At-a-glance: Can I finance tractors, combines and telehandlers?

Yes — many UK lenders and brokers provide finance for agricultural machinery. Typical finance types include:

• Asset finance and hire purchase (HP)
• Finance leases and operating leases
• Chattel mortgages
• Seasonal or short‑term working capital facilities

Typical deal sizes: from around £10,000 upwards (UK Business Loans focuses on transactions from £10k) up to several hundred thousand pounds for high‑value combines or fleet purchases. Typical terms commonly range from 1–7 years depending on the asset life and lender. Exact amounts, rates and term options depend on your business profile, the age and condition of the equipment, and lender criteria.

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How UK Business Loans helps

UK Business Loans is an introducer platform designed to save farmers time and effort when sourcing equipment finance. Our simple process:

1. Complete a short enquiry (equipment type, estimated value, business basics — takes about 2 minutes).
2. We match your request with lenders and brokers in our network who have experience in agricultural equipment finance.
3. You receive contact and quotes from matched partners so you can compare options and decide — no obligation.

Benefits of using our service include quicker access to specialist panels, fewer duplicate forms, and confidential matching to providers who understand farm equipment needs. We do not charge you to be introduced and do not provide loans ourselves.

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Types of farm equipment finance explained

Asset finance & Hire Purchase (HP)

Hire Purchase is a common choice for tractors and combines. You pay a deposit followed by fixed repayments; ownership usually transfers when the final payment is made. HP is useful if you want eventual ownership while spreading cost. Tax treatment may allow capital allowances, depending on circumstances — discuss with your accountant.

Finance lease & Operating lease

Finance leases are similar to long-term hire where the borrower typically cannot claim ownership, but is committed to payments; operating leases are closer to rental agreements where you return the machine at the end. Operating leases suit farms that prefer regular upgrades and do not want ownership responsibilities.

Chattel mortgage

A chattel mortgage is a loan secured against the machine: you effectively own the asset from day one while the lender holds a security interest. This is often used for larger purchases where immediate ownership is beneficial.

Seasonal & short-term working capital

Seasonal cashflow facilities can bridge busy periods or fund attachments and headers alongside a major purchase. These short-term products complement long-term equipment finance when income is cyclical.

VAT, deposit and residual value considerations

If your business is VAT-registered, lenders may offer different structures to reclaim VAT on new equipment. Deposits typically range from 0–20% depending on lender risk and asset age. Balloon or residual payments can lower monthly costs but will affect total interest paid and tax treatment.

What lenders/brokers look for — eligibility & documentation

While criteria vary by provider, typical factors include:

• Business structure (limited company, LLP or similar) and trading history — many lenders prefer established businesses but specialist funds exist for newer operations.
• Turnover, cashflow and profitability.
• Credit profile of the business and, where relevant, directors.
• Details about the equipment (new or used, hours/mileage, age and condition).
• Security requested, including charges against business assets or personal guarantees for owner‑managed companies.

Typical documents lenders request:

• Last 1–3 years’ accounts (or management accounts for recent trading)
• 3–6 months’ business bank statements
• Equipment quotes/specifications and VAT invoices (if applicable)
• Proof of ID and business registration numbers

Used machines are assessed on hours and condition; some lenders limit age for used tractors or combines. Providing clear photos and service history speeds decisions.

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Advantages & disadvantages of equipment finance routes

Practical pros and cons to consider:

• Benefits: preserves working capital, spreads cost, allows tax relief (subject to rules), flexible structures, easier budget planning.
• Drawbacks: interest and fees increase total cost, security/charges may be required, deposits and end‑of‑term costs (balloon/residual) can apply.

Tip: match the finance term to expected asset life — shorter terms for high‑use items you plan to replace soon; longer for heavy investments you expect to keep.

Typical timeline from enquiry to funding

Timelines vary by lender and complexity, but a typical flow is:

• Enquiry submitted → immediate match to lenders/brokers.
• Initial contact from broker/lender within hours to 48 hours.
• Application + documents supplied: 1–7 days (simple deals quicker).
• Decision and formal offer: days to a few weeks depending on loan size and asset condition.
• Funding and delivery once terms agreed — can be same day to weeks depending on seller/delivery logistics.

Larger or complex portfolio deals and older used machines can add time for valuations and underwriting.

Why use a broker network

Specialist agricultural lenders and brokers understand farming cashflow cycles, seasonal income and equipment depreciation. By using a broker network you gain:

• Access to multiple lender panels without repeating forms
• Faster, more targeted quotes from providers that know agricultural machinery
• Help selecting structures (HP vs lease vs chattel mortgage) that suit your tax and cashflow goals

To see broader agribusiness funding options we can connect you to, visit our agriculture resources for agriculture business loans.

Real examples (illustrative)

Results vary; these are examples only and do not guarantee specific outcomes.

How to apply via UK Business Loans

Follow these simple steps to get started:

1. Gather basic details: business name, approximate turnover, company registration number, equipment type and estimated value, contact details.
2. Click the enquiry link and complete the short form (takes about 2 minutes).
3. We match you with suitable lenders/brokers who contact you with quotes and next steps.

There is no fee to submit an enquiry and no obligation to proceed. The enquiry is an information request to help match you — it is not a finance application. Get Started — Free Eligibility Check

Frequently asked questions

Can I finance both new and used tractors?

Yes. Many lenders finance both new and used equipment. Used items are assessed on hours, condition and age; some lenders cap age limits or reduce maximum loan‑to‑value for older machines.

Will applying through UK Business Loans affect my credit score?

No — submitting an initial enquiry will not affect your credit score. Lenders or brokers may run credit or identity checks later with your consent when you progress an application.

How much deposit will I usually need?

Deposits vary. Some lenders offer 0% deposit deals; others request 5–20% depending on asset age and credit. A larger deposit can reduce monthly payments and improve approval chances.

Can start‑ups or new farms apply?

Some lenders specialise in limited trading history or first‑time buyers, but requirements vary. If you have limited trading history, expect to provide stronger forecasts, equipment quotes and possibly higher deposits or guarantees.

Are grants available for farm equipment?

Occasionally regional or industry grant schemes exist for specific equipment or sustainability projects. UK Business Loans does not provide grants but can signpost resources; check GOV.UK and local schemes for current opportunities.

How quickly will lenders respond?

Often within hours to 48 hours after your enquiry, though full underwriting and funding timing depends on the complexity and value of the deal.

Legal, compliance & privacy

UK Business Loans is an introducer/introducing service and does not provide finance itself. We connect businesses with third‑party brokers and lenders. This page is for information only and not financial advice. All finance is provided by third parties; terms and eligibility vary. Submitting an enquiry is not a full application and will not affect your credit score. Please see our Privacy Policy and Terms for how we handle your data.

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