Agricultural Finance Guide

International Farm Equipment Finance: Import Guide

How to finance imported farm machinery from the EU, North America and beyond - post-Brexit import guide for UK farmers.

Importing Farm Equipment to the UK

UK farming businesses increasingly source specialist or competitively-priced equipment from international markets - EU manufacturers, North American grain and harvesting specialists, and Australasian precision agriculture technology providers. While most major brands have UK distribution networks, direct import of used or specialist equipment is common. Financing imported equipment requires additional steps compared to financing from a UK dealer.

The International Equipment Finance Process

Identify the Asset & Supplier

Confirm the equipment specification, supplier, country of origin, and purchase price. Where purchasing in a foreign currency, confirm the exchange rate and how it will be handled.

Confirm UK Compliance

Verify the equipment meets UK safety standards and type approval requirements. UKCA or CE marking may be required. Non-compliant equipment cannot be used on UK public roads or in certain operations.

Assess Import Costs

Calculate import duty (typically 2–6% for agricultural machinery), VAT (20%, recoverable), freight, and any inspection costs. These affect the total asset cost and thus the finance amount required.

Arrange Finance with a Specialist Broker

A broker with international equipment experience can identify lenders comfortable with import finance and help structure the transaction correctly - including currency risk, title transfer, and lender security.

Import Finance: At a Glance

Factor	New EU Equipment	Used EU Equipment	Non-EU Import
Import duty	0% (UK-EU trade agreement)	0% (origin rules apply)	2–6%
VAT at import	20% (recoverable)	20% (recoverable)	20% (recoverable)
Finance availability	Good	Moderate	Limited - specialist only
Deposit required	10–20%	20–35%	30–50%
UK valuation required	Usually not	Yes	Yes

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FAQs

Frequently asked questions

Can I finance farm equipment imported from outside the UK?

Yes, though the process is more complex than financing UK-sourced equipment. Lenders need to establish the asset's value, ensure it complies with UK safety and emissions regulations, and confirm clear title. Working with a specialist broker is important for import finance.

What are the customs and import duty costs on farm machinery?

Import duty on agricultural machinery from countries outside a free trade agreement can be 2–6% of the CIF (cost, insurance, freight) value. VAT at 20% is also payable at import, though VAT-registered farming businesses can recover this. Always confirm current duty rates with a freight forwarder.

Can I finance a tractor from the EU post-Brexit?

Yes. Most major EU manufacturers have UK distribution networks, so equipment typically enters the UK through an authorised importer. Finance is straightforward for brand-new equipment from authorised UK dealers.

What documentation is required for import equipment finance?

Lenders typically require: a purchase contract or invoice in sterling or a confirmed exchange rate; confirmation of title transfer; an equipment specification; evidence of UK type approval or CE marking; and, for used equipment, an independent UK valuation.

Can I use agricultural finance to fund the import of used farm equipment from Europe or North America?

Possible, but more limited. Used import equipment faces greater lender scrutiny regarding condition, safety compliance, and resale value. A UK independent valuation is almost always required, and deposit requirements are higher.

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Asset finance for business purposes is not regulated by the FCA. Rates shown are indicative as at October 2026 and depend on credit profile, term, asset and deposit. We act as a credit broker, not a lender. Your asset may be repossessed if you do not keep up repayments.