Farmers and landowners need to know that they have a secure and stable form of funding, and agricultural finance is key to establishing a successful farm.
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.
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.