Choosing the right financial solution for your farming business can often be a difficult decision so it's important to find an expert who understands exactly what you need.
"We stand as a beacon of support for agricultural business, offering expertise, flexible funding and exceptional service specifically crafted to nurture growth and sustainability within the sector, and to reflect our support of the UK's farming industry." says Chris Smith, Head of Specialist Equipment, at Aldermore Bank.
"With specialist understanding of the complexities of agricultural operations and equipment, we can provide you with invaluable expertise to farmers, agribusinesses and rural enterprises alike when thinking about your next purchase."
What finance options are available for you?
1. Hire Purchase
By entering into a Hire Purchase agreement, you can enjoy the flexibility of spreading the overall cost of your asset across the length of your term, with the added bonus of owning it outright at the end for a nominal fee.
On top of this, you can also benefit from:
- Paying VAT up front and being able to reclaim it (if VAT registered) or capital allowances, offsetting repayment interest against profits
- Option to make your own arrangements for servicing
- Flexible deposit options, fixed or variable payments, including aligned to your seasonal income
So, if you're looking to keep your tractor or combine or associated attachments for the long term, Hire Purchase might be a good option for you.
2. Lease
If you'd like to rent an asset without the option to buy, Lease could be the option for you as we buy the equipment and lease it back to you with monthly rentals.
As well as this, leasing also offers:
- Ability to free up capital as VAT is spread across the contract, keeping upfront costs down
- Tax efficiency as repayments are counted as a business expense
- Option to include servicing costs in the repayment plan
So, if you're not wanting to keep the asset for the long term and want the ability to upgrade at the end to something new, Leasing might be the product for you.
3. Loans
With government support offered in the form of grants, the terms of these state that lenders are not allowed to offer products like Hire Purchase to help acquire assets alongside them.
Loans are able to be used to purchase assets using these grants, or for owner farmers facilitating farm improvements and buildings.
4. Refinance
If you've got existing assets, these can be used as collateral to produce an injection of cash that can be used to fund a variety of activities, such as:
- Funding specific business projects
- Putting a deposit on new equipment
- Acquiring a new business
- Purchasing new assets that may not be suitable for finance
5. Savings
Funding doesn't always have to mean investment. Putting money away for a rainy day can help ease the burden of unexpected events, especially in a sector where so many factors can be outside your control.
Whether you want to save for your personal goals, or that of your business, making sure you set aside some money that can work as hard as you do is always something to consider.
Find out more about the finance solutions available for your farming business
T&Cs will apply, subject to status and affordability. Any asset used as security may be at risk if you do not repay any debt secured on it.
This post is funded by Aldermore Bank.
