Rural Finance for 2021
With the weather conditions as they are and more time now being spent in the farm office than in a tractor cab, now is the time to take stock of the last year and consider the future. Where did we leave the crystal ball!!
Thoughts may turn to the core farming business and the need to add value or diversify income streams. Plans could involve building projects, investment in technology, changing processes or simply consolidating long term debts to make repayments more manageable. Some may even see opportunities to expand their land holding or property portfolio.
No doubt, one way or another, the question of how the farming business will transition to the next generation will also come up.
The common theme running through all these challenges and opportunities is the requirement for finance and support. The need for specialist facilities and understanding lenders has never been more important and Brooks Leney are one of the lead agents in East Anglia with three AMC agents covering Essex, Suffolk and South Norfolk who support the AMC’s unique position in providing specialist loans to farms and rural businesses, having done so for more than 90 years.
Of the nearly £18,000,000 worth of applications submitted by Brooks Leney in 2020, 49% were for property purchases, 25% for refinancing, 13% for improvement works and the remaining for working capital or specific needs. The AMC can offer loans of up to 30 years, on a capital and interest or interest only basis and at a fixed or variable rate.
Relatively speaking, interest rates are low at present, making the cost of funding more competitive than we have seen in the past 10 – 20 years.
Length of loan can make a difference to annual costs of borrowing, if you were to borrow £250,000 for 20 years on a repayment basis, your monthly costs could be £1,400 but for a 30 year loan it would be £1,067, with more interest paid over the life of the loan, but an easier cash flow.
The AMC’s motto of “Lend and Leave” can often mean that loans can be passed onto the next generation, or certainly enable a business to budget for the life of the loan.
Brooks Leney combine their local knowledge and insights with the AMC’s experience of providing funding support for farming and agricultural businesses with standard loans enabling borrowings of upwards of £25,001. These loans are not only available to traditional farming business, but also to land estates, equine and horticultural businesses.
Serviceability is key, but AMC will consider all income generated on farm, and not just purely from the agricultural enterprise, unlike some high street lenders and loans can often be passed onto the next generation.
Please do get in touch with one of our agents who will be more than happy to discuss any requirements on a confidential basis, including indicative rates in the first instance for you to consider your initial options.
- Chris Leney 01473 835253 | 07717 274413 | cjl@brooksleney.co.uk
- Will Hosegood 01473 835256 | 07985 192116 | wjh@brooksleney.co.uk
AMC loans available for business purposes only, provided on a secured loan basis. Minimum AMC standard loan £25,001. To meet customer requirements, lending criteria will vary. Lending is subject to status.
