Agricultural Equipment funding: Helping you afford the equipment your farm needs

Most farmers are looking to control costs, drive up efficiency - and to diversify.

Cutting costs - It can be tempting to try to get another season’s use out of tired equipment, but this can be a false economy. Older equipment will make your farm or contracting business less productive, increase the risk of breakdowns – and mean safety issues that can lead to injury and liabilities. Investing in new equipment can actually reduce costs overall.

Increasing Efficiency - There is a wealth of new machinery and technology available to help farms maximise their potential for growth and improve efficiency and productivity, helping get more done in less time.

Diversification - There are also new opportunities for profit, such as sustainably produced biomass, to create renewable energy.

Cost-cutting, efficiency and diversification can all depend on having access to the necessary funding.

Why traditional lending may not be the answer

New equipment, from tractors with full GPS positioning control to automated sprayers, can make a huge difference to your productivity.  But purchasing equipment from capital simply isn’t an option for most businesses and would leave you at a disadvantage if you need funds for an emergency. Traditional loan obligations could hang over you and put your business at risk if a crop failure means a budget shortfall.

What’s more, payment cycles vary in different farming sectors. Flexible solutions are essential to match your cash flow, to ensure that your loan commitments never become a problem.

At Rangewell we understand the problems your agricultural business faces. Our team has in-depth knowledge of the industry and of delivering affordable funding for agricultural businesses.

We help you find a way to spread the cost of the machinery, vehicles and technology investments you need, and to finance new assets.

There’s no minimum entry level for our asset finance solutions and we can fund all types of assets up to £5 million+. From renewable energy solutions to farm machinery, we’ll help guide you through the process and enable your agricultural business to take full advantage of the benefits of asset finance.

The funding options

We could fund almost any farm asset, from a combine harvester to a new milking parlour. Typical assets we help to finance include:

• Tractors
• Trailers
• Conveyors
• Grain carts
• Seeders
• Fertiliser sprayers
• Livestock feeders
• Biomass boilers and other renewable energy assets
• Milking parlours
• Robotic milking machines
• Solar panels
• Tractors
• Combine harvesters
• Crop sprayers
• Balers
• Farm vehicles
• Forestry machinery
• Dairy equipment
• Biomass boilers
• Wind turbines
• Solar PV
• Hydro projects

Your Asset Funding options

Most farmers find the solution in equipment financing and leasing. These asset finance solutions can be arranged around your budget, giving you the equipment you need and letting you spread the repayments.

Most agricultural equipment dealers will offer finance solutions, but getting funding from an independent finance provider can often mean getting the same equipment with big savings There are many finance options to consider, and getting the right type of funding is vital to keep costs under control.

We can help you with a hire purchase, lease, contract hire or refinance package.

Hire purchase

Hire purchase is the simplest form of asset finance. With HP, you can pay for the equipment you want for the long term with fixed monthly repayments over up to 5 years, letting you manage your cashflow better. Hire purchase lets you spread the cost of buying the basic equipment you will use for the long term, such as a trailer. Arrangements generally last between 12 and 72 months. You pay a deposit plus fixed monthly instalments for the agreed term, after which the assets become yours. Smaller items may be suitable for hire purchase.

Equipment suppliers will often offer HP arrangements to help them close a deal. These can sound very attractive, and can even include 0% finance options. While these look attractive, at Rangewell we have found that there can be hidden costs. You may be able to save money by arranging finance yourself.

See how we can help you beat 0% finance deals.

Leases

Finance and operating leases work like rental agreements and let you spread the cost of equipment with no upfront payment.  

This type of finance could be the best option for very high-cost heavy equipment which may have a limited life. There can be no upfront cost - you can pay for your equipment from the income it generates each month.

This means that with a lease you can have the equipment you need, and simply return it to the finance house at the end of the lease. This makes it simpler to adopt the latest technology - helping your business maintain a competitive edge.

New and used assets

Pre-owned equipment can mean major savings compared with new equipment. We can help you arrange various types of Asset Finance for used equipment, allowing you to save twice - with both a reduced purchase price, and secondly by spreading the cost of finance.

Contract Hire

Contract Hire is a flexible asset finance solution that could help reduce the cost of all types of vehicles. It lets you work with the latest vehicles, budget ahead in confidence and avoid the risks associated with vehicle ownership – like maintenance costs and depreciation.

You set up a contract with a finance company which will buy the vehicle you need, and let you hire it for a fixed period, with an agreed mileage. They will be responsible for maintenance, and will simply repossess the vehicle at the end of the contract, allowing you to acquire another new one with a new contract.

Costs can be reduced because the vehicle will be sold on - you are in effect financing the vehicle only for the time when you are using it.

Find out more about getting the right asset funding for your agricultural business.

Refinance existing assets

The equipment that your farm already uses represents a considerable investment. Asset refinance lets you re-use that investment to fund any aspect of your operation, while still having full use of your assets. The finance company will buy the asset from you, providing you with a cash sum. You then buy the asset back, with a new finance arrangement.

If you have an existing asset finance arrangement that means high repayments, or if you want to redirect cash elsewhere in your business, we may be able to help you refinance it. A new lender will pay off what you owe under your original agreement and set up a new finance arrangement.

This can cut repayments, spread them out over a longer term, or provide you with a cash lump sum as well as a new finance agreement.

You can use asset refinance to release cash or to replace existing finance deals to reduce your monthly outgoings. Find out more about refinancing assets.

How we help you capitalise your farming business

At Rangewell we work across the entire lending industry, and we have finance experts have personal experience in the needs of the agricultural sector - from equipment finance to finance to diversify your farming business.

That means we can provide a unique service. We will help you to find the most appropriate funding from lenders across the market – from established high street banks to alternative funding suppliers.

Call us for the answers your farming business needs.