Unsecured Business Loans 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: £5k - £200k over 1 - 5 years. An unsecured business loan for a farm works the same as one for any trading Ltd company.
An unsecured business loan for a farm works the same as one for any trading Ltd company. The lender assesses turnover, profitability, and trading history, then advances a lump sum repaid in fixed monthly instalments. No first charge on your land, no debenture over the farm. That matters because most agricultural property is already mortgaged or is the family's only substantive asset, and putting further security on it to fund a seed purchase is disproportionate.
The lenders who say yes to agriculture tend to be the challenger banks and fintech unsecured lenders, not the high street. Turnover and bank statement conduct carry more weight than the fact you farm. Take an arable operation borrowing £40k in March for seeds, fuel, and contract labour, then clearing it over 12 months after harvest. That is a shape lenders on our panel understand, and one we place regularly.
DEFRA grants such as the Farming Equipment and Technology Fund and Countryside Stewardship cover specific costs but rarely the whole bill. An unsecured loan can fund the match-funding element or the costs the grant does not touch. Diversification into farm shops, glamping, or events tends to help your case: it cuts reliance on commodity prices and usually produces steadier monthly cash flow than arable alone. We are a broker, so we cannot promise a decision or a rate, but we know which desks look at this and how to present it.
Key Benefits
- No charge on farmland or agricultural buildings, so your land stays unencumbered for future secured borrowing
- Seasonal structure fits the farming year: borrow in spring for inputs and labour, repay after harvest, with 12 to 18 month terms doing the job cleanly
- Diversification projects such as a farm shop, glamping, or an event space are legitimate loan purposes, and lenders tend to look on them favourably because they stabilise income
- DEFRA grant match-funding is a common use case; the loan covers your contribution or the costs sitting outside the grant scope, not the whole project
Frequently Asked Questions
Can I use this for seasonal working capital?
Yes, and it is one of the cleaner use cases. Arable farmers borrow in spring to cover seeds, fertiliser, and contract labour, then repay after harvest. A 12 to 18 month fixed-repayment loan suits that cycle. The lender needs to see the harvest proceeds land in the business account, so a year or two of bank statements showing that pattern helps your case.
What about DEFRA grants?
Grants like the Farming Equipment and Technology Fund or Countryside Stewardship cover specific items, not the whole project. An unsecured loan can fund the match-funding contribution or costs the grant does not include. Lenders are comfortable with this structure, and the grant approval letter is useful supporting evidence.
Can I fund a farm diversification project?
Yes. Farm shops, glamping, event venues, and tourism add-ons are all acceptable loan purposes. Lenders tend to view diversification positively because it reduces your dependence on commodity prices and produces more predictable monthly income. Bring projected revenue with whatever data you have, even if it is modest.
Is there a minimum farm size or turnover?
No minimum acreage. Lenders assess annual turnover, net profit, and bank statement conduct. A smallholding with a strong commercial trading record is assessed the same way as a larger operation. If your turnover is below £50k, the amount you can access drops accordingly, but the door is not closed.
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.