Specialist lender Alchemy Business Finance Ltd has recently completed a £134,500 funding solution for a mixed farming business in North Yorkshire, demonstrating how flexible, asset-backed finance can help agricultural businesses navigate complex financial situations.
The family-run farm operates across both arable and livestock enterprises, combining cereal production with a growing beef herd and agricultural contracting work in the local area. Like many mixed farms across the UK, the business had evolved over several generations, gradually expanding its operations and machinery fleet to support increasing acreage and contracting opportunities.
However, this growth had resulted in a number of separate finance agreements across different lenders for essential farm equipment, including tractors, cultivation machinery and livestock handling infrastructure.
A Complex Situation Developing
Over time, the structure of these agreements had become increasingly difficult for the business to manage. Several agreements had been taken out during more favourable commodity markets, and rising input costs over the past two seasons had placed additional strain on the farm’s cashflow.
The challenge was not a lack of viable business activity. In fact, the farm remained productive and well established in the local agricultural community. The issue was that the borrowing had become fragmented across multiple lenders with differing repayment schedules, creating pressure on monthly outgoings.
To further complicate matters, the farm had also recently taken on additional land under a new tenancy agreement, increasing both its operational capacity and its machinery requirements.
While the business remained asset-rich, refinancing options through traditional lenders were limited due to the complexity of the existing agreements and the seasonal nature of agricultural income.
A Consolidated Solution
Alchemy Business Finance reviewed the farm’s equipment portfolio and existing finance arrangements before structuring a consolidated asset finance facility.
The solution brought together several existing agreements into a single funding structure, allowing the farm to simplify its borrowing while retaining all operational machinery required for both its farming and contracting activities.
The restructuring provided:
• A single, manageable repayment structure
• Improved alignment with the farm’s seasonal cashflow
• Reduced monthly financial pressure
• Continued access to essential machinery supporting both farming and contracting income
This allowed the business to stabilise its financial position while continuing to operate at full capacity.
Dean Pollen, Managing Director of Alchemy Business Finance, commented:
“Farming businesses are often asset-rich but operate within tight seasonal cashflow cycles. In situations like this, the challenge is rarely the strength of the underlying business — it’s the structure of the finance around it. By taking an asset-led approach we were able to simplify the borrowing and provide the farm with the breathing space it needed.”
Funding a Farm Diversification Project
Farm diversification continues to be a growing area of opportunity within the agricultural sector, and Alchemy Business Finance recently supported a North Wales farm business looking to expand its income streams.
The client, a third-generation family farm, had begun developing a small on-site diversification project involving rural holiday accommodation and renewable energy installations.
While the project had strong long-term potential, initial development costs placed pressure on the farm’s cashflow during the early stages.
Alchemy structured and paid out a £118,000 asset-backed facility secured against agricultural equipment owned by the business, within a 48-hour window.
The funding allowed the client to:
• Complete key construction works
• Install renewable energy infrastructure
• Maintain day-to-day farm operations during development
The project is expected to provide a stable secondary income stream, helping the farm diversify away from reliance solely on commodity markets.
Dean Pollen commented:
“Diversification is becoming increasingly important for many farming businesses. By taking an asset-led approach to lending, we can help farmers unlock capital to invest in new income streams while continuing to run their core agricultural operations.”
Case Study: Unlocking Working Capital Through Agricultural Asset Refinance
Specialist agricultural lender Alchemy Business Finance Ltd recently completed a refinancing transaction for a livestock farmer in the Midlands, releasing £98,000 in working capital against existing machinery assets.
The client, who operates a mixed beef and arable enterprise, had invested heavily in equipment over the previous few years. While the business remained operationally sound, cashflow had tightened following a combination of rising input costs and a delayed payment from a livestock buyer.
Like many farming businesses, the client had historically relied on an overdraft facility from a high street bank. However, when the farmer approached the bank to increase the facility temporarily, the request was declined as part of the lender’s wider reduction in agricultural exposure.
Working with an introducing broker, Alchemy Business Finance assessed the case from an asset-led perspective rather than relying solely on traditional credit metrics.
Identifying the Opportunity
During the review, it became clear that the business owned several key pieces of equipment outright, including:
• A modern tractor
• A livestock trailer
• A telehandler used across both the livestock and arable operations
While these assets were essential to the business, they were also unencumbered and therefore capable of supporting a refinance structure.
Alchemy proposed a sale and leaseback facility, allowing the farmer to unlock capital tied up in the machinery without disrupting day-to-day operations.
Structuring the Solution
Following an asset inspection and valuation, Alchemy structured a refinance agreement over a 48-month term.
The facility provided:
• £98,000 released to the client
• Immediate working capital support
• A manageable monthly repayment aligned with the farm’s cashflow cycle
Importantly, the deal completed within three working days, enabling the client to stabilise cashflow ahead of the upcoming livestock purchasing period.
Supporting Brokers in Specialist Sectors
The case highlights a trend many commercial finance brokers are now seeing: viable agricultural businesses that struggle to access funding through traditional banking channels.
For brokers unfamiliar with the sector, agriculture can initially appear complex due to seasonal income cycles and the diversity of farm businesses. However, asset-backed lending structures can often provide practical solutions where conventional underwriting may fall short.
Dean Pollen, Managing Director of Alchemy Business Finance, commented:
“Farming businesses are often asset-rich but cashflow-sensitive, particularly during periods of volatility in input costs or commodity prices. In situations like this, refinancing existing machinery can provide a straightforward way to release capital while allowing the business to continue operating as normal.”
A Growing Opportunity for Brokers
With many banks continuing to reduce their exposure to agricultural lending, brokers are increasingly playing a key role in helping farming clients access specialist finance providers.
Common funding triggers in the sector include:
• Machinery upgrades or replacements
• Refinancing existing equipment
• Diversification projects such as renewable energy or farm accommodation
• Working capital support during seasonal cashflow gaps
For brokers who take the time to understand the sector, agriculture continues to represent a significant opportunity for specialist lenders able to take a pragmatic, asset-led approach.
Complex Farm Refinance Completed in the North East
Specialist lender Alchemy Business Finance Ltd has completed a £156,500 refinancing facility for a farmer in the North East of England, restructuring several existing finance agreements into a single manageable package.
The mixed farming business had accumulated a number of machinery finance agreements over time across different lenders. While the equipment remained essential to the farm’s operations, the structure of the borrowing had become increasingly difficult to manage as rising costs and tighter margins placed pressure on cashflow.
The situation was further complicated by historic credit issues and a fragmented lending structure, making it difficult for the client to refinance through mainstream lenders.
Working with the introducer, Alchemy reviewed the farm’s asset base and existing agreements before structuring a consolidated refinance facility. The new agreement brought several separate finance arrangements together into one facility, aligning repayments more closely with the farm’s cashflow and reducing the overall monthly financial pressure.
The refinancing allowed the farmer to retain all operational equipment while stabilising the business’s financial position.
Dean Pollen, Managing Director of Alchemy Business Finance, said the case demonstrates how specialist lenders can support agricultural businesses when traditional lending options are limited.
Dean Pollen, Managing Director of Alchemy Business Finance, commented:
“Agricultural businesses often build up multiple finance agreements over many years. When costs rise or markets change, those arrangements can quickly become difficult to manage. In this case we were able to consolidate the borrowing into a single structure, reducing the monthly pressure and giving the farmer a more sustainable financial footing.”
The transaction highlights the important role brokers and specialist lenders can play in restructuring complex borrowing situations for agricultural clients — particularly where businesses remain asset-rich but face short-term cashflow pressures.