Every type of finance for the meat processing industry

Today, the traditional techniques have been joined by new preserving and treatment processes. Meat processing has become a multi-billion international industry, ranging from very large industrial operations to small craft businesses that make products such as sausages and traditional cured meats.

At Rangewell, we work with food businesses across the UK. We understand the growing potential of meat processing and have experts working with businesses in the sector.

Look at all your funding options

We can work with you to understand your finance needs and look at your funding options, whether you want to set up on your own or acquire an existing business.

You may need to find the right funding option to allow you to:

• Acquire premises
• Bring in equipment and buy assets
• Release cashflow by refinancing assets
• Finance growth
• Deal with tax
• Buy-in/Buyout
• Provide working capital

Finding the right type of finance for each need is essential to keep control of costs.

Funding for your premises

Premises may represent a high cost for your meat processing business. The cost of renting a suitable industrial unit with adequate storage may be high and will have service charges and business rates on top of the bare lease.

If you rent your premises, you may need upfront funding to secure the lease. We can provide a number of solutions to help you with the costs.

However, renting means you will remain at the mercy of your landlord, and at risk of rent increases. At Rangewell, we can help you find funding to help you buy your premises with a Commercial Mortgage.

A lending manager will look at each application and will set the rate according to the risk. You may need a detailed business plan - the better your business proposition, the better the rates you are likely to be offered.

Find out more about funding to lease or buy your premises. 

Paying for equipment with Asset Finance

You may need a wide range of equipment to operate any kind of meat processing operation. The list of equipment you need can include:

• Cutters
• Curing Chambers
• Deep Fryers
• Dehydrators
• Grinders
• Injectors
• Mixers
• Patty Makers
• Refrigeration and blast chillers
• Sausage Stuffers
• Saws
• Scales
• Slicers
• Smokehouses
• Stunners
• Tenderizers
• Tumblers
• Vacuum Sealers
• Wrapping and packaging equipment

Asset Finance - Hire Purchase and leasing - can make the equipment you need affordable. With Asset Finance, the equipment or asset, is used as the security for the loan itself. This means that if you were unable to repay, the lender would simply repossess it, reducing the risk to the lender and the cost to you.

Hire Purchase

Hire purchase lets you spread the cost of buying the equipment you will use for the long term. Arrangements generally last between 12 and 72 months and need you to pay a deposit plus fixed monthly instalments for the agreed term, after which the assets become yours.

Equipment vendors may offer hire purchase arrangements to support their sales. At Rangewell, we have found that arranging your own finance can be more cost-effective.

Finance and operating leases

Leases work like a rental agreement and let you spread the cost of the equipment with no upfront payment. This type of finance could be the best option for equipment which will have a limited life.

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.

Find out more about Asset Funding for manufacturing equipment. 

Refinance existing assets

The equipment that you already have in your meat processing business represents a considerable investment. Asset refinance lets you use that investment again, to fund any aspect of your business, while still having 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 asset refinance to release cash or to replace existing finance deals to reduce your monthly outgoings. Find out more about Asset Refinance. 

Business loans

Loans are the best-known forms of business finance. There are two main types: Secured loans are ‘secured’ because the lender will require security in case you cannot pay the loan back. This could be your home or your business premises. They can be used to borrow large sums of money, of £250,000 or more.

Unsecured business loans can be suitable for smaller sums, from £5000 upwards, although some lenders will not let you borrow more than one month’s turnover with an unsecured loan.  

We can help you find the kind of loan to fit your needs.

Cashflow Funding

Cashflow is a major challenge for every business, especially if your trade is seasonal. Solutions include:

Revolving credit facilities

Revolving credit facilities bring a line of credit, with an agreed limit that you can call on when you need it. You only pay for the money you take out, so it can be a cost-effective way to raise funds if you need them.

Find out more about ways to smooth your cashflow with revolving credit facilities.

Invoice Finance

Customers in the food industry, and especially large supermarkets, can often take months to pay. Invoice Finance can bring you cash as soon as you issue an invoice, providing a flow of cash that keeps pace with the amount of business you do.

Find out more about the different types of Invoice Finance.

Tax Funding

Tax demands always seem to arrive at the most inconvenient moment. A tax loan can help you to spread the cost of VAT and annual tax demands into monthly payments, helping smooth your cashflow.

Our finance experts can help you deal with your tax bills with Tax Finance.

Working capital finance

Operating your meat processing business will mean a number of ongoing costs. As well as staff costs, you will have waste disposal needs and overheads such as utilities. Working capital finance is designed to give you additional working capital, helping provide cash to pay staff and suppliers during the early weeks and months after opening or during a period of growth. It is designed to be repaid in the short term.

Our finance experts can help solve your working capital needs.

Alternative Business Funding

Many businesses now consider alternative business funding such as crowdfunding and Venture Capital. At Rangewell we believe that these can have major drawbacks. Costs can be high, raising the funds can mean long delays or fail altogether, and you could even run the risk of losing control of your business.

A new generation of business lender has sprung up, with a flexible approach to lending.

Find out more about alternatives to crowdfunding and venture capital.

Buying an existing meat processing business

Buying an existing business with equipment and goodwill could offer immediate returns. Knowing the kinds of profit that can be generated will help convince potential lenders that your plans are viable.

A Secured Loan could help you to borrow the large sums required for a buy-in our buyout of an existing business. You might also consider ‘jigsaw’ finance. This is a bespoke finance package, made up of a number of loan types, such as a Commercial Mortgage for the premises, with other loans to cover goodwill, and Asset Finance for the equipment.

Contact us to find out more about funding for buying an existing business.

Operating your meat processing business

Customers may be keen to buy your products, but slow to pay for them. Large retailers, in particular, may have long payment arrangements, which could leave you short of the funds you need to operate your business. Cashflow is a major challenge for every business, and having to wait weeks or months for invoices to be paid 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 from the work you have done faster.

We have experts in Invoice Finance arrangements who can work with you to find the invoice finance solutions you need.

Funding for growth

Once your business has started to establish itself, you may need to consider growth. Expanding production may take more plant and equipment and more staff, and you may be ready to consider new markets further afield, or exporting.

Additional investment will be required. This can be challenging if your business does not have the long trading history and profit record that lenders usually require. However, there are lenders who take a more enlightened view and may be able to help.

As well as solutions for working capital and cashflow as your business grows, there are a number of special solutions for exporting, designed to reduce the uncertainties as you explore the potential of new markets.

Our finance experts can help solve your growth, export and working capital needs.

How we help you capitalise your business

At Rangewell, our expertise works to bring you the financial solutions you need to capitalise your business, whether you want to fund capital expenses, working capital or growth.

We offer every type of finance including Unsecured and Secured Loans, Asset Finance, Merchant Cash Advance, Commercial Mortgages, Growth Finance and more.

We know the lenders who understand the meat processing industry and the most competitive rates for all types of food manufacturing finance.

Whether you have a straightforward, small scale funding need, or require a complicated ‘Jigsaw’ funding plan made up of a combination of financial products to buy an existing business, we can work with you to find the answers and streamline your application.