Agricultural expertise
We’ve got a dedicated agriculture finance team that understand you and the assets you need. With in-house asset management, we’ve got the expertise to offer competitive farm finance options tailored to you.
Why choose Aldermore for agriculture finance?
-
-
Farm funding
We’ve developed an enhanced but simplified approach to agricultural loans in the farming industry, with bold ambitions to grow in the market. By working alongside you as a true partner, we can give you the flexibility that you need.
-
Great service
We’re here for you. Whether it’s to keep in touch about an existing agriculture finance deal, or to simply ask us a question about how we can help you to grow, we’re just a call away.
What is asset finance for agriculture
Asset finance is designed to help farmers secure funds for acquiring essential business assets, such as vehicles, machinery, and equipment, without having to pay the full price upfront. We’ll help you spread these costs across monthly agricultural loan repayments, so you can ensure your cash flow remains free for other aspects of your business without sacrificing your growth goals.
Agricultural machinery and assets we can finance
The agricultural industry is both highly seasonal and very capital-intensive. This means revenue can significantly fluctuate between months, especially in farming.
Taking advantage of agricultural finance solutions allows farmers to tackle these economic challenges without compromising their business capital. That way, they have the freedom and security to invest in innovative technology, which will allow them to keep up with competitors.
- Tractors (no maximum age)
- Combine harvesters
- Self-propelled foragers
- Forestry harvester
- Pallet and packaging assets
- Solar panels
- Forwarders
- Balers
- Agricultural attachments
- Grounds maintenance (e.g. ride on mowers)
- Milking parlours and robots
- Excavators
Our agriculture finance solutions
-
Hire purchase
This is a finance option suitable for agricultural businesses looking to purchase and own equipment, but want to spread the cost into regular payments rather than paying upfront.
Suitable if you:
- Would like to make the purchase in instalments rather than a bulk sum.
-
Lease
We offer two types of leasing for agriculture: finance lease and operating lease.
Suitable if you
- Finance lease - want to utilise the latest industry equipment, as an agricultural finance option. Once the lease term runs out, you can either choose to extend it, sell the vehicle, or hand it back.
- Operating lease – want the equipment for a specific time (e.g. a seasonal need). A great way to rent the technology you need without having to worry about maintenance costs.
-
Refinancing
For your existing assets, we also offer refinancing to release equity and to produce an injection of cash that can be used to fund a variety of activities.
Suitable if you
- Want help to fund specific business projects
- Want to put a deposit down on new equipment
- Are acquiring a new business
- Are purchasing new assets that may not be suitable for agricultural finance.
What are the benefits of agricultural asset finance?
Improved cash flow
One of the most prominent advantages is, of course, the improved cash flow – when you split the cost of new equipment over monthly payments, you’re keeping more of your working capital for other business needs – whether that’s seeds and fertilisers, animal feed, or even operational expenses such as staff wages.
Efficiency improvements
By investing in advanced technology, you’ll also be gaining a competitive advantage thanks to the improvements in efficiency and productivity the new equipment will bring. Take upgrading to a GPS-enabled combine harvester, for instance – by making the switch, you’ll be saving on both labour and fuel.
Claiming back tax
Repayments made to farm loans also may be something business owners can claim back, providing an added level of tax efficiency, and bringing down the bottom line cost of the assets you’re investing in. Plus, with a finance lease, you have the flexibility to level up your technology every time you renew for a new term.
Agriculture finance FAQs
With hire purchase, we purchase the asset on your behalf and create a tailored repayment plan to suit your budget. At the end of the agreed term, you can choose to take ownership of the asset for a nominal fee.
Farmers choose the equipment they want, negotiate the sale, and sign a hire purchase agreement. The cost is then spread out over a set period of time.
Finance lease has a primary term with fixed rentals. At the end of the primary period, you can:
- Hand the equipment back to the lender
- Sell to a third party and retain a percentage of the sales proceeds
- Continue renting it after the primary period ends
An operating lease is a lease with fixed rentals that reflect a predicted future residual value. This is an amount that customers won’t pay, which means, rentals are reduced.
We take the residual risk and will sell the asset at the end of the agreement to recover this unpaid amount, protecting you from any potential loss. This transfer of risk may allow you to treat the asset as off the balance sheet, which may give improvements on key accounting ratios.
At the end of the primary period, the asset is returned to the lender.
Refinance is designed to produce an injection of cash that can be used to fund a variety of activities by using certain existing assets as collateral.
Refinancing is typically suitable if:
- You want to release funds in existing assets
- You want to fund specific business projects, put a deposit on new equipment, acquire a new business or purchase new assets which aren't suitable for finance
Haven't found what you're looking for?
View all asset finance FAQs
Award winning asset finance
We're proud to have been recognised for a number of industry awards:
- NACFB Commercial Lender Awards 2023 - Asset Finance Provider of the Year.
- LeasingWorld Gold Award Winners 2022 - Top Green Asset Funder.
- LeasingWorld Service Excellence Awards 2022 - Winner.
- LeasingWorld Gold Award Winners 2021 - Business Finance Champion.
We're backing the farming community
Watch our video
Find out how we're backing the agriculture industry.
Agriculture sector insights
*02 and 03 numbers are charged at standard call rates and included in most mobile and landline operators inclusive minute packages
T&Cs will apply, subject to status and affordability. Any asset used as security may be at risk if you do not repay any debt secured on it.