Category: Business Finance (page 1 of 3)

Yorkshire Machinery Finance for Farms

From tractors, headers or balers, if it’s part of a working farm Richmond Asset Finance can finance it! At Richmond Asset Finance we have access to an experienced panel of lenders so we can bring you only the best finance options for your farm machinery and business.

Agriculture is very diverse and we also understand that that some farmers have seasonal income, so we can tailor seasonal loan structures for certain applicants if the situation calls for it.

We also understand that a 1998 tractor might still be in good working condition, so older farm machinery can be financed from both private sellers and dealers. Simply ask us for more details.

We can offer agriculture finance loans for the following vehicles and equipment:

  • Tractors
  • Harvesters
  • Spraying Equipment
  • Spreaders
  • Seeders
  • Offset Disc
  • Balers
  • Irrigation
  • Telehandlers

Have farm equipment or machinery that’s not on the list? Call us and we’ll be happy to help: 0113 288 3277

Your agricultural equipment finance options

Whatever you want to finance from biomass boilers to bailers, our range of equipment finance options are tailored to fit yours and our businesses needs. Read more about the ways in which we can help finance your farming assets or get in touch with our experts from Richmond Asset Finance for a quote.

Hire Purchase

Flexible interest rates – With a choice of fixed or variable rates, you could make the choice that suits you and your business best.

Finance Lease

Enjoy the benefits of ownership without the risk like depreciation or time and costs of disposal.

Operating Lease

Lease high value equipment and enjoy lower monthly repayments and reduced risks.

Sale & Leaseback

Release capital tied up in your assets and increase your cash reserves to invest in your business.

Why finance your agricultural equipment with us?

We know that different types of farming businesses have different needs. Our dedicated agricultural asset finance team specialises in finding the right solutions to help fund new and used farming equipment. And through our in-depth understanding of your business, our relationship managers could help you overcome the challenges of financing business growth.

The funds your farm needs to grow with Richmond Asset Finance

Richmond Asset Finance are a consultant lender in Manchester, here to help your business survive, thrive and grow.

We offer a range of flexible funding solutions to allow you to upgrade or invest in new equipment, or release cash from your company’s existing assets. The decisions we make are not based on whether we have been able to tick a series of boxes on a form, or whether your situation neatly fits into a category that suits us. What your business needs will always come first.

How can asset finance Manchester help your business?

Whether you’re looking to fund new vehicles for your farm, equipment or machinery for your farm, enable expansion plans, consolidate debts or provide an injection of working capital; Richmond Asset Finance can help:

  • Hire Purchase
  • Leasing
  • Refinancing

Asset Types

Asset-based lending Manchester (ABL) encompasses business funding that releases capital using the value of an asset as security. This asset may be equipment or vehicles, and the capital raised on it can be used to buy more equipment, update or expand premises, or facilitate a management buy-in or buy-out.

Need a new tractor?

Rural Finance from Richmond Asset Finance can help your purchase what you need.

Richmond Asset Finance are one of the north west’s leading rural finance and agricultural brokers.

We are one of the biggest agricultural, commercial and industrial finance brokerage company’s operating throughout England, specifically the North West.

What makes Rural Finance different?

Here at Richmond Asset Finance we like to visit our customers, so we have a clear understanding of their requirements. Once we have a clear understanding of your needs and financial situation, we are in a better position to provide you with products that suit your circumstances. Richmond Asset Finance has brokers based around the North West, ensuring we always have someone to help you. Take advantage of our experience and give us a call on 0113 288 3277.

What are the benefits of Agricultural Finance?

What are the benefits of agricultural finance?

As a farmer, it can be difficult  to purchase the equipment and machinery you need. The costs can be huge and can eat into capital that is much needed for other necessities. You may not be aware, but there is a solution to this in the form of agricultural finance. Outlined below is the importance of agricultural finance.

Farmers need to purchase new inputs, such as seeds, fertilizers, pesticides, irrigation water and more. Agricultural finance can help to make these purchases easier for farmers. If the seed of a high yielding crop is readily available for farmers, then the productivity of the farm is improved.

Smaller farms may not have the need for agricultural finance for items such as seeds or pesticides but larger farms may need help with bulk purchases of these items. Seeds, fertilizers and irrigation water can prove to be a highly expensive continuing need which agricultural finance can help to meet.

You can cover land costs

If you are looking to buy new farmland as a budding farmer or simply increase the amount of land you already have, then agricultural finance can help cover the land costs you may incur. The land you need will depend on the type of farming you are planning on doing.

In order to apply for finance for land, you will need to calculate how much land you need and what kind of land you are looking for. Once you have your loan approved, you will be able to move forward with your endeavour. Buying land with your own money may not be feasible as a start-up farm, which is why finance is a good option.

You are better equipped for a crisis

Farming can be a difficult business. You are never able to predict what will happen to your crops or livestock, and are at the mercy of customers and competitors. Some farming is seasonal, which means you may only earn money during certain times of the year.

An agricultural loan can be used to protect yourself during the various ups and downs of your business. You can also use it for operational costs as well as costs that occur from damages. It is better to be prepared for every eventuality, which is why having agricultural finance is important to all working farms.

Finance Options

Typical Finance Types, uses and descriptions

1. Farm Finance, Rural Finance

An all embracing term we use to describe all types of farm and agricultural finance we offer in the rural and country business sectors and which can also be described as Agricultural Finance, Equestrian Finance, Farm Finance, Land Finance and Horticultural Finance. Finance can be provided for holiday complexes, caravan parks, caravan sites, properties with agricultural restrictions, land, buildings, working farms, non-working farms, nurseries, garden centres, smallholdings, estates, fisheries, farm shops and generally all types of rural type situations.

2. Agricultural Loan, Loan for Agriculture, Loans for Agriculture

More commonly described as an Agricultural Mortgage, Mortgage for Agriculture, Agricultural Re-mortgage or Re-mortgage for Agriculture being a loan secured by a first charge over property in UK, England. In some cases a loan may be secured by way of a second charge over this type of property.

3. Bridging Loan, Bridging Finance

This is a short-term arrangement whereby a loan is secured either by way of a first charge or second charge on property in England, Wales, Scotland or Northern Ireland. Usually, but not always, interest is rolled up or added to the account so that all the money is repaid by the end of the term, meaning that no monthly payments are made.

Richmond Asset Finance Guide to Farm and Agriculture Finance

Richmond Asset Finance is a specialist business lender to the agricultural sector that offers traditional, responsible lending to farmers throughout England, Scotland and Wales.

Farm finance is on the rise again and is becoming an attractive sector as farmers need loans that can be secured on real assets as farmers now need to find new sources of capital to sustain, grow and improve their businesses. Again we can help with asset finance and for equipment and various land and property finance is available too. Click here to view our services and solutions here.

Here are a few reasons why you may require Richmond Asset Finance Agricultural Finance:

  • Diversification, farmers need capital to diversify and build new businesses. Diversifying your enterprise can increase revenue and reduce risk. We understand this and the benefits it brings in the current market, as our team has direct experience of building new businesses.
  • Purchasing new farmland when additional acreage or a unique property opportunity may come available and often at short notice. Additional acreage or a unique property opportunity may come available at any time and often at short notice. Richmond Asset can move quickly to help you secure this and expand your business.
  • Property finance allows farmers to develop, renovate or repair property for capital appreciation and income generation. Are you making the most from your property? A loan from us could help you develop, renovate or repair property for capital appreciation and income generation.
  • Renewable energy projects can be a great source of additional income and add real value to under-utilised land on a farm, or even turn waste products into revenue. Renewable energy projects can be a great source of additional income and add real value to under-utilised land on your farm, or even turn waste products into revenue.
  • Livestock Finance is utilised by farmers to expand their livestock holdings. Once you decide that you’d like to expand your livestock holdings, our facility can provide a flexible option that can be used repeatedly, allowing you to make judicious purchases or sales, depending on the market.

Bridging Finance during the Covid19 Pandemic

How has the Coronavirus affected bridging finance?

Some bridging lenders have stopped lending

A number of bridging lenders have stopped providing bridging loans during the current Coronavirus pandemic. Many lenders have announced that they are temporarily stopping all new lending or restricting the size and types of loan that they offer.

Some current lending applications have been cancelled

Some lenders have cancelled on-going applications and have even pulled current offers where contracts have not been exchanged.  In some cases lenders are requiring customers to start the application process again from scratch.

Those still lending have reduced loan to values and loan sizes

Those lenders who are still offering bridging finance are being very cautious and have taken actions such as reducing their maximum loan sizes.  Maximum gross loan to values (LTVs) are down from 80% to around 60 to 65%.

Small businesses boosted by bounce back loans

The government have announced its intention to offer bounce back loans to small businesses. The key terms of these loans are:

  • businesses will be able to borrow between £2,000 and £50,000 and access the cash within days.
  • loans will be interest free for the first 12 months, and businesses can apply online through a short and simple form.

Small businesses will benefit from a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders.

Rishi Sunak said the new Bounce Back Loans scheme, which will provide loans of up to £50,000, would help bolster the existing package of support available to the smallest businesses affected by the coronavirus pandemic.

The scheme has been designed to ensure that small firms who need vital cash injections to keep operating can get finance in a matter of days, and comes alongside the £6 billion awarded in business grants, supporting 4 million jobs through the job retention scheme and generous tax deferrals supporting hundreds of thousands of firms.

The government, which has been consulting extensively with business representatives about the design of the new scheme, will provide lenders with a 100% guarantee for the loan and pay any fees and interest for the first 12 months. No repayments will be due during the first 12 months.

The loans will be easy to apply for through a short, standardised online application. The loan should reach businesses within days- providing immediate support to those that need it as easily as possible.

‘Whole new business’

Farmers innovate to get food from field to plate during the coronavirus pandemic. A report from Reuters has explained the struggles that farmers currently face.

New recruits for seasonal work

Finding seasonal workers is a priority in Europe, where spring harvests are at risk because the usual vast armies of migrant labourers cannot leave home as all of the boarders are currently closed.

Spain, the European Union’s biggest fruit and vegetable exporter, has responded by allowing the unemployed to take farm jobs while keeping welfare payments, and has extended work permits for those migrants already in the country.

France has mobilised 15,000 French workers idled by the crisis so far to help offset a potential shortfall of 200,000 foreign labourers this spring. 

It has been suggested that farmers were frustrated that the new recruits lacked skills or had quickly quit. 

Poland, meanwhile, is struggling without Ukrainian seasonal labourers and the Russian Agriculture Ministry said prisoners might help out on farms in the absence of Central Asian workers. 

Germany, Britain and Ireland are allowing companies to bring in trained workers from Romania and other European Union states on charter flights with quarantine measures. 

U.S. President Donald Trump has exempted such migrants from a temporary curb on immigration during the crisis. 

Elsewhere, Nigeria’s federal government is making identity cards so farm workers can move freely during a national lockdown after many were stopped by police. 

Iraq’s Agriculture Ministry said farm workers were exempted from curfew measures and farmers were allowed to move harvesting machinery around the country. 

To keep transport links running smoothly, Brazilian toll-road operator CCR SA has distributed more than 1,000 food and hygiene kits a day to truck drivers as service outlets are closed. 

In Kenya, Rubi Ranch has been sending avocados to Europe by ship due to limited air freight capacity, as airlines have grounded aircraft and cut off the company’s usual supply route.

Farmers cannot be the forgotten heroes of the coronavirus pandemic

The coronavirus pandemic has amplified the uncertainty and fragility of the conditions within which farmers operate.

The coronavirus pandemic has caused us all to become acutely aware of our own mental health, as a “new normal” has emerged. In the UK, there is sharp focus on the mental health of keyworkers supporting the nation in an array of fields such as the NHS, social care and education, but one industry’s contribution that should not be overlooked is the farming and agricultural workforce.

Seasonal labour

Concerns around levels of seasonal labour also predates the pandemic, and concerns have been raised by those within the industry throughout the Brexit debate. UK seasonal farming has been chronically understaffed since the UK voted to Leave and the value of the pound fell. As has been widely documented, an estimated 70,000 seasonal workers are required throughout the year, and around 90 percent of those are from outside the UK. But with restrictions on travel due to coronavirus, farmers in the agricultural, horticultural and dairy industries in particular are reporting severe labour issues.

The Government recently launched its “Pick for Britain” campaign to mobilise a land army of British pickers to help fill farm vacancies. This did not come without concerns from farmers, as many seasonal workers are normally returnees, arriving at the start of the season fully trained in the necessary skills and machinery to hit the ground running. By stark contrast, training new UK recruits can be costly and initially result in lower productivity. Furthermore, recent reports note that, following tens of thousands of initial sign-ups, just 112 people were hired by UK farmers last week. Many applicants cited that they could not commit to the full length of the contract, farms were too far away, or they had caring responsibilities and therefore could not work long hours.

Change in consumer demand 

Changes in consumer demand during the coronavirus pandemic, with a move from out-of-home eating to more meals eaten at home – an estimated 500 million more per week – has resulted in some farmers losing their market overnight. This is down to difficulties in redirecting food produce once destined to the foodservice sector, as it been noted that consumers often wont replicate the meals that they would have had out of home, and there are issues with repackaging foods for retail. The impact on dairy farmers has been widely documented with videos of many having to pour away milk – an estimated 1m litres worth – along with the effects on the meat and horticulture sectors. Further to this, farmers have been faced with an increase in the theft of animals by criminals seeking to “cash in” on public concerns about food shortages.

To compound the challenges, the instruction by government to close B&B accommodation and farm cafés amongst other restrictions, and the subsequent loss in public demand, has also impacted farmers who have diversified their sources of income. These diverse streams of income are often vital to small farms’ survival, as many do not make a profit from their farming activity alone, so the financial consequences of this collapse will undoubtedly impact many in the sector.

Richmond Asset Finance adding value to your farm equipment

Richmond Asset Finance offer financing solutions for farm equipment manufacturers and suppliers in the processing, handling, and storage industries. Plus commercial and retail finance solutions so that distribution partners and authorised dealers have an efficient global distribution network.

Richmond Asset Finance is an all embracing business and we cover all types of farm and agricultural finance we offer to the rural and country business sectors and which can also be described as Agricultural Finance, Equestrian Finance, Farm Finance, Land Finance and Horticultural Finance. Finance can be provided for holiday complexes, caravan parks, caravan sites, properties with agricultural restrictions, land, buildings, working farms, non-working farms, and generally all types of rural type situations.

What purpose might be appropriate for farm finance?

Any legal purposes including but not being limited to repaying debt, repayment of an overdraft, diversification, working capital, business start ups, reducing outgoings, purchases of any kind and development of property or development of business.

Richmond Asset Finance are one of the most reputable sources of rural & farm finance in the UK. We guide and advise you throughout your application process, making sure your individual needs and circumstances always come first. Although we co-operate with a diverse range of banks and financial institutions, we are above all, independent. This means we always tailor a solution that best meets your requirements, not the banks.

We provide farm finance and refinance solutions, bridging finance packages, impartial advice, support and a level of customer service envied by our competitors.

UK banks set out details of Covid-19 mortgage holidays

Households hit by coronavirus will not lose credit ratings if they delay payments as the government gives a 3-month mortgage holiday.

The unpaid interest will still be recovered later, but individual credit ratings will not be affected.

The Guardian has suggested that ‘firms will help customers the best way for the individual, but an automatic payment holiday may to always be the most suitable approach and may not be required by all customers’.

Full payment of the arrears will still assume an eventual full repayment of arrears. While a person is taking a payment holiday, the interest that would have been paid will still rack up, and the capital sum of the loan remains.

These holidays are not a long term solution but they are designed to help the temporary income shortfall. If this is a smooth and seamless process that will enable homeowners to self-isolate without having to worry about their mortgage payments then clearly it is a significant move in the right direction.

Manage Seasonal Fluctuations

In business, seasonal fluctuations refer to the peaks and troughs in demand that correspond with different times of year. Most SMEs will experience this at some point, but certain industries can be subject to greater variations due to the nature of their trade. This is especially important during this time with the coronavirus pandemic effecting most businesses nationwide.

The upside is that these shifts are usually predictable, which allows companies to plan ahead and put measures in place to ensure they can fulfil customer requirements however as people and businesses are now learning, it’s not always that easy. It is prudent to review what your business can do to manage cyclical demand effectively.

Here are a few things you can do to control changes in the economic market.

Manage cash flow

During peak seasons, try to reserve cash for the quieter months so you have sufficient funds available all year round or in times of need. Aim to plan at least six months ahead by using historic sales data to forecast levels of supply and demand, although, cases like this are hard to predict. This will help you to better recognise trends in consumer behaviour and account for this in your sales projections.

Control inventory

Regularly monitoring levels of stock can reduce wastage and therefore save costs. Coincide orders with peak periods, so your company does not have surplus stock when business is slow.  

Identify workforce needs

Establish how many employees you need in any given shift, month or season to maximise efficiency and organise staff contracts to reflect business levels. Employing temporary staff can provide additional support during busier periods and this strategy can also keep costs down during quieter months. This may apply to supermarkets and the NHS during this period when they need as much support as possible.

Review payment terms

Long payment terms and overdue client invoices can put a strain on your cash flow. Requesting shorter credit periods may prompt customers to pay for goods and services quicker, giving you adequate working capital to continue trading.

Tips for improving your HGV’s fuel efficiency

Whilst you can’t control the price of fuel, you can control the amount you use with these driving tips for better fuel efficiency.

HGVs can guzzle up fuel, which isn’t only bad for your business’ budget, but also for the environment.

HGV drivers can learn to improve their vehicle’s fuel efficiency by making a few simple changes to their driving habits, here’s how.

Use cruise control

Most modern HGVs are equipped with a cruise control function for keeping the vehicle running at a constant speed. Reducing unnecessary fluctuations using cruise control can help you to save a significant amount of fuel.

Plan the route

Careful route planning can help you to get from a to b quickly and efficiently, preventing you from using unnecessary fuel whilst getting lost and taking detours. It can also help you to avoid routes featuring sharp inclines which require more fuel to navigate.

Reduce speed

The speed that you drive at can have a significant impact on the amount of fuel that your HGV uses. Studies have shown that reducing your speed to an average of 50mph on the motorway can help to reduce fuel consumption by up to 20%!

Don’t idle

Whilst it may be tempting, particularly on very cold days, to keep your engine idling and your heater and radio switched on when you are stationery, this is one of the worst ways to waste fuel!

Avoid braking sharply

Hitting the brakes sharply and rapidly accelerating can both eat up fuel far faster than driving at consistent, steady speeds. Simply paying closer attention to what is happening ahead of you on the road and anticipating when to brake sooner can make for a smoother ride, use less fuel, and reduce the risk of an accident.

Sometimes, if you’re driving a very old HGV, then the most effective way of increasing its fuel efficiency is to upgrade to a newer model.

If you require financial help or advice with upgrading your HGV, speak to our team here at Richmond Asset Finance by giving us a call on 0113 288 3277. We provide a range of flexible vehicle finance and asset finance services.

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