Asset Finance for Agricultural Businesses
By Joshua Giles, Founder and Director · Reviewed by the CoreFi credit team
Last updated 20 July 2026
CoreFi is a broker, not a lender. We do not set rates and lenders make all credit decisions.
In short: Agricultural asset finance spreads the cost of machinery such as tractors, combines and handlers over its working life, secured on the asset rather than the farm. Hire purchase puts it on your balance sheet for Annual Investment Allowance; a lease keeps it off. Deals typically run from £10k to £2M over 2 to 7 years. We are a broker for UK farms.
Agricultural asset finance works on a simple principle: the equipment earns its keep over its working life, so the payments spread across that life. A combine harvester on hire purchase sits on the farm's balance sheet, you claim Annual Investment Allowance in year one, and the lender holds a charge over the asset. A finance lease keeps the machine off balance sheet entirely, which suits some tax positions better. We place both structures depending on what your accountant needs.
The thing that separates agricultural lenders from mainstream asset finance houses is the seasonal profile. An arable farmer running a £250,000 drill on standard monthly instalments will feel that in spring and early summer when income is thin. Lenders who actually understand farming will build a profile where, say, 70% of the annual cost falls in October and November after harvest clears, and the balance drips out through the quieter months. Dairy income tends to be smoother, so a dairy farmer often takes a flat profile and it works fine. Some lenders refuse seasonal profiles on smaller tickets under £50,000, so it is worth knowing that before you assume it is on the table.
Used equipment is financeable, including older tractors and second-hand machinery bought privately or at auction, though the advance rate drops and some lenders want an independent valuation over a certain age. New kit from a franchised dealer is the easiest case. Precision agriculture technology, robotic milking, GPS guidance, drones, automated feeders, sits in a grey area for a handful of lenders who still classify it as intangible and walk away. The lenders who say yes to that kit are the agricultural specialists and a few of the challenger banks, not the mainstream asset finance providers. We know which is which, and we place the deal with the ones who fund it.
Key Benefits
- Seasonal repayment profiles are available from agricultural specialists, with larger payments timed to fall after harvest rather than during planting when your account is under pressure
- Hire purchase lets you claim Annual Investment Allowance on qualifying equipment in the year of purchase, which changes the net cost materially compared with leasing
- Used machinery bought at auction or privately can be financed, though lenders typically want a valuation on older assets and the advance rate is lower than on new equipment from a dealer
- Sale-and-leaseback on equipment you already own outright releases capital tied up in the asset, useful when you need working capital or are buying land and would rather not approach your bank
Frequently Asked Questions
Can I get a seasonal payment profile on agricultural asset finance?
Most agricultural specialist lenders will do this, but it is not automatic. On tickets below around £50,000 some lenders simply will not flex the profile. On larger deals, a common structure for arable is around 70% of the annual cost falling post-harvest with the balance spread across the quieter months. Tell us your cash flow pattern early and we will match you to a lender whose credit team actually understands it.
Is finance available for renewable energy equipment on farms?
Yes. Solar arrays, wind turbines, biomass boilers and anaerobic digesters on farm land are all eligible. The lender will look at the income stream, whether that is Smart Export Guarantee payments, heat network income, or energy savings, when they structure the facility. Some agricultural lenders price this identically to machinery finance; others route it to a green energy desk with different terms. We will point you at whichever gives you the better deal.
What about precision agriculture technology, drones, and robotic systems?
GPS guidance, robotic milking systems, automated feeders and agricultural drones are financeable, but not by every lender. Some mainstream asset finance providers still treat software-heavy kit as intangible and decline it. The agricultural specialists and a handful of challenger banks are the realistic options here. Made Smarter grants can cover part of the cost and reduce the amount you need to borrow.
Can I refinance equipment I already own?
Sale-and-leaseback is available on owned agricultural equipment. The lender buys the asset from you at an agreed valuation, then leases it back, so you keep using the machine while releasing the capital. That capital can go toward working capital, a land purchase, or diversification. The advance rate on a refinance depends on the asset's age, condition, and residual market value.
Work out your numbers
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Get matched with lendersCoreFi is a trading name of JG Core Ltd (Company #16218779, England & Wales). CoreFi acts as a commercial finance broker and does not provide regulated financial advice. All products described are unregulated business-to-business finance. Information on this page is for general guidance only and does not constitute a formal offer of finance. Terms, rates, and availability are subject to lender criteria and may change without notice.