Farm Loans

Farm financing & agricultural bridging loans from £50k to £250m for multi-purpose use including property & land purchases, renovation, development, diversification, livestock/plant/machinery, generational transfers, tax or just cashflow.

Whether you need a tractor loan, more goats, dairy equipment or want to diversify into a solar farm or other renewable/geo-thermal plant, our loans, secured on agricultural or residential property and land, and are available to any credible business proposal with a viable exit strategy.  

Apply online or arrange a call with our experts today and get our lowest rate no obligation quote on your farm bridging loan.

Farm Finance Lending Criteria

Loan to value (LTV) 70% maximum
Loan term 3 to 24 months
Loan amount £50,000 up to £250m
Interest options Rolled-up, retained or serviced
Interest rates From 0.75%
Decision Immediate decision in principle
Completion 2 weeks
Early repayment fees None
Availability Secured on assets in UK & Europe
Individuals, Companies, SPVs
No credit & adverse credit considered
Exit strategy Sale or refinance

What can farm financing be used for?

Our agricultural loans can be used for…

  • Residential and Agricultural Property Refurbishment
  • Residential and Agricultural Property Purchases
  • Refinancing existing borrowing
  • Land Purchase
  • Livestock Purchase
  • Recovery & Restructure
  • Renewable Energy Development 
  • Diversification
  • Generational Transfers

​Commercial ventures always come with a level of uncertainty, but thriving in the farming and agricultural sector can be a particularly tough. Property maintenance, mechanical breakdowns, unseasonal weather, livestock issues and rapidly changing circumstances throughout the food supply chain are common day to day battles.  

Even farmers and landowners who are primarily focused on agriculture are now justifiably seeking to diversify their revenue sources; be it through investing in renewable energy, change of use, development and hospitality opportunities. 

Short-term financing make or break for the sector, from farming, agriculture, equestrian to horticultural many businesses success hinges on fast access to funds to help sustain or radically evolve their business model.

Discover more about our farm loans by contacting our agricultural specialists

Farm financing comes in a variety of forms, but one of the most commonly used types of finance is called an agricultural bridging loan. This is a specialist loan which can be used by farmers and landowners to secure swift access to funds in as little as three working days.

These farm loans are extremely flexible and can be used to meet a range of short-term needs.

Take the example of livestock – for farmers wishing to take advantage of a good year, this type of agricultural finance is ideal as it can enable them to upscale the size of their herd at relatively short notice. Similarly, arable farmers needing to invest in new machinery can use agricultural bridging finance to help fund the purchase.

Brexit and Covid19 are also causing disruptions in supply and demand throughout the industry and across society as a whole, meaning desperately needed orders can be cancelled last minute and essential supplies can increase in price without warning, causing cash flow chaos to farmers who may already exist on a financial knife edge. Farm loans can be of huge benefit here, as they can be arranged very quickly, often within 72 hours.

The duration of a farm loan is usually a period of one month to two years, which a certain level of flexibility depending on the borrower’s circumstances. Of course, every farmer’s needs are different and that’s why lenders will create a bespoke package of farm financing which is tailored to their individual situation.

As such, all requests for agricultural bridging loans will be considered on a personalised, case by case basis.

For expert assistance today arrange a call. To find out the exact costs of our agricultural & farm loans and to get the ball rolling just click here for a quote - it takes just 3 minutes!

Renewable energy diversification

According to the NFU, 25% of UK farms plan on investing in renewable energy diversification by 2020. This could be wind turbines, solar PV farms or biomass boilers. A bridging loan can help farmers make this investment and diversify their operations.

Diversifying into related business

Farmers may require extra funds to invest in a new or related business which they believe will provide them with additional income. A bridging loan is the perfect solution for this purpose.

Equestrian diversification

Horse riding schools, equestrian centres and holiday accommodation are growing in demand across the UK. A bridging loan can provide farmers with the financial assistance to diversify their business into this sector.

Holiday parks

A bridging loan can be used for purchasing or extending a holiday park or expanding the business into the tourism sector diversifying the business and provide the farmer with an extra source of revenue.

Garden centres

Financing the purchase of a garden centre and the land around it is a common reason for taking out an agricultural bridging loan.

Working capital

Farmers typically require working capital for day-to-day activities such as paying wages or purchasing feeds and fertilisers. Bridge loans are a short-term financing solution so can be actioned quickly and are usually paid off within 2 years.

Property acquisitions

Purchasing additional property or finding an investment opportunity is another reason why farmers may need bridging finance. Investment opportunities tend to happen quickly and can be missed if financing delays the transaction. With agricultural finance they'll be able to purchase what they require without having to wait.

Generational transfers

Many farmers wish to pass down their farm and business to the next generation but require additional financing for this process. A bridging loan can help with that. The current owner can use the loan to purchase the property and/or equipment from his parents, who will then receive a lump sum.

Property renovation & refurbishment

Upgrading a farm building is a good opportunity for farmers to extend its life, improve efficiency, repurpose the building or enhance its appearance. Typically renovation and refurbishment is a more cost effective solution than demolition and building new.

Buying additional land

In order to expand a farm or diversify, farmers require additional space for the business. A bridging loan can help facilitate this.

Investing in equipment, plant & machinery

Farmers typically require financial assistance with purchasing new equipment that will help them improve the operation of their business and provide better yields. 

Purchasing livestock

 Many farmers are looking to increase their herd size, but they require additional financing in order for them to make the investment. A bridging loan can be used towards this purpose.

Why use an agricultural bridging loan?

Farmers need to invest in their future. This is especially true for those who are looking to grow their operation and start a new business venture. Agricultural bridging loans, also known as farm financing or agricultural finance, offer a variety of benefits that can provide the means for farmers to pursue an expansion project or purchase new equipment without having to sell assets. In this article, we will discuss 10 different ways agricultural bridging loans can be used by farmers and answer some frequently asked questions about these types of loans.

What are agricultural bridging loans?

An agricultural bridge loan is short-term financial assistance provided by banks and other lenders that enables farmers to invest in their business.

What can I use agricultural bridge loans for?

Examples of loan purposes range from purchasing livestock, equipment, plant, machinery, land, diversification, generational transfers, property renovations and refurbishment - almost anything.

Who is eligible for agricultural bridging finance?

Farm Finance is also open from both UK and International clients such as offshore borrowing vehicles from lenders. As long as your assets are in the UK our farmer finance is available to you.

How long does the application process take when applying for farm financing?

Typically loans up to £200k can be completed within 3 days and for loans up to £250m can take 14 - 30 days depending on their complexities.

What is the typical repayment term for agricultural bridging finance?

Typically, a loan will be repaid within 24 months depending on your individual needs. Loans can also be refinanced if you need additional time to repay funds due to unforeseen circumstances such as adverse weather conditions that affect crop yields or if your development is running behind schedule.

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