Example of Asset Refinancing: £85,000 for diversification project

Location: Nr-Carlisle, Cumbria

General Background

This midsize dairy farm had been hard hit by reducing milk prices over the last couple of years. They had recently produced some small batches of Halloumi cheese which had been well received in local markets and shops and they now had more orders but no capacity to produce the increased volume. The needed new funds to renovate one of their sheds and purchase new equipment to scale up production.

Finance Background

Private limited company
Property owner with 65% mortgage
No profit in business for last 2 years
Maxed overdraft at £50,000 but well managed
One finance agreement on a new telehandler
Bank not able to help because of poor recent accounts

Alchemy Funding Approach

Type: Sale & Leaseback
Term: 48 months
Funding security to value: 45%

Security

Tractors x 2
Tedders x 2
Mowers x 2
Muck spreader
Square baler
40 dairy cows

Rate

6.2% net