Farms need to be able to overcome problems that are out of their hands in order to remain sustainable and resilient. Finance is also one of the biggest challenges in the agriculture industry. When farms need new machinery, transportation or even buildings, it can be difficult to raise the funds to pay for it in one go without harming cash flow. Finance can also be an option within the industry to expand and create more revenue.
Loans to purchase equipment/machinery and tractor financing
Whether you are looking to update your equipment and machinery or are wanting to expand your business further, there are various loans available that can be a financial solution.
If you are seeking a tractor to add to your farm, then there are options that we are able to help guide you through. If it is a short-term problem that you are looking to solve, some lenders provide a short-term tractor rental. But if you are looking for a long-term permanent solution a finance lease or hire purchase contract may be better suited as you’ll eventually own the tractor.
Loans for farm materials and livestock
We understand that farming doesn’t just involve large equipment and machinery; livestock, feed, seeds, and fertiliser are crucial to the success of the farm. Sometimes it is necessary to spread the cost which can be relieved with an unsecured loan.
- Finance for the purchase of livestock such as sheep, cattle, pigs etc
- Finance for various animal feed
Loans to buy new farm buildings or agricultural land
There’s a wide range of commercial property finance that can help farms acquire more agricultural land or build new farm buildings, with various finance options available.
- Grain and feed stores
- Bulk sheds
- Chicken sheds
- Beef cattle housing
- Other land and building purposes
- Preserves your working capital
- Access to high standard equipment
- Allows you to expand/refurbish without being tight on cashflow
- Can work out more expensive than buying the equipment outright
- Depending on what loan type your business decides to commit to, you do not own the assets so they cannot be classed as an asset within the business
If you are not sure about what the best finance option for your farm is, we can advise you on the best path for your business. Either phone to speak to one of our experts directly on 0203 880 9880. Alternatively, fill out the form below to find out how eligible your business is for asset-based finance an alternate financial solution.
A sole trader farming company, producing an array of vegetables and meats for customers that have been trading for over 70 years.
We were approached in 2018, when the client was requiring a loan in-between 35-50k in order to purchase a land rover for their business. This was to upgrade to a more suitable and reliable vehicle in order to get around and maintain their traveling capabilities.
They spoke to one of our experts, and we decided the best loan for his business would be asset-based finance. Asset-based finance is a type of lending that allows business owners to finance new assets such as equipment, machinery, and vehicles.
The benefits of using asset-based finance are:
- Due to the loan being asset-based, The client can invest in the assets of their business multiple times.
- Obtain the finance quickly, due to the loan having fewer qualification criteria.
To find out more about asset-based finance click here. Finding the right finance is essential for any business, in this case, it meant the client could get funds quickly and simply in order to upgrade their vehicle to something better suited for the farming business.