Quick comparison

Free Eligibility Check — quick, no obligation and does not affect your credit score.

Why this matters for farmers

Farming businesses face unique financing needs: seasonal cashflow swings, high‑value assets (tractors, combines, sheds), and capital‑intensive projects like land purchase or facility upgrades. Choosing the wrong finance type can cost you money or put key assets at risk.

Use‑cases:

• Buying a combine harvester — usually asset finance or hire purchase (often secured against the machine)
• Purchasing additional acreage — typically a secured land or mortgage style facility
• Bridging cashflow during harvest — unsecured overdraft, invoice finance or short‑term loan

Example: You need a new £120,000 harvester. Asset finance (a secured chattel mortgage or hire purchase) lets you spread cost over several years, usually at lower rates than an unsecured loan and without pledging land.

What is secured agricultural funding?

Secured funding is lending where you pledge an asset as security. For farms, common securities include farmland, farm buildings, or farm machinery. Lenders may register a first or second charge against the title of the land or a chattel mortgage against equipment.

Common secured structures for farming

• Land or property mortgages (first/second charge)
• Chattel mortgages and hire purchase for tractors and machinery
• Asset finance secured on equipment
• Crop or stock liens where accepted

What to expect: secured facilities often support larger loans (from tens of thousands up to multi‑million for property deals), offer longer repayment terms, and typically have lower interest rates than unsecured alternatives. However, they require valuations, legal searches and can carry higher upfront costs (solicitor fees, valuations).

Benefits

• Lower interest rates and better terms
• Access to larger sums for land, buildings or major equipment
• Potentially easier to obtain with limited trading history if assets are strong

Risks

• Risk of repossession if you default
• Longer approval and completion times
• Valuation disputes and legal costs may apply

Get Quote Now to explore secured options for your farm.

What is unsecured agricultural funding?

Unsecured funding does not use land or property as collateral. It’s based primarily on the business’s cashflow, trading performance and the directors’ or owners’ credit profiles. Unsecured options are most suitable for smaller, short‑term needs or where you don’t want to pledge fixed assets.

Types commonly used by farms

• Unsecured business loans (term loans)
• Overdrafts and short‑term credit facilities
• Invoice finance (secured against invoices, not property)
• Merchant cash advances or revenue‑based finance

Typical characteristics: quicker decisions, simpler paperwork, but generally higher interest rates and lower maximum amounts (usually suited to needs from around £10,000 upwards). Unsecured lending can be ideal for seasonal working capital, urgent repairs or short‑term gaps.

Benefits

• No fixed asset at risk
• Faster access to funds
• Simpler approval process in many cases

Drawbacks

• Higher cost (interest and fees)
• Lower borrowing limits
• Stricter affordability and credit checks

If timing is critical, try an Free Eligibility Check to see unsecured options quickly.

How UK Business Loans helps

We are an introducer — we do not lend money or provide regulated financial advice. Our role is simple: you tell us what you need, we match your business to lenders and brokers that specialise in agricultural finance and pass on your enquiry. Many farms find tailored solutions faster by using our service.

How it works

1. Complete our short enquiry form (it takes under 2 minutes).
2. We review your details and match you with relevant lenders or brokers.
3. Selected partners contact you with options and quotes.
4. Compare offers and proceed with the lender or broker you choose.

We organise funding for sums from around £10,000 upwards. If you want to read more about options specifically for farms, see our farming loans page.

Free Eligibility Check — no obligation and your enquiry will not affect your credit file.

When to choose secured vs unsecured — a practical decision guide

The right choice depends on amount, urgency, collateral availability and your risk tolerance. Use this checklist to guide you:

• Need >£50,000 for land or major works → usually secured.
• Buying or refinancing equipment where the asset covers the loan → asset finance (often secured on the equipment).
• Need quick seasonal cashflow <£50,000 → unsecured facilities, invoice finance or overdrafts.
• Poor credit history → some secured options may be more accessible, but weigh the risk to assets.

Mini case studies

Case A: Family farm buys a 40‑acre block — opted for a secured mortgage because of lower rate and 20‑year term.

Case B: Dairy business needs £30k for urgent slurry tank repair — an unsecured short‑term loan was fastest despite a slightly higher cost.

Not sure which fits you? Get a Free Eligibility Check and we’ll suggest the best matches for your circumstances.

Costs, interest and fees: what to expect

Costs depend on lender, loan type and your profile. General patterns:

• Secured: typically lower headline interest but additional fees (valuation, solicitor, land registry, charge registration). Lower rates for strong LTVs and proven income.
• Unsecured: higher interest and arrangement fees, but fewer upfront legal costs. Some short‑term products (merchant cash advances) charge factor fees rather than interest.

Other cost drivers: loan‑to‑value (LTV), term length, business profit and cashflow, asset type, and credit history. Always request a full cost breakdown — including any early repayment charges — before you proceed.

Application process & documents farmers should prepare

Having these ready speeds up the matching process:

• Business accounts (2–3 years) or recent management accounts
• Cashflow forecast showing seasonal peaks and troughs
• Proof of asset ownership and valuations (for secured deals)
• Invoices, crop contracts or sales agreements (for invoice or working capital finance)
• Business plan or project summary for expansion or land purchase
• ID and proof of address for directors/owners
• Tenancy or landlord agreements if land is leased

Practical tip: get up‑to‑date valuations for high‑value items and have your accountant review cashflow forecasts before submitting your enquiry.

Start your free eligibility check — it’s quick and helps partners prepare accurate quotes.

Frequently asked questions

Will a lender always take my land as security?

No — it depends on the lender, the loan size and the purpose. Land is common for large or long‑term loans, but many alternatives exist (asset finance, invoice finance, unsecured facilities).

Does using UK Business Loans cost me anything?

Our introduction service is free. Some brokers or lenders may charge fees; you’ll be informed before any charge is incurred.

Will my enquiry affect my credit score?

No. Making an enquiry via our form does not affect your credit file. Lenders may perform checks later if you apply formally.

Can I get funding with imperfect credit?

Possibly. Some lenders specialise in adverse credit or use secured lending criteria. Each case is assessed individually.

How long until I get a quote?

Often within hours for unsecured or simple proposals; secured property deals can take days or weeks due to valuations and legal work.

Is VAT reclaimable on equipment finance?

It depends on the purchase and your VAT status. Speak to your accountant and the lender/broker for specific guidance.

Final steps — get a free eligibility check

Ready to explore your options? Complete our short enquiry and we’ll match your farming business to lenders and brokers who can help. It’s free, no obligation and does not affect your credit score.

Get Quote Now

Trust & legal

Important: UK Business Loans acts as an introducer and does not provide lending or regulated financial advice. We connect businesses with lenders and brokers who may contact you about finance options. Submitting an enquiry does not affect your credit score. We will only share your details with selected partners for the purpose of arranging quotes. See our Privacy Policy and Terms for more information.

Author: Sarah Green, Head of Industry Partnerships — experience in agricultural finance solutions. Last reviewed: 29 October 2025.