Farmers need different types of help at different times. This can be from a cash flow point of view by restructuring your current finance, or additional borrowing giving a sudden cash injection, or the purchase of additional land that has become available in your area or you wish to convert some of your outbuildings or start a farm shop. Our links to suppliers of Agricultural Finance could be invaluable for you.
How can we help you?
Agricultural Mortgages - Finance for land and buildings
If you are ready to buy land, you may find that your options are limited. Your current banker may be a great source for funding for conventional business expenses. We provide access to the following :
- Agricultural Mortgages
- Commercial Mortgages
- Commercial Remortgages
- Tenant Farmers Loans
Agricultural Recovery, Restructure
You probably have a reserve of cash, but a run of bad years can wipe out these reserves. When there is no more money in the bank you will need external help.
Agricultural Finance can support your recovery. The ability to access funds quickly is vital to let you buy in feed, diesel and seed, to pay wages or deal with existing commitments.
Speak to someone today
If you would like to speak to someone directly today,
please give Jonathan a call.
Available Monday - Friday 9am to 6pm
Obtain your Permission
Dealing with any kind of commercial finance and associated finance is a process that requires guidance because you are looking at finance options available for various scenarios applicable to you, your current situation and your desired outcome. Therefore not only is it a big decision to make it needs care and the correct presentation to the lenders concerned.
As a result of your enquiry we will telephone you to assess what you are looking to achieve.
Agreement / Paperwork
Upon your agreement we will discuss your case with the best suited company concerned, give you initial feedback regarding the figures concerned and with your agreement submit the enquiry to the company concerned.
The company that we have recommended to you will then deal via us and directly with you start to finish and initially telephone you to confirm what we have discussed and then go through their process and timeframe with you. We will oversee all and ensure a smooth process start to finish. There are no hidden fees or charges, it is all very clear and transparent.
Once your business need is completed and set up then unless you require any of our other services we carry out 6 monthly reviews to keep in touch but you know where we are.
Be advised that we do not cold call, we do not mail shot, we do not pester people, we do not force people to make decisions they do not want to. Everyone who we see is as a result on an enquiry led by them, meaning that the potential client has made the decision to look at and in most cases transfer their Final Salary Scheme or Personal Pension, or SIPP into a new arrangement be this a new Personal Pension or Annuity or Flexi Access Drawdown arrangement. Whilst we are not order takers, the point of this declaration is that we do not force or push people into making such decisions. We still go through a lengthy advice process to check viability, attitude to risk, product and fund selection and point out all of the pitfalls and benefits either way. In some cases we do not agree and this is pointed out to clients. We do not transact insistent client business.
Some reasons you should use us
- Access to our initial advice and finding a suited lender for your requirements
- Only the best brokers and product providers used to handle your application
- No hidden extra costs, all fees and charges fully disclosed at the outset
- Flexibility of product and tailored to your needs
- Extensive Industry Experience
- We are totally Independent, Directly Authorised Advisers.
- We are friendly and talk plain English and no waffle.
- No pressure selling from us.
Agricultural Mortgages — Finance for land and buildings
As an agricultural business owner, whether farmer or contractor, your profitability depends on many factors – but chief among them is the need to acquire land to work.
If you are ready to buy land, you may find that your options are limited. Your current banker may be a great source for funding for conventional business expenses. But to get the best deal on the funding you need, you must be able to call on a lender that understands rural property, cash flows within the industry, the cycles and current real estate values.
Funding can also be arranged to consolidate an existing loan or mortgage or buy out a relative or partner about to retire, in order to attain a more favourable financing structure.
Your funding options
We can provide a number of solutions for the purchase of agricultural land.
- Agricultural Mortgages
- Commercial Mortgages
- Commercial Remortgages
- Tenant Farmers Loans
An Agricultural Mortgage is designed to help farmers buy farmland, farm buildings or improve your existing farm properties. They are a specialised loan product, with the loan secured by the land itself. They are used to finance the purchasing of a farm, a farm building or a farming enterprise of some kind. A farm mortgage can also fund improvements or extensions to existing farm properties or associated land.
You can usually borrow up to 80% of the value of farm buildings or land, choose repayment terms between five and 30 years and interest rates that can be fixed or variable. Repayments can be arranged to fit your business cash flow, either monthly, quarterly or annually. If your business plans change, you can extend the term of your loan, subject to approval.
Loans can even pass from generation to generation – helping you build a farming business not just for yourself, but for your family in the years to come.
There will be valuation, arrangement and legal fees to consider. There can also be additional costs for the services of professional advisors – but you have a commercially sound proposition, we may be able to help you arrange the Agricultural Mortgage you need.
Contact us to find out more about Agricultural Mortgages.
Raising funds with a Commercial Mortgage
If you already own your farm premises, a Commercial Mortgage might be a cost-effective way to raise funds to buy additional land. By taking out a loan on property and land you already own, you can raise considerable funds. A farm mortgage can also be arranged to consolidate an existing loan or mortgage, or buy out a relative or partner about to retire, in order to attain a more favourable financing structure.
Get our help in finding the most competitive lender.
Buying agricultural property with a Commercial Mortgage
A Commercial Mortgage is often used for buying business premises – but it is possible to set up a Commercial Mortgage for agricultural land with associated buildings. These operate much like a residential mortgage, with a large loan secured on the property itself.
Generally, Commercial Mortgages are for 15 years or more, and, as with a residential mortgage, the premises will be at risk if you are unable to keep up your repayments
Unlike a residential mortgage, the rates for a Commercial Mortgage are arranged on an individual basis. Lenders will look at your business, your accounts and projections to ensure that it has a future and set interest rates based on the level of risk they believe it presents.
Because of the legal and administrative costs, it is uneconomic to borrow less than £50,000 with a commercial mortgage, and some lenders have a minimum of £75,000 or more, but there is no set upper limit.
Alternative lending options
If you need more flexibility about how much you pay back and when, we can provide a wide range of running options, include loans form alternative lenders with a flexible approach to you your funding needs.
Tenant Farmers Loans
Buying your farm tenancy can be a sound business idea and one that some landlords are increasingly becoming receptive too.
It can be easier than you think, thanks to a growing difference between the value of tenanted and freehold land – which can save you money when you come to buy out your tenancy.
You can borrow up to 60% of the full value of freehold land, which your tenanted farm will become on completion of the sale. By taking into account other assets such as your equipment and your house, you may well be eligible for a mortgage.
We can help you set up a mortgage with fixed or variable rates of interest, and interest only or repayment options repaid monthly, quarterly or half yearly on dates which suit the cash flow of your business.
Loans can last for up to 30 years and can pass from generation to generation, so don’t need to be repaid if the borrower dies.
Contact us to find out more about lending to help tenant farmers buy their farms.
Agricultural lending with poor credit history
We work harder to find you the finance you need. So even if you have a poor credit history, no proof of income, or have defaults, CCJs or bankruptcy we can still help you find the answers you need to help you grow your farming business.
Examples of what we can do
- Find the most competitive funding to let an established farming operation double the size of its operation
- Help a young farmer acquire his first land holding
- Find the most competitive finance to buy out a neglected tenant farm
- Help an established dairy farm to acquire extra pasture
- Help a syndicate acquire additional land to set up a major arable operation
Agricultural Recovery and Restructure
Crop yields vary from year to year with no warning. Harvests can fail completely. Market forces can be almost as unpredictable, affecting the prices your produce can earn - and, in the worst cases, meaning that you may be better off ploughing a crop in.
In an unpredictable business it is essential to have a safety net; something to fall back on after a particularly bad year, or a failed harvest, and which will help keep you in business until things improve.
In extreme cases, you may need to restructure your business.
We understand the needs of the agricultural industry and can provide solutions for recovery and for restructuring.
Agricultural Recovery Finance is essentially funding to help a farm up and running after a financial disaster such as a crop failure. It allows you to keep your farm running, in the expectation that the following year will offer better trading conditions and that your business can return to profit.
Agricultural restructuring goes further and should you wish to look at alternative uses for some of your farm which could be more profitable such as uses for your fields and outbuildings can allow you to turn around a business that has not been profitable for years. This, obviously would involve a business re structure and an investment to achieve. e.g. turn pigsties into cow sheds or a paddock into a commercial ménage, converting surplus buildings into holiday lets or setting up a business park or farm shop outlet can all provide new sources of income, but the costs involved will be correspondingly high, you get the idea.
Agricultural Recovery and Restructuring Funding is designed to help. Both types can be provided by a Bridging Loan - which is essentially a type of large-scale short-term loan secured on your property. They are so called because they “bridge the gap” until you can find a long-term financial solution to put in place.
Bridging Finance is most often used to buy the property it is secured on. However, it can also be used to raise funds on property that is already owned, providing a solution for raising short-term cash for virtually any need - and a lifeline for recovery or restructuring.
With a Bridging Loan, you can negotiate a repayment structure which suits your needs. You can make regular monthly or quarterly repayments or defer all payments until the end of the term. This is known as “rolling up” payments and, though more expensive in the long run, it lets you minimize your ongoing payments.
It can provide the breathing space you need after a bad year, when it is hard to generate profit until a new harvest is brought in.
Lenders will, however, want to know how you intend to repay the loan. This is known as an “exit strategy”, and can be either a long-term financial solution, such as a remortgage, or income once the conversion has been completed you would have something mortgageable from a commercial point of view.
Bridging can be arranged quickly - which can be essential when your business is at risk. We know that there are several specialized providers of Agricultural Bridging Finance who understand the pressures you face and can create bespoke loan packages. Unlike high street banks, bridging lenders can turn a loan from application to approval in a short space of time - sometimes in as little as 48 hours.
How much will funding cost?
The cost of bridging reflects the scale of lending required, how it will be repaid and how it will be used. In addition to a monthly interest cost, lenders may charge a lender arrangement fee – a fee for setting up the loan.
Costs can appear high - but compared with other types of short-term funding, the interest rates are surprisingly reasonable.
All costs will be agreed when the loan is set up.
Agricultural Land looks set to increase in value as the pressure for home food production increases. Buying land may be an investment - it could certainly help you build your farming business