Loan Amount: £72,000
Sector: Agricultural Contractor in the North East
Asset Type: Post driver & fencing equipment
Purpose: Refinance to improve cashflow
An established agricultural contractor in the North East approached Alchemy Business Finance following a challenging 12-month trading period. While the business remained profitable and well regarded locally, significant investment in specialist fencing equipment — including a heavy-duty post drivers and associated machinery — had left monthly repayments stretching cashflow.
The contractor had financed the equipment during a period of strong demand. However, rising fuel costs, delayed payments from larger clients and seasonal income fluctuations began to create pressure. The machinery itself was core to the business — high utilisation, revenue generating and in strong condition — but the existing finance terms were no longer aligned with the contractor’s cashflow cycle.
The Challenge
• £72,000 outstanding against post drivers and fencing kit
• High monthly repayments impacting working capital
• Seasonal income profile common within agricultural contracting
• Limited flexibility from the original lender
The contractor did not want to sell the equipment — it was central to operations — but needed to reduce monthly outgoings to stabilise the business and protect margins going into the next season.
The Solution
Alchemy structured a refinance facility secured against the existing fencing equipment. By reassessing the asset value and restructuring the term to better reflect the contractor’s trading cycle, we were able to:
• Refinance £72,000 against the post drivers and associated kit
• Extend the repayment term to reduce monthly burden
• Release over £650 per month in improved cashflow
Importantly, the contractor retained full operational use of the machinery with no disruption to ongoing contracts.
The Outcome
The refinance has provided immediate breathing space and strengthened working capital. With lower monthly repayments, the contractor is now better positioned to:
• Take on larger fencing contracts
• Manage seasonal fluctuations more comfortably
• Invest in additional smaller items of kit as required
This case highlights a common scenario in agricultural contracting — profitable businesses constrained not by lack of work, but by the structure of existing finance agreements.
For brokers supporting clients in similar sectors, refinancing revenue-generating agricultural equipment can often provide a fast and practical solution where traditional lenders may be unwilling to restructure.
Alchemy Business Finance specialises in asset-led funding solutions for agricultural and rural businesses, including refinance, consolidation and specialist equipment funding — even where credit profiles or trading patterns fall outside standard criteria.