Finance Assets arranges asset finance for livestock farmers, helping UK beef, sheep, pig and poultry businesses fund feeders, handling systems, trailers and machinery.
Asset finance for livestock farmers spreads the cost of equipment over 2 to 7 years, with payments that can be set monthly, quarterly or annually to fit around stock sales. It suits farms investing in feeding and handling equipment, replacing machinery, or expanding a beef, sheep, pig or poultry enterprise.
Written by Marcus Wright, founder of Bolton Business Finance Ltd, in financial services since 2008 and a commercial finance broker since 2019. Last reviewed October 2026.
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The short version
- Asset finance lets livestock farmers spread the cost of feeders, handling systems, trailers and machinery over 2 to 7 years.
- Payments can often be set seasonally or annually to match when stock is sold.
- Hire purchase is the most common route, because farmers usually keep equipment for many years.
- Lenders that specialise in agriculture understand beef, sheep, pig and poultry businesses.
- Finance Assets arranges asset finance for livestock farms trading as limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000.
| Item | Detail |
|---|---|
| Equipment covered | Feeder wagons, handling systems, livestock trailers, tractors, telehandlers, UTVs, slurry equipment and shed systems |
| Terms | Usually 2 to 5 years, and up to 7 years on some new machinery and fixed equipment |
| Payment profile | Monthly, quarterly, half-yearly or annual, matched to the farm’s income |
| Paid upfront | Hire purchase: often a 10% deposit plus VAT. Leases: usually 1 to 3 rentals in advance |
| New or used | Both, including used machinery from dealers, auctions and other farms |
| Who we help | Limited companies and LLPs, plus sole traders and partnerships on business agreements over £25,000 |
Equipment we finance for livestock farmers
Lenders will fund most of the equipment a livestock farm runs, from the machinery that feeds and beds the stock to the systems that handle and weigh it.
| Equipment group | Examples |
|---|---|
| Feeding | Diet feeder and mixer wagons, feed hoppers, bale processors and automatic feeding systems |
| Handling and weighing | Cattle crushes, handling systems, sheep handling and turnover crates, weigh crates and EID readers |
| Machinery | Tractors, telehandlers, loaders, mowers and balers |
| Transport | Livestock trailers, UTVs, quad bikes and stock lorries. See HGV finance for larger vehicles |
| Housing systems | Ventilation, heating, feeding and drinking systems for poultry and pig sheds, and cubicles and gates for cattle |
| Slurry and muck | Slurry tankers, umbilical systems, separators and muck spreaders |
| Bedding | Straw choppers and bedding blowers |
How livestock farmers use asset finance
Livestock farms usually spend on equipment well before the stock it helps raise is sold, so spreading the cost evens out cash flow.
- Improving feeding. Moving to a diet feeder or automatic feeding system to cut labour and improve growth rates.
- Safer handling. Installing a proper handling system and crush, which also speeds up testing, weighing and treatments.
- Replacing machinery. Spreading the cost of a tractor or telehandler rather than paying from one year’s margin.
- Expanding an enterprise. Equipping new poultry or pig housing with ventilation, feeding and drinking systems.
- Releasing cash. Refinancing machinery the farm owns outright to fund stock purchases or working capital.
Finance options for livestock farmers
Most livestock farmers buy on hire purchase, because equipment tends to stay on the farm for many years. Our types of asset finance guide covers each option in more depth.
| Type | How it works | Suits |
|---|---|---|
| Hire purchase | A deposit, then fixed payments on a monthly, seasonal or annual profile. You own the equipment after the last one | Machinery and equipment you will keep for years |
| Finance lease | Rentals with VAT added to each one. The lender owns the equipment | Spreading the VAT on a large purchase |
| Operating lease | Lower rentals priced around the expected resale value. You hand it back at the end | Tractors and telehandlers changed on a regular cycle |
| Sale and hire purchase back | A lender buys equipment you own and sells it back over a fixed term | Releasing cash tied up in existing machinery |
Hire purchase for livestock farmers
Hire purchase is the most common way livestock farmers buy feeders, handling systems and machinery. You pay a deposit, often around 10% plus the VAT, then fixed payments, and the equipment is yours after the last one. Payments do not have to be monthly: many agricultural lenders will match them to when the farm sells stock.
Finance lease for livestock farmers
A finance lease suits a large purchase, because VAT is added to each rental instead of being paid upfront. The lender keeps ownership. At the end you can usually keep the equipment on a small secondary rental, or sell it and receive most of the proceeds.
Operating lease for livestock farmers
An operating lease prices the rentals around what the machine should be worth at the end, so the monthly cost is lower and the lender takes the resale risk. It suits tractors and telehandlers that the farm changes every few years, with agreed hours and condition limits.
Refinancing machinery you already own
A sale and hire purchase back lets a lender buy machinery you own outright and sell it back to you over a fixed term, so it stays on the farm while the cash comes back into the business. It can help fund stock purchases or bridge the gap before a sale.
VAT and tax for livestock farmers
A VAT-registered farm can usually reclaim the VAT on agricultural equipment in full. On hire purchase, VAT on the full price is usually paid at the start and reclaimed on the next return, and many lenders can defer it for a few months. On a lease, VAT is added to each rental. With hire purchase you may be able to claim capital allowances, and lease rentals are usually an allowable business expense. Check the tax treatment with your accountant.
Livestock farm finance costs: a worked example
A diet feeder wagon at £42,000, a cattle handling system at £18,000 and a UTV at £12,000, £72,000 in total, cost about £1,345 a month on a 5-year hire purchase, or about £1,154 a month with a 20% balloon.
| Item | Standard | With 20% balloon |
|---|---|---|
| Equipment price (excl. VAT) | £72,000 | £72,000 |
| Deposit (10%) | £7,200 | £7,200 |
| VAT paid upfront | £14,400 | £14,400 |
| Monthly payment (60 months) | £1,345.14 | £1,154.22 |
| Final balloon payment | None | £14,400 |
| Total interest | £15,908 | £18,853 |
On an annual profile instead, the same deal works out at about £16,824 a year for five years, paid after each year’s stock sales, with total interest of about £19,322. Paying once a year costs more in interest because the balance stays higher for longer, but it puts the payment where the farm has the cash.
Illustration calculated in October 2026, assuming an interest rate of 9% a year. It is not a quote. Your rate depends on your trading history, credit profile and the equipment.
What lenders look for in livestock farmers
Lenders look at the usual financial documents, plus the things that show how a livestock farm’s income flows through the year.
- Your last 2 years of farm accounts, or management accounts and a budget for newer enterprises
- Your last 3 to 6 months of business bank statements
- What you farm, stock numbers and when you usually sell
- Any supply contracts, such as with a processor, integrator or retailer
- Whether you own or rent the land, and the length of any tenancy
- Supplier quotes, plus photo ID and address history for each director, member or partner
Related guides
Who we can help
We arrange asset finance for livestock farms that trade as UK limited companies and LLPs, and for sole traders and partnerships on agreements over £25,000 that are for business purposes. We are not authorised by the FCA, so we cannot arrange agreements of £25,000 or less for sole traders or partnerships of two or three partners, or finance for personal use.
Asset finance for livestock farmers FAQs
Can livestock farmers pay finance seasonally or annually?
Often, yes. Many agricultural lenders will set payments to match when the farm has money coming in, such as quarterly, half-yearly or once a year after stock sales. The total cost is a little higher than monthly payments, because the balance is outstanding for longer, but it can make cash flow far easier to manage.
Can I finance the livestock themselves?
Asset finance is mainly for equipment and machinery, not animals. A small number of specialist lenders do fund breeding stock, and some farmers raise money against livestock in other ways, but most finance on a livestock farm goes on feeders, handling systems, trailers and machinery. Tell us what you are trying to fund and we will point you to the right route.
Can I finance a cattle handling system or crush?
Yes. Handling systems, crushes, weigh scales and gates are widely funded, on their own or alongside a tractor, feeder or trailer. Electronic weighing and EID reading equipment that links to farm software can usually go on the same agreement.
Can sheep, pig and poultry farmers get asset finance?
Yes. Sheep farmers fund handling systems, turnover crates and quad bikes, pig farmers fund feeding, ventilation and slurry equipment, and poultry farmers fund the feeding, drinking, heating and ventilation systems inside their sheds. Lenders that specialise in agriculture know each of these sectors well.
Can I get finance if part of the cost is covered by a grant?
Usually, yes. Where a grant covers part of the cost of new equipment, lenders can often fund the remainder, and some can bridge the grant until it is paid. Tell us about the grant when you apply so the agreement can be set up around it.
Can I release cash from machinery I already own?
Yes. Through a sale and hire purchase back, a lender buys tractors, feeders or trailers you own outright and sells them back to you over a fixed term, so you keep using them. Livestock farmers use it to fund new equipment, buildings work or working capital between stock sales.
Get an asset finance quote for your livestock farm
Tell us what you want to finance
Send us the equipment, the prices and a few details about your farm and when you sell stock. We will come back with the options that are realistic and what they are likely to cost.
About the author
Marcus Wright is the owner and founder of Bolton Business Finance Ltd, which trades as Finance Assets. He has worked in financial services since 2008, beginning his career at Santander, and has been a commercial finance broker since March 2019.
He founded Bolton Business Finance in 2020 to give businesses access to the whole lending market rather than one bank’s own product range. The firm is a member of the National Association of Commercial Finance Brokers and works with a panel of 135+ lenders. Call 0161 546 9128.
Finance Assets is a trading name of Bolton Business Finance Ltd, an independent commercial finance brokerage, not a lender. We are not authorised by the Financial Conduct Authority and can only complete non-regulated introductions. All lending is for business purposes only. Registered address: Westgate House, 1 Westgate Avenue, Bolton, Greater Manchester, BL1 4RF. Company number 12495909.