Farmers facing financial challenges should act immediately to identify and resolve problems before they become more serious.
Poor cash flow, falling prices, increased competition and Brexit uncertainty are all causing UK farmers a financial headache.
It is a difficult economic climate for the farming industry and farmers must practice careful financial management, keeping a close eye on their debtors and cash flow to avoid running into serious financial difficulties.
If your farming business is already in distress, it’s important to act quickly to prevent the problem from spiralling. Here are five tips for easing financial pressure.
Check your cash flow– If your farm business is lacking cash flow it puts you in a precarious financial position and can prevent your business from growing. It’s important to keep accurate and up-to-date records of all income and expenditure and ensure that you always know where you stand with your cash flow at any one time.
Review your budget– If cash flow is a problem for your farm then it’s time to review your budget and financial plan. Make cutbacks where possible to reduce your costs and improve your margin.
Consider diversifying– More than half of England’s farmers are now successfully diversifying their business. Look for alternative sources of revenue by thinking about ways you can leverage your existing assets.
Farm asset finance– If your business is struggling or stagnating because you can’t generate the funds to purchase new machinery, vehicles, or other assets, then consider farm asset finance. Asset finance makes the best farming equipment more affordable, helping farmers to boost productivity and reach their full potential.
Farm asset refinance– Unlock the cash that is tied up in unused machinery or vehicles by refinancing them. Refinancing farm equipment can help to free up money to ease cash flow problems or fund the purchase of a new asset to increase your efficiency or production rate.
For more information about farm asset finance, or to discuss other funding solutions available, give our team here at Richmond Asset Finance a call on 0113 288 3277.