Agricultural machinery finance: allow for seasonality

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Farm machinery can represent a major commitment while income arrives unevenly through the year. Finance should be considered alongside the agricultural cycle and the equipment's practical use.

Specify the machine

Include age, condition, attachments and expected annual use. Ask how the provider assesses used or specialist equipment and whether servicing is included.

Prepare a seasonal forecast

Map income and operating costs across the year rather than dividing annual profit into equal months. Include existing finance, repairs and a contingency for a weaker season.

Compare the end position

Check ownership, deposit, final payment and early settlement conditions. If seasonal instalments are proposed, obtain the full schedule and test it against a delayed receipt. Discuss tax treatment and the business structure with your accountant before relying on any assumed relief.

Explore your next step

Contact Milestone Funding to discuss your business and funding needs, or explore the funding options.

Further reading: British Business Bank: finance options.

General information, not a personalised recommendation. Availability, costs and terms depend on the provider and circumstances.