Agricultural

Asset Finance

Farming involves long hours and hard work, we can help fund new machinery to make life a bit easier.

FINANCIAL SUPPORT

For Your Agricultural Needs

Farming is vital for both our economy and our survival. We understand that this is an incredibly challenging industry and we are here to help our farmers thrive.

The advancements in technology have accelerated rapidly in recent years and this goes for agricultural machinery too. The modern machinery and technology available to farmers has turned farms into larger, more efficient businesses that can cope with an ever-growing population.

As great as this new technology is, we understand that the cost of buying and running it is much more substantial than financing the tools of the past. Raising capital to obtain these assets can be difficult, time consuming and most likely frustrating when you’re trying to concentrate on your own business.

This is where we come in; with our extensive knowledge of funding solutions, we can search the market for the most competitive rates and liaise with the supplying dealer to ensure the process is as seamless as possible for you.

We can tailor a finance package to suit you and your business; spreading the cost of your machinery, vehicles, technology and equipment. This can be done through Hire Purchase, Lease or a Refinance Package.

Have you ever considered the extra opportunities that your farmland can bring? Investing in renewable energy may be a fantastic option for you. Not only will this reduce running costs on your farm, there is also the potential to earn money from Wind Turbines, Solar Panels and Biomass due to the government running various schemes and incentives.

Whether it be a combine harvester, a wind turbine or dairy equipment; we are open to looking at funding any asset you may need to help your business succeed.

Get in touch today to discover what funding is available to you!

Tractors
Self-propelled harvesters
Cultivation Equipment
Milking Parlour Equipment
Poultry Equipment
4x4s/Pickup Trucks
Balers
Diggers
Mowers
Orchard Equipment
ATVs
Excavators
Silage/ Forage Equipment
Slurry/ Manure Equipment
Telescopic Loaders
Trailers
Sprayers
Wrappers
Diggers
Forestry – Mulchers
Generators

Please note that whilst this list is extensive it is not exhaustive. Please contact us with any Asset queries you may have.

Finance products for renewable energy

Hire Purchase

HP is a secured loan on your asset. It allows you to acquire the asset immediately with a small deposit. You pay monthly instalments over the agreed term which spreads the cost of your investment. At the end of the term you can pay a nominal ‘option to purchase’ fee and you will own the asset outright.

HP helps keep capital in your business making it easier to budget. It is a popular finance product for businesses looking to purchase any type of asset.

Capital Release

Refinancing the current assets on your balance sheet is a great way to get a cash injection in to your business. We buy the asset from you; and you buy it back from us on a Hire Purchase agreement over an agreed term.

Improved cash flow and available funds can be used to acquire additional assets, or put it to use in any part of your business you choose. At the end of the refinance term you will once again own the asset.

Finance Lease

A finance lease can be set up as a full pay out agreement or with a balloon payment on the end. This allows you to acquire the asset without having to buy it outright. You choose what deposit you’d like to pay and the length of term. Rentals are paid each month and at the end of the contract you can return the asset to the funder, sell and keep a portion of the income or continue using the asset in a secondary rental period.

This flexible finance agreement provides a low initial outlay, VAT can be reclaimed on rentals and the cost can be offset against pre-tax profits.

Operating Lease

An Operating Lease or Contract Hire as it’s also known, allows you to rent the asset over an agreed term. A residual value (rv) is set by the funder based on the value of the asset at the end of the term.

Payments will be lower than that of an HP as you are only funding the depreciation of the asset during the time you have it, not the full cost of the asset as you would do if financing to own. At the end of the term you hand the asset back and walk away meaning you have less hassle trying to sell or negotiate a trade-in.

Asset finance covers a range of funding options available to businesses. A company may be looking to acquire new machinery, plant or commercial vehicles but rather than purchasing the asset outright, they can spread the cost, which helps improve cashflow whilst keeping capital in your business. Many assets are financed with the aim of owning at the end of the contract. However, other options are available which may include a lease.

A lot of businesses won’t have readily available funds to purchase high value items. Or even if they do, they may not want to use it in these uncertain times. More often than not they will look at financing.

Another option for a company that needs a cash injection is to re-finance their existing assets. The funder may purchase these from you and sell back on a finance plan. You get a cash lump sum and pay it back whilst retaining the asset for business use.

An asset is an item of value that can be converted into cash. This can cover a broad range of items. Business assets are acquired to serve their purpose within a company and as a tool to generate income.

In short, we can offer…

Hire purchase

Finance Lease

Operating Lease

Re-finance

Any business or organisation, including Sole Traders, Partnerships, Limited Companies and Public Limited Companies. The company will need to pass credit and affordability checks before finance is approved.

This may vary depending on the funder but usually ranges from £1,000 - £10 million. The amount of borrowing will be determined by your affordability and credit score.

Most Asset Finance agreements will offer a term of one to seven years to pay back. However, this may be extended in certain cases at the discretion of the funder.

The list of assets that can be financed is extensive and covers such a wide range of items. Generally the likes of vehicles, machinery, plant and equipment are the main ones and these are classed as Hard Assets. Soft Assets would cover the likes of furniture, IT, electronics, software etc.

Our funders are open to considering any Asset so please get in touch if you have something not on the general list.

Yes, quite often we will fund second hand assets. However, they must be in good working order and likely to remain that way for the duration of the finance agreement. Also the finance company will usually stipulate that it be bought from a reputable dealer rather than a private sale.

  • Smaller outlay when purchasing high-value items.
  • Spreads the cost over the term rather than having to pay a lump sum.
  • Fixed payments mean you can budget for your asset over the agreed term.
  • The equipment acts as security for the loan as its secured on the asset.
  • Full maintenance packages can be added to a lease agreement.
  • Keeps important capital safe in your business.
  • Avoid depreciation risks on a lease agreement.
  • Alternative to other lending methods such as bank loans or overdrafts, which typically charge higher interest rates.
  • Failure to pay will result in the equipment being removed and will affect your company’s credit score. This could cause serious issues for your business.
  • Leasing means you are paying for an item you may never own. However cost savings and lower payments still tend to make this a cheaper option.
  • Asset finance should be viewed as a long-term product to assist your business; not a short-term solution for money problems.
  • You will be liable for any damage to the asset if returning at the end of a lease.

We understand farming is a challenging industry. Long hours and hard work all year round!

The latest farming technology can save you time and money… but it can be expensive!

Our finance can provide affordable funding solutions to help you move forward.

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