Dairy Project Financing

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Agricultural and Industrial Asset Finance

We have partnered with a very well reputed and established Agricultural Asset Finance company established to help our clients with raising the necessary capital to fulfill their agri business / project requirements.

We offer a range of business financial solutions including hire purchase, chattels mortgage, leasing, working capital facilities & structured finance.

We are one of the most experienced agricultural asset finance companies in the UK and our experience has given us the advantage of dealing with all lending situations.

  • Highly competitive
  • 30 years’ experience covering all aspects of asset finance and working capital requirements.
  • Professional business solutions
  • We have access to major lending institutions
  • Access to new lending institutions
  • Restructuring existing finance agreements
  • Dealer/vendor facilities to aid the sales process of capital equipment & Plant

As an example we would be keen to provide loan facilities for:

  • Capital Expenditure between £100,000 and £20m.
  • Client is based either in the UK or Ireland or near Europe.
  • Where there is a project outside the UK / Ireland / Near Europe then there are additional criterea that need to be established to ensure a successful loan.
  • The maximum lending period is usually between two and seven years, 10 years will be considered for very strong covenants only.
  • A broad cross section of projects will be considered such as:
    • Milking Parlours
    • Animal Feed Systems
    • Bulk Handling and Storage Solutions
    • Refrigeration Plants
    • Vegetable Processing Plants
    • Green Energy Projects
    • Specialised Agricultural Machinery
    • Tractors
    • Combine Harvesters
    • Dairy milking parlours
    • Robot Milking Parlours
    • Building extensions
    • Diversification Projects
    • Receivables Finance – minimum deal size £500k (this is where the customer has created a rental stream by renting assets to their customers and has a requirement to raise money against the rental income. An Example would be a manufacturer or supplier of milking equipment who may rent the assets to a farmer as opposed to a sale).
  • Factoring and Confidential Invoice Discounting – where the customer has a debtor base which can be used as security to raise capital.
Please note we do not finance small one off projects where the deal size is sub £100,000.

Costs and Fee Structure

Costs and fees will depend on the strength of the covenant and complexity of the deal structure.

Example 1

(The figures quoted in examples do not relate to any clients but are typical for guidance)

Finance arranged for a feed system costing £230,000.

The existing bank were already fully committed and not supportive so we were approached. Finance was approved via a Hire Purchase agreement over a five year term.

The terms were as follows:

Cost - £230,000 + vat = £276,000. Balance to finance £196,000.

A stage payment of £80,000 had been paid to the supplier prior to delivery.

The balance of £196,000 was financed via a Hire Purchase transaction and repaid by 60 fixed monthly payments of £4,396.00.

The total repaid including interest and capital was £263,760.00, the interest element was £67,760.00

This deal may seem expensive but please remember that:

There was no other security offered, so the deal was considered as unsecured.

The farmers own bank were already fully committed. The equipment was critical to the farmer’s future development and the interest was certainly offset by significant cost savings.

Example 2

A large well established, profitable and successful business investing in a processing plant, the total investment was £500,000.

The existing overdraft facility was not sufficient to fund the new expansion. The customer did not want any further exposure to the bank and needed the existing overdraft to preserve future working capital requirements. A Hire Purchase facility was provided over a five year term and structured as follows:

Cost - £500,000 + vat

Deposit – 10% + vat

Balance to finance £450,000

Repayable by 60 monthly payments of £8,976.00 The total repayable amounts to £535,920 includes interest of £88,560.00.

The rate of interest charged will depend on:

  • Financial strength
  • Security offered, if any
  • Competitive nature of the deal
  • Size of the deal
  • The amount of due diligence and work involved in packaging the deal into a bankable presentation. The commission percentage will be reflected in the amount of work involved. Please note we can be cheaper than the fees charged by large finance houses and have the advantage of delivering a range of funding options.
Facilities offered:
  • Hire Purchase
  • Finance Lease
  • Chattels Mortgage
  • Factoring and Invoice Discounting
  • Operating Lease
  • Sale and Lease Back
Refinance facilities are available for businesses that have incurred expenditure and need to be reimbursed in order to boost cash flow. The above facilities can be structured to suit the cash flow of the business, ie seasonal payments, low start up costs, repayment holidays, accelerated payments. Dairy Asset Finance. Dairy Factory Finance. Dairy Expansion Projects. Turnkey Dairy Project Finance.

Bulk Handling & Storage Systems.

Vegetable Processing Plants.

Green Energy Projects – Wind Power Financing, Solar Power Financing, Methane Digesters

Specialised Agricultural Machinery

Diversification Projects. Receivables Finance.

Animal Feed Syatems

John Watson
Office: +44 1224 861 507
Mobile: +44 7931 776 499

We are a longstanding member of the Society of Dairy Technology and have Fellowship of the Institute of Food Science and Technology.
Member of the Society of Dairy Technology and have Fellowship of the Institute of Food Science and Technology IOD


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John Watson
Office: +44 1224 861 507
Mobile: +44 7931 776 499

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We are a longstanding member of the Society of Dairy Technology and have Fellowship of the Institute of Food Science and Technology.


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