As farmers, your specialty more likely to be nurturing your animals, growing crops and harvesting to provide for the nation.
It’s unlikely to be in finance. We have answered some of the common questions we get asked:
There are a range of finance options available depending on what you need the finance for. It is best to speak to an experienced broker as they recommend an option which offers lower rates and lower repayments. Here are six to consider:
- Asset finance – hire purchase or leasing options
- Agricultural loans
- Refinancing to release equity tied up in your existing machinery
- Agricultural mortgages and bridging loans for farm and land purchases
- Diversification finance
- Renewable / green energy project finance
Investing in a refrigeration trailer can help farmers to safely transport fresh produce further afield.
Farming is going through a difficult time, facing challenges from all angles including political and economic instability, climate change and increased competition.
Farmers are being forced to diversify their businesses as much as possible and become resourceful with finding new income streams.
One affordable piece of equipment that can provide farmers with greater flexibility and freedom to get their produce in front of a larger audience is the refrigeration trailer.
A refrigeration trailer will provide your business with the practical means with which to transport produce further afield without any negative effect on quality or freshness.
Organic, artisan and speciality produce are popular with consumers, and every year hundreds of farmer’s fairs, markets and other events are held up and down the country for farmers to sell their produce at.
A refrigeration trailer provides the means to safely transport fresh produce further, allowing farmers to attend more of these events to boost their income and improve their brand’s visibility.
Why should farmers consider investing in a refrigeration trailer?
Benefits of investing in a refrigeration trailer for your farm business include:
- Maintains the quality and freshness of your produce for longer for excellent customer satisfaction.
- Prevents your produce from becoming contaminated.
- Provides your business with more opportunities to make money by offering greater flexibility.
- Environmentally-friendly and energy efficient.
- Helps farmers to meet the guidelines set out by Environmental Health and Trading Standards.
For help financing the purchase of vehicles or agricultural equipment, speak to our team at Richmond Asset Finance on 0113 288 3277. We provide a variety of asset finance, vehicle finance and agricultural finance services to help your farm business to grow and develop.
As a leaked cabinet letter warns of the chaos a no-deal Brexit could cause, we’ve looked at how it could affect the farming economy.
Earlier this month a leaked letter from cabinet secretary Sir Mark Sedwill warned that a no-deal Brexit could cause a 10% increase in food prices and a devastating UK-only recession worse than that of 2008.
This news came just days after the EU chief negotiator Michel Barnier warned that a no-deal Brexit is becoming more likely “day after day”.
As parliament currently work to try to stave off a no-deal outcome, we’ve looked at how this result could affect the farming economy.
The affects of a no-deal Brexit on the farming economy
Agriculture employs 3.8 million people and generates £113bn for Britain’s economy according to The UK in a Changing Europe. A no-deal Brexit is likely to throw the whole industry into turmoil, not just negatively affecting the farming economy, but Britain’s wider economy too.
Just a few of the potentially devastating effects a no-deal Brexit could have on UK farming include:
- A ban on the export of animal products from the UK to the EU until the UK is granted approval.
- Uncertainty over future import/export tariffs.
- A ban on exporting organic products as the EU will no longer recognise UK organic certification bodies until approval is granted. Organic exports account for around 20% of the dairy industry’s total organic sales.
The process of applying for approval for export is not a quick one and can take months, during which time many farms would suffer significant losses that could put them out of business.
National Farmer’s Union president Minette Batters has warned that “a no-deal Brexit would be disastrous, not only for our farmers but for the public too” and that it should be “avoided at all costs”.
Often one of the biggest barriers to small business and start up founders getting a business loan is a poor credit rating. So, if you have been turned down for a loan because you have bad credit let’s look into ways it may be possible to gain funding for your business even if you have a bad credit rating.
Find out why you have a bad credit record
Review your credit score online and find out what may be causing the problem. A poor credit score can come as a surprise and the first thing you know about it is when you are refused a loan. Sometimes the cause can be rectified if for example there are some discrepancies in addresses, your name isn’t on the electoral roll or if you have missed credit card payments.
Research lenders willing to provide loans to people with below average credit scores
Some lenders will consider business owners with below average credit scores so it is worth doing some research to find them. If your credit score is below 500 this can start to make life difficult and lenders willing to take the risk on you will become harder to find the lower your score is.
Look to alternative sources of finance that won’t require a good credit score
You may find there are plenty of alternatives available when it comes to finding funding for your business. Friends and family might be one avenue if they are understanding and supportive or asset finance could be an option.
Work to improve your credit score
Your credit score isn’t set in stone and it can improve significantly if you pay all your bills on time and avoid running up debts. Taking out smaller loans and using a credit can actually help improve your rating if you are sensible about making more than the recommended monthly repayments.
UK wages are said to be rising at their fastest pace for six years but what does this mean for SME businesses?
The UK economy at present is something of a mixed picture. On the one hand unemployment has risen while employment and wage growth are rising. It might sound strange that employment can rise while unemployment also increases yet there will be some areas hidden within the statistics which explain why this is the case including more people taking part time jobs and so on.
The big news from a business perspective however is the rapid growth in wages. As competition heats up for the best qualified staff it is inevitable that wages will be pushed up in some sectors and this can happen even if that sector is not doing so well such as the construction and manufacturing sectors – the latter feeling the ill effects of a strong pound.
Higher wages are likely to put a strain on businesses at a time when bank lending is constrained. If your business has been hit by a higher wage bill and the need to keep cash flow going why not consider asset finance? Our experts are on hand to guide you through the simple process of using your existing assets to consolidate your business.
Sustained growth in asset finance
New figures released today by the Finance & Leasing Association (FLA) show new business in the asset finance market up by 6% in June compared with the same month in 2013, and up by 10% in the first half of this year.
The continuing broad-based recovery is evidenced by solid performances in plant and machinery and commercial vehicle finance, with growth of 19% and 18% in the first half of 2014.
Commenting on the figures, Geraldine Kilkelly, Head of Research and Chief Economist at the FLA, said:
“The first six months of 2014 have seen sustained growth in asset finance which has helped support the recovery in key sectors of the economy. So far this year, more than 60% of asset finance new business went to support business investment by SMEs.”