Farm Finance – Farm Bridging Finance with a difference
Farm and Country Finance can arrange farm bridging finance.
In other articles on our website (some links are displayed at the bottom of this page), we explained that farm bridging finance should be used only where it is appropriate and this case exemplifies this.
Farm bridging finance is short-term by its nature, and this can lead to a situation where there can be pressure to get out of it – customers should consider how a farm bridging loan is to be repaid and this is important. We have heard many stories of how borrowers were promised refinance, by brokers, only for them to disappoint and leave the borrowers with no place to go, often with very dire consequences.
In this case, our customers were a ‘salt of the earth’ farming family based near Bolton in Lancashire. Due to inclement weather they had incurred very substantial arrears on their farm mortgage and were facing re-possession and eviction. They owned a separate area of unencumbered land, which they were in the process of selling and we arranged a short-term farm bridging loan to help them repay their arrears.
Most importantly, the farm loan we arranged was for a three year term – this allowed greater flexibility and more time to repay. We often find that farm bridging loans are too short, which simply increases pressure on people who might already be under pressure, through farm mortgage arrears or other adverse credit issues.
We were also able to help in other ways, which added further value to our involvement. The family owned some land which had been turned into allotments which various people had been using for years. Having now agreed to sell these allotments, the buyers (who had possession of the land) were being slow in coming up with the money and we drafted appropriate letters for the family to send to the buyers to ‘motivate’ them into proceeding more quickly.
By choosing Farm and Country Finance to arrange their farm bridging finance, these customers not only got the right farm loan for their circumstances, but also received other services without further charge.
And the next case study, in this series, shows how it’s not all about the money because when these customers were thinking about changing their strategy to sell the land, we were quick to tell them why they should not do this.
These other case studies should help readers to decide why Farm and Country Finance is the best choice to arrange farm finance.