Background
A large arable farming business in Lincolnshire contacted Alchemy Farming Finance after a period of increased input costs placed pressure on working capital. The farm operated across a substantial acreage and relied on a modern machinery fleet to maintain efficiency during drilling, spraying and harvest periods.
The business was well run and had a clear seasonal operating pattern. However, fertiliser, fuel, seed and crop protection costs had risen sharply, and several payments were due before the next major income point. The directors wanted to protect supplier relationships and avoid delaying planned work. They were also keen not to use all available cash reserves, as doing so would leave the business exposed if another unexpected cost arose.
The farm had significant value tied up in machinery, including tractors, cultivation equipment and specialist arable machinery. Some of this equipment was owned outright, creating an opportunity to use existing assets to support the business.
Challenge
The challenge was not whether the farm was viable. It clearly was. The issue was the timing of cash requirements. Arable businesses often spend heavily before income is received, and this timing gap can be significant when input prices rise.
Traditional lenders were prepared to look at the business, but the process was slow and documentation-heavy. The farm needed funding within a practical timeframe, not after several weeks of back-and-forth. The directors also wanted a structure that allowed them to keep using the machinery. Selling equipment was not an option because it would reduce operational efficiency and could increase contractor reliance.
The funding therefore needed to release capital quickly, be supported by real assets and fit around the farm’s seasonal position.
Solution
Alchemy Farming Finance reviewed the machinery schedule and discussed the funding purpose with the directors. Several owned assets were identified as suitable for an asset-led structure. These assets were important to the business but also had clear value, which made them suitable for releasing capital.
A funding package of £120,000 was arranged against selected machinery. The structure allowed the farm to retain use of the equipment while unlocking working capital for input costs and operational requirements.
The process focused on the key information required: asset details, business background, funding purpose and timescale. This allowed the enquiry to progress without unnecessary delay.
Outcome
The farm received the working capital needed to manage its input commitments and maintain momentum throughout the season. Supplier payments were made on time, planned work continued and the business avoided drawing down all cash reserves.
The directors felt the solution gave them control. Instead of reacting to pressure later in the season, they were able to act early and protect the operating position of the farm.
Long-term impact
The funding helped the business preserve liquidity while continuing to invest in production. It also demonstrated the value of machinery as a strategic funding tool. For arable farms, equipment is often central to both productivity and balance sheet strength. When used sensibly, that asset value can help manage seasonal pressure without undermining the operation.
