Agricultural finance and farm loans for UK farms

It can be harder, but not always impossible. Some specialist lenders look more closely at the farm's assets, income and experience than at past credit problems. Asset finance and secured lending can be more accessible because the lender holds security. A realistic plan, an explanation of what went wrong and up-to-date accounts all help.

Yes, some lenders offer seasonal or annual repayment profiles on agricultural finance, so payments fall when income from harvest, milk or stock sales arrives. This is most common on hire purchase for tractors and harvest machinery, and on short-term facilities for inputs. Not every lender offers it, so it is worth asking at the outset. Our farm machinery finance page explains how seasonal agreements work.

Yes, but new entrants usually have fewer options than established farms because lenders want evidence that the business can repay. They look at your practical experience, any tenancy or contract farming agreement, a realistic budget and cash flow forecast, and your own contribution. Asset finance for machinery is often easier to obtain early on than a large unsecured loan. Our guide to writing a business plan for funding can help.

Yes, tenant farmers regularly borrow for machinery, livestock and working capital without owning land. Machinery and equipment can be secured on the assets themselves, while unsecured or short-term facilities rely more on trading figures and personal guarantees. Lenders check the remaining term of your tenancy, because a short tenancy limits how long they are willing to lend for. Buying land is a different case covered on our agricultural land finance page.

Asset finance for a tractor or other machinery can be arranged within a few working days in straightforward cases, once the lender has the supplier's quote, accounts and bank statements. Borrowing secured on land or buildings takes longer, because it needs a valuation and legal work, and existing lenders may have to consent. Planning ahead of key seasons, such as before harvest or input buying, avoids a rushed application.