Once you decide that you’d like to expand your livestock holdings, our facility can provide aflexible option that can be used repeatedly, allowing you to make shrewd purchases orsales, depending on the market. This could include auction purchases, opportunistic B&B contracts, longer-term heifer replacement or just the option to fully utilise a good harvest.
Essentially our facility is secured on agricultural land and buildings, but you can use this as arolling facility as you buy (or sell) livestock throughout the life of the scheme, with noadditional costs for drawing or repaying funds within your overall credit limit and no stand-bycosts.
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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
Why would you come to UK Agricultural Finance for livestock finance?
Traditional high street lenders often struggle to assess the value of livestock purchases and hence fail to provide suitable loan options for farmers looking for livestock finance. This was the case for one farming family we worked with who wanted to expand their beef herd and refinance some high-interest lending on the farm. To do this, they required a loan of over £2.5 million and a lender who understood their farm business goals.
The family had previously made money in property development before moving into farming, they had run the business and farm alongside each other successfully for many years. But when they approached their bank for livestock financing the bank couldn’t understand their change in business activities and refused. This was further compounded by the age of the borrowers, as they were in their 60s.
But we are used to dealing with family farms and were able to discuss their succession plans and timescale to assess the risk of their age rather than use a tick box approach. We were able to offer a £2.7 million loan on higher quality bridging finance over 3 years. This would provide the family with an opportunity to show 3 farming cycles of successful cash flow and income, which could then be used to obtain a refinanced loan with the high street. They also brought in one or two of their four children as directors of the company to demonstrate succession and offset the high street’s concerns over their age.
Livestock Financing for Herd Increase
Our client is a successful beef farmer in the southwest, who managed to secure additional feedstock at a very good price. As a result of, the client sought to increase their herd…
