Farm and agricultural finance: tractors, machinery and equipment
Yes, a farm can get finance for a tractor, combine, telehandler, shed or other equipment, new or used. Repayments can be shaped round when the farm's money comes in, and subsidy counts as income.
We are a broker, not a lender: we can ask over 120 lenders for you. Farm finance from £25,000 borrowed, up to £750,000. We work with small and medium-sized businesses (SMEs). Our office is in the Scottish Highlands, and we help farms across the UK. No fee to apply.
Written by Martin Mackenzie, Sales Director. Checked .
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Farm and agricultural finance. In this video we are going to discuss farm and agricultural finance. Can a farm get finance for a tractor? Yes, it can. A combine, a telehandler, a trailer or a shed. Solar panels, a farm 4x4 or a pick-up. Some lenders can look at a loan for livestock. Hire purchase means regular agreed repayments, then the option to own it. A lease means regular agreed rentals. The lender keeps ownership. Or a loan. Then the farm owns the machine from day one. Can repayments match the farm year? Yes. If your money lands in October, twelve equal payments make no sense. A lender that knows farming can set one big payment in November. And small or no payments the other months, for the whole term. Or a balloon: a bigger sum at the end, the rest smaller. Or pay the VAT a few months later, after your VAT return. Lenders want last year's accounts and three months of business bank statements. Farm income goes up and down. Six or nine months can help. A grant or subsidy the farm gets can count as income. Show it on a statement. Sole traders, partners and limited companies can all apply. Owner or tenant. Tractor finance works for new or used. Used is where we help most. Much new equipment comes with the maker's own finance. Those offers often need a big deposit. Care matters more. Ask for the service record. A badly kept machine with little use can be the riskier one. Lenders prefer a known dealer. Some are open to an auction or another farm. At auction, get the finance agreed before sale day. No extra fees, no lost machine. From another farm, the seller must show it is theirs to sell. With nothing still owed. The lender may inspect it. Often the old tractor is the deposit, as a part exchange. Already own your machines? A paid off tractor can be refinanced for cash. It still holds value. Farms are often asset rich and cash poor. Our page has a free farm checklist to tick and print. Apply online with Donnie, our in house AI agent, 24/7. Or call our team on 01463 652 653. Thanks for watching!
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What can a farm finance?
Farm machinery finance covers a tractor, combine, telehandler, livestock trailer, shed, solar panels or a wind turbine. A farm 4x4 too, such as a Land Rover Defender or a Toyota Land Cruiser. Or a pick-up, like a Ford Ranger or an Isuzu D-Max. Some of our lenders can also look at a loan for livestock.
Three ways to pay. Hire purchase: regular agreed repayments, then the option to own the machine. A lease: regular agreed rentals, and the lender keeps ownership. Or a business loan, and the farm owns the machine from day one. Our business loan calculator shows a loan, hire purchase and a lease side by side. On hire purchase, the VAT is usually paid at the start. On a lease, VAT is added to each rental. Hire purchase may allow capital allowances, a tax relief on what you buy. Lease rentals may count as a business cost. We are not tax advisers, so ask your accountant.
Can repayments match the farm year?
Yes, a lender that knows farming can shape repayments round when your money comes in. If the money lands in October, twelve equal payments make no sense. It can set one large payment in November, and small or no payments the other months.
Such a plan can run for the whole agreement. A balloon can be set at the end: a bigger last payment, so the others are smaller. Or a VAT deferral at the start: the VAT is paid a few months later, after your VAT return.
| When your money comes in | What to ask for |
|---|---|
| One big payment a year, say in October | One large repayment after it, then small or no payments. |
| Two payments a year | Two larger repayments, with small payments between. |
| You want smaller repayments through the term | A balloon: a bigger last payment, so the others are smaller. |
| The VAT is hard to find at the start | A VAT deferral: the VAT is paid a few months later. |
What do lenders want to see?
Lenders normally want last year's accounts and 3 months of bank statements. Farm income goes up and down, so 6 or 9 months can help. A grant or subsidy the farm receives can count as income, shown on a statement.
Sole traders, partnerships and limited companies can all apply, landowners and tenant farmers alike.
Tractor finance: should I buy new or used?
Tractor finance works for new or used; used is where we help most. Much new equipment comes with the maker's own finance, designed not to be beaten on price. Interest free offers often need a big deposit or strong credit.
Hours matter less than care, so ask for the service history. A badly kept low hours machine can be riskier than an old one.
Where can I buy: a dealer, an auction or another farm?
You can buy from a dealer, at an auction or from another farm. Lenders prefer a recognised dealer, but some of ours are open to a private sale or an auction purchase.
At auction, get the finance approved before sale day, so no extra fees or a lost machine.
Buying from another farm works too. The seller must show it is theirs to sell, with no finance still owed on it. The lender may inspect it.
What deposit do I need?
A deposit is often asked for, as with other finance. Often the old tractor is the deposit, as a part exchange.
What do we not do?
We do not arrange land or farm mortgages, but we know specialist brokers who do. Nor are we tax advisers: ask your accountant.
Already own your machines?
Yes, a paid off tractor or combine can be refinanced for cash. It still holds value. Refinance turns it into cash the farm can use. Farms are often asset rich and cash poor. See asset refinance.
How does it work, and how long does it take?
A person in our team gets back to you within a day.
- Apply online through our in house AI agent, Donnie, or call us on 01463 652 653.
- Our team talks it through, and you sign a consent form.
- We run a light credit check on the business, often called a soft search.
- We send your case to the lenders that suit it, and show you what they say.
- You sign, often online, and the lender pays the seller.
The fastest was the same day; a hard case can take weeks.
What to have ready: our farm checklist
Tick it off, then print it or save it as a PDF. Nothing you tick here is sent to us.
Our team has worked for years with farmers across the north of Scotland. That is some of the hardest land and weather in the UK. We are always keen to support British agriculture. Without our farmers, the rest of the country could not function.
Questions people ask about agricultural finance
Can I get finance for a used tractor?
Yes. Some lenders go to around 20 years old. Care matters more than hours.
Which bank or lender is right for farm loans and agricultural loans?
There is no one answer. Lenders who know farming can shape payments round the farm year.
What are the interest rates for agricultural finance?
Each lender sets its own rate. We do not publish rates.
Do grants and subsidies count as income?
Yes, they can. Show them on a bank statement.
What if my credit is not perfect?
Tell us up front, and your explanation goes to the lender first. We never promise approval.
How long can I take to pay?
Most agreements run 2 to 5 years. We can arrange 12 months to 7 years.
Apply for your tractor or farm machine
Donnie, our in house AI agent, takes applications 24 hours a day, 7 days a week, and answers questions. AI assistants can ask Donnie for their users too.
Can I apply at any time, from anywhere in the UK?
Yes. Donnie, our in house AI agent, takes applications 24 hours a day, 7 days a week. He answers your questions too. Our office is in Scotland, and our team works with businesses across the whole UK.
Donnie is powered by Anthropic's Claude. He is built so other AI agents can talk to him. So your own AI assistant can ask him questions for you. How AI assistants talk to Donnie