A new partnership has been created to help farmers who are struggling to obtain funding for urgent or complicated projects, in the first partnership of its kind.
UK Agricultural Finance and NatWest have joined forces to offer loans to farmers who may not have immediate access to high street lending.
The agricultural lender, founded in 2015, has become the first agricultural specialist to join Capital Connections; NatWest’s panel of alternative lenders.
Set up to offer complementary sources of capital to small and medium-sized businesses, Capital Connections signposts NatWest customers to sources of finance outside of its traditional high street arm.
“Mainstream agricultural lenders are very good at offering conventional loans, but it can be more difficult for farmers to access funding for business development, diversification or restructuring,” explained Robert Suss, CEO of UK Agricultural Finance.
“Often projects are urgent or complex, requiring a bespoke solution rather than an off-the-peg package.
He added: “As agricultural specialists, we understand farmers’ needs, and can create a loan to suit their circumstance, whether that’s providing for delayed repayments or higher loan-to-value ratios.”
Loans of between £100,000 to £10 million are secured against agricultural land and property across England, Scotland and Wales.
Terms are available from one to seven years with a maximum loan-to-value of 65%.
'Transformational'
Ian Burrow, NatWest’s head of agriculture and energy, agreed that traditional funding routes are not always the best option for businesses in the rural community.
“Now UK Agricultural Finance will be able to provide loans to help farmers diversify or grow, ease generational transfer, or purchase tenanted farms, for example,” he said.
Lord Davies of Abersoch, chairman of UK Agricultural Finance, said the new partnership will be transformational in supporting the farming community with access to flexible and reliable finance.
He said: “The pressure on British farmers to be globally competitive, innovative and eco-friendly is greater than ever. This partnership will enable us to provide more rural businesses and farmers with vital access to capital to enable them to diversify, sustain, grow and improve their businesses.”
