Farm finance is growing again, with access to pools of capital through specialist lenders. It’s an attractive sector, as farmers need large loans that can be secured on real assets, but it’s also quite complex.
With the high street having lost their agricultural teams, farmers are now able to access specialist business lenders such as UK Agricultural Finance proving much needed money to help build their businesses.
UK Agricultural Finance is typical of the new lenders that have appeared, but with an unusual specialism, since it only lends to the agricultural sector.
The company was formed to meet the demand from farmers for short and medium-term lending throughout England, Scotland and Wales, after the banks cut their specialist lending teams during the financial crisis.
It’s an area requiring specialist knowledge and a lender willing to offer traditional face to face underwriting. The government has recognised that “farming requires high levels of investment and the lack of sufficient funding is a major threat to these businesses and their prospects”.
Fortunately, UK Agricultural Finance’s team knows rural property and rural businesses, the many challenges they face, but most importantly their appeal. They also understand how to make business loans against agricultural land where a ‘one size fits all’ doesn’t work.
The company prides itself on working with the leading experts in agricultural valuation, security and restructuring to ensure swift informed and fair decisions. They lend their own funds and are committed to responsible lending, by always acting with integrity and delivering on time, every time.
Their approach is pragmatic and flexible, with borrowers able to talk directly to the lending decision makers.
Their core product is a bridge loan, but UK Agricultural Finance is excited to announce the launch of a medium-term, lower cost loan product providing finance up to seven years, growing the suite of solutions that the farming community can access for the financing needs.
Showing how flexible their approach is, we’ve found farmers who have used their loans for: -
Diversification
Farmers have used their capital to diversify increasing revenue and reducing risk. The lending team understands this and the benefits it brings in the current market, as the team has direct experience of building new businesses.
Purchasing new farmland
Additional acreage or a unique property opportunity may come available at any time and often at short notice. UK Agricultural Finance can move quickly to help secure this and expand a farmer’s business
Property
Their finance has allowed farmers to develop, renovate or repair property for capital appreciation and income generation.
Renewable energy
Renewable energy projects can be a great source of additional income and add real value to under-utilised land on a farm, or even turn waste products into revenue. The company has provided the construction finance for various projects, allowing the farmer to retain ownership of the entire business and then access cheaper funds once the project is operational.
Livestock Finance
Farmers often need to finance to expand their livestock holdings and UK Agricultural Finance’s facility can provide a flexible option that can be used repeatedly, allowing them to make judicious purchases or sales, depending on the market.
Recovery & Restructure
UK Agricultural Finance understand the need to take control and rationally plan when financial pressure is acute and their facility can provide a window to achieve this.
Tenancy Right to Buy
Tenant farmers often have a right to buy their land, UK Agricultural Finance may be able to help with a loan based on the open market value of the land, rather than the actual discounted purchase price.
Generational Transfer
Farmers who are looking to transfer their farm to the next generation can use UK Agricultural Finance’s facility to help them achieve this.
UK Agricultural Finance would be delighted to talk through any opportunity and look forward to working closely with the agricultural community, helping them find solutions for the massive demand for rural finance and any challenges or opportunities they may face.
You can contact UK Agricultural Finance by clicking here, via email info@ukagriculturalfinance.com or phone 020 7030 4955
