Business finance for the agriculture industry

Agriculture finance: fund tractors, harvesters, day and on-farm upgrades without straining cashflow

Modern farming needs capital. Whether that’s tractors and telehandlers, combine harvesters, sprayers, robotic milking parlors, compressors and grain handling, or on-farm energy and infrastructure. PMD structures flexible business financing that aligns to seasonal income, preserves working capital, and keeps your kit and projects moving. 

Finance options built for farming, not just spreadsheets

Seasonal repayment profiles and structures tend to be suitable funding solutions for farmers within the agricultural sector. We work with leading specialist lenders to ensure you receive the right service that’s suitable for your business as well as the most competitive deals.  

We’ll propose the type of loan or facility that best matches your business needs, seasonality and the asset’s working life. Here’s how they differ, in plain English:

Equipment financing (asset finance)

Best for: Farmers wanting straightforward access to new machinery without paying the full cost upfront.

Asset finance spreads the cost of tractors, combines, sprayers or livestock equipment across predictable monthly payments, keeping your capital free for feed, inputs, fuel labour and repairs. With these types of agreements, the assets usually serve as collateral and can be repaid by installments on a clear amortisation schedule. 

Equipment finance is ideal for businesses within the agricultural sector who are considering funding:

• Tractors, combines, sprayers, balers
• Telehandlers, loaders, ground care machinery
• Milking parlours and feeding systems
• Crop, grain and storage equipment

What you get:

• Equipment as collateral, reducing pressure on business credit
• Clear installments with principal and interest
• Balanced repayment terms to suit farm cashflow
• Option to structure payments seasonally

This is one of the most commonly used funding options across the agriculture sector.

Hire purchase (HP) for farming equipment

Best for: Businesses planning to own the machinery outright at the end of agriculture sector.

Hire purchase facilities tend to be the go to option for core machinery within the farming and agricultural sector. They allow you to acquire equipment with a small down-payment (or sometimes none), and repay the value over an agreed upon loan term. It’s ideal for business owners wanting to invest in long-life assets like tractors, parlours and telehandlers, or core machines essential to year-round work.

The benefits of purchasing your agricultural equipment on hire purchase include: 

• Fixed monthly payments 

• Straightforward loan agreement 

• Ownership at end of pay-off 

• Possible tax incentives 

• No risk of losing access to essential kit 

 

Lease finance for agricultural machinery

Best for: Lower payments and flexibility with fast-changing equipment.

Leasing is widely used for agricultural machinery due to its flexibility. It offers farmers full use of the equipment for a set period of time, while typically keeping monthly payment levels lower than hire purchase. 

Leasing facilities work well for machinery that needs specific rotation or contract, equipment with fast technological change and businesses who want flexibility at the end of the agreement.  

When you reach the end of term, there are several options business owners can typically choose from. They include extending the lease, returning the kit, upgrading to newer machinery or in some circumstances, adding additional units. 

Asset refinance for farming and agricultural equipment

Best for: Releasing cash tied up in existing machinery.

If you have paid-off, or partially paid equipment, refinance can release a lump sum of capital to support wider operations. You can then use this to: 

• Raise working capital 

• Cover input costs, feed, fertiliser and fuel 

• Tidy up older agreements 

• Reduce monthly repayments 

• Refinance a balloon payment 

• Support land or infrastructure investments 

Business loans for agriculture

Best for: Projects beyond machinery, general farm improvements, cashflow or expansion.

PMD arranges both secured and unsecured business loans, including short-term loans, long-term loans and working capital loans. 

Typically, businesses operating within the agricultural and farming sectors tend to use loans for: 

• Farm building upgrades 

• Renewables, yards, fencing and storage 

• Livestock investments 

• Diversification projects (farm shops, glamping and horticulture) 

• Hiring staff or covering payroll 

• Managing seasonal cashflow 

• Covering corporation tax and vat bills 

Loan terms vary depending on your farm’s performance, annual revenue, credit score and the overall lending profile. 

Revolving credit for farming businesses

Best for: Flexible access to funds for input costs or seasonal peaks.

A revolving line of credit gives ongoing access to funds that can be drawn down, repaid and drawn down again. It’s useful for covering things like: 

• Fertiliser, feed and spray bills 

• Emergency repairs 

• Stocking up on consumables 

• Managing payables or short-term gaps 

Revolving credit facilities are seen as a flexible alternative to traditional lending such as overdrafts or using credit cards. 

Invoice financing for the agricultural sector 

Best for: Agricultural suppliers, processors or B2B farm businesses working on credit terms. 

Invoice finance enables farmers to access cash tied up in accounts receivable, with many funders offering fast drawdowns. 

The benefits of using invoice finance facilities such as invoice factoring and discounting include: 

• Funding being disbursed within 24-48 hours of generating an invoice 

• Revolving facility that grows in line with sales 

• Helps cover payroll costs, inputs and operating costs with minimal delay 

It’s ideal for agricultural suppliers, haulage and logistics businesses linked to farming as well as packhouses, processing, grading or storage businesses. 

Structured finance and asset based lending facilities 

Best for: Larger or more diversified agricultural businesses needing broader funding capacity. 

Structured finance blends machinery, property, stock and receivables to create one larger, more complex facility. It’s commonly used for: 

• Expansion projects 

• Packhouse upgrades 

• Multi-asset investments 

• MBO/MBI and succession planning 

Asset based lending is widely used across manufacturing, processing and agricultural enterprises where multiple asset classes can support borrowing. 

Property finance for farm building 

Best for: Farms investing in infrastructure, buildings, diversification projects or long-term expansions. 

Agricultural businesses often need more than equipment. Infrastructure can be just as critical! Property finance gives you the ability to invest in buildings and upgrades without having to worry about working capital shortages impacting day to day farming operations. 

Common uses tend to include: 

• New farm buildings such as sheds, workshops, storage, grain stores and cold stores 

• Renovation or improvement projects like yard upgrades, drainage and concrete 

• Diversification opportunities including farm shops, glamping pods, holiday lets, cafes and event spaces 

• Energy and sustainability projects that involve solar PV, biomass heating and on-farm processing units 

• Owner occupied agricultural premises like funding for purchase, expansion and refurbishment 

How it works

Our process keeps things simple, fast and farm-friendly. 

1. 1. Tell us what you need: Share the details of the machinery, equipment or project. Whether that’s tractors, parlours, sprayers, yard upgrades or simply cashflow needs. 

1. 2. We compare lenders and funding routes: We compare HP, lease, refinance, term loans, lines of credit, ABL and invoice finance across our full lender panel. 

1. 3. Streamlined application and underwriting: We help package your loan application, so you can focus on running your business. 

1. 4. Credit approval and agreement issued: Your facility is approved, suppliers are paid or funds are disbursed directly to your business account. 

1. 5. Make clear monthly payments: Repay by monthly installments, matched to your farm’s seasonal cashflow. We flag any prepayment rules or penalties upfront, so nothing is hidden. 

Who we help

PMD supports every corner of British agriculture, including: 

• Arable and dairy farms 

• Beef, sheep and mixed enterprises 

• Agricultural contractors 

• Horticulture and fresh produce 

• Forestry and ground care operations 

• Diversified farms and estates 

• Agricultural suppliers and processors 

Why choose PMD for agriculture finance?

Farm businesses consistently choose PMD because we combine agricultural understanding with lender access and straightforward support. We work tirelessly to secure funding that works across the full farm. With PMD, you’ll get: 

• Access to a large specialist lender panel 

• Sector experience that understands seasonality 

• Fast decisions and clear communication 

From start ups to long established estates, we can support a wide range of farm structures, including limited companies, partnerships and family farms.

Ready to fund your next machine or on-farm upgrade?

If you’re replacing a tractor, installing a parlour, adding storage or upgrading a line, we’ll map the most effective blend of agriculture finance options, with clear costs and timelines. To get your tailored quote, feel free to speak to one of our experts by getting in touch on 0161 633 2548, pop us an email on info@pmdbusinessfinance.co.uk or complete an online application form.