Can tenant farmers apply, or do I need to own the land/buildings?

Short answer: Tenant farmers can apply — ownership isn’t always required

Yes, tenant farmers can apply for business finance, and you don’t always need to own the land or buildings. Many UK lenders actively support Farm Business Tenancy (FBT) and Agricultural Holdings Act (AHA) tenancy models, as well as contract and share farming arrangements. The key is matching your needs to lenders comfortable with tenancy-based security, cash flow lending, or asset-backed facilities.

Best Business Loans doesn’t lend money directly; we help you find suitable lenders and brokers who understand agriculture and tenancy structures. We connect established UK farming businesses with finance providers who can assess trading performance, tenancy terms, and available assets — not just land title. You can check eligibility quickly and explore options without obligation.

If you aim to buy land or secure an agricultural mortgage, ownership is typically required. For equipment, vehicles, working capital, livestock, seasonal inputs, or cash flow, ownership of land is usually not essential.

Get started in minutes: complete a Quick Quote and we’ll introduce you to providers who may support your tenancy-based farm.

What lenders look for when you don’t own the land

When you operate under a tenancy, lenders place more weight on business strength, contract quality, and the assets or receivables they can rely on. They also focus on the remaining tenancy term if the finance relates to fixed improvements or longer-term borrowing. For working-capital and asset finance, they’ll prioritise serviceability and security outside of land.

Key criteria lenders typically assess

• Tenancy type and status: FBT, AHA, seasonal licences, share farming, and any subletting permissions.
• Remaining tenancy term versus loan term, especially for projects tied to the land or buildings.
• Landlord consent where relevant, for fixtures, building works, or charges on improvements.
• Trading history, usually 12–36 months of accounts, plus recent management information.
• Cash flow resilience, seasonality, and repayment source aligned to the crop or livestock cycle.
• Contracts and income visibility: milk supply, processor contracts, grain pools, or retailer agreements.
• Subsidy and scheme receipts: SFI, stewardship, delinked payments, and their stability over time.
• Assets available for security: machinery, kit, vehicles, livestock, or existing unencumbered assets.
• Personal and business credit profile, including any existing borrowing or arrears.
• Purpose, term, and affordability, including buffers for price volatility and input cost spikes.
• Insurance, biosecurity, and risk controls relevant to your farm model and enterprises.
• Environmental compliance and sustainability upgrades, which some lenders favour.

If funding is for improvements attached to land you do not own, expect closer scrutiny of your tenancy length and the landlord’s position. For working capital, kit, and vehicles, lenders can often proceed without land as security.

In Scotland and Northern Ireland, lender expectations are similar, but tenancy documentation and consent requirements can differ by jurisdiction. Lenders familiar with agricultural tenancies will factor in local legal frameworks.

Finance options that suit tenant farmers

Even without land ownership, you can access a broad range of business finance routes. The most suitable options typically rely on business cash flow, moveable assets, or contract strength rather than title to land. Choice depends on your purpose, budget, seasonality, and asset base.

Common funding routes for tenanted farms

• Asset finance for machinery and kit: hire purchase and leasing secured against the equipment itself.
• Equipment refinance to unlock capital tied up in owned machinery or vehicles.
• Vehicle and fleet finance for pickups, vans, tractors, telehandlers, and specialist agri vehicles.
• Livestock finance structures tailored to breeding or finishing cycles in certain sub-sectors.
• Invoice finance to accelerate cash from B2B sales to processors, wholesalers, or retailers.
• Revolving credit and working capital loans aligned to seasonal input purchases and harvest.
• VAT and tax funding to smooth larger payments without straining cash flow.
• Energy and sustainability upgrades financed via asset-backed or project-based arrangements.
• Refinance and consolidation to bring multiple agreements under better-managed terms.

Where land ownership is usually required: agricultural mortgages, traditional land-backed secured loans, and certain development finance tied to permanent buildings. However, some yard, grain storage, or infrastructure improvements on rented land may be fundable with landlord consent and sufficient remaining tenancy term.

To explore sector-specific funding considerations and typical criteria, see our guide to agriculture business loans. It outlines how UK lenders approach farming assets, cyclical cash flows, and industry risks.

Practical steps, documents, and how we match you

Applying as a tenant farmer is straightforward when you prepare the right information. Clear documentation helps lenders make faster, better-informed decisions. Our platform streamlines this by matching your details to finance providers who understand tenancies.

Simple steps to get matched

1. Complete a Quick Quote with your farm profile, finance purpose, and desired amount.
2. Our system analyses your details and shortlists lenders or brokers aligned to your needs.
3. We introduce you to the most suitable partners so you avoid contacting multiple firms yourself.
4. You review options, ask questions, and decide whether to proceed with an application.
5. If you proceed, the provider will complete checks and confirm terms, subject to status.
6. You choose the offer that best fits your budget, seasonality, and goals.

What to have ready

• Latest annual accounts and recent management figures or cash flow forecasts.
• Bank statements, typically three to six months, to evidence inflows and outflows.
• Tenancy agreement, including remaining term and any relevant clauses on improvements.
• Asset list, including details of machinery, vehicles, and any unencumbered equipment.
• Contracts or sales schedules for milk, grain, livestock, or other produce.
• Evidence of SFI or stewardship receipts if relied upon in affordability.
• Insurance details and any relevant compliance certifications.

Typical timelines vary by product and complexity. Asset finance can be quick once documents are in order; invoice finance and working capital lines can also move swiftly if trading data is clear.

We do not promise the cheapest rate every time, and we cannot guarantee approval. We aim to guide you toward relevant providers so you can compare and choose confidently.

FAQs, compliance notes, and next steps

Do I need landlord consent for finance?

Not always, but consent is commonly required when the finance relates to fixtures, permanent improvements, or charges affecting the landlord’s property. Lenders will advise when consent is needed and how to obtain it efficiently.

How much tenancy term do lenders expect?

For term loans linked to land improvements, lenders often prefer the loan to end before or at the same time as the tenancy. For working capital or asset finance, shorter terms can be fine if affordability is strong.

Can I finance a new building on rented land?

Possibly, with landlord consent and an adequate remaining tenancy term. Expect enhanced due diligence on specifications, insurances, and the implications if the tenancy ends early.

Will lenders consider SFI or delinked payments as income?

Many will, alongside commercial revenue, subject to scheme rules and documentation. Providers will assess stability and how those receipts interact with your cash flow.

What if my credit is less than perfect?

Options may still exist, potentially with additional security, a personal guarantee, or tighter terms. The right match is important to balance risk, cost, and flexibility.

How quickly can tenant farmers get funding?

Asset finance, working capital, and invoice finance can be arranged quickly once information is complete. More complex projects or consents tend to take longer.

Are there government-backed options?

For eligible UK SMEs, lenders participating in schemes such as the British Business Bank’s Growth Guarantee Scheme may consider applications. Availability and criteria depend on the lender and your circumstances.

What will it cost and are fees payable?

Costs depend on product type, term, security, and your credit profile. Any fees and rates will be disclosed by the provider so you can make an informed decision.

Important information and compliance

Best Business Loans is an independent introducer that connects established UK businesses with suitable finance providers. We don’t offer loans or provide financial advice, and we’re not a lender or broker.

Any finance is subject to status, affordability, and provider criteria, and may require security or a personal guarantee. Tenancy-related applications may require landlord consent or additional documentation.

Information on this page is for general guidance only and is not a recommendation. Ensure any decision is based on your circumstances and, where appropriate, seek professional advice.

We aim for all promotions to be fair, clear and not misleading, consistent with FCA and ASA expectations. We never guarantee approval, instant decisions, or the lowest rates.

Ready to check eligibility? Submit a Quick Quote to be matched with lenders and brokers who understand tenant farming and agricultural finance. It’s fast, secure, and no obligation.