Farmers are finding it harder and harder to pay contractors.
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With the busy contracting months approaching and the silage season on the horizon, many contractors are facing a dilemma. Customers who have run up high bills with them are finding it hard to clear accounts.
The contractor is often used as another source of finance, like merchant credit or a bank overdraft. The question has to be asked, will this approach work for much longer? A number of contractors have made it known to the Irish Farmers Journal that many large farms are unable to pay for last year’s work.
Despite this, many of these contractors will again carry out work this year for customers in arrears, as they feel it is better to work with them and hope that the finances improve.
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Investment in expansion and buildings has left many farmers tight on cashflow and unfortunately, in some cases, the contractor’s bill is left on the table.
The knock-on effect here is that the contractor’s debtors in the machinery trade will have to wait for their money also. This is adding pressure to machinery dealers all over the country.
One contractor told the Irish Farmers Journal: “It has never been more important to keep a tight eye on the collection of money as this year will see more pressure on farm income.”
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With the busy contracting months approaching and the silage season on the horizon, many contractors are facing a dilemma. Customers who have run up high bills with them are finding it hard to clear accounts.
The contractor is often used as another source of finance, like merchant credit or a bank overdraft. The question has to be asked, will this approach work for much longer? A number of contractors have made it known to the Irish Farmers Journal that many large farms are unable to pay for last year’s work.
Despite this, many of these contractors will again carry out work this year for customers in arrears, as they feel it is better to work with them and hope that the finances improve.
Investment in expansion and buildings has left many farmers tight on cashflow and unfortunately, in some cases, the contractor’s bill is left on the table.
The knock-on effect here is that the contractor’s debtors in the machinery trade will have to wait for their money also. This is adding pressure to machinery dealers all over the country.
One contractor told the Irish Farmers Journal: “It has never been more important to keep a tight eye on the collection of money as this year will see more pressure on farm income.”
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