The AMC (Agricultural Mortgage Corporation) are the largest lender to the agricultural sector funding about 40% of the rural and farm market. AMC have a single national office and then appoint AMC Agents, as Carver Knowles is, to put applications for borrowing in to them.
For more information about the financial services we provide please visit our Finance page.
As AMC Agents, we are have a direct local link to them and also meet the farmer in person to prepare the application forms. This means we can really get to know the applicant and business and understand the lending proposal ensuring. We focus in Worcestershire, Gloucestershire and Herefordshire and are happy to travel to the farm to complete the application process.
It costs no more to use an AMC Agent to help you through the process than to deal direct and it is normally the quickest way to get an application moving.
Like other sorts of lending, AMC loans require security, typically farmland or farm houses and buildings and sufficient serviceability i.e. the ability to repay the loan. Proving serviceability is often the more challenging aspect as farm accounts often fluctuate due to unforeseen circumstances such as weather or global price volatility. AMC look back 3 years at actual accounts and forward 2 years at budgets so are taking a 5 year average of the business. It is however important to interpret the accounts and highlight any one off costs that stand out.
AMC are unique is their ‘lend and leave’ approach. They do undertake a thorough assessment before the loan is offered to ensure the business can afford it, but once provided there is no further contact with the business, unless the business wants it. This means that after the initial set up cost there are no further annual charges.
Many farmers prefer to deal with an AMC to their bank for the following reasons:
- They prefer long term debts to be with AMC and short term debts with the bank
- They like to diversify or spread their borrowing between two different lenders
- They like the lend and leave approach so once the loan has been set up there is not more hassle or cost
- They want a long term fixed rate that only AMC can offer (up to 30 years fixed)
- They like the ability to overpay up to half in the first 5 years and all of the loan after this period, even if the loan is a standard 25 year loan (variable rate loans only).