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A business guide for Young Farmers
from NFYFC and Savills


Types of finance


  • For short-term funding and/or working capital.
  • Is quick and easy to arrange and very flexible.
  • Renewed annually with your bank and is repayable on demand.
  • Annual fees plus interest rate.

Asset finance

  • To fund purchase of equipment or machinery – also known as Hire Purchase (HP)
  • Debt secured against the asset and the interest rate is fixed.
  • Monthly payments aid cash flow.
  • Finance over the useful life of the asset.
  • Can be penalties if you want to repay early.


  • Typically for longer-term finance/start up costs.
  • Term of loan is usually fixed giving certainty.
  • Option to fix the interest rate too.
  • Banks usually ask for security against the debt.


  • Usually non-repayable (provided you comply with the requirements).
  • Schemes change frequently.
  • Can have very specific requirements.

Crowd Funding

  • Based online seeking investment from a large group of people.
  • The two main types of crowd funding are equity based and rewards based crowd funding.  
  • Equity based crowd funding is selling a share in your business in exchange for an investment, whereas reward based is seeking investment in exchange for a supply of product or future discounts or members.
  • Crowd funders often have a higher appetite for risk than traditional financial institutions and as such can be a useful tool for raising capital for a fledgling business.  
  • A successful crowd funding campaign can add publicity to a project or venture which can be extremely helpful for the future marketing of a project.   

Other sources of funding might include:

  • Business Growth Fund
  • Enterprise Finance Guarantee scheme
  • Receivables finance