LEADING UK BROKER FOR
Agricultural Bridging Loans
We provide farm finance options
Working in the farming industry is a rewarding role – especially if you enjoy the great outdoors. But for many farmers, the cost of operating their land can be damaging. At Loan X, we offer agricultural bridging loans so farmers can develop their property and build a successful business.
Our loans can be used to purchase more property, invest in livestock and diversify a current agricultural business to new ventures.
Why Secure a Bridging Loan?
Bridging loans get their name from the ability to secure a gap. The short term financing solutions are ideal if you need to secure a loan until a longer-term option is secured.
Many farm finance solutions will allow you to roll up the interest, which means you can use the money received to develop your agricultural business without paying monthly instalments.
The good thing about bridging loans is how they serve as a stop-gap for farming businesses, and while there are some requirements involved in securing your bridging loan, it can be a fantastic option while you’re waiting for a long term solution.
Our team of financial specialists can review your loan quickly, which enables you to secure the money to get your development underway.
You can use our loans to:
- Purchase a farm property. This could be an existing building or a self-build project to create more living space.
- Development and refurbish your property – both residential and commercial buildings are included.
- Buying extra parcels of land.
- Investing in new equipment and machinery for your farm and its associated businesses.
- Buying livestock or horses for an equestrian business.
- Implement renewable energy solutions.
How Much Will Bridging Finance Repayments Cost?
Factors that might impact your bridging loan amount include your credit history, prospects and the exit strategy.
While your credit history isn’t a determining factor in securing a loan, it can impact the processing speed, the amount you receive and the repayment agreement. Bad credit history will exclude your eligibility with some lenders but not all.
If you are accepted, it’s beneficial to show examples of previous loans and their complete repayment. Lenders will happily view this as a sign of trust and look upon your application more favorably.
The Purpose of Your Loan
Agricultural bridging loans can be beneficial for numerous purposes, as we mentioned previously. But the potential added value of your bridging loan might play a part in creating will define the amount you receive.
For example, organic food continues to grow in popularity, so if you need bridging finance to invest in buying new machinery and equipment for organic produce, lenders will see this as a viable prospect.
An exit plan refers to how you’ll repay the bridging loan when the time comes. As these flexible solutions are short-term loans, you’ll have to show lenders how you plan to settle monies owed.
For example, if you secure a bridging loan on a plot of land, you’d have to wait to begin construction. But development finance can provide you with money to repay the loan and develop your agricultural business.
Other exit plan strategies include remortgaging your property or using the profits from your agricultural business to repay the outstanding amounts.
Is a good credit history essential?
As with many loan providers, you don’t need to have the best level of credit, but your rating and history will determine the loan secured. Individuals with an impressive credit history will be able to take advantage of low-interest rates.
When you have a poor credit history, it’s important to show lenders you have an exit strategy. This will give them peace of mind, but it doesn’t guarantee you’ll secure your desired loan amount.
When it comes to our providers, we look at applications individually and measure the merits of each. Your loan term will depend on how viable your project is and whether you’ll be able to make repayments.
The Loan to Value (LTV) amount
The loan to value amount refers to how lenders assess the risk of offering money to a borrower. For example, if you purchase a plot of land for £100,000 and secure a loan for £80,000, the loan to value amount will be 80%.
We’ll use this calculation to explore the likelihood of you paying back the original loan and potential value increase once all work is completed.
Why Choose Loan X?
Bridging finance ensures you have enough money to move forward with your project before securing a long-term agricultural finance agreement. Our specialists understand that you need quick decisions, and we guarantee to provide you with an answer within seven working days.
Building a better future farm is possible with the proper support, and each of our financial advisors is a specialist in arranged bridging options.
As one of the UK’s leading agricultural bridging loans providers, we’re regulated by the Financial Conduct Authority. Each of our financial advisors is experienced in dealing with farm finance.
We’ll talk you through our process and come to a quick decision regarding the success of your application.
We Support Flexibility
We understand that there might be numerous reasons as to why you want to secure a loan. Our bridging loans can be used for a range of purposes including, purchasing agricultural land at auction, developing your existing property to accommodate or update a farming business, and funding for extra equipment and machinery.
Supportive Application Process
Regardless of what you’re using an agricultural loan for, our team can help you through the application process and ensure you have all the information you need to make the right decision. A bridging type of loan should only be a short term solution, so our financial advisors will want to discuss how you plan to finance your future developments.
Once we have the information, we’ll give you a final decision on the loan amount, repayment plans and offer professional solutions regardless of your history.
Get in Touch With Our Team Today
Give our teams a call today, and we’ll get to work arranging a loan and securing your assets. The future is bright with our friendly team, so don’t delay in asking the Loan X company to help you today.