Well over 100 years combined experience
of lending to farmers
Unique in the way we think
Customer Focused Service
Created to provide the service farmers need
Properly structuring the purchase of your business investment with Hire Purchase gives you the flexibility to spread the cost over a fixed period, without the need to pay a large up-front payment. At the end of this period, you have the option to purchase the asset and own it outright.
The key benefits of hire purchase which make it so popular are:
- Quick and simple access to the assets you require, either new or secondhand.
- Spread the cost of ownership between 6 and 120 months
- Match cash flow benefits generated by the asset with a tailored repayment structure.
- Optimise monthly instalments with bespoke deposit amounts, trade ins, or both. Seasonalise your repayments within a calendar year. Or look at a final capital sum (Balloon payment) at the end.
- Take advantage of capital allowance incentives and tax efficiencies; interest and charges can be offset against pre-tax profits.
Access to use equipment without the ties of ownership.
A Finance Lease gives you access to the assets you need in return for a hire or rental amount, this avoids the cost or commitment of ownership.
With a finance lease, the monthly rentals count as a monthly expense rather than an owned asset on your business balance sheet. The rentals attract VAT which can be optimised within your cashflow alongside your VAT return cycles.
The key benefits of finance leasing are:
- Simple and straight forward access to new or used business assets.
- Keeps cash reserves available.
- Fixed, budgeted instalments with minimal upfront outlay.
- The VAT is spread over the term of the agreement and reclaimed as and when you pay it.
- Rentals are offset against profits for tax efficiency.
- If you want to regularly upgrade the asset you will receive a rebate equal to the full value of the sale proceeds you obtain for us.
Use existing assets to raise a loan
Refinancing assets you already own to unlock cash for purchasing other new equipment, settling other commitments to reduce monthly outgoings, or funding business working capital and growth is now a very poplar option in the agricultural industry.
As an established business you will have vehicles, or equipment, or plant and machinery, or land and buildings which will enable you to release locked up equity by securing funds against the asset’s current value.
Refinance is a very useful tool in farm finance as it frees up working capital on assets that are already being used in the business and have a predictable working life; whereas most traditional types of financing require additional purchases.
The key benefits of refinancing existing assets are:
- Quick and easy to release working capital when required.
- Makes good use of existing asset value and built up equity, not requiring new investment.
- The cash released can be reinvested within the business for any purpose.
- The new loan is cash flow matched to its purpose and tailored to match the depreciation and remaining useful working life of the assets used as security.
Secured Business Loans
We apply our in-house commercial, credit and legal experience to each situation to develop bespoke secured loans specifically to meet the needs of farms and rural businesses. Our intimate understanding of the farming industry means that we know you and your business may have personal and commercial plans which may overlap and need to run alongside, or work in with your traditional farming business.
Our Secured Business Loans advanced up to 75% of the security value (75% Loan to Value) and are designed to be flexible and support a wide variety of plans and purposes, whether that’s to:
- buy new land or land and buildings for business purposes,
- borrow against owned land and buildings assets on a first or second charge basis to fund a new business venture,
- refurbish or develop existing buildings to create value and new income or
- consolidate or restructure existing business debts which were tailored to receipt of a single farm payment, or other historic revenue stream.
Each of our business loans is tailored to your own future plans and requirements.
We will consider any business diversification idea and explore its viability with you and make sure the new loan is affordable.
We want to work with you for the long term and be part of your future success.