Agriculture Business Loans — Asset Finance, Invoice Finance & Working Capital Explained

Summary: UK Business Loans helps UK farm businesses access three main types of agricultural finance: asset finance (for tractors, combines, milking systems), invoice finance (to unlock cash from B2B invoices) and seasonal or short-term working capital (overdrafts, seasonal facilities, short-term loans). We match enquiries to lenders and brokers who specialise in agriculture for loans and facilities from around £10,000 upwards. Submitting an enquiry is free and is not an application — lenders will contact you with quotes if there’s a fit. Get a Free Eligibility Check

Important — UK Business Loans is an introducer. We do not lend or provide regulated financial advice. Submitting an enquiry is free and no obligation. Lenders and brokers we introduce may carry out credit checks if you progress to a formal application.

At a glance — which finance suits your farm?

• Asset finance — Best for tractors, combines, milking parlours and renewable installations. Typical amounts: £10,000 to £500,000+. Security: usually the asset financed. Term: 2–7 years typical. Get a Free Eligibility Check
• Invoice finance — Best for B2B sellers (dairy, arable contractors, packers) who have regular invoices to processors/retailers. Typical facility size varies with debtor ledger. See if you qualify
• Working capital — Best for seasonal cash requirements: seed, feed, fertiliser, labour. Facilities from £10,000 upwards, short-term or revolving. Get Quote Now

Why agricultural finance is different

Farming is seasonal, capital‑intensive and often relies on long supplier lead times and variable commodity prices. Cashflow can swing dramatically between harvest and sale. That’s why the right finance type matters — the wrong product can tie up land or assets unnecessarily, or be too rigid for seasonal peaks.

Here’s why choosing the right finance matters:

• Seasonality — you may need finance for a few months then nothing.
• High-value assets — tractors and machinery are expensive and often qualify for asset finance.
• Irregular invoice timing — processors and merchants can take 30–90 days to pay.
• Grant and subsidy timing — scheduled payments can create cashflow cliffs.

Asset finance for farms — buy the equipment you need

What is asset finance?

Asset finance lets you spread the cost of equipment rather than pay in full up front. Common structures are hire purchase, finance lease and operating lease. The asset often acts as security for the facility.

Typical agricultural uses

• Tractors, combines, telehandlers and trailers
• Milking parlours, bulk tanks and parlour automation
• Irrigation systems, grain dryers and storage facilities
• Farm vehicles, feed equipment and green-energy installations (solar, biomass)

Eligibility & documents needed

Eligibility usually requires a limited company or partnership, trading history, supplier quotes and recent accounts. Lenders will want details of the asset (age, condition, cost) and standard identity/business checks.

Pros, cons and typical terms

Pros: preserves cash, predictable monthly payments, possible tax benefits (check with accountant). Cons: the asset can be repossessed if payments stop; some products require deposits or maintenance responsibilities.

Typical terms: 2–7 years for vehicles and machinery, finance from £10,000 upwards. Hire purchase often leads to ownership at the end of the term; leases may include residual values.

Example: A dairy farm finances a new milking parlour with a 5‑year hire purchase to spread costs and retain working capital during herd expansion.

Get asset finance quotes — Free eligibility check

Invoice finance for agriculture — free up cash in your invoices

Factoring vs invoice discounting

Invoice finance lets you unlock cash tied up in unpaid invoices. Factoring includes debtor management and can be visible to customers; invoice discounting is usually confidential and keeps you collecting payments.

Why farmers and processors use it

When you supply packers, retailers or co‑ops on long payment terms, invoice finance can bridge the gap so you can pay for seed, feed and wages without using reserves or selling stock at a low price.

Is invoice finance suitable for my farm?

It suits businesses with regular B2B invoices and reliable customers. Examples: contract-grown vegetables invoiced to packers, milk deliveries to dairies, grain sold to merchants on 30–90 day terms.

Eligibility & considerations

• Debtor quality matters — stronger debtor credit means better advance rates.
• Concentration risk — if one buyer is >40% of ledger lenders may limit advances.
• Disputed invoices reduce advance amounts; good credit control helps.

Pros, cons and example

Pros: immediate cash, flexible with growth. Cons: cost can be higher than a bank overdraft; factoring may impact customer relationships if visible.

Example: A grower uses invoice finance during harvest to manage a spike in supplier bills while waiting on merchant payments.

See if you qualify for invoice finance — Get Quote Now

Working capital for farms — cover seasonal and day‑to‑day costs

What counts as working capital?

Working capital covers short-term needs: overdrafts, seasonal loans, bridging facilities, short-term term loans for inputs, cashflow loans to cover payroll or fuel during busy periods.

Common working capital needs in agriculture

• Seed, fertiliser and crop protection purchases ahead of the season
• Feed and bedding for livestock during winter
• Seasonal labour and contractor payments
• Bridging cash while awaiting subsidy or sale proceeds

Types of facilities

• Revolving credit and overdrafts — flexible but may require security
• Seasonal loans — structured for known seasonality
• Short-term bridging loans — for predictable, short gaps
• Merchant or supplier finance — sometimes available through suppliers

When working capital is the right option

Choose working capital when you need flexible access to cash for short periods. If the need is to buy a specific long‑life asset, asset finance might be a better fit; if your problem is slow invoice collection, invoice finance could be preferable.

Get a free working capital check

How UK Business Loans matches you to the right lenders and brokers

We simplify the search. Tell us about your business and funding need, and we connect you to lenders and brokers experienced in agriculture. You remain in control — there’s no obligation to accept an offer.

1. Complete a short enquiry — takes a few minutes.
2. We match your profile to suitable lenders and brokers on our panel.
3. Selected partners contact you with quotes and next steps.
4. Compare offers and choose the option that suits you.

We only share your details with appropriate partners for the finance you request. Remember: submitting an enquiry is not an application and does not affect your credit score. If you’d like to proceed, Start Your Enquiry — Free Eligibility Check.

For more information on sector-specific options, see our agriculture sector overview on agriculture business loans: agriculture business loans.

How to prepare before you apply (checklist)

Being ready speeds decisions. Here’s a short checklist:

• Recent business bank statements (3–6 months)
• Latest accounts and tax returns (if available)
• Supplier quotes or invoices for the asset or input you need
• Debtor list and typical payment terms (for invoice finance)
• Simple cashflow forecast showing seasonality
• ID and proof of address for directors/partners

Tip: tidy up aged debt and prepare a one‑page summary of why you need finance and how you’ll repay it — it helps brokers make a faster match.

Need help preparing? Get Quote Now

Costs, security and typical timelines

Timescales vary: initial responses often arrive within hours to days; lender decisions can take from 24 hours to several weeks depending on the product and security required. Funds can take days to weeks to reach your account after acceptance.

Costs include interest, arrangement fees, and sometimes ongoing facility fees. Security can range from the financed asset to charges over business assets, land or personal guarantees. Always compare the full cost and terms.

Frequently asked questions

Does submitting an enquiry affect my credit score?

No. An initial enquiry with UK Business Loans does not affect your credit file. Lenders may carry out checks if you submit a formal application.

What minimum loan size can you help with?

We typically work with facilities and loans from around £10,000 upwards.

How quickly will lenders contact me?

Often within hours during business days. Complex deals may take longer while lenders review documents.

Do you charge businesses to use this service?

No — it’s free for businesses to submit an enquiry. We earn a fee from partners when enquiries convert to applications.

Will I get multiple offers?

Frequently yes. We aim to match you to several suitable partners so you can compare options.

What if I’ve had credit problems?

Don’t assume you’re excluded. Different lenders have different risk appetites — tell us your situation and we’ll try to match you to suitable partners.

Ready to get started? Free eligibility check

If you need equipment, invoice cover or seasonal funds, let us match you to lenders and brokers experienced in agriculture. Complete a short enquiry and get personalised quotes — no obligation.

Get a Free Eligibility Check — enquiries usually get a rapid response by phone or email.

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Privacy note: your details are used to match you with lenders/brokers who may contact you about finance. Submitting an enquiry is not an application. For full details see our Privacy Policy and Terms & Conditions.

1) What types of agriculture business loans can I get?
Asset finance, invoice finance and seasonal or short‑term working capital are the main agriculture business loans used by farms to buy equipment, unlock invoice cash and cover seasonal costs.

2) Which finance is best for my farm — asset finance, invoice finance or working capital?
Choose asset finance for tractors and machinery, invoice finance if you have regular B2B invoices, and working capital (overdrafts/seasonal loans) for short-term or seasonal cashflow gaps.

3) Can I get asset finance for tractors, combines or milking systems?
Yes — asset finance commonly funds tractors, combines, milking parlours and other farm equipment with the asset often acting as security.

4) Is invoice finance suitable for farmers and agribusinesses?
Invoice finance suits farms with regular B2B customers (packers, dairies, merchants) who need to unlock cash tied up in 30–90 day invoices.

5) How much can I borrow for agricultural finance?
UK Business Loans typically helps with facilities from around £10,000 upwards, with asset finance often available from £10k to £500k+ and larger commercial facilities via panel lenders.

6) Will submitting an enquiry affect my credit score?
No — submitting an enquiry to UK Business Loans is not an application and does not affect your credit score unless you progress to a formal lender application and they run a check.

7) How quickly will lenders contact me and how long until funds arrive?
Selected lenders or brokers often contact you within hours on business days, lender decisions can take 24 hours to several weeks, and funds typically arrive days to weeks after acceptance depending on the product and security.

8) What documents do I need to prepare before applying for farm finance?
Be ready with recent business bank statements (3–6 months), latest accounts/tax returns, supplier quotes or invoices, debtor lists (for invoice finance), a simple cashflow forecast and ID/proof of address for directors or partners.

9) Do you lend money directly or provide financial advice?
No — UK Business Loans is an introducer that does not lend or provide regulated financial advice, instead matching you to trusted, experienced lenders and brokers.

10) Can I get agriculture finance if I have credit problems?
Possibly — different lenders have different risk appetites, so tell us about your situation and we’ll try to match you to partners who specialise in lending to businesses with imperfect credit.