Running a successful farming or agricultural business takes so much more than determination and soil.
It can require state-of-the-art tools, equipment and resources that allow you to keep up with ever-evolving industry challenges.
While these assets are crucial for business growth, they often require significant investment which, for many businesses, means using a substantial amount of capital. However, in the current economic climate, destabilising your finances in this way could end up costing you your business.
That’s where agricultural finance comes in.
Agricultural financing solutions allow you to access the assets you need without taking significant risks. In this blog, we explore what farming and agricultural assets can be financed.
What types of agricultural assets can be financed?
There are numerous agricultural assets available through financing, including:
Farm machinery
- Tractors
- Harvesters
- Ploughs
- Seeders
- Sprayers
Livestock equipment
- Milking machines
- Animal feeders
- Cattle crushes
- Sheep shearing equipment
Renewable energy systems
- Solar panels
- Wind turbines
- Biogas digesters
Farm infrastructure
- Irrigation systems
- Fencing
- Greenhouses
- Barns and sheds
What are the benefits of financing agricultural equipment?
While the most significant benefit of agricultural finance is instant access to assets that put you ahead, there are also a number of business benefits, such as:
Preserving cash flow
Obtaining farming and agricultural equipment through financing allows you to avoid a single significant payment upfront. Instead, you can spread the cost over manageable instalments for a period of time agreed between you and the lender.
This flexibility means you can budget more efficiently and spend surplus cash flow on other crucial areas of your business, such as expanding your inventory or investing in marketing and advertising.
Staying up to date with technology
Another advantage of financing your agricultural equipment as opposed to buying assets outright is that financing gives you the opportunity to continuously upgrade your machinery, so you don’t end up making repayments for obsolete equipment.
This gives you access to state-of-the-art solutions, allowing you to extend the capabilities of your operation.
Improve productivity and efficiency
Upgrading to newer and more efficient equipment can significantly boost the productivity of your operation. Financing enables you to acquire the machinery you need to increase output and streamline operations.
Tax benefits
Through financing, you may also be eligible for tax relief for the length of your agreement. Tax benefits are dependent on individual business circumstances. We recommend seeking professional advice from an accountant.
Why choose Finance for Farms for agricultural finance?
Industry expertise
Shire Leasing’s dedicated agricultural finance division, Finance for Farms, has extensive experience supporting British farmers and agricultural business owners. Whether you need to diversify, expand your livestock or invest in a new tractor attachment for more efficient harvesting, Finance for Farms could help you get the financial support you need.
Flexible financing solutions
Cash flow and income for farming businesses fluctuate seasonally. We can offer flexible terms in your agreement, such as seasonal payments and other tailored repayment plans.
Dedicated support
At Finance for Farms, we understand that every farm and agricultural business is unique, which is why we provide a knowledgable Account Manager who will act as your single point of contact, taking the time to understand your farm’s unique challenges and offer personalised support.
Streamlined application process
Applications for funding from traditional lenders can take time. With Finance for Farms, you don’t have to worry about a lengthy or drawn-out application process.
With in-house underwriters to focus on your application, we can offer finance decisions in an exceptionally fast turnaround time, averaging 4 hours.
Agricultural financing solutions from Finance for Farms
To find out more about how Finance for Farms can help you access crucial assets and achieve your business growth through agricultural financing solutions, don’t hesitate to get in touch with our team today.
