Agricultural machinery refinance
Farming ties up enormous sums in machinery that works a handful of weeks a year, and refinance is how some of that value comes back out.
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Can you finance an agricultural machinery re?
Agricultural machinery refinance releases capital from farm equipment held free of finance. A funder agrees a value for the tractor, combine or sprayer, buys it and hires it back to the farm, which keeps using it exactly as before. It suits kit that is owned outright with no outstanding agreement and no hire purchase balance. Because farm machinery holds value unusually well and sells readily through established dealers and auctions, the sums released can be meaningful, although the figure always reflects trade demand rather than the price paid at the dealership.
Used kit: Yes — farm machinery is among the best categories for older assets, and a twenty-year-old tractor in sound order still has a queue of buyers behind it.
Get a quoteor call 0333 772 4864
What would an agricultural machinery re cost per month?
Asset finance is quoted on a flat rate, so that is what the buttons show, with the equivalent APR beside it. Your exact rate depends on the asset, the term, the deposit and the lender.
Prime is an established, profitable business with clean credit. Specialist covers newer businesses and credit that needs explaining — the asset itself carries part of the risk, which is why finance is often available where an unsecured loan is not.
Representative example: on Hire Purchase, borrowing £25,000 over 48 months at a 5.15% flat rate (equivalent to 9.9% APR representative), you would repay around £628 a month; total amount repayable approximately £30,150, of which £5,150 is the cost of finance. This calculator is for illustration only — it is not a quote or an offer of finance, and the rate and repayments you are offered will depend on the asset, term, deposit and your circumstances. CW Asset Finance is a credit broker, not a lender, and may receive a commission from the lender that funds your agreement. All finance is subject to status, affordability and lender approval.
Rates shown are indicative flat rates with the equivalent APR alongside — the two are not the same number. Indicative only and does not constitute a quote or an offer of finance. Subject to status and lender approval.
How lenders treat it
Agriculture is a category funders like, because the used market is deep, dealers will take machines back readily and values are well documented. What they examine is title and honesty of purpose. Machinery bought through a dealer part-exchange chain can have a messy paper trail, so invoices, serial numbers and evidence the balance was cleared all matter. Underwriters will also ask what the funds are for. Bridging input costs ahead of harvest, buying land or funding a diversification project are all coherent answers. Refinancing to service other borrowing is a warning sign and tends to be declined. Note too that machinery sold under a refinance leaves the balance sheet, which can affect allowances already claimed, so speak to a farm accountant who understands balancing charges before proceeding.
Makes and models we fund
Examples of the machines we are asked to fund. This is not an exhaustive list — if what you are buying is not here, it does not mean we cannot fund it. Your supplier quote is what the agreement is written against.
| Machine | What it is |
|---|---|
| John Deere 6155R tractor | Mid range tractor owned outright |
| Fendt 724 Vario tractor | High horsepower arable tractor |
| Massey Ferguson 7719 S | Mixed farm tractor owned outright |
| Claas Arion 650 tractor | Four cylinder farm tractor |
| Claas Lexion 660 combine | Combine harvester owned outright |
| New Holland CX8.80 combine | Straw walker combine harvester |
| Bateman RB55 self propelled sprayer | Self propelled crop sprayer |
| Kverneland 2500 i-Plough | Reversible plough owned outright |
| JCB Fastrac 4220 | High speed farm tractor |
| Kuhn Merge Maxx merger | Grass and forage handling machine |
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Who buys one
Commonly an arable or mixed farm going into a season with high input costs and cash tied up until harvest. The machinery shed holds three or four cleared tractors. Rather than extend the overdraft or sell a machine it still needs, the farm releases equity from the fleet and repays across the trading year.
Get a quoteor call 0333 772 4864
How it is treated for tax
Bought on hire purchase, business plant and machinery normally qualifies for capital allowances on the full cost even though you pay for it monthly, which is a large part of why hire purchase is the common structure. On a finance lease you generally set the rentals against profit instead. The rules change between budgets and your position depends on how you trade, so treat this as the direction of travel and get your accountant to confirm the detail before you commit.
Agricultural machinery refinance questions
Can I refinance machinery held in a partnership rather than a limited company?
Yes. Partnerships and sole traders are common in farming and funders are used to them. The paperwork is slightly different and personal details will be needed for the partners, but the principle of releasing value from owned machinery is unchanged.
Will I still be able to use the tractor through the season?
Yes, continuously. Refinance never involves the machine leaving the farm. You hire back what you just sold, so it is in the yard on the same day and available for drilling, spraying or harvest as normal.
Does a contracting business get treated differently from a farm?
Slightly. Contractors run far more hours through the same machines, so condition and hours are examined more closely and valuations reflect that heavier use. The underlying process and the title requirements are the same.
What if some of the kit came with the farm when we took it over?
Then you need to show how it transferred. A tenancy schedule, a sale agreement or an accountant’s asset listing can usually establish ownership where the original dealer invoice is long gone, but it is worth locating that evidence early.
Is there a tax consequence to selling machinery to a funder?
There can be, including balancing charges where capital allowances have already been claimed on the machinery. The effect varies by farm and by structure, so it is a question for your accountant rather than something to assume either way.
Get a quoteor call 0333 772 4864
Also in asset refinance and sale and leaseback
- Plant refinance
- Production equipment refinance
- Commercial vehicle refinance
- Handling equipment refinance
- Mixed asset portfolio refinance
- Sale and leaseback
- Capital release
- HGV fleet refinance
- Machine tool refinance
- Hire fleet refinance
- Equity release on plant
- Refinance to fund growth
- Refinance for a VAT bill
See everything we fund in asset refinance and sale and leaseback →
Not an offer of finance. All finance is subject to status, affordability and lender approval.
Get your quote
Tell us what you’re looking to fund and Conor will come back to you personally — usually the same day.
Prefer to talk? Call 0333 772 4864 · serving Leeds, York, Harrogate, Wakefield, Selby, Tadcaster & across North & West Yorkshire.