In the world of agriculture, there are few certainties; while this business is the oldest in the world, there are still many factors at play that can make one year drastically different from the next.
Because there can be so much fluctuation, landowners and farmers need to have a stable and well-balanced financial solution in place that allows them to make hay while the sun shines, whilst also weathering any financial storms that come along.
There are many different situations in which agricultural finance might prove necessary, and we’ve highlighted the most popular of these below. Understanding what the needs of farmers are demonstrates how vital farming finance is to the continued wellbeing of the UK’s farmers.
A diverse farm is a resilient farm, and farmers benefit from investment in alternate revenue streams - bridging loans are vital to secure expansion opportunities
Farming is a difficult business, and farmers need to have a finance plan in place that enables them to expand and invest easily from year to year.
Passing wealth and assets from one generation to the next is the primary concern of many landowners, and farmers stand to benefit from flexible bridging finance
Farmers need a flexible source of funding that they can help them grow when necessary, and bridging loans for livestock finance are an ideal solution
Expanding a farm’s real estate is important and helps generate agricultural expansion. Bridging loans are useful for financing property purchases
It can be tough for farmers to raise capital in order to purchase new land, but agricultural finance lenders can arrange flexible solutions for the purchase of agricultural land.
Agriculture is an unpredictable business which can have good and bad years. Recovery and restructure finance helps farmers get back on their feet when necessary
Investing in renewable energy allows farmers to generate income from their land with minimal effort, and bridging finance is available to help farmers go green.
Agricultural finance is available for a wide variety of purposes, and is able to meet the needs of farmers who need to make the most of their land.
Although agricultural finance comes in many different varieties, it’s important to remember that it is always, at its core, a loan.
Borrowers will need to fully appreciate the responsibilities they have when taking on any sort of financial product, and should consult an experienced financial advisor to ensure that their chosen finance option is the right one for them.
With any business there’s a need for financial backup; whether you’re selling cars, building houses or importing household goods, you need to be financially agile in order to meet the prevailing needs of your business.
In agriculture this is even more important, because production of foodstuffs and crops is subject to a whole host of environmental as well as commercial factors. When yields can vary from one year to the next, farmers need to know that they’re not backed into a corner and can still make use of flexible financial solutions to keep their farm on track.
A bridging loan is a short-term loan secured against property. It allows you or your business to “bridge a gap” until either longer-term finance can be arranged, or the underlying security or other assets can be sold.
Commercial bridging loans are, as their name implies, bridging loans that are secured against commercial property.