What types of agricultural finance can you help me find (hire purchase, finance lease, asset loan)?

The quick answer — we help you find hire purchase, finance lease, and asset loan options for UK agriculture

Best Business Loans helps established UK farming and agri-food businesses connect with suitable finance providers for hire purchase, finance lease, and asset-backed loans. We don’t lend directly, but our AI-led matching introduces you to lenders and brokers who are active in agriculture and understand seasonal cash flow. Typical assets include tractors, combines, telehandlers, sprayers, milking parlours, feed systems, grain driers, cold stores, forestry kit, trailers, ATVs, and precision ag technology.

We can also help with asset refinance to release equity tied up in owned machinery and vehicles. Payment profiles can be seasonal, quarterly, or structured around milk cheques and harvest cycles, subject to provider approval. Every introduction is based on your business profile, funding purpose, and affordability.

This page explains how each funding type works, where it fits best, and what to expect from the process. If you’re ready to explore options, you can submit a Quick Quote to check eligibility and request a Decision in Principle. We’ll connect you with relevant providers so you can compare offers with confidence.

Who this is for

We’re best suited to established UK companies and LLPs in agriculture, agri-services, food production, and rural contracting. We do not currently support start-ups, sole traders, franchises, property finance, or commercial mortgages. Eligibility is subject to status, credit checks, and affordability assessments.

What you can finance

Common agricultural assets include new and used machinery, vehicles, implements, sheds fit-out, dairy equipment, renewable energy systems, and precision GPS technology. Some lenders can support livestock finance and specialist equipment, subject to criteria. Land purchase is excluded.

Compliance and clarity

All information here is for general guidance only and is not financial advice. Terms vary by provider and may change. Security and personal guarantees may be required. We aim to keep promotions fair, clear, and not misleading in line with UK regulatory expectations.

Hire Purchase — own the asset at the end, with predictable payments

Hire Purchase (HP) is a popular route for farmers who want to own machinery after the final instalment. You typically pay a deposit, spread the balance over an agreed term, and pay a small option-to-purchase fee at the end. Ownership transfers once the final payment is made.

VAT treatment under HP usually means the VAT on the asset price is due upfront, but some providers offer VAT-deferral to match cash flow. Terms commonly range from 24 to 84 months depending on asset age and use, subject to lender criteria. Seasonal or annual repayments can align with harvest, milk cycles, or BPS replacement income.

HP can support both new and used agricultural equipment, including manufacturer-backed deals. Residual values may be considered by some providers, potentially lowering monthly payments via a balloon payment where appropriate and available. Always review total cost, not just the monthly headline.

When HP tends to fit well

• You intend to keep and depreciate the asset long term.
• You prefer predictable repayments with a clear path to ownership.
• You want to potentially benefit from capital allowances where applicable.

What lenders look for

• Stable trading history and verifiable farm income.
• Asset suitability, condition, and age at start and end of term.
• Affordability and overall gearing across existing finance agreements.

Illustrative example

A dairy farm acquires a used tractor via HP with a 10% deposit and 60-month term. Payments are structured with lower instalments over winter and higher instalments in peak production. At the end of term, the farm pays a small fee to take ownership and keeps the tractor in the fleet.

Key points to consider

• Deposit levels vary; 0% deposit may be available for strong profiles.
• Early settlement is possible; check costs for early repayment.
• Insurance, maintenance, and running costs remain your responsibility.

Finance Lease — use the asset with lower upfront cost and flexible end options

A finance lease lets your farm use the asset for a fixed term without owning it during the agreement. You pay rentals plus VAT on each rental, which can suit businesses that prefer to spread VAT and keep upfront costs lower. End-of-term options typically include continuing on a peppercorn or secondary rental, returning the asset, or arranging a sale with a share of proceeds, depending on the contract.

Finance leases can be attractive for equipment with strong residual values, or when you want to maintain flexibility around replacement cycles. Seasonal and annual payments can be arranged by some providers, helping align cash outgoings to farm income. Some lenders offer operating-style leases for certain assets, though true operating leases are less common in farm machinery.

Leasing can be useful for kit that you expect to upgrade regularly, such as GPS guidance systems, sprayers, or telematics. It may also help you access newer technology without tying up capital. Speak to your accountant about treatment for your specific circumstances, as accounting outcomes vary by agreement type and standards.

When a finance lease tends to fit well

• You want lower initial outlay and to spread VAT through rentals.
• You plan to refresh the asset more frequently or retain upgrade flexibility.
• You prefer not to commit to ownership at the outset.

What lenders look for

• Asset quality, resale prospects, and market demand across the term.
• Your historic and projected cash flow, including seasonality.
• Past performance with similar agreements and existing liabilities.

Illustrative example

An arable business leases a new combine with structured rentals tied to harvest cash flow. At the end of the primary term, they continue on a low secondary rental while reviewing whether to upgrade. Their decision is based on hours used, maintenance profile, and new-model efficiency gains.

Key points to consider

• End-of-term options vary by contract; confirm before signing.
• Excess wear and tear may carry costs if returning the asset.
• Insurance and maintenance obligations sit with the lessee in most cases.

Asset loans and refinance — unlock value or fund broader farm investments

An asset-backed loan is a term loan secured on specific equipment, vehicles, or a wider asset base. It can be used to purchase machinery or to refinance owned assets to release working capital. This is useful when you need cash for inputs, expansion, or to bridge seasonal gaps without selling equipment.

Asset refinance can consolidate multiple agreements, potentially simplifying cash flow. Loan structures may include fixed or variable rates, covenants, and flexible repayment schedules depending on provider. Security and personal guarantees are common, subject to affordability and credit profile.

Some lenders also support livestock finance or breeding stock purchases within specialist criteria. Renewable energy assets such as solar PV, biomass boilers, and heat pumps may be financeable via HP, lease, or asset loans subject to projected savings and installer credentials. Property-backed lending and land purchase are outside our current scope.

When an asset loan tends to fit well

• You want to release equity from owned machinery or vehicles.
• You prefer a standard loan structure with fixed monthly repayments.
• You need funds for broader farm projects beyond a single asset purchase.

Growth Guarantee Scheme support

Where eligible, some lenders may offer facilities supported by the British Business Bank’s Growth Guarantee Scheme. This can help viable UK businesses access finance, though borrowers remain 100% liable for the debt. Availability, terms, and eligibility vary by provider and are subject to change.

Illustrative example

A mixed farm refinances a fleet of machinery with equity to release working capital before spring drilling. The structured loan aligns repayments to projected cash flow and reduces the number of monthly debits. The farm keeps the kit it relies on while accessing funds to buy fertiliser and seed.

Key points to consider

• Security and valuations will influence limits and pricing.
• Loan terms can be shorter than asset life to manage residual risk.
• Check for early repayment terms, fees, and covenants before committing.

Process, eligibility, comparisons, FAQs, and next steps

How our AI-led matching works

Step 1 — Complete a Quick Quote with basic business and funding details. Step 2 — Our system assesses your profile and shortlists suitable finance providers. Step 3 — We introduce you to lenders or brokers who can help, saving you time. Step 4 — You compare offers, request a Decision in Principle, and decide what’s best.

It’s free to submit an enquiry and there’s no obligation to proceed. We aim to connect you with providers relevant to your sector and funding purpose. You remain in control at every step of the process.

What providers typically ask for

• Last 2–3 years’ accounts and recent management information.
• Bank statements, aged debtor/creditor lists, and any existing finance schedules.
• Asset details, supplier quotes, serial numbers, age, hours, and condition.

Indicative considerations on pricing and terms

Rates, deposits, and terms vary by asset class, age, sector, and risk profile. Agricultural assets with strong resale demand can attract broader appetite among lenders. Seasonal payment structures and VAT deferral may be available, subject to approval.

There is no guarantee of approval or a specific rate. Pricing is influenced by credit status, affordability, security, and lender appetite at the time of application. Compare total cost of finance, not just monthly repayments.

Quick comparison: HP vs Finance Lease vs Asset Loan

Feature	Hire Purchase	Finance Lease	Asset Loan
Ownership	Transfers at end after final fee	No ownership during term	Business owns asset if already held or acquires separately
VAT	Usually due upfront; deferral may be available	VAT on each rental	Varies; typically on purchase invoice, not the loan
Deposit	Often 0–20%, subject to status	Low upfront cost; initial rental applies	Not always required if secured on owned assets
End-of-term	Option to purchase and own	Return, continue, or sell with proceeds share, per contract	Loan repaid; asset remains with business
Cash flow fit	Predictable, seasonal options available	Lower upfront, flexible end options	Useful for refinance and broader funding needs
Accounting	Varies; seek accountant advice	Varies; seek accountant advice	Varies; seek accountant advice

Frequently asked questions

Can I finance second-hand farm machinery?

Yes, many lenders support used equipment subject to age, hours, and condition. The term will reflect residual value risk at end of agreement. Independent inspections may be required.

Do you support seasonal or annual payments?

Providers in our network often offer seasonal profiles for agriculture. Harvest-linked, quarterly, or annual repayments may be possible. Availability depends on asset, term, and affordability.

Can VAT be deferred on HP for a tractor or combine?

Some lenders offer VAT deferral to reduce upfront strain on cash flow. Terms vary and fees may apply. Always confirm the VAT schedule before signing.

What if I need to refinance existing kit to release cash?

Asset refinance is common in agriculture and can unlock equity from owned machinery. Lenders will assess valuations, remaining useful life, and your debt profile. Funds can support inputs, repairs, or strategic upgrades.

Can you help with livestock finance?

Some specialist lenders offer livestock funding under defined criteria. Appetite varies by species, purpose, and market outlook. We can introduce you where relevant and available.

Are there government-backed options available?

Some lenders may participate in the Growth Guarantee Scheme for eligible businesses. You remain responsible for the debt in full. Availability and criteria change over time.

Next steps and how to get matched

If you’re exploring HP, lease, or asset loans for agriculture, start with a Quick Quote to check eligibility. Our AI maps your profile to suitable providers for faster shortlisting. You can then request indicative terms or a Decision in Principle without obligation.

For more detail on how we support the sector, see our page on farming loans for UK agriculture. You can compare finance types, understand typical criteria, and see the kinds of assets lenders are most comfortable with. When you’re ready, submit your details and we’ll guide you to the next step.

Important information and fair-promotion notes

Best Business Loans operates as an independent introducer and does not offer loans directly. We introduce you to finance providers based on your profile and stated requirements. We cannot guarantee acceptance, the lowest rate, or specific terms.

All finance is subject to status, credit checks, affordability, and provider criteria. Security and personal guarantees may be required. Information on this page is for general guidance only and not financial, legal, tax, or accounting advice.

We currently do not support start-ups, sole traders, franchises, property finance, or commercial mortgages. Always consider total cost, early settlement terms, and your ability to repay before committing. Speak to your professional advisers to confirm suitability and tax treatment for your circumstances.

Summary — your key takeaways

• We help you find hire purchase, finance lease, and asset loan options tailored to agriculture.
• HP suits ownership at term end; leases offer lower upfront cost and flexible end options.
• Asset loans and refinance can unlock cash or fund broader farm needs.
• Seasonal schedules and VAT deferral may be available, subject to provider approval.
• Submit a Quick Quote for eligibility and a Decision in Principle, with no obligation.

Updated: October 2025