Finance for livestock farming
The challenges facing poultry, meat and dairy farms have never been more acute. We can help you find financial answers
- Spread costs over 6-60 months
- Rates from 6%
- We can often undercut ’0%’ deals from equipment suppliers
- Balloon payment options - reduce monthly outgoings
- No capital requirement
- Acquire any type of equipment
- Asset refinance available
- No upfront costs
- Agricultural mortgages from 2% above base rate
- Raising funds with a commercial remortgage
- Secured lending from 2% above base rate
- Unsecured lending from 4.9%
Talk to Rangewell – the business finance expertsThe traditional sources of funding for farming seem to be less helpful in recent years. At Rangewell we cover the entire lending market. We know the lenders who can help, and our expertise and contacts let us find the most competitive funding for your livestock business.
The pressures on livestock farmers are increasing. There are increasing concerns about animal welfare, especially on intensive operations. There is a growing demand for organic standards throughout meat and dairy operations.
At the same time, there is the constant demand from buyers for costs so low that some sectors are starting to seem no longer economically viable.
The end of EU subsidies will change the financial certainties. There may be a greater demand for homegrown food, and some areas, like the organic sector, may even experience increased demand.
The one thing that you may be certain of is that your farming business will need to access finance to remain afloat.
Of course, finance is changing too. Once, arranging the finance you needed meant a trip to the bank. These days, there are many more lenders and many new types of funding for you to take advantage of.
Funding options for your farm
The first step in securing the funding you need for the future of your farm – or your farming-related business - is to look at the different types of finance available. Matching your funding need with the right type of finance can reduce your costs, save you time, and make it easier to turn your plans into reality.
Fortunately, there are funding options which can help you finance the equipment you need.
- Funding for agricultural land
- Funding for equipment with asset finance
- Asset Refinance
- Funding for plant and energy installations
- Funding for livestock
- Funding for feed
- Funding business acquisition
- Helping Tenant farmers become landowners
Funding for land
Buying land to work, or acquiring an entire farm, may be part of your strategy for the future. The price of agricultural land varies greatly across the country, but any acquisitions are likely to require large-scale funding.
Commercial Mortgages can be used to buy any kind of commercial property, including agricultural land, premises or an existing business. Repayments can be spread over up to 25 years, and interest rates are agreed on an individual basis.
However, a Commercial Mortgage may take time to arrange. Bridging Finance can be used to provide fast access to funds if you are buying a property at auction, or waiting for a mortgage to be approved.
Commercial Property Finance is arranged on an individual basis. Get our help finding the most competitive lender.
Funding for equipment
Machinery and vehicles are becoming ever more important to drive efficiency and profitability on farms.
It is more than simply buying tractors with GPS. There is a growing range of farm automation that you can’t afford to be without, from robotic milking parlours to drones.
Asset finance can help make the equipment you need more affordable, by spreading the costs over time. Your new equipment can pay for itself from the extra productivity and revenue it generates.
With Asset Finance, the funds you need are secured on the asset itself. This means that if you were unable to make the repayments the lender would simply repossess the asset. It can also reduce the cost of the finance, as lower risk to the lender usually means lower interest rates to you.
There are many types of farm machinery that can be acquired with Asset Finance:
- Dairy machinery - Milking equipment, housing and sheds
- Poultry houses - from barns to intensive facilities
- Feed stores - grain sheds, stores and silos
- Farm buildings - barns, sheds, shelters, extensions
- Loader equipment - trailers, trucks and conveyor belts and telehandlers
- Tractors, together with accessories
- Vehicles - ATVs and livestock transport
There are several different types of Asset Finance:
Hire Purchase lets you hire equipment, vehicles and buildings until you have paid for them. Agreements generally last between 12 and 72 months and require a 10-20% deposit plus fixed monthly instalments, after which the equipment becomes yours. HP may be most suitable for equipment you will use for the long term.
Leasing is much like a rental agreement. You pay a monthly charge to use the asset. With some arrangements maintenance, repairs, and registration will be the owner’s responsibility. It’s common for things, such as tractors and other vehicles, which will have a limited life – it means you can easily update your equipment when you need to.
Contract Hire is also used for farm vehicles. Payments are calculated on the purchase value less the estimated value of the vehicle at the end of the agreement. This helps keep monthly repayments down, and makes it simple to switch to a new vehicle at the end of the agreement.
Our Asset Finance team can help you lease or Hire Purchase almost any type or value of farm equipment, new or used. Find out more here.
Refinance Existing Assets
Your farm has probably already invested heavily in equipment. Asset Refinance lets you use that invested money again, while retaining full use of your assets. The finance company will buy the asset from you, providing you with the cash sum you need. They then let you buy the asset back from them, with a new finance arrangement.
You can use your cash again, or simply use a refinance arrangement to reduce your monthly outgoings. Find out more here.
REAL EXAMPLES OF WHAT WE CAN DO
Find the most competitive funding to allow a new contractor to set up in business
Help an established farmer find funds to acquire additional acreage
Source funding for a robotic milking parlour
Find the most competitive finance for a farm consolidation
Help arrange funding for tractors a barn and poultry sheds in a single arrangement
Why arrange your own finance?
Equipment vendors may offer finance arrangements to support their sales. But their finance plans may be designed to support their business rather than yours. Arranging your own finance from a specialist lender can be more cost-effective and mean substantially reduced costs.
Funding for plant and energy installations
Anaerobic Digestion (AD), biomass, wind and solar power are all becoming key to efficient farm businesses.
Hydropower is also becoming a possibility in some locations.
They represent major investments, and may involve complex ‘jigsaw funding’ with finance arranged from a number of sources, including grants, Asset Funding and lending.
Our experts can help you find solutions for the level of funding you need.
Funding for livestock
Livestock has historically been bought with cash reserves or overdrafts. It is possible to provide lending solutions for the livestock you need, supporting your drive to build your herd, improve genetics across your stock.
Our funding solutions can include:
Our experts can help you find solutions for the livestock you need.
Funding for feed
The costs of feed fluctuates, especially in winter, and represent a major expense.
Dealing with the costs can eat into your working capital. The costs of running your farm will not stop there. Wages, diesel and vet bills all mean ongoing expense.
We can help arrange short-term Working Capital Loans to deal with the costs. Find out more here.
Funding for building or buying a farming business
Building or buying your farm business will demand investment. While your bank may still be able to provide lending, there are now many other providers who may be more willing to lend, and may be able to offer more attractive rates.
Most business loans are based on monthly repayments. However, there are lenders with experience in the farming sector who understand the pressures of seasonal cash flow. They may be able to make arrangements for quarterly repayments, or even special lending agreements to reflect seasonal income streams.
Unsecured Loans don’t involve holding any assets as security against the loan, which is repaid in monthly or quarterly instalments over an agreed term, usually under 5 years. Modern lenders can provide fast Unsecured lending, but you might need to provide a personal guarantee.
Unsecured loans can be arranged to provide as much as £350,000, but borrowing at this level may be more cost-effective with a Secured loan.
Secured loans are ‘secured’ because the lender will require security in case you cannot pay the loan back. This could be your home, or business assets, such as your land itself.
You can have longer to repay, and enjoy lower interest rates, meaning monthly repayments can be smaller and easier to fit in with your cashflow.
Even if your business does not have the long trading history and profit record that lenders usually require, there are lenders who can help.
We’ll discuss your needs, and help you find the kind of loan to fit your business needs. <link>
Helping tenant farmers become landowners
Buying your farm tenancy might sound impossibly ambitious, but it may be possible with a Commercial Mortgage.
You can borrow up to 60% of the full value of freehold land, which your tenanted farm will become, on completion of the sale. Loans can last for up to 30 years, and can pass from generation to generation, so don’t need to be repaid if the borrower dies.
Find out more about lending to help tenant farmers buy their farms. <link>
Funding to support your cashflow
Cashflow is a major challenge for every business. Having to wait weeks or months for invoices to be paid by produce buyers can trigger a cashflow crisis, but there are ways to help.
Invoice Finance provides cash advances based on the value of invoices you have issued, but have yet to be paid for – in effect letting you get paid as soon as you invoice.
Both Invoice Factoring and Invoice Discounting allow you to release the funds you need as soon as the produce leaves your farm.
How we help you capitalise your farming business
At Rangewell we work across the entire lending industry, and we have finance experts with personal experience in the needs of the agricultural sector.
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. Our specialist teams, experienced staff and land agents can give you all the help you need to develop a proposal and choose the right loan.
Simply call us to see how we can help your farming business find the cash you need to succeed.
Meet real farming business owners
Helping you build your profits
Repayments scaled to fit your operating budgetAsset finance can be arranged to help your repayments fit your monthly budget. You may not even need a deposit with some types of finance.
Reduce capital needs by spreading repaymentAsset finance avoids the need for large capital expenditure, by spreading the cost of your vehicles and equipment over months or years.
Funding for your growing businessAsset finance can work at any scale, from an ATV to a robot milking parlour.
Reducing the risk to your businessSome type of funding can put your business assets, or even your home at risk. With Asset funding if the repayments became a problem, the lender could simply repossess the equipment.
A single arrangement can cover all your equipment needsAsset funding can cover virtually any type of equipment, and a single arrangement can cover items from multiple suppliers.
Better than 0% financeSome farm equipment dealers may offer 0% finance deals. Call Rangewell to understand how we can help you pay less than these ‘interest free’ deals.
Download Rangewell’s free and detailed guide to Finance for Farming
What types of finance are there - which do you need?
What is Asset Finance - and how it gives you a business advantage
Why not all providers are equal - finding the one that’s right for you
How we can help you pay less than 0%
The downsides to finance - and how to avoid them
How to arrange finance - what paperwork do you need?
Key terms explained
You must have the right funding arrangementThere are many forms of business finance. Getting the most appropriate type for your particular needs is essential to avoid keep costs under control.
Asset finance means a monthly commitmentInvesting in new machinery with asset finance will mean repaying from month one. Turnover may not increase immediately.
Long term financial commitmentsYou may not be able to pull out of a finance arrangement once it has been set up.
Our service is...
ImpartialTransparent and independent, treating all lenders equally, finding the best deals.
In-depthEvery type of finance for every type of business from the entire market - over 300 lenders.
In-personSpecialist Finance Experts support you every step of the way.
FreeWe make no charge of any kind when we help you find the loan you need.