Farm machinery finance
Combines, balers, sprayers, telehandlers, drills and handling equipment — funded by lenders who understand that farm income does not arrive monthly.
- Combines, balers, sprayers, telehandlers, drills and handling kit
- Seasonal and annual repayment profiles
- New, used, dealer, private sale and auction
- Refinance existing machinery to release working capital
Farm machinery finance covers everything the tractor pulls, lifts or replaces — combines, balers, sprayers, drills, telehandlers, grain handling and storage kit. The funding mechanics are broadly the same as for a tractor, but two things change with the machine.
The first is utilisation. A telehandler works most of the year. A combine works for a few weeks and stands for the rest. Lenders know this, and it shapes the term they will offer: they want the agreement to finish while the machine still holds value comfortably above the outstanding balance.
The second is resale depth. Mainstream machinery from established manufacturers has an active second-hand market, which lenders like. Highly specialised or bespoke kit has fewer buyers, so expect a larger deposit or a shorter term.
What we fund
- Harvesting — combines, foragers, headers, balers and wrappers.
- Cultivation and drilling — ploughs, power harrows, drills, subsoilers.
- Crop care — self-propelled and trailed sprayers, spreaders.
- Handling — telehandlers, loading shovels, trailers, bale handlers.
- Grain and storage — driers, augers, stores, weighing and cleaning equipment.
- Livestock — feeders, milking and parlour equipment, handling systems.
- Fencing and estate — post knockers, toppers, hedge cutters, ATVs and UTVs.
Refinancing machinery you already own
If you own machinery outright, its value is capital sitting idle in a shed. Refinance — sometimes called sale and leaseback, or capital release — raises a lump sum against equipment you already have, repaid over an agreed term while you carry on using it exactly as before.
On farms this is most often used to cover a bad year’s cash flow, to fund a land or building purchase, to consolidate several expensive short-term facilities, or to put together a deposit for a larger machine. It works best on relatively modern, mainstream, clearly identifiable equipment with a serial number and an established resale market.
Be clear-eyed about it: you are converting an owned asset into a liability with interest attached. That is the right call when the cash does something more valuable than the equity was doing, and the wrong one if it simply defers a problem. We will tell you which we think it is.
Common questions
Who finances farm machinery for UK farmers with seasonal cash flow?
Specialist agricultural lenders and the agricultural divisions of the larger asset finance funders, accessed either directly or through a whole-of-market broker. What distinguishes them is willingness to structure repayments around farm income rather than imposing a flat monthly schedule — annual payments after harvest, stepped seasonal payments, or a deferred start. Generalist lenders and high-street banks tend to assess affordability on even monthly income, which is why farms with lumpy but perfectly healthy cash flow are often declined by them and funded comfortably elsewhere.
How does seasonal repayment farm machinery finance work?
The total borrowing stays the same; what changes is the timing. A profile might be one annual payment after harvest, monthly payments that step down through winter and up when income arrives, or a deferred first payment of three to six months while the machine has yet to earn. Because capital remains outstanding for longer, these profiles usually carry more total interest than a flat schedule — a trade many farms accept to keep working capital available in the off-season.
Can I finance second-hand farm machinery?
Yes, and it is common. Mainstream used machinery from established manufacturers has a deep resale market, which is what gives the lender comfort. Age, hours and condition will influence the maximum term and the deposit required — lenders generally want the agreement to end while the machine still comfortably exceeds the balance outstanding. Private-sale and auction machines are fundable too, though usually with a slightly lower loan-to-value because they come without warranty.
Can I release cash from machinery I already own?
Yes, through refinance or sale and leaseback. The lender advances a lump sum against equipment you own outright, you repay over an agreed term, and you keep using the machinery throughout. It suits modern, mainstream, serial-numbered equipment with a clear resale market. It is worth doing when the cash is put to more productive use than the idle equity — and worth avoiding if it only postpones an underlying problem.
Are there tax advantages to financing farm machinery?
Often. On Hire Purchase you are treated as acquiring the asset, so it can generally be brought into a capital allowances claim once in use — HMRC guidance is that you may claim for all payments under the contract but not the interest, which is instead usually treated as a business expense. The Annual Investment Allowance is £1 million and is open to sole traders and partnerships as well as companies. Leases are treated differently, with rentals typically deducted as an expense. Tax treatment depends on your circumstances and the agreement type, so confirm the position with your accountant.
Tell us about the machine
Make, model, age and rough price is enough to start. If it is an auction lot, tell us the sale date — we will work to it.
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. Nothing on this page is a quote or an offer of finance. Tax information is general in nature, reflects our understanding of the rules at the time of writing, and is not tax advice — thresholds and reliefs change, and your position depends on your circumstances, so please confirm with your accountant. CW Asset Finance is an Appointed Representative of Rural Finance Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 630701).