As a specialised finance broker, First Oak Capital is dedicated to providing agricultural finance solutions to help farmers grow their businesses.
With a focus on the agricultural sector, we offer tailored funding and loan options for a range of equipment and diversification projects.
Agricultural finance is a niche segment within the financial services industry, specifically designed to cater to the unique needs and challenges faced by farmers and agribusinesses.
This type of financing typically includes loans, leases, and other financial products aimed at supporting the growth and sustainability of farms.
At First Oak Capital, we understand that the agricultural sector is diverse, with farms requiring different types of machinery, vehicles, and other essential assets.
That’s why we work hard to source and offer the most suitable and competitive agricultural finance options to help your business grow.
Agricultural finance options
Types of Agricultural Finance:
Finance Lease
A finance lease is a flexible financing solution that allows farmers to use essential equipment without the upfront cost of purchasing it outright. Under this arrangement, the leasing company retains ownership of the asset while the farmer makes regular payments for its use over a fixed term. At the end of the lease, the farmer may have the option to purchase the equipment at a predetermined residual value, extend the lease, or return the equipment. Benefits to farmers include improved cash flow, potential tax advantages, and the ability to upgrade equipment at the end of the lease term to keep up with technological advancements.
Hire Purchase
Hire purchase is a financing option that enables farmers to acquire equipment through a series of regular payments, eventually owning the asset outright. The equipment serves as collateral for the loan, and the ownership is transferred to the farmer once the final payment is made. The benefits of hire purchase for farmers include fixed interest rates, flexible repayment terms, and the ability to build equity in the asset over time. Additionally, hire purchase can offer tax advantages, as the interest and depreciation of the equipment may be tax-deductible.
Term Loans
Term loans are a type of financing where a farmer borrows a lump sum of money, which is then repaid over a fixed period, typically with regular monthly payments. Term loans can be used for various purposes, such as purchasing equipment, vehicles, or livestock, as well as financing farm expansion or improvement projects. The benefits of term loans for farmers include predictable repayment schedules, potential tax benefits, and the ability to secure funding for larger, long-term investments that can help grow their business.
Commercial Mortgages
Commercial mortgages are loans secured by agricultural land or property, allowing farmers to purchase, refinance, or develop farm-related real estate. These mortgages typically have longer repayment terms than other financing options, often ranging from 15 to 30 years. The benefits of commercial mortgages for farmers include competitive interest rates, the ability to build equity in their property, and the potential for capital appreciation over time. Furthermore, commercial mortgages can provide farmers with financial stability, as the value of agricultural land often increases, providing long-term security and growth potential for their business.
WHY FIRST OAK CAPITAL?
Helping Since 1994
Benefit from our 30 years of experience and expertise in commercial finance brokering
Competitive Industry Rates
Increase business growth and save money with highly competitive industry rates
Access Over 100 Lenders
Access to more than 100 lenders in the UK finance market
Funding Within 48 Hours
Once approved, funding can be provided in as little as 48 hours
What can agricultural finance pay for?
Regardless of your circumstances, agricultural finance can cover:
- Combine harvesters
- Milking parlours
- Cultivators
- Hay balers
- Tractors
- Diversification Projects
- Vehicles
- Trucks and trailers
- Livestock
- Land purchase and expansion
- Barns and silos
- Working capital
- Debt consolidation
- And more
Benefits of agricultural finance:
- Protect precious working capital
- Competitive interest rates
- Offset lease payments against tax and reclaim the VAT element
- Finance up to 100% of the purchase price
- VAT deferment until reclaimed option
- Finance lease, Hire Purchase or Term Loans available
- Repayment terms of up to 7 years
FAQs
We can assist a wide range of agricultural businesses, including crop farms, livestock farms, dairy farms, vineyards, orchards, and more. Our goal is to help businesses in the agricultural sector grow and thrive.
Yes, we can help you finance both new and used equipment, depending on your needs and budget.
You can start the application process by contacting our team of experts. We will discuss your needs, evaluate your financial situation, and help you find the best financing solution for your farm.
The application process may vary depending on the type and complexity of the financing solution you need. However, we strive to provide prompt and efficient service to help you secure the necessary funding as quickly as possible.
Typically, we will require information about your farm, the type of equipment or project you wish to finance, and your financial history. Generally, we will need copies of your recent accounts and a few months’ bank statements. This information helps us assess your needs and find the most suitable financing option.
Fees may vary depending on the type of financing solution you choose. Our team will clearly outline any fees and charges associated with your chosen finance option during the application process.
Yes, we can help you finance multiple assets or projects, depending on your needs and financial situation.
Leasing is an arrangement where you rent equipment for a fixed period, with the option to purchase the asset at the end of the lease term. Hire purchase is a financing solution where you make regular payments to purchase the equipment over time, eventually owning the asset outright. How you might do this is down to you and your accountant but we will advise as to the pros and cons of each.
In most cases, you can pay off your loan early, although there may be fees associated with early repayment. Our team will clearly explain any early repayment fees during the application process.
Interest rates are determined based on various factors, including your credit history, the type of asset being financed, and current market conditions. As a broker, we work to find the most competitive interest rates from suitable lenders.
Yes, we can help you finance renewable energy projects such as solar panels, wind turbines, and anaerobic digestion systems.
Collateral requirements may vary depending on the type of financing solution you choose. In many cases, the equipment or asset being financed serves as collateral for the loan.
While a strong credit history is beneficial, we understand that financial challenges can arise in the agricultural sector. We will work with you to find a financing solution that meets your needs, even if you have a less-than-perfect credit history.
Yes, we can help you secure financing for land purchases or farm expansions, depending on your needs and financial situation. Our team of experts can guide you through the process and help you find the most suitable financing solution.
Have Questions? Let’s Talk.
Call us today to get help securing agricultural finance. In addition, we would be happy to provide you with more information about our services. Call us on 0800 066 3677 or email us to get the ball rolling. Alternatively, if you’d like to get your finance approved today just click on the quote button, complete the short form and we’ll be in touch.
