Case study

Scottish dairy farmer secures future growth with Refinance

01-07-2024

Looking to acquire additional dairy cows to keep the business moving on its growth trajectory, this established family-run dairy farming business operating from 2,300 acres of land in Scotland turned to Ultimate Finance hoping to refinance existing machinery to generate the liquidity needed to complete the transaction.

The business was introduced to Senior Regional Director Stephen Brook at Ultimate Finance, which specialises in asset-based lending and offers Refinancing solutions as well as Hire Purchase and Lease Financing facilities and with whom they have worked for over 12 years.

Stephen explains, “We know farmers are asset-rich but can also find themselves cash-poor and it can be challenging to gain access to the financial support they need to meet their ambitions. We at Ultimate Finance were delighted to be presented with the opportunity to help the family business raise the necessary funds to acquire the cows they needed”.

With a successful established business, an understanding of the broker’s long-standing relationship with the business and a good track record of repayments and a successful established business, the team at Ultimate Finance assessed the assets to be refinanced and was able to unlock £280k through a Sale & Lease Back facility from a total of nine various assets ranging from harvesters and trailers to tractors.

Stephen continues, “The cash raised from the unencumbered assets will be used to acquire the dairy cows and some of the additional income created through the sale of the milk will be directed towards making monthly repayments over 60 months to help the business manage its cashflow requirements without any unnecessary pressure”.

“At Ultimate Finance we take our mission to support the ambitions of businesses seriously, and we are known in our industry for working with businesses that may be overlooked by lenders with rigid algorithms and who may fail to look at the bigger picture when it comes to future prospects. It is always great to be able to provide the flexibility and expertise a business needs from a funding partner and we are proud of the relationships we have built with our network of introducers across the country to provide access to our funding solutions to their clients”.

Ultimate Finance offers Asset Finance facilities up to £500,000 per asset and £2m per customer with terms from 12 to 84 months, with funding available within just one working day. If you are an introducer looking to discuss your clients’ requirements, register online today to get started.

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