Finance and Rural Business – CLA Webinar with our Founder Matthew Smart
Almost every business, large or small, will require additional funding at some point in it’s lifecycle. There are a variety of funding sources available in a market which although at first glance can look relatively simple, until you look beneath the surface at the actual products, their applications and the implication and cost of using them.
What do businesses need finance for?
Businesses need to raise external finance for many reasons. For many rural businesses these needs include : –
- Restructuring the business’ current debt
- Purchasing a farm or additional land
- Purchasing property
- Purchase new vehicles and equipment (such as tractors and drills)
- Buy new stock
- Development of infrastructure (such as new buildings or milking parlour)
- Diversification
- To buyout family members’ or business partners’ interests in the business or land.
When looking for finance, it is essential that businesses discuss their plans with their advisers, for example their accountant who can help them determine the best funding source, or combination of sources, clearly laying out the pro’s and con’s of the available choices, and, hopefully helping businesses avoid unforeseen costs and issues.
The recent CLA webinar – where Albert Goodman Accountants Farms & Estates Director Tom Stone and Matthew Smart of Rural Asset Finance Ltd – set out some of the advantages and disadvantages of the more common funding types in more detail in the video below;
