the overdraft overdraft framework for 6 months, averaging 75%. Or, on a tolerated overdraft over 3 months, he overdraws his account on average by more than 50% of the monthly cash receipt.
The consultation must take place in a personal conversation – possibly also by telephone. The place and time of the conversation must be documented. The offer must be repeated as soon as the conditions specified are met again. In addition, institutions must clearly disclose the amount of interest on the credit line on their website.