Each farming business is unique and faces its own financial challenges, especially in the current economic climate which has increased uncertainty and risk.
Farmers often need access to funds to help with the expansion or diversification of their business. Whether this involves investing in new machinery, from milking equipment to vehicles or growing your livestock holding to improve the genetics of your dairy cattle, the cost of these investments can be significant.
Agricultural businesses face the same difficulties in securing finance solutions from traditional lenders as any other business.
At Finance for Farms, a branch of Shire Leasing, we have a variety of finance solutions designed specifically to help British farmers run and grow their business.
In this article, we go into detail about what agricultural finance is and the various projects you can secure funding for, as well as the many benefits of finance.
What is agricultural finance?
Agricultural finance options vary depending on the needs of the farming business. They come in a variety of forms, including equipment leasing, cattle leasing and business loans.
Agricultural equipment or cattle leasing works as a type of extended rental agreement, which enables you to secure instant access to the machinery or livestock you require, as you make regular, manageable payments to the lender.
These alternative finance solutions give you access to vital assets without having to pay an enormous upfront cost, allowing you to protect your cash as you support your growth.
Agricultural equipment and cattle leasing provide a boosted level of flexibility, allowing you the option to upgrade your equipment or increase the size of your herd.
What assets can be financed?
The range of finance solutions available means that no matter what your farming business needs, Finance for Farms can provide a finance solution that enables you to gain access to it.
The projects you can secure funding for include:
- Farm diversification
- Renewable energy
- Expansion of buildings
- Tractor and harvest machinery
- Milking equipment
- Bottling plants
If you are not sure whether your business needs can be met through farming finance, why not get in touch with our team of experts and discuss the most suitable solutions available for your business? We are on hand to help!
What are the benefits of agricultural finance?
There are many ways your farming business can benefit from securing funds through agricultural finance. Here are 5 of the key advantages:
No major upfront costs
If you’re unable to secure funding through traditional lenders, then your main option to gain access to the asset(s) you need is to make a significant cash payment upfront. However, with a leasing agreement, you can spread the cost through regular payments and protect your vital cash flow, which is crucial for small or new businesses, especially considering the instability of the current UK economy.
Another significant benefit of agricultural finance is that you may benefit from tax relief for the length of your agreement. This is because finance rental payments can be 100% tax deductible against your profits, allowing you to potentially reduce your net expenditure.
Tailored repayment options
We understand that cash flow and income for farming businesses fluctuate seasonally, which is why we offer flexible terms in your agreement such as seasonal payments and other tailored repayment plans.
Applications for funding from traditional lenders can take time. With Finance for Farms, you don’t have to worry about a lengthy or drawn-out application process.
With in-house underwriters to focus on your application, we’re able to offer finance decisions in an exceptionally fast turnaround time, averaging at 4 hours.
Cost effective way to expand your business
Access to alternative financing solutions gives you the opportunity to expand or diversify the way your business operates, providing you with the potential to completely transform your farming business without the pressures of insufficient funding.
Agricultural Finance from Shire Leasing
Farming businesses have so much potential for expansion, but to tap into it requires a significant amount of funding. That’s where Finance for Farms can help. Our bespoke financial solutions can enable you to pursue amazing business opportunities sustainably.
To find out more about how Finance for Farms can help you gain access to crucial assets and achieve your business growth through agricultural financing, don’t hesitate to get in touch with our team today.