Farm Subsidy Payment Cashflow Finance

Farmers are struggling with cash flow problems because of late payments of subsidies. Many - as many as a third of all farmers - who are due subsidies in January are still waiting for payment in June.  

The bills keep coming in, and creditors won’t wait. You have workers to pay, feed and diesel to buy and finance repayments to make.

This means that the delay in payment leaves many farmers in financial difficulties. In some cases, these are so severe that businesses could go to the wall. The solution can be a Farm Subsidy Payment Cashflow Finance provided as a Bridging Loan.

What is a Bridging Loan?

Bridging Loans are large-scale, short-term loans. They are so-called because they “bridge the gap” in funding needs for the short term until your subsidy payment arrives.

Bridging Finance is secured on a property. It is most often used to buy the property it is secured on, but it can also be used to raise funds on a property that is already owned. This provides a cost-effective solution when you need to raise cash for virtually any short-term need. Bridging Finance can be secured against nearly any asset, although property is most often used as the security. Some lenders will accept a second charge security, meaning that the loan can be against a property which is already under a finance arrangement such as a mortgage.

It can also be fast. Unlike high street banks, bridging lenders can turn a loan from application to approval in a very short space of time - often less than a week, and sometimes in as little as 48 hours.

If you have a cash flow crisis and don’t know when your subsidy will be paid, the flexibility of a Bridging Loan can be ideal.

How much will Farm Subsidy Payment Cashflow Finance cost?

You can apply for the level of Farm Subsidy Payment Cashflow Finance you need to keep your business running from £thousands to  £hundreds of thousands.

Obviously, the cost will reflect the size of the loan and for how long you actually need it. However, because you have the certainty that your subsidy will be paid eventually, the risk to the lender is low and the rates can be reasonable - especially as you can arrange to repay as soon as you subsidy arrives.

You simply need to provide suitable property to act as security for the loan.

So you could, for example, raise funding on a farmhouse to bring the cash you need to keep the business afloat. Once you have received the subsidy payment from the government, you can repay the amount you have borrowed, together with interest and fees.

Why you need Rangewell to set up a Farm Subsidy Payment Cashflow Loan

Bridging Loans are designed to be set up fast to let you deal with urgent funding needs or to take advantage of business opportunities. But unless you have expert help, you can find it difficult to get the most competitive deal. 

At Rangewell, we can help you find the most competitive deal for the loan you want.

Our knowledge can not only help you secure the funding you need for your livestock project  - it can save you a great deal of cash.

Remember, Farm Subsidy Payment Cashflow Finance is designed for short-term use. If you need long-term funding to replace it, we can help with that too.

Call us to find out more.