Example: replacing a tractor and sprayer on an arable farm
An arable farm has a tractor that costs more in repairs each season and a sprayer that no longer meets the farm's needs. Both are wanted before spring work starts, but the main income does not arrive until after harvest.
Funded over several years through tractor finance, the machines arrive in good time and the payments are planned around the farm's cash flow instead of leaning on the overdraft. A part exchange value on the old machines can also reduce the amount to fund. Our guide to asset finance and cash flow covers the thinking behind this.
Your accountant can say how the payments will sit in your accounts, and our tax relief page sets out the basics, including how lease rentals can often be offset.