Finance for UK farmers & agricultural businesses

UK agricultural businesses can access a full range of commercial finance. Asset finance (hire purchase and finance lease) is the most common route for tractors, combine harvesters, sprayers, and other machinery, spreading the cost while preserving working capital. Business loans provide unsecured or secured capital for diversification projects, working capital, or farm improvements. Commercial mortgages cover farm buildings, grain stores, and agricultural property. Invoice finance can help agri-businesses that sell to processors or supermarkets unlock cash from long payment terms. As an independent whole-of-market broker, Sorbus Finance compares all products across 100+ UK lenders.

Yes. Tractors, combine harvesters, and most self-propelled agricultural machinery are well-understood assets for specialist lenders. Hire purchase allows you to own the asset at the end of the agreement and may allow you to claim capital allowances, while finance lease keeps it off your balance sheet. Balloon or residual value HP is also available on high-value machines, reducing monthly payments by deferring a portion to the end of the term. We access both franchise lenders (AGCO, CNH, John Deere) and independent specialist lenders to find the most competitive rate.

Yes. Grain stores, crop drying systems, steel-framed agricultural buildings, and polytunnels can all be financed using asset finance or secured business loans. Some structures qualify as fixtures and fittings for asset finance purposes. For more substantial permanent structures, a commercial mortgage or agricultural development loan may be more appropriate. We assess each case individually and match the structure to the most suitable lender.

Yes. Specialist agricultural lenders understand that farm income is seasonal, particularly for arable, horticultural, and harvest-dependent operations. They will often assess annual income rather than monthly cashflow and can structure repayments to align with harvest or subsidy payment cycles. Lenders who understand Basic Payment Scheme (BPS) successors and Sustainable Farming Incentive (SFI) payments are particularly important for farm applications, and we work with several who take this income into account.

With hire purchase (HP), you own the asset at the end of the term after paying a nominal option-to-purchase fee. You may be able to claim capital allowances on the asset. Please confirm with your accountant. With finance lease, the lender retains legal ownership throughout, meaning you lease the asset for its useful life and return or re-lease it at the end. Finance lease payments may be tax-deductible as a business expense. HP is often preferred for long-life assets like tractors and combines where ownership matters. Finance lease can suit equipment with shorter replacement cycles or where cash flow management is a priority. Sorbus Finance is not a tax adviser. Please speak to your accountant on the tax position; we will recommend the right finance structure for your circumstances.

Yes. Sale and HP leaseback allows you to sell unencumbered machinery or equipment to a finance company and lease it back, releasing capital while retaining full use of the asset. This is commonly used to fund new purchases, manage seasonal cashflow gaps, or fund farm diversification without disposing of key machinery. The asset must be free of existing finance charges. We will value the equipment and source the most competitive refinance structure.

Yes, though some lenders require a minimum of 12–24 months trading history. Young farmers and new entrants may find specialist agricultural lenders more accessible than mainstream banks, particularly where the director or sole trader has a clear farming background and a sound business plan. A larger deposit, typically 20–30%, may be required for start-up applicants. Government-backed schemes such as the British Business Bank's ENABLE Guarantees programme may also apply, and we can advise on eligibility.