Community Loan Alternatives

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Neilc78

Registered User
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Hi, I hope I put this in the correct place. I am involved in a rural soccer club. We recently did a large upgrade to an all weather pitch. We achieved finance by taking out a loan with Clann Credo. The loan is over 140 months (12 years) with a monthly repayment of €1800 which is 7.45%APR variable. We have 166k left on the loan.

We are capable, just about, to repay this loan but now that the job is done we want to go out and see whether we can get better terms somewhere else. Has anyone any thoughts on this? I know apparently Clann Credo are supposed to be considerate if there were any issues in the club down the road with failure to repay when maybe a larger bank might be more ruthless - that is just word of mouth though.

Are there better options or should we stay where we are?
 
Hello,

Have you asked them for a reduction in the loan rate?

Did you provide security for the loan, and if so, what was it, and what value does it hold?

In truth, it's not far off what I'd expect to see for that type of loan, albeit there's usually a bit of room to renegotiate, when the debt has been performing.
 
No security against the loan. Club has an income from lotto and membership which is adequate to service it. Have not negotiated on the rate yet, I didnt think it would be something they would do. I was kind of hoping someone else out there would offer better rates and I could play them off against it.
 
In honesty, I don't see you getting a notably better deal.

I'd ask them to reduce the rate, based on the good repayment performance, to date. If they do reduce the rate, then great, if they don't, then you may be better off living with it and being content - not least, because you may need them again, in the future, and it's a good relationship to have established.

Loans to sports clubs are not particularly popular with Banks, because all Banks have had problems with them, in the past - be it gold clubs, GAA clubs etc.
 
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