How asset finance can help your agricultural business grow

Agriculture and farming is one of the most unpredictable sectors in the UK. Of course, the weather’s unpredictability and effect on farming is well documented. Having said that, farmers must also contend with market fluctuations, new technology, and political change.

This means that flexible finance options are essential for anyone running a business in the agriculture sector. Investing in new machinery, equipment or vehicles is a big commitment for any agricultural business. Especially when tight margins and unpredictable external events could make investment decisions difficult. You need finance that is available quickly, easily, and will ensure that your business can continue to grow. This is where asset finance can be the ideal solution.

What is asset finance for the agricultural sector?

Asset finance is a finance option that allows a business to acquire much-needed equipment without having to pay upfront. Instead of buying the asset straight out, you will pay a regular amount to use the asset over an agreed period, avoiding the full cost of buying outright.

Waiting until you’ve got enough cash upfront to purchase an asset can slow down your business growth, and can make day to day operations much harder than they need to be. This is especially true in farming and agriculture, where the cost of new equipment and machinery can be significant. Asset finance allows you to obtain the assets you need for your business without having to wait.

Which agricultural and farming assets can be financed?

Typical agriculture assets that can be financed include:

– Tractors, trailers, combines, sprayers, balers and other farm machinery
– Forestry equipment
– Vehicles, including bulk haulage
– Recycling and plant equipment

When it comes to farm equipment, machinery and vehicles, almost any asset – new or used- can be funded.

Asset finance can also be used for more diverse assets, such as those required for agricultural innovation and technology. Automation and innovations are increasingly being used across farms to produce more food profitably and sustainably. This is in a bid to achieve NFU Net Zero target by 2040. Assets that can be financed in line with this include drones, robotic milking machines, fruit pickers and automatic feeding machines.

Asset finance can also be used for Renewable Energy Financing. For any businesses in the agricultural sector wanting to become more energy efficient and reduce carbon emissions, asset finance can help. Asset finance is a great way to finance sustainable energy solutions. These solutions include biomass boilers, LED Anaerobic Digestion, wind turbines, solar panels, and ground source heat pumps.

How PMD can help with asset finance for agriculture and farming

At PMD, our team of business finance specialists understand the challenges faced by UK farming businesses, and can offer a range of asset finance solutions designed to support agricultural businesses and help them to continue to grow.

PMD works with over 100 lenders and can open up a number of flexible, independent and competitive funding lines to drive your business forward. Whether your aim is to invest in new equipment, or to become more sustainable, we can help to find the ideal finance solution.

PMD takes the hard work out of securing asset finance, liaising with funders on your behalf to secure the best possible terms, leaving you free to focus on running your business. We can source facilities for almost any business asset and structure these with nil deposits, VAT deferrals and extended terms to meet your cash flow.

If you work in agriculture or farming and are considering using asset finance, get in touch today to see how PMD can help.  As well as this, you can follow us on LinkedIn for regular industry news updates.

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