The need for agricultural finance
Agriculture with its rich history, not only provide food on our tables but is also one of the pillars of any economy. As with all industry, globalisation has driven significant change in agricultural requirements and processes. If your agricultural business is in need of an upgrade to machinery, equipment or even premises it may be difficult to generate enough funds to pay upfront and this is how agricultural finance can benefit you.
What does agricultural finance cover?
Agricultural finance can be used for a wide variety of commodities which will enhance your business, driving productivity and output. The financed items may include new or used machinery, equipment, vehicles and even buildings. Take advantage of the following types of finance: leasing, renting, a loan or a hire purchase package. Each finance type will have its own benefits, but all allow for the spreading of the cost over equal monthly payments, rather than having to fork out a hefty sum up front.
Why you may need finance?
Due to the nature of the agricultural industry being seasonal, cash flow may be sporadic and the necessary funds may not be available when needed. Agricultural finance can bridge the gap and make the difference between a business being able to continue its operations or not. We are all aware that timing is of the essence in farming operations due to seasonal changes and demands.
With agricultural finance the asset is purchased on behalf of the business owner/farmer who pays regular, agreed instalments to the lender over an agreed period. The repayment instalments cover both the cost of the asset together with interest.
The benefits of agricultural financing
Farmers throughout Britain are under an increasing amount of pressure due to various adverse factors. The pressure of having to spend a large amount of money as a down payment for new equipment shouldn’t add to the burden. Agricultural finance spreads the cost of upgrading your equipment over regular monthly instalments, rather than one upfront payment. Financing also offers farmers greater flexibility as to which equipment they can afford, ensuring that they obtain the best equipment/machinery to optimise production. You can even use refinance of existing equipment to provide the capital you require for new crops, seeds, or stock.
Here at Arkle we have a wealth of experience in the agricultural finance sector. We pride ourselves in offering a bespoke financial solution, tailored to your cashflow trend. To find out more, call our expert team on 01933 304789.