Can I finance diversification projects such as farm shops, food production or agri-tourism fit-outs (non-property)?

Short answer: yes — many non-property diversification projects can be financed

Yes. UK businesses can fund non-property diversification projects like farm shops, small-scale food production, commercial kitchens, and agri‑tourism fit‑outs using commercial finance that doesn’t rely on land or buildings as security. Typical routes include asset finance, fit‑out finance, equipment leasing, working capital loans, and revenue-linked funding.

Best Business Loans does not lend directly, but we help you explore your options and connect with suitable lenders or brokers for your sector. Finance is always subject to status, affordability and lender criteria.

What kinds of diversification projects can be financed without using property?

Diversification is now a mainstream strategy for UK farms and rural businesses, and many elements are financeable without a mortgage. Lenders often support fit‑outs and assets that are identifiable, maintain value, and generate revenue. The focus is on business use, viability and recoverable security.

For farm shops, financeable items often include refrigeration, counters, display shelving, EPOS systems, café seating, coffee machines, and back‑of‑house kit. For food production, lenders may support pasteurisers, butchery equipment, blast chillers, packaging lines and hygiene-compliant workstations.

Agri-tourism fit-outs may include commercial-grade kitchen equipment, furnishings for visitor centres, signage, AV displays, ticketing systems, and mobility solutions. Glamping pods may be fundable if they’re movable, demountable, and treated as plant and machinery by the lender.

Financeable non-property costs and assets typically include:

• Equipment and machinery: ovens, chillers, bottling, slicing, vacuum pack, labelling.
• “Soft assets”: shelving, counters, tables, lighting, signage, POS and IT.
• Vehicles: refrigerated vans, pickups and utility vehicles for distribution.
• Fit-out works: interiors, decoration, flooring and non-structural fixtures.
• Working capital: stock purchases, initial staffing and marketing activity.

Usually excluded under non-property finance:

• Land purchase or groundworks that are integral to the structure.
• Structural building works and permanent extensions.
• Planning costs and professional fees not linked to assets or fit-out.

If your plan blends property works with assets and fit-out, you may still finance the asset and fit‑out component. Lenders can stage-pay suppliers for equipment while you cover the building works separately.

What finance options are commonly used for non-property diversification?

Asset finance is the backbone for many projects because the equipment itself acts as security. Lenders like tangible, business-critical kit that retains value and supports future cash flow. Terms are usually 2–7 years with fixed repayments.

Fit-out finance and leasing can bundle multiple suppliers and “soft assets” into a single plan. This is useful for farm shops and visitor centres where lots of smaller items add up. Some lenders support stage payments direct to your suppliers.

Working capital loans can cover upfront costs like stock, staffing, and launch marketing. Options include unsecured business loans, revenue-linked advances against card takings, and short-term cash flow facilities.

• Asset finance: hire purchase or finance lease for machinery, refrigeration and vehicles.
• Fit-out finance: interiors, counters, EPOS, seating and lighting in one agreement.
• Equipment loans: for specific high-value production items or commercial kitchens.
• Invoice finance: if you supply B2B customers on credit, to unlock cash tied in invoices.
• Merchant cash advance: repayments flex with card takings for retail or cafés.
• Refinance: release equity from owned assets to fund upgrades or working capital.
• Growth Guarantee Scheme: government-backed support via accredited lenders, if eligible.

Security, guarantees and VAT

Personal guarantees are common for unsecured elements, and debentures may be used for larger facilities. For hire purchase, you usually reclaim VAT on the asset per HMRC rules, aiding cash flow. Some lenders offer VAT deferral or tax funding to smooth out spikes.

Best Business Loans helps you understand which products fit your plan and introduces you to providers who actively lend in your sector. We’ll always be clear that approvals, rates and terms depend on the lender’s assessment of your business.

What do lenders look for — and what should I prepare?

Lenders need a clear, costed plan that shows how the new revenue stream will perform. Your business case should connect spend to forecast sales, margin and cash flow. Keep the plan realistic and show how seasonality will be managed.

Most providers prefer established businesses with 12+ months’ trading history. If you’re purely a start-up, we’re unlikely to be able to help at this time. Evidence of stable cash flow and good financial controls always strengthens an application.

Have supplier quotes and a timeline ready, including stage payments if required. Indicate lead times for equipment and any commissioning or staff training. For food production, reference compliance steps like HACCP and EHO registration.

Documents and information that help speed decisions:

• Latest filed accounts and up-to-date management accounts.
• Last 3–6 months of business bank statements.
• Aged debtor and creditor summaries, if relevant.
• Business plan, cash flow forecasts and sensitivity analysis.
• Supplier quotes, equipment specifications and serials where available.
• Proof of ownership for any assets to be refinanced.
• Licences, permits and insurance details for food or visitor operations.

Where projects are seasonal, request a seasonal repayment profile aligned to farm or tourism cycles. Some lenders offer quarterly or “low winter” profiles to match trading patterns. That can improve affordability and lender confidence.

Ticket sizes, terms and timing

Non-property finance for diversification typically ranges from £10,000 to £2,000,000. Terms are usually 12–84 months, depending on asset life and lender policy. Indicative timelines can be rapid once documents are in order, especially for asset-backed deals.

Costs, rates and how to structure your funding mix

Rates vary with credit profile, asset type, deposit, and term. Asset-backed finance is generally keener than unsecured loans because the lender has tangible security. “Soft asset” and unsecured facilities carry higher pricing due to higher risk.

Spread your project across different products to balance cost and flexibility. Use hire purchase or leasing for core equipment, and a short-term facility for stock and launch marketing. Consider invoice finance if you will sell wholesale to farm shops, hotels or retailers.

If eligible, asking a lender about Growth Guarantee Scheme support may widen options. Guarantees do not remove your obligation to repay, but they may help where security is limited. Availability and criteria change, so providers will advise case by case.

Typical costs and fees to budget for:

• Arrangement and documentation fees, sometimes added to finance.
• Deposit on hire purchase, often 10–20% depending on asset and profile.
• Delivery, installation and commissioning charges from suppliers.
• Maintenance, calibration and service plans for food-grade equipment.
• Insurance, licences and compliance costs specific to food or tourism.

Always read early settlement terms, end-of-lease options, and title transfer details. If you intend to reclaim VAT on equipment, confirm the invoice and timing align with HMRC rules. Your accountant can advise on capital allowances and the most tax-efficient structure.

A simple scenario example

A farm shop with café plans to invest £160,000. £110,000 funds refrigeration, counters and kitchen kit via hire purchase over 60 months. £30,000 covers soft fit-out using a lease, and £20,000 funds initial stock and marketing using a short-term facility.

Payments are aligned to seasonal cash flow with lower winter instalments. The business maintains a small working capital buffer to manage supply volatility. This blended approach can reduce average cost while keeping a cash cushion for contingencies.

How Best Business Loans helps — and your next steps

Best Business Loans is an independent introducer that uses AI to match your profile to relevant providers. We don’t offer loans ourselves, and there’s no obligation to proceed after your enquiry. Our goal is to save you time and help you make an informed decision.

Complete a Quick Quote and outline the purpose, amount, and timescale. We’ll review your details and introduce you to lenders or brokers active in agriculture, food production or tourism fit-outs. You then compare offers and choose what suits your plan and cash flow.

If your business is in farming or rural enterprise, see our guide to agriculture business loans for sector-specific insights. You can also visit our homepage to start your enquiry and check eligibility. Finance is subject to status, terms and availability, and may require personal guarantees.

Quick checklist before you apply

• Write a concise, costed plan with clear cash flow forecasts.
• Gather quotes, bank statements and management accounts.
• Decide which items are assets versus working capital needs.
• Ask suppliers about delivery lead times and stage payments.
• Confirm licences, insurance and compliance steps are in hand.

FAQs

Can I finance a farm shop or café fit-out without a mortgage? Yes, using fit-out and asset finance for equipment, counters, EPOS, seating and more. Property works and land are excluded, but most interiors and kit are eligible.

Do you support start-ups? We currently focus on established UK businesses. Pure start-ups without trading history are outside scope at present.

What security is required? Asset-backed facilities secure on the equipment. Unsecured elements may require personal guarantees and, for larger deals, debentures.

How quickly can funding be arranged? Asset finance can be quick once documents are ready. Complex, multi-supplier projects may require staged approvals and supplier checks.

Is funding available UK-wide? Yes, for UK-registered businesses trading in the UK. Availability depends on sector, profile and lender appetite.

Key takeaways

• Non-property diversification is financeable via asset, fit-out and working capital options.
• Keep building works separate; focus finance on movable assets and interiors.
• Blend products to balance cost, flexibility and seasonal cash flow.
• A solid plan, quotes and current financials speed decisions.
• We introduce you to relevant providers; you stay in control of your choice.

Next step: Ready to explore your options? Submit a Quick Quote at BestBusinessLoans.ai for a free eligibility check and introductions to suitable providers. It’s fast, secure and without obligation.

Important information, fairness and compliance

Best Business Loans is an independent introducer, not a lender, and does not provide financial advice. Any finance is subject to status, affordability checks and lender criteria. Terms, rates and fees vary by provider, asset and credit profile.

All information on this page is intended to be clear, fair and not misleading. Please obtain independent professional advice on tax, legal and accounting matters where appropriate. We follow best-practice standards aligned to FCA guidance for financial promotions, although we are not authorised by the FCA.

Updated October 2025. Content will be reviewed periodically to reflect market changes and scheme updates.