A poultry farmer has received a £3m loan to help develop their business as UK Agricultural Finance (UKAF) continues lending throughout the Covid-19 crisis.
The £3m loan was provided to borrowers by UKAF, a specialist agricultural lender, which operates across England, Scotland and Wales.
The financial firm said it was a complex loan to assess, as there were numerous different assets related to the core poultry business, with the acreage and security split across multiple plots.
The separate plant being funded should result in the removal of all of their commercial heating needs, while also enabling rainwater harvesting to reduce water charges.
While the borrower has several existing high street lender relationships, they were unable to provide the necessary finance in the time required, given the complexity of the loan and their Covid-19 limitations.
UKAF said it prides itself on helping the rural and agricultural communities to diversify, sustain, grow and improve their business.
Their team worked with the broker and the borrower to structure a loan that met the farmer's needs, without compromising their existing high street borrowing.
UKAF’s ability to lend against agriculture land makes social distancing easier to maintain. Despite the easing of lockdown, more traditional lenders to the sector remain reticent and UKAF is finding their enquiry and pipeline very strong.
Susan McIntosh-Gibbs, head of business for Midlands UKAF said: “Working within a specialist agricultural underwriting team that prides itself on face-to-face underwriting allows us the time to meet farmers to understand the nuances of the particular opportunity which help to provide responsible, informed underwriting decisions.
"Working closely with Goodman Corporate Finance helped the borrowers remain informed and secure the right type of financing.”
Paul Goodman, chair of the NACFB and founder of Goodman Corporate Finance said: “Sue and the team at UK Agricultural Finance, took ownership of the loan and worked hard with our team to get the right financing for our client.
"It is very refreshing to see this in the marketplace and we at Goodman Corporate Finance value this level of determination and ownership to deliver for our clients.”