Dairy equipment finance
Funding for bulk milk tanks, cooling and heat recovery, washing plant and the ancillary equipment a dairy needs to meet its milk buyer specification.
Whole-of-market — 60+ lenders searched, including
Can you finance dairy equipment?
Yes, and dairy equipment is among the more straightforward agricultural investments to fund because the repayment comes out of a monthly milk cheque rather than a once-a-year harvest cheque. Bulk tanks, plate coolers, ice builders and heat recovery units are all funded on hire purchase. Used tanks change hands regularly. The consideration specific to this equipment is that your milk buyer, not you, effectively sets the specification: cooling times and storage temperatures are contractual, so a tank that does not meet the current requirement has limited value however sound it looks.
Used kit: Yes for bulk tanks and coolers, provided the refrigeration is a currently supported type
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What would dairy equipment 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
Dairy plant is a hybrid: the tank itself is a substantial piece of equipment with a genuine secondhand market, while the pipework, pumps and wash system are installed into the dairy and have little standalone value. Funders lend comfortably because the milk contract is evidence of income in a way few agricultural enterprises can match, and they will ask for statements. Refrigeration is the area of scrutiny, since a unit running an obsolete refrigerant is difficult to service and therefore difficult to resell. Installation is usually quick enough that staged payments are unnecessary, though the agreement will normally start on commissioning. Level monthly repayments are the natural fit here and seasonal shaping is rarely needed.
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 |
|---|---|
| DeLaval bulk milk tanks | Direct expansion tanks for dairy units |
| DeLaval plate coolers | Pre-cooling plates for milk lines |
| GEA milk cooling systems | Tanks and cooling packs for parlours |
| Fullwood Packo bulk tanks | Bulk milk tanks with wash systems |
| Dairymaster SwiftCool | Bulk tank with rapid milk cooling |
| Fabdec ice builders | Ice bank cooling for instant milk chilling |
| Mueller bulk milk tanks | Large silo tanks for high-yield herds |
| Lely Calm calf feeder | Automatic calf milk feeding station |
| JFC calf hutches | Individual and group calf housing |
| DeLaval cooling heat recovery | Water heating from milk cooling plant |
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Who buys one
Dairy farms whose tank no longer holds the volume after an expansion, herds facing a milk buyer requirement on cooling or blast chilling, and farms replacing plant that has become expensive to repair. The trigger is often a failed cooling check, a buyer changing collection frequency so more milk has to be held, or an old tank whose refrigeration uses a gas that is no longer supported.
Get a quoteor call 0333 772 4864
We publish the deals we arrange, with no client named and no rate quoted. See what we have funded in agriculture.
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.
Dairy equipment finance questions
Will my milk buyer specification affect what I can fund?
Indirectly but importantly. If a tank cannot meet your buyer requirement on cooling or storage temperature it is worth much less to the next farm, and a funder values it accordingly. Check the specification you have to meet before you commit to a used tank, not after it is installed.
Is a second-hand bulk tank a sensible buy?
Often yes, and they are funded regularly. The question is the refrigeration rather than the vessel, because the stainless steel outlasts everything else. Establish which refrigerant the unit runs and whether an engineer will still service it; that single answer determines most of the value.
Can heat recovery be included in the same agreement?
Yes, where it is supplied and invoiced with the cooling plant. Recovering heat off the milk to preheat washing water is a common addition and funding it alongside the tank keeps it to one agreement. It also strengthens the affordability case because it reduces a running cost.
How quickly do these applications go through?
Usually quickly. Dairy is well understood by agricultural funders, the income is evidenced by milk statements, and the equipment is standard. Provided the accounts are in order and the milk contract is available, this is one of the more routine decisions in farm finance.
Can I fund dairy equipment as a tenant?
Yes, more easily than a building. A bulk tank is a substantial item that can be disconnected and moved, so the fixture question is far less acute than for a parlour pit or a shed. Your landlord may still be asked to acknowledge the equipment, but it is rarely the obstacle it is for construction.
Get a quoteor call 0333 772 4864
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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.
Specialist agricultural funding
Machinery, livestock and land — each with its own page, because each is assessed differently.