Breaking Down Barriers - Diversifying Income


Our client runs a successful third generation farm with over 400 acres of land. In addition to farming their own land, they also manage over 15,000 acres and have consequently built an impressive collection of agriculture equipment. This primarily consists of six tractors and two combine harvesters, amongst other smaller and more accessible machines.

In order to widen their horizons and diversify their income for the summer months, this particular client was interested in establishing an events space. Naturally, the establishment of such a space required significant funds that they did not initially have at their disposal.

This is where Charles & Dean came in.

By refinancing our client’s existing assets in the form of their agricultural equipment, we were able to provide a flexible finance solution that could release the funds necessary to create a high-functioning wedding and party venue, all in time for the events season to begin.

How does this work?

Equipment refinancing can often result in lower monthly payments, in turn improving cash flow. This is most often achieved through restructuring an existing agreement, resulting in both capital raising and adjusted monthly commitments.

Machinery and equipment are capital assets, meaning they contain equity against which a lender may be willing to loan money. A knowledgeable lender that understands the equipment and its value can refinance equipment that is either fully paid for or still has remaining debt outstanding.

In this case, the business already possessed assets with little to no debt attached to them. In order to fund the business owner’s ambition to diversify their income, we were able to release equity from their capital equipment via refinance. Refinancing equipment makes both financial and commercial sense as funding potential can be unlocked in the process and consequently used to:

  • Invest in projects that will incur long term profit

  • Make purchases – new equipment, raw materials, real estate, building improvements, etc.

  • Pay off other loans or obligations – taxes, lines of credit, etc.

  • Simply provide a cash cushion for when it's needed

If you are looking to diversify your income and would like to reduce your monthly payments, save cash and obtain working capital, reach out to the team at Charles & Dean now on 01780 763836.