The AMC is not just finance for Farmers and definitely not just for farms!

A common misconception is that the AMC only lends finance to farmers to buy farms and agricultural purposes and although that is the core of the business they are also very competitive in supporting anyone with a rural business or property looking to make investment.

A classic example is when a client came to us to look at converting a barn (we do planning as well) and as we mapped out the aims and timescales of the planning requirements the conversation came around to how the project was to be funded. Now, the client was not a farmer but a self-employed engineer who worked on his own and had a small but profitable non-agricultural business. He had approached his bank for finance but as his tax returns showed a small net profit they were concerned about profitability, despite having a business account with them for the past twenty years. He had spoken to his mortgage broker, who understood that the net farm income took into account investments in the business and appreciated that there was money there but he struggled to get any of the high street lenders to see through the tax returns to offer finance for the business. In short although we could sort the planning he had very few options on how to finance the conversion and development.

As an AMC agent I had a quick look at the last few years of accounts and although they showed a relatively low net profit, like many self-employed businesses this client had a good accountant and much of the would-be profits were re-invested in the business and assigned so as to minimise the tax liability. This meant on closer inspection there was a good element of cashflow in the business that could be used to service a mortgage and given the client had 15 acres of prime agricultural land and an agricultural building with potential to convert to a dwelling he ticked both the serviceability and security boxes. Needless to say after the usual application process the AMC offered mortgage to the business and the terms were considered acceptable by our client and they are now moving forward with the development.

The key points where the AMC stood out from ‘normal’ lenders:

  1. They see through business accounts prepared by good accountants to understand the cashflow and profitability of the business to ensure a loan is affordable.
  2. A local agent can talk through the existing business and proposal to ensure those making the finance decisions have a complete understanding of the position of the business and the applicant.
  3. The rates offered are competitive with the high street lenders, particularly as there are no annual fees or chargeable reviews.

Who are the AMC?

The AMC are a financial service provider offering long-term funds specialising in all things relating to agriculture, horticulture, equine pursuits, and more or less any other land based commercial business. AMC is a member of Lloyds Banking Group but their approach to lending is different as they are connected to clients by a network of land agents and applications are prepared with the support of the agents not using a tick box form.

If you would like to know more about the us as agents or if you if you need finance for a rural business investment please give me a call and we can talk it through 01684 853404.