A lending scheme which helps to fund purchases of farm inputs has recorded loans of more than £1 million in its first year and returned interest of 5.05% APR equivalent to depositors.
AF Finance was launched to allow members to lend surplus funds to others who require short-term finance to buy agricultural inputs through the group.
At the end of its first financial year, it recorded loans that totaled £1,056,000.
"At a time when the Government is calling for the establishment of a business bank to boost the provision of finance to small businesses, we’re delighted to be able to mark such a successful first year" said CEO Clarke Willis.
"We were aware that some of our members had surplus funds which weren’t earning them a vast amount of money while others were in need of revolving credit."
"That led to the creation of this peer-to-peer scheme which allows members to work with other members for mutual benefit."
"Being able to access un-secured crop credit means our members can buy their key inputs, such as animal feed, seed and fertiliser, when prices are at their most competitive."
Building on the success of its first year, the scheme is now being extended for the next 12 months.
