It’s an attractive sector as farmers need large loans that can be secured on real assets, but also quite complex. With the high street having cut their agricultural teams, brokers able to access specialist business lenders – such as UK Agricultural Finance – can really help their clients build their businesses.
UK Agricultural Finance is typical of the many 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 and the many challenges they face but, most importantly, their appeal. It also understands business lending 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.
Its 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 broker community can access for the financing needs of their rural clients.
Reasons why farmers may use agricultural financing:
Diversification
Farmers have used their capital to diversify increasing revenue and reduce risk.
Purchasing new farmland
Additional acreage or a unique property opportunity may come available at any time and often at short notice.
Property
Farmers can 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 finance to expand their livestock holdings, where facilities can allow them to make judicious purchases or sales, depending on the market.
Recovery and restructure
To take control and rationally plan when financial pressure is acute.
Tenancy right to buy
Tenant farmers often have a right to buy their land, where lenders such as 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.
You can find all UK Agricultural Finance's products on their website by clicking here
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