There are always bumps in the road in business, particularly in agriculture. We understand the need to gain some breathing room, take control and rationally plan the best way forward when financial pressure is at its most acute.
Our facility can provide you with a window to achieve this. We are sympathetic, and like to support experienced operators, as we have the ability to see good cases where others have not recognised your ability or business potential.
We are happy to work constructively with you, as our team has successfully negotiated attractive exit terms with the banks’ impaired loans teams and we can put one of the country’s most experienced agricultural receivers to fight your corner and help you back onto an even keel.
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Lending Criteria
£100,000 to £10,000,000
England, Scotland and Wales*
Sole traders, partnerships, limited companies, tenant farmers with a right to buy
65%
Agricultural land and property
A relevant business plan
None
Interest only, roll up and repayment options
Typical duration of 12 to 84 months
How Can We Help
Case Studies
Restructuring finance: Milking robots bring new success to family dairy
UK Agricultural Finance was approached by a family dairy partnership that has been trading for over 115 years. The family had decided to consolidate and restructure the business to allow them to run the operations more efficiently. At the time of the loan application, the partnership had bought out two partners of the business and had also recently sold a second farm as it had become unsustainable to manage both farms from a financial and physical perspective.
The borrowers required a loan in order to finish adapting an existing cow shed to provide a suitable area for installing milking robots and to make the final changes necessary to accommodate the milking herd.
While they were completing the work, the family relocated their herd to a relative’s farm., This was very practical, but it meant they had no income while doing the work. The lack of income, combined with the decision to buy out some of the partners, meant their trading accounts did not show a healthy enough position to obtain a loan from mainstream lenders.
But UK Agricultural Finance does not rely solely on a tick-box approach for loan applications, and so was able to look at the bigger picture. We could appreciate why the borrowers had implemented the changes prior to making their application and the impact that this would have on the business moving forward. We could also see the practical reasons behind their management decisions for the livestock during the project.
When we spoke to the borrowers, it was obvious how much research and planning had gone into the introduction of the robots and the rewards that this would bring to the business. They were also able to provide realistic projections to show how and when the income would recommence as their plans were brought into force.
Loan for Farm Buy-Back
Our clients were highly successful cattle traders. Unfortunately, their bank made them cross-collateralising their farm with a non-farming business, which failed during the credit crunch and the bank repossessed their farm, but left them in-place to run it.…
