Agricultural Inputs Stock Finance for a Farming Cooperative in Lincolnshire
£380,000 · 9 months · 3.8% over base. A Lincolnshire farming cooperative needed to bulk-purchase fertiliser, seed, and agrochemicals at the beginning of the growing season to secure the best prices and guarantee availability.
The Client
Lincolnshire farming cooperative
The Challenge
A Lincolnshire farming cooperative needed to bulk-purchase fertiliser, seed, and agrochemicals at the beginning of the growing season to secure the best prices and guarantee availability. The cooperative's members paid for inputs at harvest - creating a nine-month funding gap between purchase and receipt of payment.
Our Solution
Doulton arranged an agricultural stock finance facility secured on the physical inputs held in the cooperative's storage facilities. The seasonal nature of the lending - draw in spring, repay in autumn - was well understood by a specialist agricultural lender. Member payment guarantees provided additional comfort.
The Outcome
Full season's inputs purchased at pre-season prices, saving approximately £42,000 versus in-season purchase prices. All members received their inputs without restriction. Facility fully repaid at harvest. Key highlights: Agricultural inputs purchased at pre-season prices - £42k saving; Member payment guarantees provided additional security; Facility fully repaid at harvest - perfectly seasonal structure.