Refinance Farm Machinery to Improve Cash Flow — Agriculture Business Loans
Quick summary: Yes — you can refinance existing farm machinery to release working capital and improve cash flow. UK Business Loans is an introducer that will match your farm with specialist lenders and brokers who provide asset refinance, sale & leaseback, hire‑purchase settlements and consolidated equipment finance. Complete a short, no‑obligation enquiry to get matched and receive quotes (typical deals start from around £10,000).
Short answer: Can I refinance existing farm machinery to improve cash flow?
Yes. Refinancing farm machinery is commonly used across UK farming businesses to free up cash for seasonal needs, inputs, repairs or other working‑capital demands. UK Business Loans connects you, free and no obligation, with lenders and brokers who specialise in agricultural equipment refinance. We are an introducer, not a lender, and we will pass your enquiry to partners who can provide formal quotes based on the value, age and condition of your equipment and your business finances. To start, complete a quick enquiry and Get Quote Now.
What does “refinancing farm machinery” mean?
Refinancing farm machinery is replacing or restructuring an existing finance arrangement secured against equipment so you either reduce monthly repayments, extend terms, pay out higher‑cost finance, or release capital tied up in your assets. Common structures include:
- Refinance of an existing hire purchase (HP): settle the remaining balance with a new lender on different terms.
- Chattel mortgage or secured loan: borrow against the machine’s value, with the asset as security.
- Sale & leaseback: sell the equipment to a funder and lease it back — immediate cash release while retaining use.
- Consolidation loans: combine multiple equipment agreements into one facility for easier cashflow planning.
Each option has different tax and accounting implications—speak to your accountant when considering the best solution for your farm.
How refinancing farm machinery can improve cash flow
Refinancing can improve your farm’s cash flow in several practical ways:
- Immediate cash release: sale & leaseback or a refinance settlement can provide a lump sum to cover seasonal purchases like seed, feed or fertiliser.
- Lower monthly payments: extending terms or securing a lower rate reduces short‑term outgoings.
- Debt consolidation: replacing several high‑cost agreements with one facility simplifies payments and can lower total monthly burden.
- Flexible working capital: combine equipment refinance with an overdraft or invoice finance to smooth seasonal income swings.
In short: if machinery repayments are squeezing liquidity at peak seasons, refinancing may stabilise cashflow without having to sell productive kit.
Free Eligibility Check — Get Quote Now
Our Business Finance Matching Process
Step 1
Complete Your Details
It takes just 1 minute on average to complete your business and contact details.
Step 2
We Match Your Business
With the best business finance broker or lender most suitable for your needs.
Step 3
You Get Free Quote + Advice
You receive a free quote along with complimentary expert financial advice.
It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.
Complete Our 1-Minute Enquiry Form Now – Get a No-Obligation Quote
Who can refinance farm machinery? What lenders typically look for
Most lenders and brokers work with limited companies, partnerships and established farming businesses. Typical eligibility criteria include:
- Minimum finance size — many partners look at deals from about £10,000 upwards.
- Age, make and condition of equipment — newer, well‑maintained machines hold more refinance value.
- Hours/mileage or usage records — particularly for tractors, combines and powered kit.
- Outstanding finance status — whether the equipment is already secured under HP or leased.
- Business turnover and time trading — lenders will judge affordability and business stability.
- Director credit history — individual checks may apply at offer stage.
UK Business Loans helps match you to partners most likely to accept your profile, increasing the chances of a suitable offer. Complete the quick enquiry to see who can help.
Our Business Finance Matching Process
Step 1
Complete Your Details
It takes just 1 minute on average to complete your business and contact details.
Step 2
We Match Your Business
With the best business finance broker or lender most suitable for your needs.
Step 3
You Get Free Quote + Advice
You receive a free quote along with complimentary expert financial advice.
It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.
Types of refinancing & equipment‑finance options available via our partners
Refinance of existing hire purchase or lease
Replace an existing HP/lease with a new agreement that may reduce monthly payments or change term length. Suitable when a cheaper lender is available or the original lender’s terms have become onerous.
Sale & leaseback
Sell machinery to a funder and lease it back. Pros: immediate cash and continued use. Cons: you no longer own the asset; overall cost can be higher over the long term.
Secured equipment loan / chattel mortgage
Borrow against the value of the equipment; you usually retain ownership while repaying the loan. Terms vary; useful where you want to release equity but keep ownership.
Consolidation / working capital combo
Combine several high‑cost equipment agreements or add a working‑capital facility alongside the refinance to smooth seasonal cashflow.
Settlement offers & restructuring
Sometimes lenders will negotiate settlement figures or revised repayment plans — our partners can approach your current lender or provide alternative offers.
Complete Our 1-Minute Enquiry Form Now – Get a No-Obligation Quote
Each product suits different situations; our partners will explain pros and cons for your farm’s needs. Get a free quote to see which option fits you.
Costs, APR and transparency
Costs vary by lender and depend on loan size, term, credit and asset value. Expected cost elements include:
- Interest rate and any arrangement or set‑up fees
- Valuation or inspection fees
- Early settlement charges on existing agreements (where applicable)
- VAT where applicable (some services may be VATable)
UK Business Loans introduces you to providers who will give formal quotes showing Representative APR and an itemised schedule. We never guarantee rates — offers depend on the provider’s assessment. Always ask for full terms and an illustration of total cost.
How the refinance process works with UK Business Loans
- Quick enquiry: complete a short form with business and equipment details (takes around 2 minutes).
- Matching: we match you with lenders/brokers experienced in agricultural equipment finance.
- Contact & valuation: a lender will contact you to arrange valuation and request supporting documents.
- Receive offers: compare offers and terms; choose the provider you prefer and proceed directly with them.
- Completion: once paperwork and valuation finish, funds or restructured agreements are completed — timing varies from days to several weeks.
First responses often arrive within hours during business days. To begin, Start Your Enquiry — Free Eligibility Check.
What lenders will ask for — prepare this checklist
- Equipment details: make, model, year, serial/VIN, hours/mileage
- Photos of machinery (good quality, several angles)
- Existing finance agreement documents (if any)
- Recent business accounts (usually 1–2 years) or management accounts
- Recent bank statements
- Proof of identity and business address
- Details of intended use for released funds
Having these ready speeds up the process and helps partners provide accurate quotes. Get Quote Now.
Risks, downsides and things to check
Refinancing can help cashflow but carries risks:
- Longer terms may reduce monthly costs but increase total interest paid.
- Sale & leaseback removes ownership — you may pay more overall and lose resale upside.
- Early settlement fees on existing contracts can reduce the benefit of refinancing.
- Defaulting on restructured finance can lead to repossession of machinery.
Always compare total cost, request full T&Cs and consider professional advice from your accountant. UK Business Loans introduces lenders — we don’t give regulated financial advice; partners provide formal offers and lending decisions.
Short illustrative examples
Example 1 — Family arable farm: refinanced two older tractors via a chattel mortgage to reduce monthly repayments and release a £35k lump sum for seed and fertiliser ahead of spring drilling (approx. timings: valuation & offer within 5 days).
Example 2 — Dairy farm: used sale & leaseback on a milking parlour upgrade to raise £50k seasonal working capital while keeping the equipment in use; lease costs offset by improved milk yields.
These are indicative examples only — actual offers depend on each case.
Our Business Finance Matching Process
Step 1
Complete Your Details
It takes just 1 minute on average to complete your business and contact details.
Step 2
We Match Your Business
With the best business finance broker or lender most suitable for your needs.
Step 3
You Get Free Quote + Advice
You receive a free quote along with complimentary expert financial advice.
It’s fast and free to get a quote from one of the UK’s leading finance brokers / lenders who will contact you directly with your quote/s.
Frequently asked questions
Can I refinance just one machine?
Yes — single‑item refinances are common for high‑value kit such as tractors, combines or specialised attachments.
Will refinancing affect my credit score?
Submitting an enquiry via UK Business Loans does not affect your credit score. Individual lenders may perform credit checks later if you choose to proceed.
How quickly can I get funds?
Initial contact is often within hours; completion depends on valuation and documentation and can take from a few days to several weeks.
Does UK Business Loans charge to introduce me?
Using UK Business Loans is free for businesses. We are remunerated by partners when a lead converts, but you pay no fee to be matched.
Ready to free cash from your farm machinery?
Complete our quick, no‑obligation enquiry and we’ll match you to specialist lenders and brokers who work with agricultural equipment. It takes roughly two minutes and could uncover options to stabilise your cash flow this season.
Trust & important information
UK Business Loans is an introducer that connects UK farming businesses with lenders and brokers. We do not lend money or provide regulated financial advice; matched providers will make formal offers and decisions. Submitting an enquiry is free and will not affect your credit score. For more about our agriculture services see our agriculture business loans page: agriculture business loans.
Privacy, Terms and further details are available via our site links.
1. Can I refinance farm machinery to improve cash flow? — Yes — you can refinance farm machinery (via refinance, sale & leaseback, chattel mortgage or consolidation) to release working capital and UK Business Loans will match you with specialist lenders and brokers.
2. How much can I refinance or borrow against equipment? — Typical partner deals start from around £10,000, with higher limits depending on asset value, business turnover and lender criteria.
3. Will submitting an enquiry affect my credit score? — No — completing UK Business Loans’ no‑obligation enquiry does not affect your credit score, although individual lenders may carry out checks if you proceed with an offer.
4. How quickly can I get a quote or funds? — Many partners contact you within hours for an initial quote, with completion (valuation, paperwork and funding) generally taking from a few days to several weeks depending on complexity.
5. What costs and APR should I expect when refinancing machinery? — Costs vary by product and lender and typically include interest, arrangement or valuation fees and possible early settlement charges, all of which should be shown in a formal Representative APR and itemised quote.
6. Who is eligible to refinance farm equipment? — Lenders commonly work with limited companies, partnerships and established farming businesses that can demonstrate asset condition, trading history and affordability.
7. Can I refinance just one high‑value machine? — Yes — single‑item refinances for tractors, combines or specialist kit are common and often accepted by equipment finance providers.
8. What documents and information will lenders ask for? — Prepare equipment details (make, model, year, hours/VIN), photos, existing finance agreements, recent accounts or management accounts, bank statements and ID/business proof to speed up offers.
9. What is sale & leaseback and is it right for my farm? — Sale & leaseback lets you sell machinery to a funder and lease it back to release immediate cash while retaining use, but you lose ownership and may pay more over the long term, so discuss tax and accounting implications with your adviser.
10. Does UK Business Loans charge to introduce me to lenders? — No — UK Business Loans is a free introducer that matches you to regulated brokers and lenders and is remunerated by partners only if a lead converts, with no obligation to proceed.