Farm loans for a project
A loan for one clear purpose on the farm, repaid monthly. Tell us what it's for and we'll find the lender that suits it.
No credit check to enquire.
Farm loans for a project for UK farms
- Buildings and infrastructure
Sheds, yards, slurry storage, fencing and water.
- Diversification
A farm shop, holiday let, contracting business or new enterprise.
- Improvements
Projects that raise output or cut running costs.
How farm loans work
For a defined purpose
These are commercial loans for a specific project, not a general overdraft. You'll say what the money is for.
Monthly repayments
Repaid monthly, over anything from 6 months to 25 years depending on the lender and the project. Some facilities offer interest-only or capital repayment, and fixed or variable rates.
Specialist lenders
Agricultural lenders understand farm accounts, seasonal income and land-based businesses.
What a farm lender looks at
Three years of accounts where you have them. Farm income moves with the season and the year, and one set shows very little, so a lender wants to see the business through a good year and a poor one.
Where support payments sit in the figures. In England the old direct payments are being phased out, so lenders look harder at what the farm earns from its own trade, and a plan that leans on payments that are ending is read with care.
What security is available. For larger amounts that is often land or buildings, which brings a valuation and legal work, and is the main reason farm lending takes longer than an unsecured business loan.
Diversification projects
A lender funding a holiday let, a farm shop or a new enterprise is lending against something that has not traded yet. Expect to show planning consent, costs from real quotes rather than estimates, and a reasoned view of what the new venture will earn. Until it has a track record, the existing farm business carries the application.
Getting the timing right
Building projects run late and prices move. Arrange the finance before you commit to contractors, and build some margin into the amount, because going back for more halfway through a project is harder than asking for the right figure at the start.
Questions we get asked
Can I use a farm loan for day-to-day cash flow?
Not usually. These loans are for a specific purpose. For general cash flow, tell us in your enquiry and we'll look at other options.
What about land or an agricultural mortgage?
Our sister company CW Asset Finance handles agricultural mortgages.
Do I need to be a limited company?
No. Partnerships and sole traders can apply.
Do I need planning permission before I apply?
Not to enquire, but most lenders will want it in place before they release money for a new building or a change of use. Applying while planning is under way is sensible, as long as you know the funds depend on the outcome.
How long does it take?
Farm lending takes longer than general business lending, because there is usually security and sometimes a valuation. Input credit and revolving facilities move fastest. Anything secured on land is weeks rather than days. We will give you a realistic timescale once we know which lender fits.
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