Background
A forestry contractor based in Cumbria approached Alchemy Farming Finance after securing several new commercial forestry contracts across the North West. The business specialised in harvesting, woodland clearance and timber extraction work using specialist forestry machinery including harvesters, forwarders and forestry tractors.
The contractor had built a strong reputation for reliability and operated with a modern fleet of specialist equipment. Demand for services had increased significantly following storm damage and woodland management activity across the region. While the business was commercially strong, the increase in workload created additional pressure on cashflow, maintenance budgets and operating costs.
The business had substantial value tied up in forestry equipment that was already owned outright. The directors wanted to release capital from these assets without disrupting day-to-day operations or reducing machinery availability during a busy trading period.
Challenge
The key challenge was timing. Forestry work is highly seasonal and contract-driven. Machinery downtime or delayed mobilisation can result in lost revenue and damaged commercial relationships. The contractor needed working capital quickly to support labour, transport, fuel and maintenance costs linked to the new contracts.
Traditional lenders were prepared to review the case, but the process was slow and focused heavily on historic financial statements rather than the immediate strength of the contracts and equipment base. The directors needed a funding partner that understood the operational realities of forestry contracting and the importance of maintaining equipment availability.
The contractor also wanted to avoid using all available cash reserves. Forestry operations carry ongoing risks linked to weather, breakdowns and project timing, so preserving liquidity remained important.
Solution
Alchemy Farming Finance reviewed the contractor’s machinery fleet, operational position and contract pipeline. Several specialist forestry assets were identified as suitable for an asset-led refinance structure.
A funding package of £140,000 was arranged against selected machinery. The structure allowed the business to continue using the equipment while releasing working capital to support operational growth and contract mobilisation.
The process focused on practical information including machinery schedules, business background, contract details and the intended use of funds. This enabled the funding to progress without unnecessary delays.
Outcome
The funding gave the contractor the flexibility needed to take on additional commercial work without overextending cashflow. The business was able to maintain machinery properly, support staffing requirements and continue servicing contracts efficiently.
Importantly, the contractor retained full operational use of the equipment throughout the funding period. This protected productivity and allowed the business to continue expanding during a commercially important period.
Long-term impact
The refinance structure helped the business convert increased demand into sustainable growth while protecting liquidity. It also demonstrated how specialist forestry machinery can support practical funding solutions beyond straightforward equipment purchases.
For forestry businesses, machinery is often both operationally essential and financially valuable. Using those assets strategically can help contractors respond to opportunities without disrupting operations.