Winter is often the toughest trading period for equestrian businesses. Shorter days, heavy ground conditions, higher feed costs and reduced event activity can all squeeze cashflow — particularly for smaller yards that rely on a mix of training, livery and seasonal competition income.
Earlier this year, Alchemy Business Finance worked with a specialist equestrian enterprise in the South West facing exactly this challenge — but with a slightly unusual twist.
A Niche Business Under Pressure
The client operated a well-regarded competition and rehabilitation yard, combining schooling services with hydrotherapy and recovery support for injured sport horses.
While the business had strong demand and a loyal customer base, a combination of factors had begun to create financial strain:
• A difficult autumn season had reduced competition income
• Rising bedding, forage and energy costs had increased overheads
• Several clients delayed payments after withdrawing horses early for winter
• Existing short-term borrowing was putting pressure on monthly cashflow
To complicate matters further, the yard had recently invested heavily in specialist rehabilitation equipment — including a water treadmill and therapy units — but this had been funded using expensive short-term facilities.
By January, the business was viable but financially stretched, with repayments falling due at exactly the time income was at its lowest.
The Asset-Led Solution
Rather than focusing purely on accounts or historic profitability, Alchemy worked with the company to assess the strength of the business from an asset perspective.
The yard owned a number of valuable items outright, including:
• A modern horsebox used for competitions and client transport
• A tractor and arena maintenance equipment
• Several pieces of specialist therapy machinery
Alchemy structured an asset finance solution that allowed the client to refinance selected equipment and release working capital at the same time.
This achieved three key outcomes:
1. Reduced monthly outgoings by replacing short-term debt with structured asset finance
2. Released cashflow to stabilise the business through the winter period
3. Created breathing space for the yard to rebuild bookings ahead of the spring competition season
Importantly, the structure was built around the seasonal nature of the equestrian industry, ensuring repayments aligned more comfortably with the client’s income cycle.
A Stronger Position for the Season Ahead
With the refinance completed, the client was able to:
• Clear higher-cost borrowing
• Pay suppliers on time
• Invest in early-season marketing and competition preparation
• Retain staff and maintain horse capacity
By the time spring bookings began to pick up, the business had moved from a position of financial pressure to one of stability and growth.
Dean Pollen, Managing Director of Alchemy Business Finance, commented:
“In sectors like equestrian and agriculture, we often see good businesses under pressure simply because their finance structure no longer matches their income cycle. Asset-led funding allows us to look beyond headline figures and focus on what really matters — the strength of the business and the value already sitting within it.”
A Reminder for Brokers
This case highlights a point broker are seeing more frequently across rural and specialist sectors:
Many viable businesses are not failing due to lack of demand — they’re struggling because finance structures no longer match how their income actually flows.
Asset-led funding can often provide a practical solution, particularly in industries like equestrian, agriculture and contracting, where valuable equipment and machinery may be under-utilised from a funding perspective.
As seasonal pressures continue to affect rural enterprises, brokers who understand how to unlock value from assets — rather than relying solely on conventional lending criteria — can play a crucial role in keeping good businesses moving forward.