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CW Asset Finance | Vehicle & Equipment Finance Yorkshire

Rural and agricultural finance

Milking parlour finance

Funding for conventional milking parlours, from a herringbone replacement through to a rotary, including the plant, clusters and controls.

Whole-of-market — 60+ lenders searched, including

BarclaysAldermoreParagonAllica BankPraetura Asset FinanceSimply Asset FinanceOxburyBraemar FinanceBibby Financial ServicesBPCE Equipment SolutionsCatfoss FinanceDavenham Asset FinanceFleximizeiwocaKingsway Asset FinanceLombardMetro BankBNP ParibasBarclaysAldermoreParagonAllica BankPraetura Asset FinanceSimply Asset FinanceOxburyBraemar FinanceBibby Financial ServicesBPCE Equipment SolutionsCatfoss FinanceDavenham Asset FinanceFleximizeiwocaKingsway Asset FinanceLombardMetro BankBNP Paribas

Can you finance a milking parlour?

Yes, and a parlour is among the larger single investments a dairy farm makes. The milking plant itself, the stallwork, clusters, pumps, automatic cluster removers and controls, is equipment and funds on hire purchase over a period matched to its working life. What does not fund that way is the pit, the concrete and the building alterations, which become part of the property. Expect the funder to want your milk contract and recent statements, because the monthly milk cheque is what repays the agreement and it is the clearest income in agriculture.

Used kit: Yes, used parlours are dismantled and refitted, but funders value them conservatively

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What would a milking parlour cost per month?

Business asset finance is quoted on a flat rate, so that is what this shows — with the equivalent APR underneath, because the two are not the same number. A quick guide only; your actual rate depends on the asset, term, deposit and lender.

Indicative flat rate
Approx. monthly£—
Get my exact rate
Total repayable£—
Cost of finance£—
Equivalent APR—%

Representative example: on Hire Purchase, borrowing £25,000 over 48 months at a 6.0% flat rate (equivalent to 11.5% APR representative), you would repay around £646 a month; total amount repayable approximately £31,000, of which £6,000 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. CW Asset Finance is an Appointed Representative of Rural Finance Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 630701).

How lenders treat it

A parlour is high value, highly specialised and partly installed, which narrows the resale pool sharply. A recovered parlour is only worth something to another dairy of similar size willing to dismantle and refit it, so funders lend principally against the dairy business rather than the plant. That said, dairy is well regarded: the income is monthly, evidenced and contracted, which is more than most farm enterprises can show. Underwriting looks at herd size, yield, the milk buyer and the labour case behind the investment. Installation runs in stages, usually squeezed into a period when the herd can be milked elsewhere, and the agreement typically starts on commissioning. Ongoing service and parts support are expected to be in place.

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.

MachineWhat it is
Fullwood milking parloursHerringbone plant for family herds
Dairymaster Swiftflo SwingSwingover parlour for efficient milking
DeLaval herringbone parloursMid-range parlours with cluster removers
DeLaval automatic cluster removersTake-off units for consistent milking
GEA iFLOWHerringbone parlour with fast exit
GEA DairyRotor T8900Internal rotary parlour for large herds
Dairymaster Swiftflo RevolverRotary parlour with automatic feeding
DeLaval rotary parloursHigh-throughput rotary milking plant
Waikato milking systemsParlour plant and milk metering
DeLaval milk metering and IDYield recording and cow identification

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Who buys one

Dairy farms whose parlour has become the bottleneck, where milking takes hours longer than it should and labour is the limiting factor, and herds that have grown past the point where the existing bail count works. The decision is usually forced by time rather than yield: a parlour that ties up two people for half the day, or a plant so old that the vacuum system and pulsation are affecting cell counts.

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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.

Milking parlour finance questions

Can the pit and concrete work be funded?

Not on asset finance. The pit, the floor and any structural alteration become part of the building, so there is nothing a funder could recover. Those elements are normally borrowed against the farm while the milking plant, stallwork and controls go on an equipment agreement.

Why do lenders want my milk contract?

Because it shows where the repayment comes from. A milk contract with recent statements demonstrates monthly income in a way very few farm enterprises can, and it is the single document that most improves a dairy application. Have it ready rather than being asked for it.

Is a second-hand parlour worth considering?

Sometimes, particularly for a straightforward herringbone, and used plant is refitted regularly. Funders lend more cautiously because dismantling and refitting costs are real and the buyer pool is narrow. Get the refit quoted properly before assuming a used parlour is the cheaper option.

How is the installation handled?

In stages, with payments released against milestones and the agreement usually starting once the parlour is milking. Parlour changeovers are disruptive because the herd still has to be milked throughout, so a clear installation programme from the fitter matters as much as the finance structure.

Should I be looking at robots instead?

That is a labour and management decision rather than a finance one, and funders will consider either. A conventional parlour suits herds with reliable labour and a routine that works; robots suit farms where staffing is the binding constraint. Both are funded routinely, so choose on the farming case.

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Also in rural and agricultural finance

See everything we fund in rural and agricultural finance →

Not an offer of finance. All finance is subject to status, affordability and lender approval.

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Tell us what you’re looking to fund and Conor will come back to you personally — usually the same day.

Prefer to talk? Call 07581 364281 · serving Leeds, York, Harrogate, Wakefield, Selby, Tadcaster & across North & West Yorkshire.